By Edward Leone Jr. CFP RFC RIA MBA DMD
Contact Information: edleonedds@gmail.com 303-478-6793
The news media is quite entertaining depending on the sources we consume. We are not being exposed in an adequate way to the examples globally which demonstrate that capitalism (as we have seen it in the history of the US) leads to economic and social progress while central planning as in socialism (Venezuela as an example) leads to struggle, starvation and social and economic failure.
We are also not yet, seeing evidence of significant improvement of what has been a very slow-growing US economy. Our Congress is struggling with the elements of tax reform, regulation reform and other potential economic stimulus policies. Let us all hope that there can be a coming together over social needs and economic growth. It is very important that the global economy can generate demand for goods and services which both US and foreign companies can provide. We may be seeing the elements of such a trend since the S&P 500 has gained 9.28% for the first 6 months of this year and the All Country World Index has gained 18.11% for the first 6 months of this year. Can these trends be maintained over a long-term?
So many of us focus mostly on the accumulation of assets to support retirement. This is very important; however, an individual’s personal needs as projected must also be included in a retirement plan. Health, social contacts, family relations, physical activity, recreation and community involvement are essential to happiness and longevity in the years of retirement.
There is much discussion about conversions from a traditional IRA to a Roth IRA. This is a troubling time to consider this action since we are not sure what future income tax rates will be. Most of those considering this move should perhaps wait until the new tax rates are known. It is an option to do these conversions incrementally instead of all at one time. It is also important to have a plan to meet the immediate tax burden associated with the conversions.
A financial planning tool which is often used to reduce estate tax burdens and to identify beneficiaries outside of a will document is a trust. The selection of a trustee to administer the trust should be carefully considered:
- The trustee should have the knowledge and skills to perform the duties assigned.
- The trustee must perform as a fiduciary.
- The trustee must be understanding and familiar with the estate and family history and desires.
It is important to engage a qualified attorney to formulate such a tool.
This summer season appears to be stimulating a lot of pleasurable travel. Enjoy your summer activities with family and friends!
For The Record:
DJIA 21,532.14
S&P 500 2,443.25
NASDAQ 6,261.17
Suggested Reading: “Trading In The Zone” by Mark Douglass
Leonesmoneymonitormonthly's Blog 
Leave a comment