By Sharon Allen, CFP®, CTFA and Daly Andersson, CFA, CFP®
Investing in the stock market can be a humbling experience.
Time and time again, studies show us that acting on our natural human instincts and emotions is often detrimental to our investment outcomes. But in the face of uncertainty and fear, many of us feel the need to “do something”. Tolerating this discomfort requires us to have patience, discipline, and some level of hope or optimism for the future. So, how do you fight the urge to “do something” when you know you can’t control the market (or much of anything else on the grand stage)?
At Sterling, we are both disciplined in the discomfort, and optimistic about the future when investing on your behalf. Given the current investment environment, we want to take a moment to share what we have already done and what we are doing for you right now.
What Sterling Has Already Done for You
The most impactful work is done early on and monitored and adjusted as you go. As Alexander Graham Bell put it, “Before anything else, preparation is the key to success.” From the start of our work together, we have been helping you build resilience throughout your financial life. Starting by evaluating your entire financial house, we identify the areas where improvement is necessary, and we work to grow and bolster your financial foundation. An integral part of this foundation is your investment portfolio.
Designing and Growing Your Financial Foundation – One of the most important decisions that we make together is the mix of stocks, bonds, and cash to target within your portfolio – a decision that is determined through understanding your investment time horizon, the timing and amounts of anticipated withdrawal needs, and your ability to withstand volatility among other factors. Your asset allocation is designed and tailored in an effort to balance a level of long-term defensiveness and growth necessary for your unique financial situation. Empirical evidence has supported the thesis that asset allocation is one of the most important determinants of the variation in portfolio returns over time, demonstrating more impact on portfolio variation than other factors like security selection and market timing (Ibbotson & Kaplan, 2000). So once this optimal starting block is in place, we work to build the portfolio using a wide and diversified range of investment opportunities.
Ongoing Proactive Management of Cash Needs – As part of our disciplined strategy, your team at Sterling regularly reviews upcoming and anticipated future cash needs to ensure that there is sufficient cash and or fixed income resources on-hand to accommodate up to two years of regular distributions. In addition, if we know that you have large cash needs, we are proactively planning for that, as well.
Implementing the Best Ideas in Financial Science – Our in-house Investment Committee reviews client portfolios regularly to verify adherence to your unique target allocation, portfolio needs, and circumstances. Your Sterling team regularly invests time to enhance their knowledge and competence in the field of investment and wealth management, curating and incorporating some of the best ideas within the industry to your portfolio design. Within the last 12 months, we have focused on including additional complementary strategies within client portfolios with the intention of enhancing risk-adjusted returns over time. Some of the adjustments we have made to portfolios over the last year include adding an additional factor-based approach called “High Profitability” to our equity allocation and re-working the weightings of some of the diversifying asset classes like Emerging Market Equity and Real Estate to maintain a market-neutral exposure.
What Sterling Is Doing for You Now
What are the smart things that we are doing today to navigate through the current volatility in markets?
Maintain Discipline – The most important thing that we can do now – and the smartest – is maintain the course and stay disciplined. To do otherwise runs the risk of undermining long-term financial success. We want to ensure that temporary paper losses do not become permanent ones. The market does not announce when challenging times have “ended”. As you can see from the chart below, trying to wait out market volatility on the sidelines often leads to significant underperformance. Many of the best consecutive days of market returns are achieved in periods following market lows.
The Cost of Trying to Time the Market
Source: Dimensional Fund Advisors 2024
Seeking Out Planning Opportunities – Our team is working diligently to find opportunities within these market environments – whether in the form of tax loss harvesting, accelerating cash investments, Roth conversion, or increasing taxable gifting strategies. We desire to support you in making your financial house stronger and stewarding your resources in a savvy way.
Next Steps
Warren Buffet eloquently put it this way: “Human potential is far from exhausted, and the American system for unleashing that potential – a system that has worked wonders for over two centuries despite frequent interruptions for recessions and even a Civil War – remains alive and effective.” This statement is as true today as it ever was.
Any meaningful drawdown may be different from another, but it’s never different enough to permanently impact the long-term innovation and financial performance of American growth in aggregate. Whatever the tumult and challenge that Americans face, there is always a path forward. It may not always be readily apparent or easy (and it usually isn’t), but time and progress have a way of bringing us through to the other end. When limits are tested, ingenuity kicks in. Strive to find your hopefulness despite the uncertainty that abounds. And know that you are not alone.
Sources & Disclosures
Dimensional Fund Advisors (2024). The Cost of Trying to Time the Market Dimensional Quick Take.
