Market Thoughts: Looking Ahead and Abroad

The mid-year U.S. economic recovery numbers look strong. On Wall Street, analysts predict that our economy will expand by trillions of dollars and create 2 million good-paying jobs throughout the next 10 years. However, despite nearly 1 million jobs reported in July alone, the White House cautioned that the resurgence in COVID-19 cases among unvaccinated…

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RMDs in 2021

Last year, the Setting Every Community Up for Security Enhancement (SECURE) Act increased the age for required minimum distributions (RMDs) from 70½ to 72. The purpose of RMDs is to spread out the tax burden associated with the years of tax-deferred earnings investors accrued in qualified retirement plans.1 If you expect RMDs to be an…

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Young People: Who Said You Have To Be Wealthy To Invest?

Young adults have weathered difficult times the past two decades: mass school shootings, extreme weather conditions, student loan debt, and a global pandemic. But now they’re witnessing an unprecedented job market, where even those with little to no work experience can dictate their own terms. It’s important that we steer our young adults to good…

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What is Investing on Margin?

This year, investors are making record-high margin investments against their accumulated assets. According to FINRA, margin debt had reached $847 billion by the end of April.1 Much of this activity is fueled by low interest rates and rising stock prices, making leverage investing more appealing. However, investing on margin poses significant risks. You can purchase…

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College Savings: An Update

Congress is known for passing enormous bills with lots of little-known provisions that are not entirely central to the key objectives of the bill. Alas, the Coronavirus Response and Relief Supplemental Appropriations Act of 2021 is one of them. It contains changes to how students and parents apply for student aid via the Free Application…

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Roth vs. Traditional IRA: Retirement and Estate-Planning Advantages

It would be nice if the Roth IRA had been around long as the traditional IRA. Imagine the long-term benefits of tax-free growth throughout a 40-year career. Annual contribution limits for IRAs are relatively low ($6,000; $7,000 for 50-plus), but the Roth is a good complement for investors who also contribute to an employer-based retirement…

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Midyear Market Outlooks

In its midyear review, market analysts at Charles Schwab say that economic growth in the United States may have peaked in the second quarter of this year, and it believes China experienced its peak in the fourth quarter of 2020. However, Schwab is bullish on Europe’s prospects for the rest of this year. It notes…

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Reshoring: What’s the Future for Products and Services Made in America?

According to a recent survey of supply chain professionals, the COVID-19 pandemic interrupted 98% of global supply chains. Among the most disruptive supply challenges was the procurement of personal protective equipment, pharmaceuticals and semiconductors. Companies that had outsourced manufacturing to other countries experienced firsthand the types of risks associated with offshoring. The previous administration placed…

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Putting Inflation Expectations in Perspective

Historically, inflation has been highly correlated with unemployment levels. When more people were out of a job, inflation was lower. As more people got jobs, inflation increased. From an economic point of view, this makes sense. Jobs increase income, which increases spending, which increases demand — supplies drop and prices rise. The opposite is true…

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Retirement Withdrawal Strategies

As hard as retirement saving and investing may seem, that’s the easy part. The real challenge is figuring out how to make your accumulated savings last throughout your and your spouse’s retirements. You need a strategy, and it’s best to have that strategy developed before retirement begins. Because life expectancy is longer these days, many…

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