When it comes to important financial decisions, it always feels like we should do something, but as Charlie Munger said: “The big money is not in the buying and selling … but in the waiting.” By designing repeatable processes, controlling our emotions, and putting the wind of time to the back of our sails, we maximize our potential to reach and surpass our goals.
If you converted a traditional IRA to a Roth IRA in 2017 and your Roth IRA has sustained losses, you may want to consider whether it makes sense to undo (recharacterize) your conversion. You have until October 15, 2018, to undo your 2017 conversion.
The IRS has released proposed regulations that would shut down some suggested workarounds for the new $10,000 limit on the deductibility of state and local taxes (SALT). The new guidance would close the door on a strategy offered by some states to circumvent the deduction limit by attempting to turn the taxes paid into charitable contributions not subject to the same cap.
After years of keeping the benchmark federal funds rate at historic lows, the Federal Reserve has been raising it gradually. Near-zero rates were an emergency measure, and gradual increases reflect greater confidence in the U.S. economy. However, rising rates can affect you as a consumer and investor.
January is typically a strong month for the municipal bond market, but 2018 began with the worst January performance since 1981, driven by rising interest rates and uncertainty over changes in the Tax Cuts and Jobs Act. The tax law changed the playing field for these investments, which could affect supply and demand.
It is imperative that we maintain adequate liquidity to provide for our needs during good times and bad. There is a certain amount of freedom granted by having set aside ready cash so that during times of emergency we are not left to count on the kindness of friends or strangers.
On March 8, 2018, President Trump imposed a global tariff of 25% on steel imports and 10% on aluminum imports. The economic impact in the United States and globally will likely depend on whether a hard U.S. stance and/or the breakdown of trade negotiations escalates into a larger trade war.
Spring is slowly approaching. As the harshness of winter recedes, volatility in both the markets and weather are picking up. While I can hardly speak to fluctuations in the weather, the fluctuation in the market is almost certainly a function of rising interest rates, though the madness of crowds is difficult to quantify.
At Basepoint Wealth, we operate under the Fiduciary standard for advice on everything we do. This commitment to a higher standard of advice is at the core of how we work each and every day, and it is what sets us, and firms like us, apart from much of the financial services industry.
There's still time to make a regular IRA contribution for 2017! You have until your tax return due date (not including extensions) to contribute up to $5,500 for 2017 ($6,500 if you were age 50 by December 31, 2017).