Ibbotson, R. G., & Kaplan, P. D. (2000). Does Asset Allocation Policy Explain 40, 90, or 100 Percent of Performance? Financial Analysts Journal, 56(1), 26–33. https://doi.org/10.2469/faj.v56.n1.2327
The information in this material is intended for the recipient’s background information and use only. It is provided in good faith and without any warranty or representation as to accuracy or completeness. Information and opinions presented in this material have been obtained or derived from sources believed by Sterling to be reliable, and Sterling has reasonable grounds to believe that all factual information herein is true as at the date of this material. It does not constitute investment advice, a recommendation, or an offer of any services or products for sale and is not intended to provide a sufficient basis on which to make an investment decision. Before acting on any information in this document, you should consider whether it is appropriate for your particular circumstances and, if appropriate, seek professional advice. It is the responsibility of any persons wishing to make a purchase to inform themselves of and observe all applicable laws and regulations. Unauthorized reproduction or transmission of this material is strictly prohibited. Sterling accepts no responsibility for loss arising from the use of the information contained herein.
Risks: Investments involve risks. The investment return and principal value of an investment may fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original value. Past performance is not a guarantee of future results. There is no guarantee strategies will be successful. Diversification neither assures a profit nor guarantees against loss in a declining market.
https://sterlingwealthmanagement.com/wp-content/uploads/2025/04/stone-path-water-walking.jpg12242448Sterling Advisor Teamhttps://sterlingwealthmanagement.com/wp-content/uploads/2015/02/swm-logo-left-no-address-596.pngSterling Advisor Team2025-04-08 20:19:192025-04-08 20:41:29Markets in Motion – Managing Through Volatility
By Sharon Allen, CFP®, CTFA and Daly Andersson, CFA, CFP®
You’re caught driving in the middle of a ferocious storm. The windshield wipers are moving at a frenetic pace allowing you just a glimpse at the road ahead. You move slowly and intentionally forward, though it’s hard to even see the lines on the road alerting you to when you begin to veer out of your lane. White-knuckled, you pray you can just get to where you’re going in one piece.
Anyone who has been driving for any length of time has likely had this kind of moment. It’s scary and not the kind of environment one goes searching for. Today, many feel caught in this storm as the daily events in the U.S. and abroad continue challenging our status quo.
In the tempest of social, fiscal, and global uncertainty that seems to threaten our financial security, each of us has the opportunity to be a source of tranquility for ourselves and those we care about through simple daily choices. As financial stewards, keeping a level head and clear-sightedness is both our opportunity and responsibility to ensure we are making financial choices based on what we know versus reacting and creating permanent negative results to our thoughtfully constructed financial house.
It’s Your Choice. Choose Wisely.
The most “weather-resilient” investment strategies in the world are based upon observed data through decades. These observations support crafting a portfolio of investments – using both growth focused and more stable strategies – to accomplish your most important goals. Financial data and research tell us that these investment choices start with controlling what you can control. The smartest people we know do this through thoughtful diversification, targeting investments that have historically provided excess return to investors, while managing risk and costs.
Intelligent portfolio design also includes investing in companies from small to large and located in the US as well as abroad. At Sterling, we also target several other factors of strong portfolio design in client portfolios including:
Value companies (low price-to-book ratios, high dividend yields, and lower price-to-earnings)
High Profitability companies (stocks with high relative operating profits measured by operating profits divided by book equity)
Small-Cap companies
Below is an illustration of how some of these different design factors have performed for investors over time. We illustrate below the performance of both U.S. and International stock markets as well as short term fixed income and the Consumer Price Index from November 1998 through February 2025. In grey, you will see highlighted the three recessions we have experienced in the U.S. during this time frame. Now, if you close your eyes and remember the times described below (the “Dot Com Bubble”, the “Great Recession”, COVID), you will recall that the world felt like it was caught in a deluge with no path forward. But hindsight is always 20/20. What felt like a fork in the road with neither path leading to a viable solution proved that indeed there was a path forward out of each of these storms. Time and time again, over the long-term span of an investor’s lifetime, the commitment to a growth allocation has historically shown positive returns.
Exhibit 1 – Global and Factor Annualized Returns from November 1998 to February 2025
Navigating Through the Storm
Investments are a necessary tool to build and fortify a solid foundation for your financial house. A financial plan tailored to your unique life provides clear guidance through both the sunniest of days and the darkest of nights. This plan both beckons and reminds you that in any storm there is a path forward. Not unlike the instrument panel a captain would rely on when the environment feels like the craft is going in the wrong direction, your financial life plan is your guide.
Throughout history, we have experienced (and not infrequently) ups and downs in the stock market. The events that spur market movements change from day to day and decade to decade, but the learning a savvy investor must take is this: market declines are messy but necessary for a healthy, functioning market. Strive to maintain the course.
Referring again to the graph above (Exhibit 1) notice that through some enormous storms, the long-term growth for stock investors has historically resulted in higher returns and growth of invested dollars. What history has shown us is that for investors, it’s about time in the market and not timing the market.
