Doctors, dentists and business owners with more than $321,400 of 2019 adjusted gross income have one last chance not to pass up on this tax and retirement planning opportunity.
The Fed cut rates again on October 30th, for the third time in 2019. What's it mean to your long-term financial plan?
It's notable that the stock market in 2019 has not suffered a 10% correction on worries about the China trade confrontation, the manufacturing slump or concerns about the U.S. political situation - three bad-news narratives currently haunting markets.
When you are halfway through your 70th year on the planet, U.S. law says you must start taking money out of IRAs, SEPs and SIMPLE plans, as well as 401(k), 403(b) and other U.S. Government qualified retirement plans. Only a Roth IRA account, which you fund with after-tax dollars, is exempt from federally-required minimum distributions (RMDs).
How much should you withdraw from your tax-deferred 401(k) or IRA, and in what form? Here's a brief summary of four retirement income withdrawal methods to help you optimize the decumulation of your retirement income portfolio prudently.
The American Opportunity Credit (for college students) and the Lifetime Learning Credit - for undergrad, graduate and vocational students - are the two education tax credits available from the federal government. Students can claim either of the two credits for schooling costs, or their parents can - provided they don't opt for married filing separately.
In the first and second quarters of 2019, productivity of U.S. workers surged. Meanwhile, the labor force participation rate was higher than expected by the U.S. Government's research arm, the nonpartisan Congressional Budget Office.
Negative rates abroad have driven down bond yields in the U.S. and could make the stock market multiple expand.
Negative rates abroad are driving down bond yields in the U.S., which could make the stock market multiple expand. Investing always carries risk, and current financial economic conditions are unprecedented. For the first time in modern history, you have to pay the bank to hold your money in Europe! You have to pay a bond issuer to hold your money. Here's a factual analysis of factors driving what's happening and how it might affect your portfolio.
For years, year-end tax tips were delivered in this space every September, but this year's story is a real cliffhanger. The twist in the plot is the pending tax legislation. Ironically known as the SECURE Act, an acronym, the legislation is officially named, "Setting Every Community Up for Retirement Enhancement." The bill is likely to cause frantic last-minute tax maneuvering at the end of 2019.
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About The Weakness In Manufacturing
After the manufacturing sector numbers for August were published on Tuesday, September 3rd, the financial press erupted with grim headlines. Largely absent from the coverage was proper context: The manufacturing purchasing managers index has predicted six of the last three recessions, and manufacturing accounts for about 12% of U.S. economic activity. Here are the facts.
From a record-high level in September 2018 of 61.3%, manufacturing activity has plunged, and the latest monthly data for August showed further deterioration.
From 51.2% in July, the manufacturing economy dropped to 49.1%.
This data series from the Institute of Supply Management, which certifies purchasing management professionals employed across the U.S. and globally, is designed to signal a recession when it falls to less than 50%. But in the last three decades, it has predicted six of the last three recessions.
Over the last three economic cycles, the ISM Manufacturing Index dipped below 50% six times and was not followed by a recession; rather, it soared again and after it dropped to less than the 50% recession signal.
The drop in manufacturing is not good news, but manufacturing represents only 12% of the U.S. economy, and the track record of the index at forecasting recessions is very mixed.
The 88% of the economy outside of manufacturing — the much more important part of the economy — is growing slower than the tax-cut fueled peak of September 2018, but it's doing okay.
"The past relationship between the PMI® and the overall economy indicates that the PMI® for August (49.1%) corresponds to a 1.8% increase in real gross domestic product (GDP) on an annualized basis," according to Timothy R. Fiore, CPSM, C.P.M., chair of the ISM® Manufacturing Business Survey Committee.
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