The Cost Of A Gold Medal

The actual value of the medal.

The 2020 Tokyo Olympics wrap up with closing ceremonies on August 8, and it’s been an Olympic games like no other. We’ve watched the world’s finest athletes go for the gold. Which leads many to wonder: what exactly goes into a gold medal, and how much are they worth?

Solid gold: In the inaugural 1896 Olympics, winners were awarded silver medals, with second-place finishers receiving bronze medals. The gold medal debuted at the 1904 St. Louis Olympics, and they were solid gold. This trend only continued until 1912.1,2

Modern medals: Now, modern gold medals are made with around 550 grams of pure silver and coated with 6 grams of pure gold. This year's medals are worth approximately $810 on the open market. Many countries also offer a financial award for each type of medal won, with Singapore providing the most significant payout at $1 million USD per gold medal. The United States awards gold medal athletes with $37,500 per gold medal.3,4

Each Olympic games brings the hopes of the women and men who have trained for their lifetimes to get here. While the gold medal may not be worth as much monetarily, they are priceless to the athletes who win them.

Rep disclosures: Kim Bolker may be reached at kim@bolkercapital.com or 616-942-8600.

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note - investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

Citations

1. Good.com, October 31, 2017

2. CNN.com, August 2, 2021

3. Newsweek.com, August 2, 2021

4. NationalPost.com, July 21, 2021

Chinese Markets Under Pressure

Regulators impact the Chinese stock market.  

With overseas investments, we remind people that, “international markets carry additional risks, which include differences in financial reporting standards, currency exchange rates, political risk, foreign taxes and regulations.”

The “political risks” and “regulations” portions of this common disclosure have been on full display in recent weeks in China.

Chinese technology and education stocks have been under pressure as Chinese regulators continue their push to rein in large companies for reasons that include data security, corporate behavior, financial stability, and curtailing private-sector power.1

The Nasdaq Golden Dragon China Index (HXC), which tracks 98 of the biggest U.S.-listed Chinese stocks, dropped 19% in the three days ended Tuesday, July 27.2 Prices have since rebounded somewhat but overall investor sentiment remains cautious.

Actions by China’s regulators are raising new concerns among investors about whether other Chinese industries in the weeks and months ahead may fall in the crosshairs of regulators.  

If you have some investments in foreign markets, we know you’ll be watching these developments closely. Please reach out if you have questions or thoughts to discuss.

Rep disclosures: Kim Bolker may be reached at kim@bolkercapital.com or 616-942-8600.

Investing involves risks, and investment decisions should be based on your own goals, time horizon, and risk tolerance. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost.

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note - investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

Citations

1. Earnings Scout, July 23, 2021

2. Insights.Factet.com, January 22, 2021

A 6.1% Bump in Social Security?

COLA and Social Security.

The news keeps getting better for Social Security recipients.

It's now projected that benefits will increase 6.1% in 2022, up from the 4.7% forecast just two months ago. That would be the most significant increase since 1983.1,2

It’s all about inflation. Social Security cost of living adjustments (COLA) are based on the consumer price index, which rose 5.4% in June — its largest 12-month increase since 2008. The official announcement is expected in October and, once it’s confirmed, the revised payment will go into effect in January 2022.3

More than 65 million Americans receive Social Security, and the annual cost of living adjustments are designed to help recipients manage higher costs. At the start of 2021, recipients saw a 1.3% increase.4

The average monthly benefit is $1,544 for retired workers. So a 6.1% increase amounts to $94 more a month. That might not be quite enough for a car payment, but it’s double the 3% raise being given to U.S. workers in 2021.4,5

Social Security can be confusing. One survey found only 6% of Americans know all the factors that determine the maximum benefits someone can receive. If you have any questions, please reach out. We have a number of resources at our fingertips that you may find helpful.6

Rep disclosures: Kim Bolker may be reached at kim@bolkercapital.com or 616-942-8600.

The forecasts for Social Security benefits are based on assumptions, subject to revision without notice, and may not materialize.

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note - investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

Citations

1. Fortune.com, July 15, 2021

2. SeniorsLeague.org, May 12, 2021

3. InvestmentNews.com, July 13, 2021

4. SSA.gov, June 2021

5. SHRM.org, June 2021

Billionaires in Space

The business world heads to space. 