Be Great
As the Bard in Shakespeare’s Twelfth Night decried, “Some are born great, some achieve greatness, and some have greatness thrust upon them.” When you find yourself in the middle of a tempest, you have the opportunity to be great and steward financial stability for yourself and those you care about for generations to come. Our advice is to control what you can control and stay on course. We are here with you every step of the way.
Sources & Disclosures
2025 YCharts, Inc.
The information in this material is intended for the recipient’s background information and use only. It is provided in good faith and without any warranty or representation as to accuracy or completeness. Information and opinions presented in this material have been obtained or derived from sources believed by Sterling to be reliable, and Sterling has reasonable grounds to believe that all factual information herein is true as at the date of this material. It does not constitute investment advice, a recommendation, or an offer of any services or products for sale and is not intended to provide a sufficient basis on which to make an investment decision. Before acting on any information in this document, you should consider whether it is appropriate for your particular circumstances and, if appropriate, seek professional advice. It is the responsibility of any persons wishing to make a purchase to inform themselves of and observe all applicable laws and regulations. Unauthorized reproduction or transmission of this material is strictly prohibited. Sterling accepts no responsibility for loss arising from the use of the information contained herein.
Risks: Investments involve risks. The investment return and principal value of an investment may fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original value. Past performance is not a guarantee of future results. There is no guarantee strategies will be successful. Diversification neither assures a profit nor guarantees against loss in a declining market.
https://sterlingwealthmanagement.com/wp-content/uploads/2025/03/ship-bridge-instrument-rain-outside.jpg533800Sterling Advisor Teamhttps://sterlingwealthmanagement.com/wp-content/uploads/2015/02/swm-logo-left-no-address-596.pngSterling Advisor Team2025-03-10 18:06:132025-03-10 19:12:03Navigating the Tempest
In today’s world, our digital lives have expanded from simply an email account and online banking login to a virtual reality that we control from the phone we carry with us nearly everywhere. From online financial accounts and cryptocurrency to social media profiles, streaming services, travel loyalty programs and digital photos, our ever-expanding digital footprint requires attention in our estate plan.
The average person has over 90 online accounts, many containing valuable information, digital assets, or financial resources. Unlike physical assets that can be discovered during estate administration, digital assets may remain hidden without proper documentation and access instructions. Without proper planning, these assets can become inaccessible, lost forever, or vulnerable to identity theft after your death.
Important Factors to Consider in Digital Estate Planning
Provider Terms of Service
Most online platforms have Terms of Service agreements that often prohibit account transfers upon death. These agreements can create significant barriers for executors trying to access accounts, even with court orders.
Federal Laws
The Computer Fraud and Abuse Act (CFAA) and the Stored Communications Act (SCA) can criminalize unauthorized access to digital accounts, even by family members or executors. These laws were created to protect privacy but can complicate legitimate estate administration.
State Laws
The Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA), adopted by most states, provides a legal framework for fiduciary access to digital assets. However, implementation varies by state, and the law still generally gives priority to the service provider’s terms of service.
Steps to Take When Creating an Estate Plan for Digital Assets
Create a Digital Asset Inventory
Develop a comprehensive inventory of your digital assets. For each account, document the platform name, username/email address used, and the purpose of the account. Be sure to store this inventory securely, updating it regularly.
When updating your estate planning documents, be sure to include specific digital directives. These should explicitly authorize your fiduciary to access, manage, modify, delete, and control your digital assets. We recommend discussing with your attorney about including this language in the following documents:
Will
Power of Attorney
Trust documents
Side Letter of instruction
Store Digital Login Information Securely
While including passwords in your will isn’t recommended (as wills become public record when you pass away), consider using a password manager with an emergency access feature or creating a separate confidential document with access information. The location of this document and/or password manager login should be stored securely and shared with the individuals who will be your agents.
Use Platform-Specific “Legacy Tools”
Many online platforms now offer legacy planning tools. These tools allow you to designate someone to manage or memorialize your accounts after death. Below are some of the more common platforms and the name of their specific tool. When you designate someone as your legacy contact, be sure to let them know.
Google’s Inactive Account Manager
Facebook’s Legacy Contact
Apple’s Digital Legacy program
Microsoft’s Inactive Account Manager
Instagram’s Memorialization settings
Talk with Your Family
Have open conversations with family members about your digital asset inventory and your wishes for your digital accounts. If there are sentimental digital assets, like photos, messages or other content with sentimental value, be sure to let your loved ones know not just the “where”, but also the “why”. And don’t forget to make sure your executor knows where and how to access all of this important information!
Digital estate planning is no longer optional in our increasingly digital world. By taking proactive steps now, you can ensure your digital assets are managed according to your wishes, prevent identity theft, protect valuable or sentimental digital content, and save your loved ones from unnecessary stress and complications during an already difficult time. Review and update your digital estate plan regularly as your digital footprint evolves and as platforms and laws change.
