“Man’s (or Woman’s) Best Friend”. At a time when true friends have proven to be more valuable than ever, it seems that getting a dog is something that a good number of people and families did during the past year of “stay at home.” Dogs, in many cases, brought true happiness to an overall terrible situation. Similarly, long-time dog lovers seem to agree: “if you want a friend, get a dog.” The benefits range from personal happiness to family happiness… with a good deal of responsibility mixed in.
The question of whether or when tax rates may go higher is one asked after many a US Presidential election. The actuality of taxes going up is altogether another issue with its own timing depending on the President, party and Congress involved. There can be signals of both higher and lower taxes that certain candidates and Presidents communicate to win friends (and elections) and influence people.
In fact, in reading this week the obituary of Walter Mondale it seems that his transparent insistency on a proposal to raise taxes in his mid-1980’s US Presidential bid was a major factor behind his losing the election to Ronald Reagan (Reagan’s 2nd term run). That was then, this is now. One could say that now President Biden ran on a platform to raise taxes – in part winning him the election. Taxes and tax plans may always be part of US elections as they say the only things certain in life are death and taxes.
From the January 2021 archives of TGIF 2 Minutes – a relevant 401k tax tip video. Remember, the 2020 tax filing deadline was delayed until MAY 17TH, 2021. Considering this extra time, it is never too late to plan for the rest of 2021 and beyond. Enjoy this quick video.
Click the PLAY button above.
Thank you for watching, stay safe and TGIF!
The title of this edition could also be called “A Deeper Dive into Inflation.” Inflation is serious stuff – for people of all ages. Consider that lots of younger people (under the age of 45) have far less awareness of inflation because they have not experienced serious and sustained inflation in their lifetimes. Those of us in our 50’s and older have likely been stung by this invisible enemy – sometimes really stung!
The reason why inflation matters so much is because it is like a thief who literally takes a chunk of your money every time you go to buy something – especially something you really need or want. So then, you must reach deeper into your pockets to pay more for whatever you were about to buy. What if you were already spending pretty close to 100% of what you make? Or what if you are retired (or close to retirement) and are on a fixed income… and already figured out the life of your dreams and what it would cost?
In the interest of the upcoming Easter and current Passover holidays today’s edition will be quick. Similar to the 1st Quarter of 2021 which seemed to FLY BY!
Market – and my clients’ portfolio – performance was strong to start the year. There is caution in the air, however, as 10-year US Treasury yields climbed to levels not seen since early 2020 before the pandemic began. The swiftness of the rise in bond yields warrants caution in the overall stock and bond markets.