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Happy Passover! Happy Easter! IRS Extends Tax Deadlines; Inflation Boogeyman; Have a Plan

Happy Passover! Happy Easter! IRS Extends Tax Deadlines; Inflation Boogeyman; Have a Plan

April 01, 2021
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April 1, 2021

Dear Client Family and Friends:

Greetings for a Blessed and Happy Easter and a Happy Passover.

Because Easter and Passover are of great significance in the Christian and Jewish faiths, it is one of my favorite times of year.  Passover began on Saturday, March 27th and ends on Easter Sunday, April 4th, which means Christians and Jews alike will be commemorating the Passover during this Holy week.  We may be commemorating it from a different perspective, but it is something that connects us together.

We’ve been couped up for the last year because of the coronavirus.  I hope you can safely gather with family and friends to celebrate with some, if not all your traditions.  I fondly remember Sunrise Easter Services, Easter Egg hunts, chocolate bunnies and jellybeans and being honored to attend Passover Seder’s with matzo ball soup, brisket, roasted eggs, and macaroons.

Whatever your traditions, I hope you will take some time to reflect on the true meaning of the holiday you claim and that it will be a great time of worship, fun, fellowship and love with family and friends.  

Happy Easter!       Happy Passover!

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As always, please remember, you only have 168 hours to live your life this and every week.  Spend your 168 hours doing the things that only you can do – the things that are really important to you.  Spend more time with the people you love.  (And tell them you love them, too.)  Do activities to help improve your health and fitness and spiritual life.  Engage in activities that give joy to others (and see how much you benefit, too).  Laugh out loud.  Express your creativity.  Play a game.  Take a friend to lunch, even if it is via Zoom.  Donate your time to a worthy charity.  Change your routine.  Live a high-performance life! 

Thank you for your relationship and for your continued confidence and commitment. 

Sincerely,

Luana

Luana Mobley Corral, CFP®, CFS™, CLTC™, BFA™

LMC/ms

PS          Hope you enjoy the following articles:  The IRS Extends Additional Tax Deadlines - What to know about your IRA, HSA, and more; and Inflation Boogeyman - What to keep in mind as inflation fears rise: and old article from 2017, titled Have a Plan, Not Just a Stock Portfolio - Diversification still matters. One day, this bull market will end.

PPS      If you or someone you know is contemplating divorce, a Second Saturday Divorce workshop is a good place to start.  My hope is that attendees will leave the workshop committed to working on their marriage instead of moving toward divorce, but if they make the “divorce” decision, they will be more informed about what to expect in the process.  Because of Coronavirus, we are presenting abbreviated workshops online via Zoom.  The next one is Wednesday, April 7th from 5:30 to 6:45 PM.  In May, the workshop will be on Saturday, May 8th from 10 to 11:15 AM.  Register at SecondSaturdayBroward.com.  

Important Disclosures:  The views expressed in this letter are that of Luana Mobley Corral and do not necessarily reflect the views of Securities America, Inc. and/or its affiliates.  Securities America, Inc. and/or its affiliates makes no representation concerning and does not guarantee the source, originality, accuracy, completeness or reliability of any statement, information, data, finding, interpretation, advice, opinion, or view presented.  The information in this commentary is believed to be reliable as of the date of publication but no guarantee of accuracy is made or implied.  Information, opinions and comments expressed are subject to change without notice and are not intended as personal financial advice or to predict any future performance or outcomes.  Past performance never guarantees future results.  Inherent in any individual security, investment product or investment management program is the potential for profits as well as the risk of loss.  No one can consistently predict, time or control market conditions or investment performance.  Consult your financial advisor and other professional advisors before making any financial decision or taking any investment action.  Securities offered through Securities America, Inc., Member FINRA/SIPC and Advisory services offered through Securities America Advisors, Inc. and Associated Investor Services, Inc., Luana Mobley Corral, Representative.  Insurance products offered through Associated Financial Consultants, Inc.  Pre-divorce planning offered through Crossroads Consulting of South Florida, Inc.  Crossroads Consulting, Associated Financial Consultants & Investor Services, and Securities America are separate entities.

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The IRS Extends Additional Tax Deadlines - What to know about your IRA, HSA, and more.

Provided by Luana Mobley Corral, CFP®, CFS™, CLTC™, BFA™

Previously, the Internal Revenue Service (IRS) announced that the federal income tax filing due date for individuals for the 2020 tax year had been automatically extended from April 15, 2021, to May 17, 2021.1

More time for all. However, the IRS has also settled on May 17, 2021 as the deadline for contributions to individual retirement arrangements (IRAs and Roth IRAs), health savings accounts (HSAs), and Coverdell education savings accounts (Coverdell ESAs).2

No additional tax until May 17, 2021. This also automatically postpones to May 17, 2021, the deadline for reporting and payment of the 10% additional tax on amounts includible in gross income from 2020, distributions from IRAs, or workplace-based retirement plans.3

What about estimated tax payments? Keep in mind that this does not alter the April 15, 2021, deadline for estimated tax payments; these payments are still due on April 15. Taxes must be paid as taxpayers earn or receive income during the year, either through withholding or estimated tax payments.4

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note - investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

Citations.