Preparing for your digital afterlife today is truly an act of love. You provide clarity and peace of mind for those who will be managing this part of your life when you no longer can.
https://sterlingwealthmanagement.com/wp-content/uploads/2025/03/digital-life-keyboard.jpg533800Sterling Advisor Teamhttps://sterlingwealthmanagement.com/wp-content/uploads/2015/02/swm-logo-left-no-address-596.pngSterling Advisor Team2025-03-10 16:20:412025-03-10 18:15:435 Key Steps to Creating a Digital Asset Plan
Since the late 1970’s, Social Security retirement benefits have been reduced for many public sector retirees such as employees of public schools, police officers, firefighters, mail carriers, and many others. The Social Security Fairness Act of 2023 changes that. With the repeal of the Government Pension Offset (GPO) and the Windfall Elimination Provision (WEP), the Social Security Fairness Act is poised to increase retirement benefits for nearly 3 million currently retired public workers as well as millions of future retirees in the public sector.
President Joe Biden officially signed the Social Security Fairness Act of 2023 (H.R. 82) into law on Sunday, January 5th, 2025. This law will fully repeal the Windfall Elimination Provision, which affected individuals with non-covered pensions and fewer than 30 years of Social Security earnings, and the Government Pension Offset, which affected individuals with non-covered pensions who would otherwise be eligible to receive Social Security retirement or survivor’s benefits through a spouse or ex-spouse’s earnings record. The repeal of these two provisions will be retroactive to December 31, 2023.
What Does This Mean?
The repeal of WEP and GPO allows previously affected individuals to now receive their full Social Security benefit. According to the Congressional Budget Office (CBO), these changes are estimated to have the following impact:
Eliminating the Windfall Elimination Provision is estimated to increase the Social Security retirement benefits for more than 2 million affected retirees. The average anticipated increase is $360/month or $4,320/year.
Eliminating the Government Pension Offset is expected to raise benefits for nearly 400,000 retirees by an average of $700/month or $8,400/year who may be eligible to claim a spousal benefit based on a spouse or ex-spouse’s earnings history.
Nearly 200,000 affected widows and widowers are estimated to see their Social Security Survivor’s Benefits increase by an average of $1,190/month or $14,280/year.
What Should Affected Social Security Recipients Expect?
If you have previously filed for Social Security benefits and they are partially or completely offset due to a public pension…
Verify that your current mailing address and direct deposit information is up to date by logging into your “my Social Security” account, calling, or visiting Social Security.
If you have not previously filed for Social Security benefits and are receiving a public pension…
You may file for benefits online at SSA.Gov/apply or schedule an appointment.
Even though the Social Security Administration is still evaluating how to implement the act, it is expected that affected individuals may receive a lump sum payment for any WEP or GPO reductions back-dated to 12/31/2023.
How Can Your Sterling Wealth Management Team Assist You?
If you believe that you or someone you care about may be affected by these changes, please don’t hesitate to reach out to the advisory team at Sterling. We can help you understand the benefits to which you may be entitled, identify any impact on your personal situation, and help you identify the appropriate next steps to ensure that you receive your full benefits. It’s our honor to help provide education and assistance to people you care about who may be impacted by these changes. Please don’t hesitate to reach out if we can be of assistance in this or any other matter in your financial life.
The Social Security Fairness Bill (H.R. 82), introduced in January of 2023, has passed the Senate and House and is on the desk of President Biden awaiting his signature by year-end. While supporters and critics of the bill still have concerns as to how it would be funded over the long-term, it appears poised to be signed by the President having received largely bipartisan support in Congress.
This legislation is designed to eliminate the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO). These two provisions currently reduce Social Security benefits for people with retirement from non-covered employers such as public-school educators, state university employees, police officers, firefighters, and many other local, state, and federal employees. If signed into law, this repeal will be effective as of December 2023.
History of WEP and GPO
In 1977 and 1983, Congress established the Government Pension Offset (GPO) and the Windfall Elimination Provisions (WEP) respectively to reduce Social Security benefits for individuals receiving retirement benefits from employers who were not required to withhold for Social Security taxes.
The WEP provision applies to individuals with non-covered pensions who were employed for fewer than 30 years by a Social Security-covered job. The GPO provision reduces the benefits that would be received by spouses and widow(er)s of covered workers. Currently, the WEP reduces the Social Security benefits of 1.7 Million Americans and the GPO affects 420,000. Those who are critical of these policies state that the WEP and GPO over-correct the unintended windfall and disproportionately affect lower and more moderate-income retirees. Two-thirds of retirees affected by these two provisions were formerly employed by state or local government employees.
How Could This Bill Affect You?
Windfall Elimination Provision – If you are eligible to receive retirement benefits from a ‘non-covered’ employer and have at least 40 quarters of Social Security earnings history, your Social Security benefits may no longer be reduced.
