4 things to consider

4 Things To Consider Before You Invest

4 Things To Consider Before You Invest

  • Insert Text here

    We live in an ever-changing, global investment landscape … and yet, the stock market and U.S. economy seem to go through the same cycles over and over. With each era, new investment trends surface. Often complicated and difficult for investors to understand, these “latest and greatest” investment offerings tend to fade away. Plus, no matter which way you turn, you’ll likely find an “expert” enticing you to try to time the market or chase performance. The noise can be overwhelming.

    What Can You Do?

    Tune out the noise and focus on what matters — you and your long-term financial goals. Before you hire an investment manager, make sure you consider and understand their “Four Ps” giving equal weight to each.

    1. People: Call or visit the firm’s office. Get a feel for their culture and be sure to ask how long the portfolio managers have worked there — longevity can be a good sign.
    2. Philosophy: Can the investment managers clearly explain their philosophy within one minute?
    3. Process: Make sure their investment process is detailed, yet straightforward and understandable.
    4. Performance: Unfortunately, many investors look at performance as the most important factor. Past performance is no guarantee of future results so it’s crucial to evaluate all Four Ps equally.
  • 4 things to consider

    Insert Image here

SHARE ON


Back

Continue reading

Saving for a Child’s College vs. Saving for Retirement

Saving for a Child’s College vs. Saving for Retirement

Saving for a Child’s College vs. Saving for Retirement

Kevin Smith, CFP®, Director of Fenimore’s Private Client Services, provides insights on this popular subject. For a more in-depth look at whether you are building enough wealth for your desired retirement lifestyle, watch Kevin’s video, “Investing for What Matters Most.”

Full Video

SHARE ON


Back

Continue reading

Investing for What Matters Most

Investing for What Matters Most

Investing for What Matters Most

Fenimore’s Director of Private Client Services, Kevin Smith, CFP®, hosts this investor education video and covers topics such as:

  • How Your Savings Compare to Your Age Group
  • How Much Should You Save and Where
  • Paying Down Debt vs. Investing
  • Understanding Different Retirement Accounts
  • The Impact of Inflation on Your Savings
  • An Action Item Checklist
SHARE ON


Back

Continue reading

The Value of a Long-Term View

The Value of a Long-Term View

The Value of a Long-Term View

  • Insert Text here

    Imagine someone ringing your doorbell every minute from 9:30 a.m. until 4:00 p.m., Monday through Friday, to tell you a price they would pay for your house even though it was not for sale. Would you sell?

    Would you sell if each time you opened the door they offered you less and less? Obviously not — that would be irrational because you know the true value of your house. The same applies to stocks of quality companies — they have value despite their daily price movements.

  • The Value of a Long-Term View

    Insert Image here

Economic Worth of A Business

However, investors often perceive “value” in the stock market as “price” and forget the economic worth of the business attached to the stock. During selloffs, markets can drop because of uncontrollable factors that are not purely economic in nature,  despite sound company-level fundamentals. Many perceive this day-to-day volatility as “risk,” but you certainly wouldn’t consider daily price movements as risk to your home’s long-term value. Perhaps the long-term view that real estate investors often take could be a good lesson for stock investors.

Similar to your home, companies have actual economic value despite their stock price on any given day. They are not just pieces of paper or a blip on the computer screen. We favor quality U.S. businesses and, ultimately, a stock’s performance depends upon the underlying company’s ability to grow economically — not how the market prices its stock on a daily basis.

Time in the Market, Not Market Timing

Investors often let their emotions get in the way of rational decision making. They become fearful and sell when they should buy. The typical result is that they miss the market upswings and their gains are much less than what they would have been if they had just stayed the course. Trying to time the market just does not work consistently enough to build wealth over the long term.

Additionally, there is an overwhelming amount of research that shows that long-term investing — even through a stock market downturn — yields better results over the years than trying to time a decline, remove capital, and return when “things are better.” In fact, studies of 20-year periods demonstrate that missing just 10 of the best days in the stock market over two decades can dramatically affect an investor’s rate of return.

Maintain A Long-Term View

Solid, fundamental business characteristics do not make a stock impervious to daily price movements, and all asset classes fluctuate including bonds and real estate. However, just as your home’s value can grow over time, stocks of quality, financially sound companies also possess long-term growth potential. We believe that stocks are essential in order to outpace inflation and generate real wealth over the long haul.

If you focus on your long-term financial goals and not short-term stock market fluctuations, you can be successful. So as stock market volatility causes people to be fearful, try to focus on quality businesses that can help defend against what we believe is true risk – the permanent loss of capital.