It’s long been an aspirational target for entrepreneurs. It literally goes beyond “blue sky,” in terms of location, to a place no business has gone before: Outer Space!

Longtime space enthusiast and entrepreneur Richard Branson became the first person to travel to space using a self-funded vehicle. While the trip was brief, with Branson releasing an aspirational message during the few minutes of weightlessness afforded, it served to allow him brief bragging rights. Jeff Bezos, the recently retired billionaire executive, is about to launch his space effort, scheduled to launch July 20, the fifty-second anniversary of the Apollo 11 moon landing.1,2

While these flights are full of such symbolism and pomp, they also reflect space entrepreneurship transitioning from pie-in-the-sky to, well, actual people in the sky. Where once the only space corporations were those with government contracts, working with NASA, the field is now open to potential space tourism, and other private-sector pursuits. Branson seems focused on offering wealthy passengers a trip of a lifetime. Bezos is on the cusp of the same but also has other, larger space-bound aspirations, potentially working with civil, commercial, and defense clients.1,2

This launch into the final frontier is certainly exciting. As for other down-to-earth matters I remain with feet planted firmly on the ground and monitoring your financial matters. Hailing frequencies are always open, if you have any questions.

Rep disclosures: Kim Bolker may be reached at kim@bolkercapital.com or 616-942-8600.

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note - investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

Citations

1. CNN.com, July 12, 2021

2. Fox Business, July 12, 2021

A COLA with Your Social Security?

Preliminary estimates call for a 4.7% cost-of-living increase.1

If there is a "silver lining" to all the inflation talk, it may be that Social Security benefits are expected to see a larger-than-normal increase in 2022.

Preliminary estimates call for a 4.7% cost-of-living increase (COLA) in Social Security benefits next year, which would be the highest since 2009. Benefits rose 1.3% in 2021.1 

The Social Security Administration makes its official announcement in January 2022. The Bureau of Labor Statistics bases its annual adjustment on the Bureau of Labor Statistics data in the Consumer Price Index for Urban Wage Earners and Clerical Workers, known as the CPI-W.2 

A lot can change between now and January 2022, but remember that data from the third quarter of 2021 will be the basis for the COLA for next year.

In my experience, Social Security is one of the most misunderstood sources of retirement income. For example, only 33% of people in 2021 expected Social Security to be a major income source during retirement. In reality, it was a major source for 62% of retirees.3 

Retirement may hold many surprises. But your sources of retirement income shouldn't be one of them. It's critical to have a strategy that keeps your expectations in line with reality. We'd welcome the chance to hear what you think about Social Security.

Rep disclosures: Kim Bolker may be reached at kim@bolkercapital.com or 616-942-8600.

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note - investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment. 

Citations

1. SeniorsLeague.org, May 12, 2021

2. CNBC.com, May 12, 2021

3. EBRI.org, 2021. “Retirement Confidence Survey”

Tax & Estate Strategies for Married LGBTQ+ Couples

In this age of marriage equality, there are new possibilities.

The 2015 Obergefell v. Hodges Supreme Court decision streamlined tax and estate strategizing for married LGBTQ+ couples. If you are filing a joint tax return for this year or are considering updating your estate strategy, here are some important things to remember.

Keep in mind, this article is for informational purposes only and is not a replacement for real-life advice, so make sure to consult your tax, legal, and accounting professionals before modifying your tax strategy. 

You can file jointly if you were married at any time this year. Whether you married on January 1st, June 8th, or December 31st, you can still file jointly as a married couple. Under federal tax law, your marital status on the final day of a year determines your filing status. This rule also applies to divorcing couples. Now that marriage equality is nationally recognized, filing your state taxes is much easier as well.1 

If you are newly married or have not considered filing jointly, remember that most married couples potentially benefit from filing jointly. For instance, if you have or want to have children, you will need to file jointly to qualify for the Child and Dependent Care Tax Credit. Filing jointly also makes you eligible for Lifetime Learning Credits and the American Opportunity Tax Credit.2  

You can gift greater amounts to family and friends. Prior to the landmark 2015 Supreme Court ruling, LGBTQ+ spouses were stuck with the individual gift tax exclusion under federal estate tax law. As such, an LGBTQ+ couple could not pair their $15,000-per-person allowances to make a gift of up to $30,000 as a couple to another individual. But today, LGBTQ+ spouses can gift up to $30,000 to as many individuals as they wish per year.3