  1. IRS.gov, March 17, 2021
  2. IRS.gov, March 29, 2021
  3. IRS.gov, March 29, 2021
  4. IRS.gov, March 29, 2021

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Inflation Boogeyman - What to keep in mind as inflation fears rise.

Provided by Luana Mobley Corral, CFP®, CFS™, CLTC™, BFA™

Inflation has emerged as one of the top financial concerns for investors as they size up the economy for the rest of the year.

According to research by Deutsche Bank, Google searches for “inflation” are rising rapidly and recently hit a peak not seen since the tracking began 13 years ago.1

Fed Chair Jerome Powell has said that inflation is likely to pick up as the economy recovers from the pandemic, but he believes it will be temporary. Powell has also stated that the central bank plans to keep short-term rates anchored near zero through 2023.2

“Inflation is caused by too much money chasing after too few goods,” according to Milton Friedman, the well-known American economist who won the 1976 Nobel Memorial Prize in Economic Sciences.3

How much money is too much money? Remember that lawmakers have enacted six major stimulus bills, totaling about $5.3 trillion to help manage the economic burden on families and businesses during the pandemic.4

One piece of wisdom to keep in mind is that the stock market is a discounting mechanism, meaning it considers all available present and potential future events to determine its closing price. When there’s uncertainty about the economy, the stock market may be more volatile while it searches for answers.5

If you are concerned about the outlook for inflation or stock market volatility, please give us a call. We’d welcome the chance to hear your perspective, and hopefully, we can provide some guidance.

Forecasts such as the Fed’s plans to keep short-term rates anchored near zero are based on assumptions and subject to revisions over time. Financial, economic, political, and regulatory issues may cause the actual results to differ from the expectations expressed in the forecast.

Investing involves risks, and investment decisions should be based on your own goals, time horizon, and risk tolerance. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost.

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note - investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

Citations

  1. Yahoo.com, March 17, 2021
  2. CNBC, March 17, 2021
  3. American Enterprise Institute, 2021
  4. PGPG.org, March 15, 2021
  5. Investopedia.com, 2021

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Have a Plan, Not Just a Stock Portfolio - Diversification still matters. One day, this bull market will end.

Reprinted from 2017

Provided by Luana Mobley Corral, CFP®, CFS, CLTC™

In the first quarter of 2017, the bull market seemed unstoppable.  The Dow Jones Industrial Average soared past 20,000 and closed at all-time highs on 12 consecutive trading days.  The Nasdaq Composite gained almost 10% in three months.1

An eight-year-old bull market is rare.  This current bull is the second longest since the end of World War II; only the 1990-2000 bull run surpasses it.  Since 1945, the average bull market has lasted 57 months.2

Everyone knows this bull market will someday end – but who wants to acknowledge that fact when equities have performed so well?

Overly exuberant investors might want to pay attention to the words of Sam Stovall, a longtime, bullish investment strategist and market analyst.  Stovall, who used to work for Standard & Poor’s and now works for CFRA, has seen bull and bear markets come and go.  As he recently noted to Fortune, epic bull markets usually end “with a bang and not a whimper.  Like an incandescent light bulb, they tend to glow brightest just before they go out.”2

History is riddled with examples.  Think of the dot-com bust of 2000, the credit crisis of 2008, and the skyrocketing inflation of 1974.  These developments wiped out bull markets; this bull market could potentially end as dramatically as those three did.3

A 20% correction would take the Dow down into the 16,000s.  Emotionally, that would feel like a much more significant market drop – after all, the last time the blue chips fell 4,000 points was during the 2007-09 bear market.4

Investors must prepare for the worst, even as they celebrate the best.  A stock portfolio is not a retirement plan.  A diversified investment mix of equity and fixed-income vehicles, augmented by a strong cash position, is wise in any market climate.  Those entering retirement should have realistic assessments of the annual income they can withdraw from their savings and the potential returns from their invested assets.

Now is not the time to be greedy.  With the markets near historic peaks, diversification still matters, and it can potentially provide a degree of financial insulation when stocks fall.  Many investors are tempted to chase the return right now, but their real mission should be chasing their retirement objectives in line with the strategy defined in their retirement plans.  In a sense, this record-setting bull market amounts to a distraction – a distraction worth celebrating, but a distraction, nonetheless.

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note - investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

Citations.

1 - money.cnn.com/2017/03/31/investing/trump-rally-first-quarter-wall-street/index.html [3/31/17]

2 - fortune.com/2017/03/09/stock-market-bull-market-longest/ [3/9/17]

3 - kiplinger.com/article/investing/T052-C008-S002-5-reasons-bull-markets-end.html [4/3/14]

4 - thebalance.com/stock-market-crash-of-2008-3305535 [4/