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Don’t Compare Stocks to GDP

  Economics – the Dismal Science – is hard for most people. It’s even hard for economists who rarely agree on anything. But here’s an argument from Brian Wesbury of First Trust who thinks that the stock market is till under-valued.

The bull market in U.S. stocks, which started on March 9, 2009, gets little respect. Those who have been bullish, and right, are mocked as “perma-bulls,” while…

3% – Why It Doesn’t Matter

The stock market reacted negatively when the yield on the 10-year U.S. Government bond reached 3%.  There was a major one-day sell-off the first time that benchmark was reached.  Here’s what Brian Wesbury, Chief Economist at First Trust has to say.

Just a few weeks ago, the Pouting Pundits of Pessimism were freaked out over the potential for the yield curve to invert. They’ve now completely…

Identity Thieves Now Targeting Social Security Benefits

I wanted to pass the following story along as a warning to people who are approaching Social Security age.

On Good Friday, as I was baking my Easter Bread, I received a frantic call from an old friend in Pittsburgh. Natalia (not her real name) received a letter in the mail from the Social Security Administration (SSA) thanking her for setting up her Social Security Account online. The problem…

Scary Headlines and bad advice.

I was listening to the car radio the other day and hear an ad by someone who was predicting the end of the financial word. After listing the all the things that will go wrong, he promised that if you invested with him you could enjoy all the gains of the stock market but would not risk losing a penny.

Sound too good to be true? Of course it is, but it works by appealing to people who want to…

Who inherits when you die?

Most married people own their home, their bank account or their investments jointly as a couple. The most common designation on an investment account is “joint tenants with right of survivorship” (abbreviated as JT/WROS). What this means is that each has full power over the account. Either can deposit, withdraw or make changes in the account. And when one of them dies,…

How interest rates are determined

From our favorite economist – Brian Wesbury:

An entire generation of investors has been misled about interest rates: where they come from, what they mean, how they’re determined.

Lots of this confusion has to do with the role of central banks. Many think central banks, like the Fed, control all interest rates. This isn’t true. They can only control short-term rates. It’s true these can have an…

2017 Top 40 Under 40 Honoree: Stephen Korving

At work: President of Korving & Company, a financial planning and investment management firm focused on helping families plan for a secure retirement. “I love helping people create their financial plan, working with them to implement the steps and follow the plan, and then being there to see their excitement and sense of accomplishment when they achieve their goals.” Home and family:“I live in…

Ignoring the Invisible Hand

Our favorite economist, Brian Wesbury, of First Trust, has some comments about the culture and Higher Ed.  Thought provoking.

One of the most important questions we have about our country’s future is whether prosperity itself will make the American people lose sight of where that prosperity comes from; whether we’ll forget to cultivate the attitudes about freedom, property rights, and hard work…

Who needs a financial advisor?

Not everyone needs a financial advisor. But if you are not sure about how your financial assets should be invested, if you make major errors when you invest, you are a candidate for getting professional financial advice.

Fees are the main barrier that keeps people from getting the kind of advice that would improve their financial lives.

But just as doctors get paid for keeping us healthy and…

Does Volatility Make You Nervous?

One of our favorite economists, Brian Wesbury, has some comments on recent volatility and the economy.

When Volatility is Just Volatility

Stock market volatility scares people. But, volatility itself isn’t necessarily bad. Only if there are fundamental economic problems, something that could cause a recession, would we think volatility itself is a warning sign.

So, we watch the Four Pillars.…

Tax Cuts and Jobs Act Highlights

Significant reforms of personal income tax

Most taxpayers pay less at all levels

Marriage penalty reduced.

Increase in Standard Deduction

$12,000 for individuals

$24,000 for married couples

No change in Capital Gains Rates

0% up to $77,200 for married couple

15% from $77,200 to $479,000 for married couple

20% over $479,000 for  married couple

Significant reforms of Corporate Tax

Chapter C…

1. It’s going to get complicated. The global economy is strengthening but there are crosscurrent including rising interest rates and changes on the way trade issues are addressed. 2. Central banks are winding down unprecedented levels of monetary stimulus. At the same time government policy and spending are stimulative. 3. The geopolitical climate remains unsettled. Elections are being held…

A different tax saving strategy

Tax loss harvesting allows people to reduce their taxable income by selling securities that have gone down in value. Capital losses can be used to offset ordinary income or to offset realized capital gains.

But if an individual dies with a capital loss that they have not used, the person who inherits these securities may not be able to use these losses.  There is a way to use these capital losses…

Stay Invested: Economy Looks Good

One of our favorite economists, Brian Wesbury, Chief Economist of First Trust, offers this advice:

The current recovery started in June 2009, 105 months ago, making it the third longest recovery in U.S. history.

The longest – a 120-month recovery in the 1990s – saw real GDP expand an annual average of 3.6%. The current recovery has experienced just a 2.2% average annual growth rate – what we…

Planning Makes a Difference

Five reasons why you should work with us to create a retirement plan.

Helps you focus on your goals.

Address your concerns.

Identify threats to your retirement plans.

Feel more confident about your future.

Provides a roadmap to your retirement.

Click on the link for more: Planning Makes a Difference

How tax brackets work

Being in the 24% tax bracket doesn’t mean you pay 24% on everything you make.

The progressive tax system means that people with higher taxable incomes are subject to higher tax rates, and people with lower taxable incomes are subject to lower tax rates.

The government decides how much tax you owe by dividing your taxable income into chunks — also known as tax brackets — and each chunk gets taxed…

5 Reasons why you should work with a professional to create a retirement plan

Focus your goals in retirement and how you will pay for them.

Address your concerns and expectations for retirement.

Identify things that could pose a threat to your retirement and manage them.

Feel more educated, confident and in control of your financial future.

Help you navigate the complexity of financially moving into retirement.

Let us help you create the plan that will give you confidence…