You can take advantage of portability. Your $11.7 million individual lifetime estate and gift tax exclusion may be adjusted upward for inflation in future years, but it will also be portable. Under the portability rules, when one spouse dies without fully using the lifetime estate and gift tax exclusion, the unused portion is conveyed to the surviving spouse’s estate. To illustrate, if a spouse dies after using only $2.1 million of the $11.7 million lifetime exclusion, the surviving spouse ends up with a $9.6 million lifetime exclusion.3 

You have access to the unlimited marital deduction. The unlimited marital deduction is the basic deduction that allows one spouse to pass assets at death to a surviving spouse without incurring the federal estate tax.3  

Marriage equality has made things so much simpler. The hassle and extra paperwork that some LGBTQ+ couples previously faced at tax time is now, happily, a thing of the past. Remember to check the tax laws in your state with the help of a tax or financial professional.

Rep disclosures: Kim Bolker may be reached at kim@bolkercapital.com or 616-942-8600.

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note - investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

Citations

1. Internal Revenue Service, October 14, 2020

2. Internal Revenue Service, March 12, 2021

3. Internal Revenue Service, April 12, 2021

Buffett and Powell Talk Inflation

The Oracle of Omaha and the Fed Chair seem to be at odds.

What does it mean when two of the most powerful voices in American financial life seem to be saying two different things?

In one corner, we have the “Oracle of Omaha,” investor Warren Buffett. As one of the nation’s richest people and most frequently sought opinions on business matters, he’s a voice that gets a great deal of attention. He says that prices are going up.

“We are seeing very substantial inflation,” Buffett told his shareholders this weekend. “We are raising prices. People are raising prices to us and it’s being accepted.”1

In the other corner, Federal Reserve Chair Jerome Powell sees a slightly different story. While it’s true that prices are up, for now, the economic recovery is in progress and it might be a mistake to see inflation as a guest long overstaying its welcome.

“One-time increases in prices are likely to only have transitory effects on inflation,” Powell said. He later added, “It will take some time before we see substantial further progress.”2

While economic recoveries always take a bit of time, it can certainly test the patience of any investor, even one like Buffet who has lived through many economic ups and downs. The good news is that a financial professional helps you create a strategy that weathers difficult economic times, including periods of inflation. That said, if you have questions, I look forward to having a conversation with you about what’s happening in the news.

Rep disclosures: Kim Bolker may be reached at kim@bolkercapital.com or 616-942-8600.

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note - investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

Citations

1. CNBC.com, May 3, 2021

2. CNBC.com, April 28, 2021

A Look at SPACs

Special interest acquisition companies are making headlines.

What are SPACs, and why is Wall Street talking about them? Special interest acquisition companies (SPACs) are not new, but they are much more prevalent than they once were. In 2020, there were ten times more SPAC transactions than there were in 2016.1

SPACs are public companies created to buy private companies. They are usually formed by large investors who know a particular business sector well. These investors analyze and target privately held firms within that sector for acquisition.

A SPAC begins as a shell corporation. At the start, it has no business operations, and it stays mum about what firms it might want to acquire. The SPAC does announce an initial public offering (IPO) to raise up additional capital. Following the IPO, the SPAC targets private companies looking to sell. Then a reverse merger occurs – the deal that takes the private company public, with the SPAC continuing the acquired company’s operations.1,2

Investing involves risks, and investment decisions should be based on your own goals, time horizon and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. SPACs and other specialized investments are not appropriate for every investor.

When the SPAC discloses plans to buy a company, shareholders vote either to approve the buy or liquidate their invested assets. For the reverse merger to proceed, the SPAC needs at least 50% of shareholders to vote yes on the acquisition, and less than 20% of shareholders to request liquidation. If 50% or more of the shareholders vote yes but more than 20% want liquidation, the SPAC returns a percentage of its net IPO proceeds to its public shareholders, and both the deal and the SPAC are kaput.3

A SPAC commonly has two years to accomplish a reverse merger. If it fails to meet that 2-year deadline, it may be required to liquidate.2

Why would a company make a deal with a SPAC when it could just hold its own IPO? Two reasons: time and paperwork. IPOs can take a year or two to get off the ground, and they require privately held firms to disclose a lot of information, some of it sensitive. (If a privately held firm owes mountains of debt, for example, then its IPO may not prove too appealing.) SPACs offer private companies an alternative to the IPO process.

