Excerpts from the February 2018 Archives of TGIF 2 Minutes…
“Let the good times roll.” I am partial to this expression because my Dad used to say it a lot either as a toast or statement when things were going well. Looking overall at the last few years’ markets, current economy and lives and businesses of clients, the expression definitely applies.
But of course, there will always be something to worry about. Always.
How long will these positive markets last?
Will my portfolio continue to gain in value? How can I best preserve all this wealth I have created?
How long will these economic and business conditions continue to contribute to my personal and business success?
Will the risks I have taken in the past few years (that have paid off) continue to yield positive results?
The beginning of October means we are in the 4th Quarter… and the countdown begins to year-end. The following are excerpts from the Year-End Tax Planning Checklist.* Several of these items, if addressed now, could make a big difference to your 2019 tax filing AND add to your savings.
Here is a “fun fact” in the form of a question to ponder over the Labor Day holiday weekend: How much do you think you will need to have saved to pay your cable bill over the course of your retirement? (Answer is below*)
First, some context. I do get questions like this one often from my smarter clients who are truly goal-oriented and who realize how breaking down various retirement (or other) goals into bite-sized pieces makes the whole “affording retirement thing” much easier. Questions like:
How much should we be saving monthly in order to retire or slow down someday?
What kind of annual income can we expect from our portfolio someday?
How much will we need to have saved to afford future healthcare costs? (You can substitute other costs such as cable, vacations, kids’ costs, etc.)
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?”
“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”
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.
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”