SHARE ON


Back

Continue reading

All Aboard

All Aboard!

All Aboard!

Tom Putnam, Fenimore Asset Management’s Founder & Executive Chairman, has a saying, “You have to be aboard the train before it leaves the station.” His analogy pertains to investing,  especially investors who believe that they can time the market.

Market timers hope they can catch the market at its highest or lowest point in an attempt to maximize returns and often let their emotions get in the way of rational decision making. They become fearful and sell when they should buy. The typical result is that they miss market upswings and their gains are much less than what they would have been if they had just stayed the course. Trying to time the market does not work over the long term.

Time in the Market — Not Market Timing

Nobel Laureate William Sharpe found that stock market timers must be right most of the time just to equal the returns that buy-and-hold, long-term investors achieve. While long-term investors are steady, market timers sweat over when is the best time to get in or out of the market. There is an overwhelming amount of research that shows that long-term investing — even through a stock market downturn — yields better results over the years than trying to time a decline, remove capital, and return when “things are better.”

What if the market drops?

Some investors are concerned that the train is going to sputter. The fact is, at some juncture, it will — it’s an inevitable part of the journey. When the market drops, Fenimore seeks opportunities to invest in what we believe are quality, well-managed businesses at a discount to our estimate of their economic worth. We try to use downturns to strengthen our mutual funds for the long haul.

SHARE ON

All Aboard

Long-term investing or market timing? It’s your decision. But if you’re looking for us, we’ll be on the train.


Back

Continue reading

Stick to the Basics

Stick to the Basics

Stick to the Basics

Sticking to the basics can help you achieve your long-term financial goals.

Save Your Money First

In the ideal world, we tell our investors to have at least six months, and as much as two years, of living expenses set aside before they invest in the stock market. Although many Americans may not be there yet, it is a good goal. Having a sufficient emergency fund ― in good times and bad ― should provide flexibility and allow you to make rational, unforced financial decisions.

Borrow as Little as Possible

Virtually everyone has a loan with the largest typically being their mortgage. It’s wonderful to realize the American dream, but paying off your debts as soon as possible can help improve your financial footing.

Over the years, our investment research team has found that the companies that survive economic downturns are often the ones with little or no debt and plenty of cash. This holds true for individuals and their households as well.

Invest in Your Future

Invest your hard-earned money carefully, focusing on a long-term horizon. Choose investments that you understand and feel comfortable owning. You may want to read our short article, “4 Things To Consider Before You Invest.”

SHARE ON

Stick to the Basics


Back

Continue reading

SEP SIMPLE IRA and Individual Plans

SEP, SIMPLE IRA, and Individual(K) Plans

SEP, Simple IRA, and Individual(k) Plans

There’s a plan for your business.

Discover the three employer-sponsored retirement plans geared for small- to mid-size businesses.
Make offering a retirement plan easy for you—and your employees.

Reluctant to have a retirement plan because of the cost and complexity of typical employer-sponsored plans? SEP, SIMPLE IRA, and Individual(k) plans are different. They are easier to administer and less expensive to maintain.

DOWNLOAD PDF


SHARE ON

SEP SIMPLE IRA and Individual Plans PDF


IMPORTANT FENIMORE ASSET MANAGEMENT DISCLOSURES

The views and opinions expressed in this article are those of Ascensus and do not necessarily reflect the views of Fenimore Asset Management or its officers. Fenimore Asset Management or its officers have no editorial control over the content of the article or subject matter, and is independent of Ascensus.

The information herein is subject to change and is not intended to be complete or to constitute all of the information necessary to evaluate adequately the consequences of investing in any securities or other financial instruments or strategies described herein. These materials also include information obtained from other sources believed to be reliable, but Fenimore does not warrant its completeness or accuracy. In no event shall Fenimore be liable for any use by any party of, for any decision made or action taken by any party in reliance upon, or for any inaccuracies or errors in, or omissions from, the information contained herein and such information may not be relied upon by you in evaluating the merits of participating in any transaction.

In part, the purpose of this presentation may be to provide investors with an update on financial market conditions. The description of certain aspects of the market herein is a condensed summary only. This summary does not purport to be complete and no obligation to update or otherwise revise such information is being assumed. These materials are provided for informational purposes only and are not otherwise intended as an offer to sell, or the solicitation of an offer to purchase, any security or other financial instrument. This summary is not advice, a recommendation or an offer to enter into any transaction with Fenimore or any of their affiliated funds.