Rep disclosures: Kim Bolker may be reached at kim@bolkercapital.com or 616-942-8600.

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note - investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment. There are a number of risks associated with investing in an initial public offering, including limited access to information and an unproven management team. IPO investing is not appropriate for every investor. If you are considering an initial public offering, you are encouraged to read the offering prospectus carefully before you invest or send money.

Citations

1. NPR, December 29, 2020

2. Investopedia, November 24, 2020

3. Fidelity. February 25, 2021

Paying for the Infrastructure Bill

The proposal does not yet include any new taxes on individuals.

President Joe Biden introduced the much-anticipated American Jobs Plan, which outlines an approach to spend roughly $2.2 trillion on the nation's infrastructure and other projects.

As part of the legislative process, the Biden administration also laid out a proposal for paying for the domestic investment. The plan includes raising the corporate tax rate to 28% from 21%, cracking down on companies that use overseas operations to manage profits, and eliminating tax breaks for some industries.1

Right now, the proposal does not include any new taxes on individuals. It's only targeting corporations expecting that the 8-year plan would pay for itself in 15 years.2

But some believe that in the coming weeks, the Biden administration intends to put forward additional tax initiatives that target high-earning Americans.

One proposal that may get introduced would raise taxes on families who earn more than $400,000 a year. There also has been discussion about a higher capital gains tax rate for individuals earning at least $1 million a year and adjustments to the estate tax exemption.3

At this point, it's uncertain what—if any—tax changes for individuals will be taken up by Congress. The initiatives that will take priority may become more clear in the weeks ahead.

Challenge yourself to be patient during this period of debate over tax proposals. If they introduce changes, a sound analysis should drive portfolio decisions, not knee-jerk reactions to current events. Remember, this letter is for informational purposes only. It is not a replacement for real-life advice, so make sure to consult your tax, legal, and accounting professionals before modifying your tax strategy.

If you are concerned about one or more of these proposals, please give us a call. We'd welcome the chance to hear your perspective, and hopefully, we can provide some guidance.

Rep disclosures: Kim Bolker may be reached at kim@bolkercapital.com or 616-942-8600.

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note - investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

Citations

1. CNBC.com, March 31, 2021

2. USAToday.com, March 31, 2021

3. Bloomberg.com, March 14, 2021

Inflation Boogeyman

What to keep in mind as inflation fears rise. 

Inflation has emerged as one of the top financial concerns for investors as they size up the economy for the rest of the year.

According to research by Deutsche Bank, Google searches for “inflation” are rising rapidly and recently hit a peak not seen since the tracking began 13 years ago.1

Fed Chair Jerome Powell has said that inflation is likely to pick up as the economy recovers from the pandemic, but he believes it will be temporary. Powell has also stated that the central bank plans to keep short-term rates anchored near zero through 2023.2

“Inflation is caused by too much money chasing after too few goods,” according to Milton Friedman, the well-known American economist who won the 1976 Nobel Memorial Prize in Economic Sciences.3

How much money is too much money? Remember that lawmakers have enacted six major stimulus bills, totaling about $5.3 trillion to help manage the economic burden on families and businesses during the pandemic.4

One piece of wisdom to keep in mind is that the stock market is a discounting mechanism, meaning it considers all available present and potential future events to determine its closing price. When there’s uncertainty about the economy, the stock market may be more volatile while it searches for answers.5

If you are concerned about the outlook for inflation or stock market volatility, please give us a call. We’d welcome the chance to hear your perspective, and hopefully, we can provide some guidance.

Rep disclosures: Kim Bolker may be reached at kim@bolkercapital.com or 616-942-8600.

Forecasts such as the Fed’s plans to keep short-term rates anchored near zero are based on assumptions and subject to revisions over time. Financial, economic, political, and regulatory issues may cause the actual results to differ from the expectations expressed in the forecast.

Investing involves risks, and investment decisions should be based on your own goals, time horizon, and risk tolerance. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost.

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note - investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

Citations

1. Yahoo.com, March 17, 2021

2. CNBC, March 17, 2021

3. American Enterprise Institute, 2021

4. PGPG.org, March 15, 2021

5. Investopedia.com, 2021

A Look at SPACs

Special interest acquisition companies are making headlines. 

