Many states offer some tax relief for their elderly citizens. There may be some generosity behind the offer, or it may be part of an attempt to compete with lower-tax states for retiree residents. That competition may heat up now that the state and local tax deduction is limited to $10,000. The tax relief takes […]
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Relative Value
Value stocks outpaced growth stocks last week. The S&P 500 moved to new all-time highs, finishing the week up 0.85%, while the NASDAQ Composite remained below its late August highs, closing at 0.28% for the week. Further evidence of the relative strength of value stocks was evident in the 1.51% gain in the S&P 500 […]
Read MoreMoney and Satisfaction
Lotteries have become enormously popular in the United States. There is a widespread perception that many lottery winners burn through their newfound wealth rather quickly, and don’t end up better off in the long run. Swedish researchers have examined this perception more rigorously, in a manner akin to a randomized test of a drug’s efficacy. […]
Read MoreRewards and the Risks Attached
Treasury prices declined modestly last week leaving the 10-Year Treasury yield just shy of 3.00%. Economic data announcements continued to support the Fed’s anticipated quarter percent increase in its fed funds rate next week. The 10-year yield is likely heading into a 3.00% to 3.10% range in coming weeks. Equities got their feet back under […]
Read MoreAretha Franklin’s Estate Plan
Aretha Franklin, the “Queen of Soul,” passed away in August. Her life and musical legacy were remarkable. Her estate planning, not so much. Reportedly, Ms. Franklin died without ever executing a will. Her four sons filed notices with the probate court, before her funeral, that they were interested parties to her estate. One signed a […]
Read MoreTime in the Market
Stocks lost ground for the week, just the second week in the last ten to close lower. Declines in technology stocks and trade fears lead the indexes to lower. Fixed income yields rose on positive economic data. These mildly interesting facts should mean little to investors, who are intent on executing their plans for decades […]
Read MoreAsk a Trust Officer: Stock Markets
DEAR TRUST OFFICER: How about that stock market? Can it last? — HAPPY INVESTOR DEAR HAPPY INVESTOR: Higher stock prices are driven by two factors: increasing earnings and increasing investor speculation. The good news for investors is that the stock market records set in August were grounded upon increased earnings and a strongly growing economy. […]
Read MoreSeasonal Trade Bust
The S&P 500 rose to a new all-time high of 2,914.04 in the middle of the final week of August. The index finished the month 3.03% higher. August was the fifth month in a row during which the index closed higher and, since the end of the first quarter, the price gain is 9.87% higher. […]
Read MoreAsk a Trust Officer: Longevity
DEAR TRUST OFFICER: I’m turning 65 this year and thinking about retirement. How long should I plan for? — ANXIOUS PRE-RETIREE DEAR ANXIOUS PRE-RETIREE: According to the latest data from the National Vital Statistics Reports (August 2017, reporting on 2014 experience), a male age 65 should expect to live 18 more years (to age 83) […]
Read MoreEight-Year GRATs
The Grantor-Retained Annuity Trust (GRAT) has emerged as a popular strategy in the estate planner’s toolkit. The idea is that a grantor places assets in a trust while retaining the right to receive payments from the trust. When the term of the trust expires, any assets remaining in the trust pass to a beneficiary, typically […]
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