Lantern Wealth Advisors, LLC
35 Pinelawn Road
Suite 101E
Melville, NY 11747
(631) 454-2000

During these stressful times, it’s important to keep perspective. If you have concerns, please reach out to your financial professional. We wish you all good health and we will all come through this together.

Major Indexes For Week Ended 6/5/2020

Index Close Net Change % Change YTD YTD %
DJIA 27,110.98 +1,727.87 6.81 -1,427.46 -5.00
NASDAQ 9,814.08 +324.21 3.42 +841.48 9.38
S&P500 3,193.93 +149.62 4.91 -36.85 -1.14
Russell 2000 1,507.15 +113.11 8.11 -161.32 -9.67
International 1,846.51 +121.42 7.04 -190.43 -9.35
10-year bond 0.90% +0.26% -1.02%
30-year T-bond 1.67% +0.27% -0.69%
International index is MSCI EAFE index. Bond data reflect net change in yield, not price. Indices are unmanaged and you cannot directly invest in an index.

Covid-19 Causes A Good Surprise

(June 5, 2020, 6:37 p.m. EST) The Covid-19 epidemic surprised the world again Friday morning, when the Labor Department announced 2.5 million jobs were created in May.

According to Yardeni Economic Research, an independent economic research firm to institutional investors, Wall Street had expected a loss of 4.25 million jobs in May.

Through the end of April, the economy lost a stunning 20.6 million. The additional jobs losses that had been expected would have made the epidemic the biggest job killer since The Great Depression of 1929.

The May unemployment rate had been expected by Wall Street to rise to 19.7%, from 14.7% in April. It dropped to 13.3%!

The Standard & Poor's 500 (S&P 500) closed at 3,193.93, up 4.8% from last week and 35.2% from the March 23rd bear market low.The index had gained 3% a week earlier and 3.2% the week before.

The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. It is a market-value weighted index with each stock's weight proportionate to its market value. Index returns do not include fees or expenses. Investing involves risk, including the loss of principal, and past performance is no guarantee of future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted.

Nothing contained herein is to be considered a solicitation, research material, an investment recommendation, or advice of any kind, and it is subject to change without notice. It does not take into account your investment objectives, financial situation, or particular needs. Product suitability must be independently determined for each individual investor.

This material represents an assessment of the market and economic environment at a specific point in time and is not intended to be a forecast of future events or a guarantee of future results. Forward-looking statements are subject to certain risks and uncertainties. Actual results, performance, or achievements may differ materially from those expressed or implied. Information is based on data gathered from what we believe are reliable sources. It is not guaranteed as to accuracy, does not purport to be complete, and is not intended to be used as a primary basis for investment decisions.

The New Math Of Renting Out A Vacation Home

If you've ever thought about becoming a landlord, here's an update on recent tax breaks that changed the equation for weighing whether to rent a property or be the sole tenant throughout the year.

If you bought a home in 2018, only the first $750,000 of the mortgage interest is deductible, down from $1 million under the old rules. But a rental property is not subject to these limits.

While the math of renting out your place may not have worked before, you may want to look at it again. Your mortgage could be several million dollars, but you'd still be able to deduct all of the interest on it— just as you did before the new law. If you live in the residence for part of the year and rent it out for the rest, you're entitled to a partial break.

Another advantage for rental property owners is that you can now deduct only $10,000 in state and local income tax and property tax annually on a home if you are not renting it out. But if you rent out a property for at least 15 days a year, you can take a deduction on part of the property taxes paid.

A homeowner who pays $12,000 in property levies annually, for example, may deduct only the first $10,000. Renting out that property for three months qualifies you for a deduction on 25% of property taxes paid, or $3,000, and you could separately deduct the other $9,000 in property taxes paid.

Rental property owners also get a break on making home improvements. Under tax reform, landlords may immediately deduct capital spending on equipment and machinery. Gone is the requirement to take the break over many years. If you install a new kitchen in a rental property, for instance, it's deductible all at once.

Becoming a landlord is fraught with issues beyond finances, chief among them: privacy. Letting others invade your personal space literally is no small decision and a very personal one. However, the economics of renting out a vacation home have changed, and you may want to reconsider your options.

In the era of Airbnb, deciding to rent a vacation home requires advice from a professional who understands the strategic tax and financial planning as well as your personal situation. Please give us a call if you have any questions.

The above referenced information was obtained from reliable sources, however Lantern Investments, Inc. and Lantern Wealth Advisors, LLC cannot guarantee its accuracy. Opinions expressed herein are subject to change. Past performance is no guarantee of future results. Asset allocation and diversification do not assure a profit or protect against losses in declining markets. Any information given on the site is informational and illustrative but does not recommend actions as the information may not be appropriate to all situations. It is important that you consider your tolerance for risk and investment goals when making investment decisions. Investing in securities does involve risk and the potential of losing money. Links to other sites are provided for your convenience. Lantern Wealth Advisors, LLC and Lantern Investments, Inc. do not endorse, verify or attest to the accuracy of the content of the web sites that are linked and accept no responsibility for their use or content. Lantern Wealth Advisors, LLC and Lantern Investments, Inc. do not provide tax, accounting or legal advice.