What are SPACs, and why is Wall Street talking about them? Special interest acquisition companies (SPACs) are not new, but they are much more prevalent than they once were. In 2020, there were ten times more SPAC transactions than there were in 2016.1

SPACs are public companies created to buy private companies. They are usually formed by large investors who know a particular business sector well. These investors analyze and target privately held firms within that sector for acquisition.

A SPAC begins as a shell corporation. At the start, it has no business operations, and it stays mum about what firms it might want to acquire. The SPAC does announce an initial public offering (IPO) to raise up additional capital. Following the IPO, the SPAC targets private companies looking to sell. Then a reverse merger occurs – the deal that takes the private company public, with the SPAC continuing the acquired company’s operations.1,2

Investing involves risks, and investment decisions should be based on your own goals, time horizon and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. SPACs and other specialized investments are not appropriate for every investor.

When the SPAC discloses plans to buy a company, shareholders vote either to approve the buy or liquidate their invested assets. For the reverse merger to proceed, the SPAC needs at least 50% of shareholders to vote yes on the acquisition, and less than 20% of shareholders to request liquidation. If 50% or more of the shareholders vote yes but more than 20% want liquidation, the SPAC returns a percentage of its net IPO proceeds to its public shareholders, and both the deal and the SPAC are kaput.3

A SPAC commonly has two years to accomplish a reverse merger. If it fails to meet that 2-year deadline, it may be required to liquidate.2 

Why would a company make a deal with a SPAC when it could just hold its own IPO? Two reasons: time and paperwork. IPOs can take a year or two to get off the ground, and they require privately held firms to disclose a lot of information, some of it sensitive. (If a privately held firm owes mountains of debt, for example, then its IPO may not prove too appealing.) SPACs offer private companies an alternative to the IPO process.

Rep disclosures: Kim Bolker may be reached at kim@bolkercapital.com or 616-942-8600.

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note - investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment. There are a number of risks associated with investing in an initial public offering, including limited access to information and an unproven management team. IPO investing is not appropriate for every investor. If you are considering an initial public offering, you are encouraged to read the offering prospectus carefully before you invest or send money.

Citations

1. NPR, December 29, 2020

2. Investopedia, November 24, 2020

3. Fidelity. February 25, 2021

I.R.S. Delays Tax Filing, Payment Deadlines

The new deadline is May 17, 2021.

Less than one month ahead of the traditional date, the I.R.S. has delayed the deadline for filing and paying taxes. The new deadline is May 17, 2021.1,2,3

The delay follows continued disruption from the COVID-19 pandemic and a late start to the tax-filing season, which the I.R.S. delayed to start on February 12. It also follows the agency's decision to postpone the deadline to June 15 for the states of Louisiana, Oklahoma, and Texas, still recovering from disastrous winter storm activity. Other states may now extend their local filing and payment deadlines.1,3

This relief does not apply to estimated tax payments that are due on April 15, 2021. These payments are still due on April 15.3

While this extension isn't unexpected, it may be welcome to many still coping with what is becoming one of the most complicated tax seasons in decades.

It’s important to point out that our letter is for informational purposes only, so make sure to consult your tax, legal, and accounting professionals before modifying your tax-filing strategy.

Rep disclosures: Kim Bolker may be reached at kim@bolkercapital.com or 616-942-8600.

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note - investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

Citations

1. CNBC.com, March 17, 2021

2. Bloomberg.com, March 17, 2021

3. IRS.gov, March 17, 2021

The Emergence of ESG Investing

How generational and societal change is influencing companies and the markets.

ESG: what does that acronym stand for? Those three letters stand for "Environmental, Social, and Governance" and signify an investment that has particular merit to investors of all ages. 

A recent Morgan Stanley Bank survey found that almost 90% of millennials would prefer to have investments that suit their values. With young adults, ESG investing could become more and more of an element in investing strategies.1

You may recall how the phrase “socially responsible investing” became part of the stock market vocabulary a generation ago. Socially responsible investing (SRI) was often about not investing in certain companies – businesses whose products or services seemed distasteful to this or that investor. ESG investing focuses more on corporate behavior. Is a corporation managing natural resources sustainably? Does it treat workers well? Is its culture inclusive and diverse?   