We undertake no duty or obligation to publicly update or revise the information contained in this presentation. In addition, information related to past performance, while helpful as an evaluative tool, is not necessarily indicative of future results, the achievement of which cannot be assured. You should not view the past performance of Fenimore funds, or information about the market, as indicative of future results.

All projections, forecasts and estimates of returns and other “forward-looking” information not purely historical in nature are based on assumptions, which are unlikely to be consistent with, and may differ materially from, actual events or conditions. Such forward-looking information only illustrates hypothetical results under certain assumptions and does not reflect actual investment results and is not a guarantee of future results. Actual results will vary with each use and over time, and the variations may be material. Nothing herein should be construed as an investment recommendation or as legal, tax, investment or accounting advice.

Clients or prospective clients should consider the investment objectives, risks, and charges and expenses carefully before investing. You may obtain a copy of the most recent mutual fund prospectus by calling 800-932-3271 and/or visiting www.fenimoreasset.com.

There is no guarantee that any of the estimates, targets or projections illustrated in this summary will be achieved. Any references herein to any of Fenimore’s past or present investments, portfolio characteristics, or performance, have been provided for illustrative purposes only. It should not be assumed that these investments were or will be profitable or that any future investments will be profitable or will equal the performance of these investments. There can be no guarantee that the investment objectives of Fenimore will be achieved. Any investment entails a risk of loss. An investor could lose all or substantially all of his or her investment. Unless otherwise noted, information included herein is presented as of the date indicated on the cover page and may change at any time without notice.

Fenimore Asset Management Inc. is an SEC registered investment adviser; however, such registration does not imply a certain level of skill or training and no inference to the contrary should be made.


Back

Continue reading

Retirement Plans

Retirement Plans for your Business

Retirement Plans for your Business

Find the right retirement plan for your business.

Of the many retirement plan options available, discover which one works best for you.
Not all retirement plans are the same.

All of today’s most popular employer-sponsored retirement plans—the SEP, SIMPLE IRA, profit sharing, 401(k), and Individual(k)—are designed to help you and your employees make the most of saving for retirement on the job. But each plan has different features and requirements. One type of plan may be a better fit over another for your particular business.

Before deciding which one to go with, consider

  • your reasons for establishing a plan,
  • the time and expense of maintaining and funding a plan, and
  • your employee demographics (such as age, income, and retirement goals).

You should also consult a competent tax or financial advisor.

DOWNLOAD PDF


SHARE ON

Retirement Plans PDF


IMPORTANT FENIMORE ASSET MANAGEMENT DISCLOSURES

The views and opinions expressed in this article are those of Ascensus and do not necessarily reflect the views of Fenimore Asset Management or its officers. Fenimore Asset Management or its officers have no editorial control over the content of the article or subject matter, and is independent of Ascensus.

The information herein is subject to change and is not intended to be complete or to constitute all of the information necessary to evaluate adequately the consequences of investing in any securities or other financial instruments or strategies described herein. These materials also include information obtained from other sources believed to be reliable, but Fenimore does not warrant its completeness or accuracy. In no event shall Fenimore be liable for any use by any party of, for any decision made or action taken by any party in reliance upon, or for any inaccuracies or errors in, or omissions from, the information contained herein and such information may not be relied upon by you in evaluating the merits of participating in any transaction.

In part, the purpose of this presentation may be to provide investors with an update on financial market conditions. The description of certain aspects of the market herein is a condensed summary only. This summary does not purport to be complete and no obligation to update or otherwise revise such information is being assumed. These materials are provided for informational purposes only and are not otherwise intended as an offer to sell, or the solicitation of an offer to purchase, any security or other financial instrument. This summary is not advice, a recommendation or an offer to enter into any transaction with Fenimore or any of their affiliated funds.

We undertake no duty or obligation to publicly update or revise the information contained in this presentation. In addition, information related to past performance, while helpful as an evaluative tool, is not necessarily indicative of future results, the achievement of which cannot be assured. You should not view the past performance of Fenimore funds, or information about the market, as indicative of future results.

All projections, forecasts and estimates of returns and other “forward-looking” information not purely historical in nature are based on assumptions, which are unlikely to be consistent with, and may differ materially from, actual events or conditions. Such forward-looking information only illustrates hypothetical results under certain assumptions and does not reflect actual investment results and is not a guarantee of future results. Actual results will vary with each use and over time, and the variations may be material. Nothing herein should be construed as an investment recommendation or as legal, tax, investment or accounting advice.

