Life – TGIF 2 Minutes with Kerrie Debbs, CFP

Is a Recession Coming?

Make no mistake: The media wants a recession.

How many of these items have you been bombarded about lately?

Inverted yield curve
Negative bond yields
Trade and Currency wars
“Fed Chairman Powell lacks clarity in his Q&A sessions” (talk about the ultimate throw under the bus)

A recession may or may not be coming soon. Recessions have been part of the US and global economies since the dawn of recording market data which dates to the 1920’s (with recessions dating back to the 1800’s). Please see the accompanying chart that summarizes various scary events since 1970, several of which led to nasty recessions. Remember the Arab oil embargo?? The Dotcom bust?? Please also note the way the US stock market – which is based on a free market economy and the consumer – has recovered over time. Continue reading “Is a Recession Coming?”

Gut Check (Again) In Rocky Markets

From the archives of TGIF 2 Minutes comes a very handy message – one that still holds true 5 years later:

blue and yellow graph on stock market monitor — Photo by energepic.com on Pexels.com

August 2014:

Have you asked yourself lately…

“Is this the ‘Big Dip’ in the markets they have warned about?”
“Should I be selling my stocks?”
“Should I be selling my bonds?”

Although I stress to clients and friends NOT to listen to the Talking Heads on TV, radio & internet amidst dramatic market moves —and then make rash investment decisions – we are human! It is nearly impossible to ignore completely what is going on daily in the news and markets. And the stock markets have crept down a bit over the past few weeks. (Note, in 2019 the downturns and recoveries have been often.) Continue reading “Gut Check (Again) In Rocky Markets”

Minimizing Danger to Your IRA

Last week’s topic was potential danger to IRAs contained in new legislation lingering in the Senate. Those affected would be most IRA beneficiaries including you or your kids or grand kids. The scenario would affect the lives of more than just the wealthy. Therefore, it makes sense to present a handful of ways to minimize the possible negative consequences. Although, if the SECURE Act legislation is passed in its current form, these strategies will be even harder to come by.

bank-banking-banknotes-259027

Several current solutions have been discussed in prior editions of TGIF 2 Minutes, namely using the Roth IRA, Roth 401k or 403b, or Roth IRA conversions (see the link below for quick details of various Roth strategies). Most important is to have this issue on your radar – to create a balance by using both traditional and Roth strategies TODAY side by side for diversification. Continue reading “Minimizing Danger to Your IRA”

Potential Danger to Your IRA

In the heart of this already HOT summer of 2019, the heat may only be beginning for your IRA. Under the seemingly friendly title of the “SECURE Act” Congress is considering plans to over-reach in the form of future taxes on IRA accounts.

tax-forms

There are several positive and constructive elements of the bill recently passed by the House of Representatives and currently in review in the Senate. These include provisions to lower the threshold for small employers to offer 401k plans to their employees. However, a key part of the bill would do away with one of the most popular and widely used aspects of current IRA rules: the “Stretch IRA” for beneficiaries.

Currently, and dating back to the 1990’s, the Stretch IRA favors longevity by allowing a beneficiary to stretch inherited IRA monies over a lifetime, or until the IRA (or rolled over 401k) monies are depleted. This feature has come to be a popular and inexpensive long-term planning tool. The “Stretch” also aids in managing the tax consequences of becoming an inheritor of IRA monies. Continue reading “Potential Danger to Your IRA”

What to Worry About

Spoiler Alert:

Amidst the positive narrative playing out via recent stock market records in the US (including strength in European markets) the “next episode” in the markets and economy could be more of a letdown. Use this time amidst the market’s gains to identify what to worry about and actions that can be taken NOW to craft a better ending to the story.

adult art conceptual dark — Photo by Pixabay on Pexels.com

The following is a non-comprehensive list of “constructive worries” (or concerns) that if managed year-round can greatly increase the ability to cope with inevitable market declines or letdowns – and enjoy more the experience of investing over our lifetimes. Continue reading “What to Worry About”

Graduation Inspiration for All

From the Archives of TGIF 2 Minutes…

In light of graduation season, it can be beneficial to review (or celebrate) the basics of personal finance which can lead to future peace of mind – both for ourselves and the kids, grand kids, nieces and nephews who mean the most to us. From May 2018:

accomplishment ceremony education graduation — Photo by Pixabay on Pexels.com

Continue reading “Graduation Inspiration for All”

Not Your Father’s Muni Bonds

My Father loved municipal bonds. The coupons were high (certainly higher than the average coupon rates of today) and supply was ample. And he loved the story behind the bond.

As a quick primer, “muni bonds,” otherwise known as municipal bonds, are debt obligations issued to fund capital expenditures by municipalities, states, counties and other government and public service-related entities like hospitals and schools. The tax treatment of the interest paid is typically Federally tax-free to the investor and often state tax free in the state where the bond was issued. Investors who buy the bonds are promised to receive tax free interest periodically and then repayment of principal upon maturity. Continue reading “Not Your Father’s Muni Bonds”