Financial Tidbits
Issue 2
December 9th 2020
Message From Your Advisor
As we enter the last month of the calendar year, I wanted to thank you for allowing me to be a part of your financial journey. The year 2020 has definitely been one for the ages. I’m looking forward to 2021 and everything it will bring.
If I don’t get to speak with you before, I hope you have a safe and healthy holiday season!
Monthly Market Update
The Dow Jones Industrial Average, which has lagged much of the year, led the rally, jumping 11.84 percent. The Standard & Poor’s 500 Index tacked on 10.75 percent while the Nasdaq Composite rose 11.80 percent.
Personal Finance
Tips on Talking with Your Family About Finances
There’s no doubt about it – speaking with your family about finances is a thorny subject. According to one study, it was the third most challenging subject. Only sex and death ranked higher. Much as with those subjects, just because it might be difficult to discuss it with your family, doesn’t mean you shouldn’t. There are ways that you can broach the subject without it being too overwhelming. This article touches on some of those techniques.
It’s Important to Know Your Risk Tolerance
Knowing how much risk you are willing to take is an important step along your investment path. While we spend quite a bit of time discussing your tolerance for losses in your portfolio, the first step is to complete a Risk Tolerance Questionnaire to see where you stand. Fortunately, we have one free on our website:
IRS Sets Contribution Levels for 2021
Each year, the IRS reviews contribution levels for retirement plans (401k’s, 403b’s, IRA’s, Roth IRA’s, etc). Should they see enough inflation to warrant a change in the contribution levels, they will announce an increased in the permitted contributions. This year, they determined that the contribution levels will not change for 2021.
Business Finance
If Your Applied for a PPP Loan, Read This Before Applying for Forgiveness
If you applied for PPP loans through the government, it’s natural to what to rush to seek forgiveness of the loans. That might not be the best strategy. It’s important that you understand the tax ramifications (and any other governmental red tape) that might exist before walking down that road.
Personal Well-Being
How Psychology Plays a Part in Your Relationship with Money
Our individualized attitude towards money, like many things in life, is often psychological. Much like developing a financial plan or deciding on an investment plan, each person’s/family’s needs are unique. Instead of fighting your feelings, it’s important to find ways to improve your relationship with money.
Low-Cost Homeschooling Ideas for Your (Grand)Children
Are your kids (or grandkids) doing their schooling online? If so, you might consider a few low-cost items to help them through the classes. Here are some low-cost items to consider.
Technology Tips
Don’t Be Fooled By Scammers and Thieves
Scammers and identity thieves are going to be out in full force during the holiday season. Now more than ever, it’s important that you take steps to protect yourself. Be vigilant. Having strong passwords is an important step. Also, beware the fishing attempts that you’ll receive. Ensure you’re going to the actual website and not a third-party site.