By Edward Leone Jr. CFP RFC MBA DMD
Contact Information: 303-478-6793 edleonedds@gmail.com
There are up coming Security and Exchange Commission rule changes of which we must become aware. The biggest issue for most of us will have to do with money market funds. Retail prime money market funds will retain the net asset value concept of $1 per share while institutional prime money market funds will be moving from a $1 per share net asset value to a floating net asset value concept. This action is the result of money market funds’ distress during the 2008 financial crisis. It is clear that some money market funds will not serve as well for cash positions as they once did.
The bullish trend in our equity markets is now seven and one half years old. It would have to last another two years without a 20% correction to be the oldest bull market ever recorded. This possibility is clearly an unknown with possible changing sentiments in government, central banks, legislatures and corporate board rooms. It appears that investors are more concerned than euphoric. Warren Buffet once said “when people are greedy be fearful and when people are fearful be greedy”.
ETFs with $2.4 trillion in invested assets are gaining in popularity as investment vehicles due to low costs, tax efficiency, transparency and liquidity. The variety of investment choices is ever-expanding make this modality a lasting investment trend.
Open enrollment time for Medicare is upon us. For those who are on Medicare or are qualified, now is the time to research and enroll or adjust coverages. Parts A, B, and C are easy to understand upon reading of materials presented by Medicare. Part D (drug coverage) is a moving target with annual plan design changed and annual premium structure changes. The website dealing with this issue can be confusing and difficult to navigate. Good luck!
The IRS has announced that it will allow self corrections for those who do an IRA rollover and miss the 60 day deadline when taking assets into their own possession rather than a direct rollover to another administrator. It has been that a private letter ruling and a penalty assessed by the IRS was required in the event the deadline was missed. Self correction criteria revolve around IRA owner errors in asset placement and catastrophic events such as a death in the family or severe property damage. All of this can now be navigated online which can be more efficient and less extensive to resolve.
Before the next blog, we will have the privilege or burden of voting on a variety of legislative issues along with the chosing of those to represent us in implementing these legislative initiatives. GOOD LUCK!!
An investment in knowledge always pays the best interest.
For the Record:
DJIA 18,138.38
NASDAQ 5,214.16
S&P 500 2,132.98
Suggested Reading: “Investing at Level Three” by James Cloonan
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