Government Pension Offset – Married, Divorced (with a marriage of at least 10 years), and widow(er) individuals who are eligible to receive retirement benefits from a non-covered employer may be entitled to Social Security Spousal or Survivor Benefits.
What Should You Do If You Believe These Changes May Affect You?
Gather your information.
Start by creating your login with Social Security and downloading your most recent benefit estimate statement or your Social Security retirement statement at SSA.GOV.
Obtain information about your non-covered retirement benefits. If you are receiving benefits, what is the gross amount? If you are not yet receiving benefits, obtain a copy of a benefits estimate.
Contact the team at Sterling to discuss your unique situation and provide us with this updated information.
We will continue to keep you informed as information becomes available. Have a wonderful holiday season and a very happy new year!
https://sterlingwealthmanagement.com/wp-content/uploads/2024/12/social-security-congress.jpg13812171Sterling Advisor Teamhttps://sterlingwealthmanagement.com/wp-content/uploads/2015/02/swm-logo-left-no-address-596.pngSterling Advisor Team2024-12-24 09:01:452024-12-26 15:17:37Social Security Fairness Act of 2023 Heads to the President for Signature
Markets in Motion – Managing Through VolatilityApril 8, 2025 -
Navigating the TempestMarch 10, 2025 -
5 Key Steps to Creating a Digital Asset PlanMarch 10, 2025 -
Social Security Fairness Act of 2023…Signed, Sealed & DeliveredJanuary 15, 2025 -
Social Security Fairness Act of 2023 Heads to the President for SignatureDecember 24, 2024 -
Markets in Motion – Managing Through Volatility
/in Family Wealth, Investing, Wealth Management/by Sterling Advisor TeamBy Sharon Allen, CFP®, CTFA and Daly Andersson, CFA, CFP®
Investing in the stock market can be a humbling experience.
Time and time again, studies show us that acting on our natural human instincts and emotions is often detrimental to our investment outcomes. But in the face of uncertainty and fear, many of us feel the need to “do something”. Tolerating this discomfort requires us to have patience, discipline, and some level of hope or optimism for the future. So, how do you fight the urge to “do something” when you know you can’t control the market (or much of anything else on the grand stage)?
At Sterling, we are both disciplined in the discomfort, and optimistic about the future when investing on your behalf. Given the current investment environment, we want to take a moment to share what we have already done and what we are doing for you right now.
What Sterling Has Already Done for You
The most impactful work is done early on and monitored and adjusted as you go. As Alexander Graham Bell put it, “Before anything else, preparation is the key to success.” From the start of our work together, we have been helping you build resilience throughout your financial life. Starting by evaluating your entire financial house, we identify the areas where improvement is necessary, and we work to grow and bolster your financial foundation. An integral part of this foundation is your investment portfolio.
What Sterling Is Doing for You Now
What are the smart things that we are doing today to navigate through the current volatility in markets?
The Cost of Trying to Time the Market
Source: Dimensional Fund Advisors 2024
Next Steps
Warren Buffet eloquently put it this way: “Human potential is far from exhausted, and the American system for unleashing that potential – a system that has worked wonders for over two centuries despite frequent interruptions for recessions and even a Civil War – remains alive and effective.” This statement is as true today as it ever was.
Any meaningful drawdown may be different from another, but it’s never different enough to permanently impact the long-term innovation and financial performance of American growth in aggregate. Whatever the tumult and challenge that Americans face, there is always a path forward. It may not always be readily apparent or easy (and it usually isn’t), but time and progress have a way of bringing us through to the other end. When limits are tested, ingenuity kicks in. Strive to find your hopefulness despite the uncertainty that abounds. And know that you are not alone.
Sources & Disclosures
Dimensional Fund Advisors (2024). The Cost of Trying to Time the Market Dimensional Quick Take.
Ibbotson, R. G., & Kaplan, P. D. (2000). Does Asset Allocation Policy Explain 40, 90, or 100 Percent of Performance? Financial Analysts Journal, 56(1), 26–33. https://doi.org/10.2469/faj.v56.n1.2327
The information in this material is intended for the recipient’s background information and use only. It is provided in good faith and without any warranty or representation as to accuracy or completeness. Information and opinions presented in this material have been obtained or derived from sources believed by Sterling to be reliable, and Sterling has reasonable grounds to believe that all factual information herein is true as at the date of this material. It does not constitute investment advice, a recommendation, or an offer of any services or products for sale and is not intended to provide a sufficient basis on which to make an investment decision. Before acting on any information in this document, you should consider whether it is appropriate for your particular circumstances and, if appropriate, seek professional advice. It is the responsibility of any persons wishing to make a purchase to inform themselves of and observe all applicable laws and regulations. Unauthorized reproduction or transmission of this material is strictly prohibited. Sterling accepts no responsibility for loss arising from the use of the information contained herein.
