Weekly Market Review
Michael Acho
Guardian of the Wealth of the Most Productive People on Earth | Creating, Protecting and Distributing Wealth for Clients
?Good afternoon,
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The calendar is cresting over mid-October, which means by the time you read this, there will only be about 40+ business days left in 2024. Only 40ish days to complete any required minimum distributions. Only 40ish days to complete any retirement plan contributions (in many, but not all cases.) Only 40ish days to complete charitable contributions. Only 40ish days to complete any tax loss harvesting. Only 40ish days to potentially lower your 2024 tax bill by delaying/deferring income. Only 40ish days to potentially lower your 2024 tax bill by accelerating expenses. Only 40ish days to….you get my point. I think I’ve covered most of the important stuff but if you’ve got questions, please schedule a call with me in the next 40ish days to review your specific circumstances. Actually, I’m available to chat on non-business days as well, which gives us a bit more time.
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“October. This is one of the peculiarly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain.
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And speaking of your tax obligation, and just in time for Halloween, the IRS has announced new federal income tax brackets for 2025. How fun.
The brackets listed in the article are your “marginal” brackets. Which means that your last dollar of income is taxed at whatever rate you fall into. However, your “effective” tax bracket, the percentage that you pay over your entire level of income is less. That’s because you pay lower rates on lower income so your “effective” rate is a blend of the progressive marginal rates up until your last dollar. That’s probably more than you wanted to know, but my point here is that the actual rate you pay across all your income is less than the stated marginal rate in the IRS tables on your last dollar. Let’s discuss tax reduction strategies before the end of the year. Tax avoidance is our goal. In other words, paying as little as is required. Tax evasion is illegal.
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Sometimes things work out even when they don’t.
I suggested a tax loss harvesting maneuver to a client about a month ago. They had a position they owned which was valued at less than we originally paid for it. We still wanted to own the company, but we could also use a loss for tax purposes. I explained a fairly common strategy. We buy more of the shares, wait 31 days, per IRS regulations, then sell our original shares. That way we continuously own the shares, but still maintain the opportunity to realize the loss. As it turns out, when the 31 days were up and it was time to sell the original shares, they were no longer under water. The shares had appreciated enough that now all the shares we own are profitable. So yes, we lost a potential tax break, but gained some increased value instead. IMO, a gain is better than a loss.
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Here is a comment that I’ve heard my entire financial career, “my shares are down, so I won’t sell them until they get back to breakeven.”
Um, ok. I get the sentiment behind that thought. No one likes to admit a bad decision and take a loss.?
However, there is only one thing to consider when evaluating a previous stock purchase. Do I still like the company at its current price? if the answer is yes, then you hold what you have and/or you buy more shares. If the answer is no, then you sell and move on, regardless of your original cost. #mathwins.
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?From the “you can’t make this up” files, here is 2 minutes of Elon Musk describing some ridiculous over regulation that SpaceEx had to deal with. What about the whales?
Safe for work.
Unfortunately, this is a true story. And also unfortunately, it happens to businesses, big and small, far too often. Government is just too big and too intrusive.
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Halloween is coming up and I’m just not a fan. Never have been. Don’t care for it at all.
Here are some inexpensive costume ideas, https://www.nerdwallet.com/article/finance/cheap-halloween-costumes
My neighbor, just like last year, has been prepping for Halloween for more than a month. 10 foot tall skeletons, spider webs on the porch, ghosts floating above the driveway, tombstones and such in the lawn. Last year he even had an inflatable movie screen set up in the yard and it ran a loop of Halloween movies. Haven’t seen that yet this year. Slacker….
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Personally, I’m trying to figure out something to do that night so I don’t have to be home. If there is such a thing as a Halloween Grinch, I’m probably it.
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?Grinchiness continued, candy corn is overrated. What a terrible candy. Gross.
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领英推荐
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?This week’s comedian review is Anjelah Johnson-Reyes latest YouTube special released a few months ago, “Say I Won’t.” This is Anjelah’s 6th hour long special and she’s been doing standup for almost 20 years, so I am familiar with her and her style. And I like her. I like her previous work and I enjoyed this special as well.? I’ll sum it up this way, she’s fun. Her stories are fun. Her bits are fun. Her stage presence is fun. Her energy is fun. No uncomfortable subjects, no crude language. Some fun stories about getting older. Some fun stories about marriage. Some fun stories about moving from California to Nashville. Just 70ish minutes of fun material. Check her out for a pleasant, non political, non offensive, and very fun, experience. Here is the trailer.
Safe for work.
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?And finally, here is your friendly reminder that my half hour virtual office hour is back this Friday. Hop on at noon and ask me anything.
Michael Acho is inviting you to a scheduled Zoom meeting.
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Join Zoom Meeting
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Got this question the other day - hey Mike, does anyone show up to your Friday Zoom calls?
Answer – Sometimes. Sometimes no one and I’m lonely. And sometimes a person or two show up and we chat for a few minutes. Either way, I’ll be on Zoom and waiting every other Friday.
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This week’s chuckle is 4 minutes of Anjelah Johnson from several years ago with her bit about getting her nails done.
This bit went viral, 45 million views. Safe for work
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Safe for work.
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LF30 – “We can’t all be heroes, because somebody has to sit on the curb and applaud when they go by.” – Will Rogers
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Have a great week and stay healthy.
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This material is for informational and educational purposes only. Opinions and forward-looking statements expressed are subject to change without notice.? Links to external content are provided for your convenience and for informational purposes only. They do not constitute an endorsement or approval by Osaic FA, Inc. nor does the firm receive compensation or remuneration for your access to such content. Osaic FA, Inc. bears no responsibility for the accuracy, legality, or substance of the external content or for that of any links within such content. The opinions expressed are those of Michael Acho and not necessarily those of Osaic FA, Inc. CRN-7214480-102224
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Michael J. Acho, MBA, CFP? Private Wealth Advisor --------------------------------------------------- Osaic FA, Inc. 20505 West 12 Mile Road Southfield, MI? 48076 248-948-5100 direct 248-948-5101 fax 248-933-4339 cell
947-258-0289 texts [email protected]
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