What to know about shifting market attention, and investor burnout. It can be exhausting trying to keep up with the whims of Wall Street. Lately, the financial markets have been fixated on federal taxes and what may be proposed on Capitol Hill in the weeks and months ahead. Wall Street’s focus on taxes closely follows its attention on the 10-year Treasury yield. And it wasn’t that long ago that the financial markets were influenced by reopening and vaccine distribution … [Read more...]
Weekly Economic Update
In this week’s recap: Tech stocks and strong indicators lead a week of economic advancement. THE WEEK ON WALL STREET Strong economic data and a resurgent technology sector propelled stocks to solid gains last week. The Dow Jones Industrial Average advanced 1.95%, while the Standard & Poor’s 500 picked up 2.71%. The tech-heavy Nasdaq Composite index gained 3.12%. The MSCI EAFE index, which tracks developed overseas stock markets, gained 1.96%.1,2,3 TECHNOLOGY LEADS A blow-out … [Read more...]
Investing During Periods of Inflation
What does inflation mean for your investments? In August of 2020, the Fed announced that it is willing to allow inflation to run higher than normal in order to support the labor market and broader economy. This major policy shift allows inflation to run above the Fed’s 2% goal for some time before the Fed would consider increasing short-term interest rates in an attempt to combat higher prices.1 These robust changes to the Fed’s long-standing inflation policy further illustrates the … [Read more...]
Tax Efficiency in Retirement
What role should taxes play in your investment decisions? Will you pay higher taxes in retirement? Do you have a 401(k) or a traditional IRA? If so, you will receive income from both after age 72. However, if you have saved and invested much of your life, you may also end up retiring at a higher marginal tax rate than your current one. In fact, the income alone resulting from a Required Minimum Distribution could push you into a higher tax bracket. While retirees with lower incomes may … [Read more...]
Economic Predictions: What Lies Ahead?
Here’s what the financial forecast may have in store. It can be easy to overlook the nation’s solid economic fundamentals when the financial media splashes stories every day about an army of amateur traders, short-selling mania, and initial public offerings (IPOs) that double in price on the first day of trading. But a recent survey by The Wall Street Journal showed just how upbeat economists are about 2021.1 Here’s a quick summary of the highlights. Increased projected economic … [Read more...]
Financial Wellness Month
Time to tune up your financial strategy. January is Financial Wellness Month, a time to remind people to make arrangements for their financial strategy.1 For a financial professional, it’s time to connect with new clients and discuss their financial situation and aspirations for their future. It’s also a good time to connect with established clients and check it to see if their financial strategy needs any adjustment, as well as talk about any changes they want to discuss. Having your … [Read more...]
The Year In Brief
A look back at 2020 thus far Presented by Larry Menna, CFP®, AIF® The year in brief. The coronavirus pandemic disrupted the global economy, global financial markets, and daily life in 2020. For investors, it was certainly an eventful year. Economic activity abruptly contracted in the spring, and stocks quickly fell. The upcoming presidential election and COVID-19 vaccine developments could provide more market-moving headlines.1 The Federal Reserve cut short-term interest rates to just … [Read more...]
Your Year-End Financial Checklist
Aspects of your financial life to review as the year draws to a close. The end of the year can help remind us of last-minute things we need to address and the goals we want to accomplish. To that end, here are some aspects of your financial life to think about as this year leads into the next. Keep in mind, this article is for informational purposes only and is not a replacement for real-life advice. Make certain to contact a tax or legal professional before modifying your tax strategy. … [Read more...]
The Social Security Administration Announces 2021 COLA
What you should know about the most recent cost-of-living adjustment. On October 13, 2020, the Social Security Administration (SSA) officially announced that Social Security recipients will receive a 1.3 percent cost-of-living adjustment (COLA) for 2021. This adjustment will begin with benefits payable to more than 64 million Social Security beneficiaries in January 2021. Additionally, increased payments to more than 8 million Supplemental Security Income (SSI) beneficiaries will begin on … [Read more...]
October Is Financial Planning Month
Six areas of personal finance to review. When training to become a financial professional, much of our course work centers on the six critical areas of creating a financial strategy. Some recognize October as Financial Planning Month, so it's an excellent opportunity to review those six personal finance areas.1 Cash Management: This is a broad topic that can address many issues. One area is creating an emergency fund, which is money that's set aside for unplanned expenses. Cash management … [Read more...]