“Does 1% really make any difference?” John asked. We were discussing John’s cash and emergency savings.
The financial experts know a lot more about the markets and how the markets will perform in the future than the ordinary rest of us. Right?
A Financial Planners Holiday Gift Guide
Still wondering what to give your loved ones for the holidays? If you really want to make a difference in their lives, I have three great gift ideas. All are based on the belief that people remember the way they feel far more than they remember what they see or hear. All these gifts will guarantee your loved one an incredible feel-good holiday!
Imagine a person who always, in every circumstance, makes rational decisions with his money. He saves when he ought to and spends exactly as he should spend, in order to maximize the “utility” of whatever wealth he happens to possess. He defers gratification with ease. When he invests, he has instant and total access to all possible information related to every item in his, including the details of every company’s financials and any impactful world events, even if they haven’t reached the news media yet. If he found a $100 bill on the sidewalk, he would immediately go out and invest it in a steel mill.
You can be forgiven if you’re skeptical that Congress will be able to completely overhaul our tax system after failing to overhaul our health care system, but professional advisors are studying the newly-released nine-page proposal closely nonetheless. We only have the bare outlines of what the initial plan might look like before it goes through the Congressional sausage grinder:
If you’re a fan of political dramas on televisions, you’ll know that the turbulent world of politics has an affect on the global financial markets. But what about in real life? How much does art - if you can call shows like Scandal, Veep, and House of Cards art - imitate life, and vice versa?
The truth of the matter is that 2017 is turning out to be a bit of an unpredictable political year, and a lot of that can be boiled down to the win in November 2016, when Trump was elected President of the United States. And whether you are a pro or anti of his presidency, I think we all can agree that the political climate is ever changing. The truth of the matter is that surprisingly politics don’t have as much of an influence over markets as much as TV would like us to believe - in the long term.
The current bull market in stocks will reach its 8th anniversary tomorrow, and for about the last four years, professional investors and financial planners have been scratching their heads. The markets have gone up and up and up, and we all know that they won’t go up forever, which means there’s a correction looming somewhere on the horizon.
Many of President-Elect Donald Trump’s policy proposals are too vague to analyze, but one area where he has been clear is on reforming our tax system. Here’s a quick primer on the changes that you can expect to be introduced to Congress in the coming year.
1) A shift from seven income tax brackets to three:
Current (Married Filing Jointly)
10% bracket: $0 to $18,550
15% bracket: $18,550 to $75,300
25% bracket: $75,300 to $151,900
28% bracket: $151,900 to $231,450
Why has the American economy grown so slowly since the Great Recession? This year, GDP growth will fall somewhere in the 1.5% to 1.8% range, below the 3% growth rate that is considered a sign of robust economic health. Critics have blamed everything from China’s slowdown to globally outsourced manufacturing to fiscal fights in Washington. But new research from economists at the Federal Reserve Board points to a different—and much simpler—explanation.
Yesterday’s vote by the British electorate to end its 43-year membership in the European Union seems to have taken just about everybody by surprise, but the aftermath could not have been more predictable. The uncertainty of how, exactly, Europe and Britain will manage a complex divorce over the coming decade sent global markets reeling. London’s blue chip index, the Financial Times Stock Exchange 100, lost 4.4% of its value in one day, while Germany’s DAX market lost more than 7%. The British pound sterling is getting crushed (down 14% against the yen, 10% against the dollar).
Compared to the global markets, the reaction among traders on U.S. exchanges seems muted; down roughly 3% as you read this, though nobody knows if that’s the extent of the fall or just the beginning.