Clients or prospective clients should consider the investment objectives, risks, and charges and expenses carefully before investing. You may obtain a copy of the most recent mutual fund prospectus by calling 800-932-3271 and/or visiting www.fenimoreasset.com.

There is no guarantee that any of the estimates, targets or projections illustrated in this summary will be achieved. Any references herein to any of Fenimore’s past or present investments, portfolio characteristics, or performance, have been provided for illustrative purposes only. It should not be assumed that these investments were or will be profitable or that any future investments will be profitable or will equal the performance of these investments. There can be no guarantee that the investment objectives of Fenimore will be achieved. Any investment entails a risk of loss. An investor could lose all or substantially all of his or her investment. Unless otherwise noted, information included herein is presented as of the date indicated on the cover page and may change at any time without notice.

Fenimore Asset Management Inc. is an SEC registered investment adviser; however, such registration does not imply a certain level of skill or training and no inference to the contrary should be made.


Back

Continue reading

Coverdell ESAs

Coverdell ESA

Coverdell ESA

Help the child in your life achieve a bright future.

A Coverdell education savings account (ESA) may be an easy way to start saving for a child’s education.
Contributing to a child’s ESA will help jump‑start his savings—and give him tax‑free money later—to pay for education expenses.

With an ESA, individuals can make annual nondeductible contributions on behalf of a child until the child reaches age 18. The earnings generated remain tax deferred while in the ESA. When the child uses the ESA assets to pay for qualified education expenses, the contributions and the earnings come out tax free.

Anyone—family member or nonfamily member—can contribute to a child’s ESA, as long as their modified adjusted gross income (MAGI) is less than or within the applicable IRS limits.

DOWNLOAD PDF


SHARE ON

Coverdell ESAs PDF


IMPORTANT FENIMORE ASSET MANAGEMENT DISCLOSURES

The views and opinions expressed in this article are those of Ascensus and do not necessarily reflect the views of Fenimore Asset Management or its officers. Fenimore Asset Management or its officers have no editorial control over the content of the article or subject matter, and is independent of Ascensus.

The information herein is subject to change and is not intended to be complete or to constitute all of the information necessary to evaluate adequately the consequences of investing in any securities or other financial instruments or strategies described herein. These materials also include information obtained from other sources believed to be reliable, but Fenimore does not warrant its completeness or accuracy. In no event shall Fenimore be liable for any use by any party of, for any decision made or action taken by any party in reliance upon, or for any inaccuracies or errors in, or omissions from, the information contained herein and such information may not be relied upon by you in evaluating the merits of participating in any transaction.

In part, the purpose of this presentation may be to provide investors with an update on financial market conditions. The description of certain aspects of the market herein is a condensed summary only. This summary does not purport to be complete and no obligation to update or otherwise revise such information is being assumed. These materials are provided for informational purposes only and are not otherwise intended as an offer to sell, or the solicitation of an offer to purchase, any security or other financial instrument. This summary is not advice, a recommendation or an offer to enter into any transaction with Fenimore or any of their affiliated funds.

We undertake no duty or obligation to publicly update or revise the information contained in this presentation. In addition, information related to past performance, while helpful as an evaluative tool, is not necessarily indicative of future results, the achievement of which cannot be assured. You should not view the past performance of Fenimore funds, or information about the market, as indicative of future results.

All projections, forecasts and estimates of returns and other “forward-looking” information not purely historical in nature are based on assumptions, which are unlikely to be consistent with, and may differ materially from, actual events or conditions. Such forward-looking information only illustrates hypothetical results under certain assumptions and does not reflect actual investment results and is not a guarantee of future results. Actual results will vary with each use and over time, and the variations may be material. Nothing herein should be construed as an investment recommendation or as legal, tax, investment or accounting advice.

Clients or prospective clients should consider the investment objectives, risks, and charges and expenses carefully before investing. You may obtain a copy of the most recent mutual fund prospectus by calling 800-932-3271 and/or visiting www.fenimoreasset.com.

There is no guarantee that any of the estimates, targets or projections illustrated in this summary will be achieved. Any references herein to any of Fenimore’s past or present investments, portfolio characteristics, or performance, have been provided for illustrative purposes only. It should not be assumed that these investments were or will be profitable or that any future investments will be profitable or will equal the performance of these investments. There can be no guarantee that the investment objectives of Fenimore will be achieved. Any investment entails a risk of loss. An investor could lose all or substantially all of his or her investment. Unless otherwise noted, information included herein is presented as of the date indicated on the cover page and may change at any time without notice.

