Weekly Market Commentary

October 1, 2018

 

The Markets

It wasn’t headline news but the Federal Reserve raised rates for the third time in 2018, as expected. In addition, the Federal Open Market Committee projects economic growth will continue for three more years, although its median numbers show growth slowing from 3.1 percent in 2018 to 1.8 percent in 2021. (Remember, forecasts, no matter how venerable the source, are best guesses and not a sure thing.)

 

TAX TIP!!

Are you planning to make charitable contributions this year? If you have appreciated securities, mutual funds or real estate you might want to consider donating one of these investments into your own donor advised fund that you can set up with us. The investment would be cashed out inside of the donor advised fund tax free and you would be able to use the full proceeds to donate to charity. You would also get a full credit write off of the value of the investment rather than using after-tax dollars if just sold. You can then direct distributions from your fund to qualified charities in this year or future years. In addition you can invest the proceeds inside of your account and let your charitable donation grow until you decide to make distributions at some point in the future.

Please feel free to contact my office to discuss Donor Advised Funds further if you are interested.

 

TAX REVIEW ON YOUR PORTFOLIO

Also at this time of year I am reviewing personal accounts and looking for tax deductions to offset gains that may have been realized this year. I also would reiterate to you that I always attempt to take long-term capital gains whenever possible because it will put the tax bill in a lower bracket for you. This is something I do as an ongoing process for you year-round. I’m happy to report that it is difficult finding negative positions because so many of the portfolios have done so well again this year. I’m sure you would agree that’s a great problem to have!

 

Focus On The Positive

“In these troubled times it’s a relief to have Turner classic movies, Netflix and Pandora as an option versus cable news programs!”

–Bill Spalding