Corporate values count, perhaps now more than ever. Today, you have companies pledging to commit to environmentally sustainable practices and leadership initiatives designed to include women and members of minority groups in the C-Suite. 

Some corporations now include ESG metrics in financial and annual reports. This is more than a nod to investors; it represents a trend in corporate communication and behavior. One notable ESG metric is CEO pay. Some S&P 500 firms have gotten bad publicity over the last decade for the degree of executive compensation their leaders receive, and investors are watching.

Philosophically, ESG investing asks two questions. An ESG investing proponent's answers may differ significantly from those of an investor uncompelled by the ESG approach. 

One, should social responsibility matter more than a company's financials when you are considering an investment? Two, can positive environmental and social news about a corporation influence its stock's value more than its earnings and guidance?

If you want to explore the world of ESG investing, consult your financial professional for the insight and information that can help you identify your choices.

Rep disclosures: Kim Bolker may be reached at kim@bolkercapital.com or 616-942-8600.

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note - investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

Citations

1. Corporate Finance Institute, February 24, 2021

Spotlight Shifts to Bonds

What to know about interest rates and yields.

One time-tested principle of investing is, "when bond yields move higher, bond prices tend to move lower."

Investors are doing a "double take" on the 10-year Treasury yield, which recently topped 1.5% — its highest level in about a year. With the increase in yield comes a drop in price.1

For some, the first time they experience a change in bond prices is when they open their monthly statement and review their investments.

But before you check your February statement, here is some background that may help put the most recent move in long-term rates in perspective.

The interest rate on the 10-year Treasury dropped steadily in the first half of 2020 and bottomed at 0.54% in late July. While rates remain at low levels, the yield on the 10-Year Treasury has nearly tripled in the past seven months. That's a significant increase in a relatively short period.2 

Bond yields may increase for several reasons—some of them good (strong economic growth) and some of them concerning (accelerating inflation). Bond Investors are anticipating a pick-up in economic growth and appear concerned about inflation due to the Fed's easy monetary stance and federal fiscal spending in response to the pandemic.

The question is, at what point do stock investors begin to worry about higher bond yields. That answer may be if 10-year Treasury yields start to rival the dividend yield on the S&P 500.3

Remember, the Federal Reserve has reiterated its support for its zero-interest-rate policy, but much of the Fed's influence is on short-term interest rates. Market forces play a larger role in determining long-term rates like the 10-year Treasury.4

Bonds can play an important part in any portfolio, but like any investment, periods of volatility are expected. If you're concerned about the outlook for bonds or the macro-economic trends behind the bond market's rally, please give us a call. We'd welcome the chance to hear your perspective, and hopefully, we can provide some guidance.

Rep disclosures: Kim Bolker may be reached at kim@bolkercapital.com or 616-942-8600.

The market value of a bond will fluctuate with changes in interest rates. As rates rise, the value of existing bonds typically falls. If an investor sells a bond before maturity, it may be worth more or less than the initial purchase price. By holding a bond to maturity, an investor will receive the interest payments due plus your original principal, barring default by the issuer. Investments seeking to achieve higher yields also involve a higher degree of risk.

Asset allocation and diversification are approaches to help manage investment risk. Asset allocation and diversification do not guarantee against investment loss.

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note - investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

Citations.

1. U.S. Department of Treasury, February 26, 2021

2. CNBC.com, February 26, 2021

3. Multpl.com, February 26, 2021

4. The Wall Street Journal, February 24, 2021

2020 IRA Deadlines Are Approaching

Here is what you need to know.

Financially, many of us associate April with taxes – but we should also associate December with important IRA deadlines.

December 31, 2021 is the deadline to take your Required Minimum Distribution (RMD) from certain individual retirement accounts.   

April 15, 2021 is the deadline for making annual contributions to a traditional IRA, Roth IRA, and certain other retirement accounts.1    

Some people may not realize when they can make their IRA contribution. You can make a yearly IRA contribution between January 1 of the current year and April 15 of the next year. Accordingly, you can make your IRA contribution for 2020 any time from January 1, 2020 to April 15, 2021.2   

Thanks to the SECURE Act, traditional IRA owners can now contribute to their IRAs past age 72 as long as they have taxable income.    

If you are making a 2020 IRA contribution in early 2021, you must tell the investment company hosting the IRA account for which year you are contributing. If you fail to indicate the tax year that the contribution applies to, the custodian firm may make a default assumption that the contribution is for the current year (and note exactly that to the I.R.S.).

