By: Edward Leone Jr. CFP RFC MBA DMD
Contact Information: 303-478-6793 edleonedds@gmail.com
Equity markets are down slightly from record highs of January and February and are experiencing minor volatility from day-to-day. The S&P 500 Index was up 6.03% for the first quarter of the year. The All Country World Index was up 6.84% and Emerging Markets rose 11.31%. It appears that the global economy is improving. As I have stated before, it is likely to take some time before so many of the initiatives promised in the November election period may appear. It is also critical that political, civic and business leader come together in forming a consensus over the directions that this country and the economy will take. Conditions which promote consumer spending will be key to promoting economic activity. Adjustment on regulations which burden business activity needlessly will also be a key ingredient in growing the economy.
With the obvious trend, although very modest, of interest rate increases many may be considering a refinance of mortgage debt. Please be aware of the interest deduction on debt used to refinance a home. The new mortgage is treated as home acquisition debt up to the amount of the old mortgage principal at the event of the refinance. You can also deduct interest paid on up to $100,000 in additional mortgage refinancing as home equity indebtedness. These additional funds can be used for any purpose and not only home improvements. Interest paid on loan increases above that $100,000 may not be deducted unless the funds are applied to business or investment efforts. It will be interesting to see if home mortgage interest deductions are continued in any effort at tax reform. I suspect that this will occur, but perhaps the rules of the game will be changed.
Home values are increasing in many markets. This means that property taxes are also increasing. You may try to control this issue by checking for considerations if you are a senior citizen, disabled or a veteran. You may challenge the assessed value of the property by comparing your assessment to those of other properties in the neighborhood. The official process of a formal review will likely need to be engaged.
Those who are eligible, need to sign up for Medicare up to three months prior to turning 65 years old. Learn the rules to avoid late enrollment penalties particularly if you are delaying the taking of Social Security Benefits. As we enter the retirement years, it is wise to organize finances in a simple pattern making access to financial information easier for the retired and those who may be charged with care and maintenance of elderly family members and friends. 47% of those in the age group of 40 to 60 are taking care of parents and perhaps children also.
Be dedicated to those who need you help within family and the community!!
For The Record:
DJIA 20,587.54
S&P 500 2,343.45
NASDAQ 5,841.53
Suggested Reading: “Lords of Finance” By Hamed
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