Risks: Investments involve risks. The investment return and principal value of an investment may fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original value. Past performance is not a guarantee of future results. There is no guarantee strategies will be successful. Diversification neither assures a profit nor guarantees against loss in a declining market.
Navigating the Tempest
/in Family Wealth, Investing, Wealth Management/by Sterling Advisor TeamBy Sharon Allen, CFP®, CTFA and Daly Andersson, CFA, CFP®
You’re caught driving in the middle of a ferocious storm. The windshield wipers are moving at a frenetic pace allowing you just a glimpse at the road ahead. You move slowly and intentionally forward, though it’s hard to even see the lines on the road alerting you to when you begin to veer out of your lane. White-knuckled, you pray you can just get to where you’re going in one piece.
Anyone who has been driving for any length of time has likely had this kind of moment. It’s scary and not the kind of environment one goes searching for. Today, many feel caught in this storm as the daily events in the U.S. and abroad continue challenging our status quo.
In the tempest of social, fiscal, and global uncertainty that seems to threaten our financial security, each of us has the opportunity to be a source of tranquility for ourselves and those we care about through simple daily choices. As financial stewards, keeping a level head and clear-sightedness is both our opportunity and responsibility to ensure we are making financial choices based on what we know versus reacting and creating permanent negative results to our thoughtfully constructed financial house.
It’s Your Choice. Choose Wisely.
The most “weather-resilient” investment strategies in the world are based upon observed data through decades. These observations support crafting a portfolio of investments – using both growth focused and more stable strategies – to accomplish your most important goals. Financial data and research tell us that these investment choices start with controlling what you can control. The smartest people we know do this through thoughtful diversification, targeting investments that have historically provided excess return to investors, while managing risk and costs.
Intelligent portfolio design also includes investing in companies from small to large and located in the US as well as abroad. At Sterling, we also target several other factors of strong portfolio design in client portfolios including:
Below is an illustration of how some of these different design factors have performed for investors over time. We illustrate below the performance of both U.S. and International stock markets as well as short term fixed income and the Consumer Price Index from November 1998 through February 2025. In grey, you will see highlighted the three recessions we have experienced in the U.S. during this time frame. Now, if you close your eyes and remember the times described below (the “Dot Com Bubble”, the “Great Recession”, COVID), you will recall that the world felt like it was caught in a deluge with no path forward. But hindsight is always 20/20. What felt like a fork in the road with neither path leading to a viable solution proved that indeed there was a path forward out of each of these storms. Time and time again, over the long-term span of an investor’s lifetime, the commitment to a growth allocation has historically shown positive returns.
Exhibit 1 – Global and Factor Annualized Returns from November 1998 to February 2025
Navigating Through the Storm
Investments are a necessary tool to build and fortify a solid foundation for your financial house. A financial plan tailored to your unique life provides clear guidance through both the sunniest of days and the darkest of nights. This plan both beckons and reminds you that in any storm there is a path forward. Not unlike the instrument panel a captain would rely on when the environment feels like the craft is going in the wrong direction, your financial life plan is your guide.
Throughout history, we have experienced (and not infrequently) ups and downs in the stock market. The events that spur market movements change from day to day and decade to decade, but the learning a savvy investor must take is this: market declines are messy but necessary for a healthy, functioning market. Strive to maintain the course.
Referring again to the graph above (Exhibit 1) notice that through some enormous storms, the long-term growth for stock investors has historically resulted in higher returns and growth of invested dollars. What history has shown us is that for investors, it’s about time in the market and not timing the market.
Be Great
As the Bard in Shakespeare’s Twelfth Night decried, “Some are born great, some achieve greatness, and some have greatness thrust upon them.” When you find yourself in the middle of a tempest, you have the opportunity to be great and steward financial stability for yourself and those you care about for generations to come. Our advice is to control what you can control and stay on course. We are here with you every step of the way.
Sources & Disclosures
2025 YCharts, Inc.
The information in this material is intended for the recipient’s background information and use only. It is provided in good faith and without any warranty or representation as to accuracy or completeness. Information and opinions presented in this material have been obtained or derived from sources believed by Sterling to be reliable, and Sterling has reasonable grounds to believe that all factual information herein is true as at the date of this material. It does not constitute investment advice, a recommendation, or an offer of any services or products for sale and is not intended to provide a sufficient basis on which to make an investment decision. Before acting on any information in this document, you should consider whether it is appropriate for your particular circumstances and, if appropriate, seek professional advice. It is the responsibility of any persons wishing to make a purchase to inform themselves of and observe all applicable laws and regulations. Unauthorized reproduction or transmission of this material is strictly prohibited. Sterling accepts no responsibility for loss arising from the use of the information contained herein.