So, write “2021 IRA contribution” or “2020 IRA contribution,” as applicable, in the memo area of your check, plainly and simply. Be sure to write your account number on the check. If you make your contribution electronically, double-check that these details are communicated.

Rep disclosures: Kim Bolker may be reached at kim@bolkercapital.com or 616-942-8600.

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note - investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

Citations

1. irs.gov, November 23, 2020

2. irs.gov, November 10, 2020

Earnings Season Gets Underway

Quarterly financial reports are here.

Every few months, you may hear the phrase “earnings season” as you listen to financial news.

But what exactly is “earnings season,” and why is it important to Wall Street?

Earnings season is the time when a majority of publicly traded companies release their quarterly financial reports. Companies often go into great detail about their business, and some may guide what lies ahead.

Typically, earnings season starts several weeks after the calendar quarter comes to a close. For example, the fourth quarter's earnings season began in mid-January, and the majority of companies expect to release their earnings over the next six weeks.1

In recent weeks, some market watchers have expressed concerns about stock-price valuations. Stocks are currently trading at about 23 times 2021 earnings, above the historical range of 15 to 17 times forward earnings.2

Expectations for a robust economic rebound may explain today's valuations; a rise in corporate earnings may accompany these. As earnings season gathers momentum, we’ll be able to see if the optimism is warranted.3

Over the next few weeks, you can expect to hear some upbeat comments about the fourth quarter. But brace for some negative reports. If you hear some confusing commentary, please give us a call. We'd welcome the chance to talk about what earnings are saying about the overall economic outlook.

Rep disclosures: Kim Bolker may be reached at kim@bolkercapital.com or 616-942-8600.

Investing involves risks, and investment decisions should be based on your own goals, time horizon and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost.

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note - investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

Citations

1. Insights.FactSet.com, January 22, 2021

2. CNBC.com, January 21, 2021

3. Insights.FactSet.com, January 22, 2021

Outlook 2021: Bond Prices

Information you should know.

The 10-year Treasury yield has climbed higher since the New Year, which means that some bond prices are dropping. You may have seen the headlines that say, “10-Year Yields Over 1%.”

For some, the first time they experience a change in bond prices is when they open their monthly statement and review their investments.

But before you check your January statement, here is some background that may help put the most recent move in rates in perspective.

The interest rate on the 10-year Treasury dropped steadily in the first half of 2020 and bottomed at 0.54% in late July. While rates remain at historic low levels, the yield on the 10-Year Treasury has doubled in the past six months. That’s a significant increase in a relatively short period of time. The recent rally that pushed the yield over 1% has drawn the most attention.1

Why are rates going higher? Even with the Federal Reserve holding short-term rates near zero, yields on longer-term bonds can move higher as the economy begins to improve and inflation expectations rise.2

Will bond yields keep going higher? A lot may depend on the path of the virus, vaccine distribution, and what’s next with additional stimulus money.3

Bonds can play an important part in any portfolio, but like any investment, periods of volatility are expected. If you’re concerned about the outlook for bonds, or the macro-economic trends behind the bond market’s rally, please give us a call. We’d welcome the chance to hear your perspective, and hopefully, we can provide some guidance.

Rep disclosures: Kim Bolker may be reached at kim@bolkercapital.com or 616-942-8600.

The market value of a bond will fluctuate with changes in interest rates. As rates rise, the value of existing bonds typically falls. If an investor sells a bond before maturity, it may be worth more or less than the initial purchase price. By holding a bond to maturity, an investor will receive the interest payments due plus your original principal, barring default by the issuer. Investments seeking to achieve higher yields also involve a higher degree of risk.

Asset allocation and diversification are approaches to help manage investment risk. Asset allocation and diversification do not guarantee against investment loss.

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note - investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

Citations

1. Finance.Yahoo.com, January 18, 2021

2. CNBC.com, January 12, 2021

3. CNBC.com, January 7, 2021

What's the Buzz with Bitcoin?

Look before you leap.

Hardly a day goes by that the topic of bitcoin or other cryptocurrency assets doesn’t come up in meetings with clients and prospects or from friends and relatives who want to know, “what all the buzz is about?”

