As we move toward the final quarter of 2018, it’s a good time to consider how the 2017 Tax Cuts and Jobs Act (TCJA) will impact your current and future tax plans. One of the frequently asked questions we’ve been fielding is on charitable giving: How can you keep giving, and get a little back on your taxes? Following are four practical possibilities to consider for charitable giving under the TCJA rules.
Here at Align Wealth Management, we try to keep financial jargon to a minimum. But some references are worth translating, because there is valuable information behind the mumbo-jumbo.
Consider us your interpreter. Today, we’ll explore correlation, and why it is a key element of evidence-based investing.
It’s been approximately a decade since the Great Recession began. By the end of 2008, the U.S. Federal Reserve had lowered the fed funds rate to near zero and embarked on a campaign of “quantitative easing,” delivering a booster shot of lending, borrowing, and spending to revive the economy. Now the Fed is reversing course, restoring monetary policy and targeting historical norms by gradually raising interest rates and tightening policy.
The death of a great First Lady transcends politics. Our nation just laid Barbara Bush to rest, and Americans have been deeply moved by her devotion to family and nation – and to her spouse, former President George H.W. Bush, now a widower after 73 years of marriage. Most of us would feel incredibly blessed to have such an enduring marriage. And it’s almost impossible to imagine what it must be like to move forward alone.
The first quarter of 2018 has delivered a clear reminder that the law of gravity remains in force and markets can go up as well as down. Intellectually, experienced investors know a certain amount of volatility comes with the territory and is nothing to panic about. But humans are emotional creatures, and it can be hard for us to ignore the twinges of worry that we often feel when markets reverse course.
Downturns can test investor resolve, sabotage otherwise solid plans, and just plain hurt. But experience and evidence are on the side of investors with a long-term outlook. Acting rashly is far more damaging to portfolios than maintaining rational resolve during market downturns.
Just as we prepare for any emergency by practicing how to avoid blunders, we can take steps to avoid costly mistakes when markets are in the negative.
1. Don't panic. It's easy to believe you're immune from panic when the financial sun is shining, but it's hard to avoid indulging in worry during a crisis. If you're entertaining seemingly logical excuses to bail out during a steep or sustained market downturn, it's highly likely your behavioral biases are doing the talking. Even if you only pretend to be calm, that's fine, as long as it prevents you from acting on your fears.