Risks: Investments involve risks. The investment return and principal value of an investment may fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original value. Past performance is not a guarantee of future results. There is no guarantee strategies will be successful. Diversification neither assures a profit nor guarantees against loss in a declining market.
5 Key Steps to Creating a Digital Asset Plan
/in Communication, Estate Planning, Family Wealth, Wealth Management/by Sterling Advisor TeamWe carry ourselves in the palm of our hand.
In today’s world, our digital lives have expanded from simply an email account and online banking login to a virtual reality that we control from the phone we carry with us nearly everywhere. From online financial accounts and cryptocurrency to social media profiles, streaming services, travel loyalty programs and digital photos, our ever-expanding digital footprint requires attention in our estate plan.
The average person has over 90 online accounts, many containing valuable information, digital assets, or financial resources. Unlike physical assets that can be discovered during estate administration, digital assets may remain hidden without proper documentation and access instructions. Without proper planning, these assets can become inaccessible, lost forever, or vulnerable to identity theft after your death.
Important Factors to Consider in Digital Estate Planning
Provider Terms of Service
Most online platforms have Terms of Service agreements that often prohibit account transfers upon death. These agreements can create significant barriers for executors trying to access accounts, even with court orders.
Federal Laws
The Computer Fraud and Abuse Act (CFAA) and the Stored Communications Act (SCA) can criminalize unauthorized access to digital accounts, even by family members or executors. These laws were created to protect privacy but can complicate legitimate estate administration.
State Laws
The Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA), adopted by most states, provides a legal framework for fiduciary access to digital assets. However, implementation varies by state, and the law still generally gives priority to the service provider’s terms of service.
Steps to Take When Creating an Estate Plan for Digital Assets
Develop a comprehensive inventory of your digital assets. For each account, document the platform name, username/email address used, and the purpose of the account. Be sure to store this inventory securely, updating it regularly.
When updating your estate planning documents, be sure to include specific digital directives. These should explicitly authorize your fiduciary to access, manage, modify, delete, and control your digital assets. We recommend discussing with your attorney about including this language in the following documents:
While including passwords in your will isn’t recommended (as wills become public record when you pass away), consider using a password manager with an emergency access feature or creating a separate confidential document with access information. The location of this document and/or password manager login should be stored securely and shared with the individuals who will be your agents.
Many online platforms now offer legacy planning tools. These tools allow you to designate someone to manage or memorialize your accounts after death. Below are some of the more common platforms and the name of their specific tool. When you designate someone as your legacy contact, be sure to let them know.
Have open conversations with family members about your digital asset inventory and your wishes for your digital accounts. If there are sentimental digital assets, like photos, messages or other content with sentimental value, be sure to let your loved ones know not just the “where”, but also the “why”. And don’t forget to make sure your executor knows where and how to access all of this important information!
Digital estate planning is no longer optional in our increasingly digital world. By taking proactive steps now, you can ensure your digital assets are managed according to your wishes, prevent identity theft, protect valuable or sentimental digital content, and save your loved ones from unnecessary stress and complications during an already difficult time. Review and update your digital estate plan regularly as your digital footprint evolves and as platforms and laws change.
Preparing for your digital afterlife today is truly an act of love. You provide clarity and peace of mind for those who will be managing this part of your life when you no longer can.
Social Security Fairness Act of 2023…Signed, Sealed & Delivered
/in Retirement, Tax/by Sterling Advisor TeamSince the late 1970’s, Social Security retirement benefits have been reduced for many public sector retirees such as employees of public schools, police officers, firefighters, mail carriers, and many others. The Social Security Fairness Act of 2023 changes that. With the repeal of the Government Pension Offset (GPO) and the Windfall Elimination Provision (WEP), the Social Security Fairness Act is poised to increase retirement benefits for nearly 3 million currently retired public workers as well as millions of future retirees in the public sector.
President Joe Biden officially signed the Social Security Fairness Act of 2023 (H.R. 82) into law on Sunday, January 5th, 2025. This law will fully repeal the Windfall Elimination Provision, which affected individuals with non-covered pensions and fewer than 30 years of Social Security earnings, and the Government Pension Offset, which affected individuals with non-covered pensions who would otherwise be eligible to receive Social Security retirement or survivor’s benefits through a spouse or ex-spouse’s earnings record. The repeal of these two provisions will be retroactive to December 31, 2023.
What Does This Mean?
The repeal of WEP and GPO allows previously affected individuals to now receive their full Social Security benefit. According to the Congressional Budget Office (CBO), these changes are estimated to have the following impact:
What Should Affected Social Security Recipients Expect?
The Social Security Administration has provided guidance based on your current filing status.
Even though the Social Security Administration is still evaluating how to implement the act, it is expected that affected individuals may receive a lump sum payment for any WEP or GPO reductions back-dated to 12/31/2023.