The message is the same, regardless of who’s asking. Cryptocurrency is not a currency at all. It’s a speculative asset class that is not appropriate for everyone. Only people with a high-risk tolerance should consider cryptocurrency assets.

Like other alternative assets, cryptocurrency can be illiquid at times, and its current values may fluctuate from the purchase price. Cryptocurrency assets can be significantly affected by a variety of forces, including economic conditions and simple supply and demand.

While cryptocurrencies are speculative, it's important to point out the markets appear to have matured over the past few years.

If you are interested in one of the cryptocurrencies, a good first step may be to keep an eye on them for some time so you can experience first hand the fluctuations in price.

If you are comfortable with the volatility and want to learn more, you may find a simple internet search may generate a lot of information. But be careful. It may be helpful to stick with content that’s created by well-known publications.

Rep disclosures: Kim Bolker may be reached at kim@bolkercapital.com or 616-942-8600.

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note - investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

Citations

1. CNBC.com, December 17, 2017

2. The Wall Street Journal, December 10, 2020

3. Bloomberg.com, December 7, 2020

2021 Opens With a Bang

Market volatility continues into the new year.

The first week of 2021 has already had many ups and downs. Just because it’s a new year doesn’t mean that the 2020 issues go away, and so far, 2021 has been no exception to this rule.

The markets opened on January 4 and traded lower out of the gate, with the S&P 500 dropping 1.5%. The last time the market opened lower was in 2016, when the S&P 500, the Dow Jones, and the Nasdaq Composite all dropped on the first trading day of the new year.1,2

The stock market’s first hurdle of the New Year was to assess the runoff elections happening for the two Senate seats in Georgia. A special election has only happened three other times in our nation’s history, so the market appeared anxious about the process.3,4

The bond market also got into the act early in the new year. The yield on the 10-year Treasury bond closed over 1% for the first time since March 2020 as investors anticipated a pick up in inflation.5

The market’s second hurdle was the electoral college count that would confirm Joe Biden as the 46th president of the United State. A protest during the vote count unnerved investors, and most of the New Year’s rally was undone. But a day later, the market climbed higher as traders looked past the unrest.6

What does this fast-paced market activity mean for you, as an investor?

There will always be a lot of noise. But remember, making a change to your portfolio should be driven by sound analysis, not an emotional response to current events. The events of the past few days are part of the volatility that comes along with investing, and something we’ve anticipated as we developed your overall financial strategy.

If you are concerned about one or more of the policies being discussed in our nation’s capital, please give us a call. We’d welcome the chance to hear your perspective, and hopefully, we can provide some insight and guidance.

Rep disclosures: Kim Bolker may be reached at kim@bolkercapital.com or 616-942-8600.

Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost.

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note - investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

Citations

1. Barrons.com, January 6, 2021

2. USAToday.com, December 31, 2020

3. WashingtonPost.com, January 5, 2021

4. CNN.com, January 6, 2021

5. The Wall Street Journal, January 6, 2021

6. Yahoo.com, January 6, 2021

Markets & Marriage

How your investment strategy is like a long-term partnership.

Your investment strategy is a lot like a marriage. One day you may feel like everything’s going swimmingly. The next day, there might be an argument over who forgot to load the dishwasher. And even the best marriages and partnerships have moments where one or both partners look around and go, “Is this as good as it gets?”

The stock market, much like a marriage, has days of ups and downs. Just look at what happened within the last few weeks. During the first week of December, the stock market jumped 200 points, only for that gain to disappear a week later.1,2

Investors cheered an upbeat consumer spending report, and stock prices rallied again when home sales stayed near a 14-year high. But the enthusiasm faded on mixed news about the job market, and selling continued on concerns about the rollout of the COVID-19 vaccine.3

Trying to make sense of the market and the economy during a pandemic is like trying to determine the health of a long-term relationship based on one day. The market may be fickle or have a roving eye, but it’s important to remember that your investing strategy was created based on your goals, time horizon, and risk tolerance.

If you have any questions about what you’re seeing in the news, please give us a call. We’d welcome the chance to hear your perspective on “what’s next” for the economy.

Rep disclosures: Kim Bolker may be reached at kim@bolkercapital.com or 616-942-8600.

Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost.

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note - investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

Citations

1. CNBC.com, December 8, 2020

2. CNBC.com, December 2, 2020

3. WSJ.com, December 9, 2020