Hi Everyone,

We are being inundated with news about Coronavirus Covid-19 as it relates to our health and to the markets.  As a fiduciary, your interests are my interests. I am watching the news and markets closely. It is important to stay informed and aware of our surroundings.  My daughter is currently in college in the Pacific Northwest at University of Oregon.  Our conversations relate to keeping good hygiene habits, how to travel (since she will be flying home to Arizona soon) and not panicking.

The common thread thus far in 2020, from my vantage point, is responsibility. Who has it and do we want it?

What Is Responsibility?

Responsibility means that businesses, in addition to maximizing shareholder value, must act in a manner that benefits community. Responsibility has become increasingly important to investors and consumers who seek investments that are not just profitable but also contribute communities and the environment. Help or Hindrance.

Now, I’m going simply state my mind on this and you all should know that, in no way is this an opinion on which you should act, investment programs should be individually tailored.

Here goes:

  • Taught to ask every client if they have an issue with certain companies or industries that would limit investment opportunities.
  • Most clients say “no, just make money”; however, they tend to live their lives with very strong convictions about certain things such as drinking, tobacco, and so called sinful acts.

I suggest that I should have never been taught that refraining from investing in certain industries would limit your opportunities. It does not. The only limits are those that, as a team, we decide on together. . . Client and Advisor.


Thoughts on 2020 Taxes

It’s never too early to keep a few things in mind as we head through 2020:

1) If you have a $10,000 capital loss and no gains, you can use $3,000 of the capital loss to deduct against ordinary income. For example, if your ordinary income is $50,000, you will get to deduct the $3,000 of capital loss and only pay tax on $47,000 of ordinary income. The remaining $7,000 of loss can be carried forward to the following year

2) SECURE Act – has an impact for retirees. Please read my recent blog post about the changes SECURE Act has for 2020.

Please reach out to me for clarification on this if in doubt. Let me know if you have any questions or need any additional resources.