How Can Your Sterling Wealth Management Team Assist You?
If you believe that you or someone you care about may be affected by these changes, please don’t hesitate to reach out to the advisory team at Sterling. We can help you understand the benefits to which you may be entitled, identify any impact on your personal situation, and help you identify the appropriate next steps to ensure that you receive your full benefits. It’s our honor to help provide education and assistance to people you care about who may be impacted by these changes. Please don’t hesitate to reach out if we can be of assistance in this or any other matter in your financial life.
Sources
Folley, Aris. “Biden Signs Social Security Fairness Act into Law: What to Know.” The Hill, The Hill, 6 Jan. 2025, https://thehill.com/homenews/administration/5070259-social-security-benefits-expansion/
Higham, Aliss. “Social Security Update: Recipients to Get $4,320 in Backdated Payments.” Newsweek, Newsweek, 7 Jan. 2025, https://www.newsweek.com/social-security-update-recipients-backdated-payments-2010319
Konish, Lorie. “Biden Signs Bill to Increase Social Security Benefits for Millions of Public Workers.” CNBC, CNBC, 5 Jan. 2025, https://www.cnbc.com/2025/01/05/biden-signs-social-security-bill-to-increase-benefits-for-millions-of-public-workers.html
Social Security Administration Press Release. “Social Security Fairness Act: Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) update, 6 January, 2025, https://www.ssa.gov/benefits/retirement/social-security-fairness-act.html
Social Security Fairness Act of 2023 Heads to the President for Signature
/in Retirement, Tax/by Sterling Advisor TeamThe Social Security Fairness Bill (H.R. 82), introduced in January of 2023, has passed the Senate and House and is on the desk of President Biden awaiting his signature by year-end. While supporters and critics of the bill still have concerns as to how it would be funded over the long-term, it appears poised to be signed by the President having received largely bipartisan support in Congress.
This legislation is designed to eliminate the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO). These two provisions currently reduce Social Security benefits for people with retirement from non-covered employers such as public-school educators, state university employees, police officers, firefighters, and many other local, state, and federal employees. If signed into law, this repeal will be effective as of December 2023.
History of WEP and GPO
In 1977 and 1983, Congress established the Government Pension Offset (GPO) and the Windfall Elimination Provisions (WEP) respectively to reduce Social Security benefits for individuals receiving retirement benefits from employers who were not required to withhold for Social Security taxes.
The WEP provision applies to individuals with non-covered pensions who were employed for fewer than 30 years by a Social Security-covered job. The GPO provision reduces the benefits that would be received by spouses and widow(er)s of covered workers. Currently, the WEP reduces the Social Security benefits of 1.7 Million Americans and the GPO affects 420,000. Those who are critical of these policies state that the WEP and GPO over-correct the unintended windfall and disproportionately affect lower and more moderate-income retirees. Two-thirds of retirees affected by these two provisions were formerly employed by state or local government employees.
How Could This Bill Affect You?
Windfall Elimination Provision – If you are eligible to receive retirement benefits from a ‘non-covered’ employer and have at least 40 quarters of Social Security earnings history, your Social Security benefits may no longer be reduced.
Government Pension Offset – Married, Divorced (with a marriage of at least 10 years), and widow(er) individuals who are eligible to receive retirement benefits from a non-covered employer may be entitled to Social Security Spousal or Survivor Benefits.
What Should You Do If You Believe These Changes May Affect You?
Gather your information.
We will continue to keep you informed as information becomes available. Have a wonderful holiday season and a very happy new year!
Sources
2019, Springstead, Glenn R., The Social Security Windfall Elimination Provision: Issues and Replacement Alternatives, Social Security Bulletin, Vol. 79 No. 3, (https://www.ssa.gov/policy/docs/ssb/v79n3/v79n3p1.html#:~:text=Congress%20established%20the%20Windfall%20Elimination,pension%20income%20from%20noncovered%20employment).
2024 May, Social Security Program Explainers. Government Pension Offset & Windfall Elimination Provision, (https://www.ssa.gov/policy/docs/program-explainers/government-pension-offset.html#:~:text=Congress%20created%20the%20GPO%20in,earnings%20would%20be%20roughly%20equal).
2024 December, US Congressman Garret Graves Press Release, U.S. Senate Passes Graves-Spanberger Social Security Fairness Act to Eliminate the WEP & GPO, Sends Bill to President’s Desk to Provide Long Overdue Fairness to Police Officers, Firefighters, Educators, & Local & Governmental Employees, (https://garretgraves.house.gov/news/documentsingle.aspx?DocumentID=4136#:~:text=According%20to%20a%20nonpartisan%202024,the%20WEP%20and%20the%20GPO).
2024 December, H.R.82 – Social Security Fairness Act of 2023, https://www.congress.gov/bill/118th-congress/house-bill/82