“Making a last-minute contribution to an IRA may help you reduce your 2019 tax bill. If you qualify, your traditional IRA contribution may be tax deductible. And if you had low to moderate income and meet eligibility requirements, you may also be able to claim the Savers Credit for 2019 based on your contributions to a traditional or Roth IRA. Claiming this nonrefundable tax credit may help you reduce your tax bill and give you an incentive to save for retirement. For more information, … [Read more...]
Coronavirus Concerns? Consider Past Health Crises
“Putting current market volatility into historical perspective can help you stay the course during turbulent times.” During the last week of February 2020, the S&P 500 lost 11.49% — the worst week for stocks since the 2008 financial crisis — only to jump by 4.6% on the first Monday in March.1 By all accounts, the drop was largely driven by ever-increasing fears about the potential effects of the coronavirus (COVID-19) and its ultimate impact on the global economy. Although many market … [Read more...]
The Coronavirus and the Global Economy
As of February 26, 2020, the death toll from COVID-19 — the official name of the coronavirus first reported in Wuhan, China — passed 2,700, while the number of confirmed cases exceeded 80,000. Almost all were in China, most of them in Wuhan and the surrounding Hubei province. But more than 2,500 cases, including 46 deaths, had been reported in almost 40 other countries. A surge of cases and deaths in South Korea, Italy, and Iran caused new concern that the virus may be difficult to … [Read more...]
Epidemics and Stock Market Performance
Epidemics 2020 (Click Here to Open) Dear friends, Given the recent market volatility sparked by concerns surrounding the spread of the coronavirus, we thought we would drop you a note. It is our belief that the effects of this crisis on markets around the world will be temporary and relatively short-lived as similar incidences in the past. Please refer to the chart on our blog (linked below) which we're hoping helps us all hold to a long-term perspective. Broadly, our recommendation … [Read more...]
How Does the Federal Reserve Affect the Economy?
“The Fed's mission The Federal Reserve is the central bank of the United States. Its mission is to provide the nation with a safer, more flexible, and more stable monetary and financial system. For more information on the Federal Reserve, visit federalreserve.gov.” If you follow financial news, you've probably heard many references to "the Fed" along the lines of "the Fed held interest rates," or "market watchers are wondering what the Fed will do next." So what exactly is the Fed … [Read more...]
Managing Your Money in a Gig Economy
“As a contingent worker, you may be eligible for a number of tax deductions (e.g., start-up expenses, mileage), so be sure to keep good records. If you have multiple gig jobs, consider using a log to keep track of your income and work expenses.” According to the Bureau of Labor Statistics, 16.5 million people rely on contingent or alternative work arrangements for their income.1 Often referred to as the "gig economy," these nontraditional or contingent work arrangements include independent … [Read more...]
U.S.-China Trade War: Who Pays the Price?
“Many U.S. manufacturers and importers are looking for suppliers in other countries and/or moving production out of China.” On May 13, 2019, escalating trade tensions between the United States and China sparked a worldwide stock sell-off that wiped out more than $1 trillion in global equity values.1 The markets recovered over the next three days, but tensions between the economic giants continued to drive volatility with no resolution in sight.2 Investors sometimes overreact to short-term … [Read more...]
Mergers & Acquisitions: What’s in the Deal for Investors?
Merger and acquisition (M&A) activity in North America and Europe reached its second highest level on record in 2018. There were 19,501 deals worth $3.6 trillion — a 6.3% increase in deal volume over 2017. There was also a rise in mega deals exceeding $10 billion.1 Collectively, U.S. corporations had plenty of cash to spend after a long string of solid profits and a significant tax cut.2 High stock prices also provided plenty of equity for deals involving the exchange of stock, while … [Read more...]
Rules on Opening a 529 Plan Account for College
“529 plan assets reach $333 billion assets in 529 plans reached $333 billion as of September 2018 — $310 billion (93%) in college savings plans and $23 billion (7%) in prepaid tuition plans.” Source: Strategic Insight, 529 Data Highlights, 3Q 2018 Year over year, participation in 529 plans continues to rise.1 Anyone can open an account, lifetime contribution limits are typically over $300,000, and there are tax benefits if the funds are used for college. Here are some common … [Read more...]
How Does Your Employer’s Retirement Plan Compare?
“To compare your plan's offerings and features with those described in this article, review your plan materials or ask your Human Resources Department for its Summary Plan Description. Diversification is a strategy that helps manage investment risk; it does not guarantee a profit or protect against investment loss. Mutual funds and target-date funds are sold by prospectus. Please consider the investment objectives, risks, charges, and expenses carefully before investing. The prospectus, … [Read more...]
