WHAT TO MAKE OF MARCH MADNESS |
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Protecting Your Portfolio From
Market Reaction To Russian Aggression
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Early 2022 already recorded the highest inflation rate in 40 years, and the Federal Reserve has just lifted its key interest rate by a quarter of a percentage point on Wednesday, their first decisive step toward trying to tame rapid inflation by cooling the economy. Add to that the fact that big stock declines have already begun to drag down the market, and now the Russian invasion of the Ukraine has created a geopolitical crisis which has sent stocks tumbling even further. The S&P 500 continues to take a beating as investors watch Western sanctions against Russia damage global trade.
The Positive Side: The labor market and economy appear strong enough to handle higher interest rates. Experts do not anticipate a recession this year. However, mortgages, car loans and borrowing by businesses will be more expensive, but slowing consumption and investment will reduce demand and suppress surging prices.
The Negative Side: The ban on Russian oil exports could continue to push oil prices up per barrel driving inflation a bit higher, for a bit longer than pre-invasion forecasts. The big picture is little changed. But American and European companies that have a significant presence in Russia will be hard hit. Emerging markets funds with disproportionate exposure to Russian stocks have already declined sharply.
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2021 IRA Contributions Can Be Made Until April 18th
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Taxpayers may be able to claim a deduction on their 2021 tax return for contributions to their Individual Retirement Arrangement (IRA) made through April 18, 2022. Contributions for 2021 can be made to a traditional or Roth IRA until the filing due date, April 18, but must be designated for 2021 to the financial institution.
Eligible taxpayers can contribute up to $6,000 to an IRA for 2021. For those 50 years of age or older at the end of 2021, the limit is increased to $7,000. Qualified contributions to one or more traditional IRAs may be deductible up to the contribution limit or 100% of the taxpayer's compensation, whichever is less. There is no longer a maximum age for making IRA contributions. Contribution charts and more HERE.
Those who make contributions to certain employer retirement plans, such as a 401k or 403(b), an IRA, or an Achieving a Better Life Experience (ABLE) account, may be able to claim the Saver's Credit. The amount of the credit is generally based on the amount of contributions, the AGI and the taxpayer's filing status. The lower the taxpayer's income (or joint income, if applicable), the higher the amount of the tax credit.
While contributions to a Roth IRA are not tax deductible, qualified distributions are tax-free. Roth IRA contributions may be limited based on filing status and income. Contributions can also be made to a traditional and/or Roth IRA even if participating in an employer-sponsored retirement plan (including a SEP or SIMPLE IRA-based plan). Contact Paul Wieseneck, CPA, Senior Advisor, for more information at 561-209-1102.
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What's New in ESG Portfolios? |
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ESG factors are transforming both businesses and investing. If you are new to the game, ESG stands for Environmental, Social, and Governance, which are non-financial factors that have become an increasingly important part of the investment process.
Why are more investors are embracing the ESG investing movement in a bid to drive change and make the world a better place? People naturally want to align their investments with their values. In the old days, this meant sacrificing profit and focusing only on the long term. No longer; you don’t have to sacrifice returns to jump on the ESG train. Smart investors are seeking businesses that not only focus on increasing profits but also take steps to protect the planet, keep employees and customers satisfied and safe, and assist communities in need. Money invested just in ESG index and exchange-traded funds will jump to $1.2 trillion, according to BlackRock.
What is creating this momentum? Focus on ESG factors has actually increased the financial return of many portfolios. The S&P Composite 1500 ESG index, a broad measure of ESG-focused stocks covering U.S. companies of all sizes, returned 36.4% over the past year—barely a hair less than the 36.6% return of the S&P Composite 1500, its non-ESG cousin. Over the past three years, the ESG index has returned an annualized 18.6%, besting its counterpart’s 17.2% average yearly gain.
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How To Choose A Financial Advisor?
Here is the Florida Weekly article everyone is talking about.....
Investing involves risk no matter who your advisor is, and of course each investor’s situation is unique, but there are questions you can ask, and red flags to look for that can keep you from choosing the wrong financial advisor which could be a costly mistake over time. TFG Financial Advisors Paul Wieseneck, CPA, RSSA, and Cory Lyon, have compiled a list of helpful items to consider when shopping for the right financial professional to manage your money. Click HERE to read more.
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TFG Financial Advisors | www.tfgfa.com
561-209-1120
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