Fenimore Asset Management Inc. is an SEC registered investment adviser; however, such registration does not imply a certain level of skill or training and no inference to the contrary should be made.


Back

Continue reading

Inherited IRAs

Inherited IRA

Inherited IRA

Understand your beneficiary distribution options.

As an IRA beneficiary, you have some choices.
If you’ve inherited an IRA, make sure you understand your options.

Because of the IRS rules, your options as an IRA beneficiary depend on certain factors.
First, answer this question…When did the IRA owner die?

  • Before January 1, 2020: Continue the same method of payment that you previously elected. If you have not yet made an election, consult with the financial organization holding your IRA or review the IRA document for your options.
  • On or after January 1, 2020: See the distribution options described in this brochure. Because there may be exceptions to these options, consult further with a competent advisor or with the financial organization holding the IRA.

DOWNLOAD PDF


SHARE ON

Inherited IRAs PDF


IMPORTANT FENIMORE ASSET MANAGEMENT DISCLOSURES

The views and opinions expressed in this article are those of Ascensus and do not necessarily reflect the views of Fenimore Asset Management or its officers. Fenimore Asset Management or its officers have no editorial control over the content of the article or subject matter, and is independent of Ascensus.

The information herein is subject to change and is not intended to be complete or to constitute all of the information necessary to evaluate adequately the consequences of investing in any securities or other financial instruments or strategies described herein. These materials also include information obtained from other sources believed to be reliable, but Fenimore does not warrant its completeness or accuracy. In no event shall Fenimore be liable for any use by any party of, for any decision made or action taken by any party in reliance upon, or for any inaccuracies or errors in, or omissions from, the information contained herein and such information may not be relied upon by you in evaluating the merits of participating in any transaction.

In part, the purpose of this presentation may be to provide investors with an update on financial market conditions. The description of certain aspects of the market herein is a condensed summary only. This summary does not purport to be complete and no obligation to update or otherwise revise such information is being assumed. These materials are provided for informational purposes only and are not otherwise intended as an offer to sell, or the solicitation of an offer to purchase, any security or other financial instrument. This summary is not advice, a recommendation or an offer to enter into any transaction with Fenimore or any of their affiliated funds.

We undertake no duty or obligation to publicly update or revise the information contained in this presentation. In addition, information related to past performance, while helpful as an evaluative tool, is not necessarily indicative of future results, the achievement of which cannot be assured. You should not view the past performance of Fenimore funds, or information about the market, as indicative of future results.

All projections, forecasts and estimates of returns and other “forward-looking” information not purely historical in nature are based on assumptions, which are unlikely to be consistent with, and may differ materially from, actual events or conditions. Such forward-looking information only illustrates hypothetical results under certain assumptions and does not reflect actual investment results and is not a guarantee of future results. Actual results will vary with each use and over time, and the variations may be material. Nothing herein should be construed as an investment recommendation or as legal, tax, investment or accounting advice.

Clients or prospective clients should consider the investment objectives, risks, and charges and expenses carefully before investing. You may obtain a copy of the most recent mutual fund prospectus by calling 800-932-3271 and/or visiting www.fenimoreasset.com.

There is no guarantee that any of the estimates, targets or projections illustrated in this summary will be achieved. Any references herein to any of Fenimore’s past or present investments, portfolio characteristics, or performance, have been provided for illustrative purposes only. It should not be assumed that these investments were or will be profitable or that any future investments will be profitable or will equal the performance of these investments. There can be no guarantee that the investment objectives of Fenimore will be achieved. Any investment entails a risk of loss. An investor could lose all or substantially all of his or her investment. Unless otherwise noted, information included herein is presented as of the date indicated on the cover page and may change at any time without notice.

Fenimore Asset Management Inc. is an SEC registered investment adviser; however, such registration does not imply a certain level of skill or training and no inference to the contrary should be made.


Back

Continue reading

Thomas O. Putnam founded Fenimore in 1974 with two passions: conduct in-depth, firsthand, independent investment research and serve investors with excellence and integrity. Today Fenimore Asset Management, manager of the FAM Funds, is nationally recognized, yet locally rooted and independently owned. Decades have passed, but our approach endures.

Securities offered through Fenimore Securities, Inc. Member FINRA/SIPC,
and advisory services offered through Fenimore Asset Management, Inc.

© Fenimore Asset Management. All Rights Reserved.