Is It Time to Refinance? The Federal Reserve has just cut interest rates by .50% in response to growing concerns about the impact of the coronavirus on the economy. What does that mean for mortgage rates? The Federal funds rate doesn’t move in lockstep with mortgage rates, particularly 30-year fixed mortgages. But mortgage rates are indeed expected to fall alongside the lowered Fed funds … [Read more...]
Insuring Your Valuables
March 3, 2020 by
If you have valuable personal possessions – such as jewelry, furs, antiques, art, coin collections, and the like -- insurance is often necessary. But your homeowners' or renters' insurance might not be enough. Limitations on coverage Generally, homeowners’ insurance policy covers the theft, damage, or destruction of your personal property, and there are several limitations. Your personal … [Read more...]
The Coronavirus and You
March 3, 2020 by
We don’t know how bad this is going to be. That’s the scary part. We can wash our hands, wear masks, talk about morbidity percentages, but the extent of the coronavirus – and its impact on the markets – is unknown. So what to do? We can look at the historical context of previous plagues and pandemics and viruses and their impact. It does help ease our minds to look at the history of pandemics … [Read more...]
The Markets in February
March 2, 2020 by
The Markets in February Spurred by a growing number of new cases of the coronavirus and amid political uncertainty, the markets experienced a massive sell-off, the largest we’ve seen since 2008. Investors' fears during the month of economic tumult caused by the coronavirus were too much to ignore, despite a statement from Fed chairman Jerome Powell that the central bank was prepared to cut rates. … [Read more...]
The New SECURE Act
February 5, 2020 by
What's up with that new SECURE Act? We’ve had several questions from clients about the SECURE Act (Setting Every Community Up for Retirement Enhancement Act), which was signed into law in late December 2019 as part of a larger federal spending package. This legislation has some positives and some negatives among its new requirements. It gives incentives for employers to provide retirement … [Read more...]
The Markets in January
February 2, 2020 by
What happened in the markets in January January was full of ups and downs amid much lots of market uncertainty. The month began with many of the benchmark indexes losing value (except for the Nasdaq) only to surge ahead during the middle of the month. Then at month’s end, fears of a widespread coronavirus pushed down stocks. Only the tech-heavy Nasdaq gained value in the month, as each of the … [Read more...]
2020 Retirement Plan Numbers
February 1, 2020 by
Thresholds and maximums for retirement contributions and deductions The government left some retirement numbers unchanged and increased some for 2020. The maximum you can contribute to a traditional IRA or a Roth IRA in 2020 is $6,000 if under 50 and $7,000 if 50 or older (or up to 100% of your earned income, if that is less), the same as last year. You can split your contribution between a … [Read more...]
Increased Estate Tax Exemptions
February 1, 2020 by
Changes to lifetime tax-exemption totals The lifetime exemption for federal estate, gift and generation-skipping transfer (GST) tax has increased for 2020, to $11.58 million per person. When you’re doing advanced estate planning — when you're making transfers above the $15,000 annual exclusion for gifts — that is your lifetime gift/estate tax exemption. And it’s a good time to do it soon before … [Read more...]
The Perils of Market-Timing: A Reminder
September 3, 2019 by
There is no lack of unquieting news that impacts the markets daily. And volatility looks to be a big player in the markets for at least the near-term. Here are a few important reminders on the perils of trying to time the market – at any time. To take some kind of action may offer brief relief, but market-timing ultimately runs counter to your best strategies for building durable long-term wealth. … [Read more...]
Loneliness and Your Money
September 3, 2019 by
How Loneliness Can Affect Your Money Most people feel lonely at different times in their lives, but in a recent study, one person out of 10 reported being lonely or isolated from others “all or most of the time,” according to the Pew Research Center. Loneliness not only impacts mental health, it can also take a toll on finances. The Pew survey found that frequent loneliness is linked to … [Read more...]
The Federal Reserve
September 3, 2019 by
How the Federal Reserve Moves the Economy If you follow the news, you’ve probably heard references to “the Fed” as in “the Fed held interest rates,” or “market watchers are predicting what the Fed will do next.” So what exactly is the Fed and what does it do? I learned about the intricacies of central banks when I was studying at Columbia Business School, and here are some of the basics. The … [Read more...]
Reviewing Your Estate Plan
August 5, 2019 by
Reviewing Your Estate Plan Some people don’t want to create or update their estate plan - it is unpleasant to think about death. But we nudge clients to review it periodically and keep it accurate. An estate plan is basically a map that explains how you want your personal and financial affairs to be handled in case of incapacity or your death, and it should be checked as your lives change and … [Read more...]
What Is Blockchain?
August 5, 2019 by
What Is Blockchain? Clients often ask about bitcoin, but blockchain technology is more interesting and is what really makes bitcoin possible. It’s a data structure used to create a secure digital ledger shared among a distributed network of computers. It was initially designed for the peer-to-peer exchange for the virtual currency bitcoin. However, many businesses are now developing and … [Read more...]
Tax Update Post-TCJA
August 5, 2019 by
Tax Update The Tax Cuts and Jobs Act (TCJA) made fundamental changes to the U.S. tax code, and the 2018 returns were the first time most taxpayers felt the impact of these sometimes painful changes. Most still don’t understand it. In an April 2019 Gallup poll, 43% of Americans said they were unsure how the new tax law affected them personally. Despite a stated effort to simplify the federal … [Read more...]
The Markets in July
August 2, 2019 by
The Markets in July Stocks ran hot and cold in July, influenced by worsening global economic conditions, ongoing trade negotiations with China, and softening domestic business investment. While the Fed’s decision to reduce short-term interest rates was not unexpected, stocks reeled at month’s end. Some analysts questioned the timing of the interest rate reduction, particularly in the event of … [Read more...]
