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,
?
?Mike, did you see? The fed cut rates by ? of 1% last week. And they indicated that they may cut them again before the end of the year. That’s good news, right?
Yes and no. It’s good news if you need to borrow money. Not so great news if you’re a saver trying to earn interest on your money.
?
?
?Speaking of interest rates, I had the “4% Rule” discussion with more than one person last week. If you’re not familiar, the 4% rule is an old financial services standby which states that you should be able to safely withdraw 4% of your retirement nest egg each year and increase that by inflation each subsequent year. “Safely” means that regardless of market volatility, withdrawing 4% can be done successfully for the rest of your life without running out of principal. There are opponents to this theory as well as proponents, but at least it’s a good starting point for a discussion.? Of course there are other considerations and risks, such as sequence of returns or longevity or market downturns or tax consequences and so forth. As I’ve mentioned often for the last year or so, and because interest rates have been elevated, there are annuity companies who will guarantee far more than 4% withdrawals for life. However, if rates begin to drop, those guarantees will follow suit. Call me to explore whether they make sense for you.
?
?
?Another discussion I had last week concerned “tax loss harvesting.” It’s the time of year to start considering tax loss harvesting. What’s that? It means if you have any positions, holdings, stocks, bonds, mutual funds, whatever, that are down in value since you bought them, you can sell them and recognize the loss for tax purposes. Make sure you do so before the end of the year if you want them to count for 2024. You can use losses to offset capital gains dollar for dollar and you can use excess losses to offset future gains or you can use excess losses up to $3,000 to offset regular income. No need to pay more taxes than is required. “Tax loss harvesting” sure sounds better than “selling my losers,” doesn’t it? Call me for help with this analysis.
Be careful of the “wash sale” rule, Which says that you can’t purchase the same investment within 31 days either before or after the sale or the loss will be disallowed.
Another tax tidbit to remember is that some of your mutual funds may declare and distribute taxable capital gains even when/if you haven’t sold any shares. That’s no fun.
?
“I’m proud to be paying taxes to the United States. The only thing is, I could be just as proud for half the money.” - Arthur Godfrey.
?
And while we’re at it, might as well consider required minimum distributions, or RMDs, from your qualified retirement accounts. If you’re 73 or older, with a few exceptions, you are required to take a distribution from your retirement accounts. Failure to do so could result in an IRS penalty. So don’t neglect it.
?
?
?I’m certain you probably have some of this in your pantry somewhere. Of course you do, it’s Tupperware.
Not for much longer.
Tupperware Brands filed for bankruptcy protection, months after the iconic American brand shut down its last remaining U.S.-based plant amid financial troubles. | Fox Business
?
?
?And the last full size K-Mart is closing in the U.S. as well. They had more than 2,000 stores at their peak.
The last full-size U.S. Kmart store location, which is in New York, is reportedly set to close in October 2024, leaving only one smaller store remaining. | Fox Business
I must have missed it, but I thought all the K-Marts had already closed. As a youngster, I used to ride my bike a couple of miles to my neighborhood “K-Market” (as my grandmother called it) to get an ICEE with my friends.? Brain freeze.
?
?
?On a personal offspring note, I road tripped to Bloomington IN over the weekend to visit my IU sophomore daughter for dad’s weekend at her sorority. It was fun. We had dinner and then played mini golf on Friday. Saturday we tailgated and then went to the football game v. Charlotte. Cool stadium and a really nice day, though a bit hot. IU prevailed. After the game, we had lunch with a very close long time friend of mine and his family. He has two daughters attending IU.? We’ve known each other for 30+ years and it was good to get together. I arrived at the restaurant slightly before him and told the host we needed a table for 5. Turned out that both his daughters were joining and one brought a friend, so now we needed accommodation for 7.? My friend discretely tipped the host $20 to smooth along our new request for a table for 7. His daughter was unimpressed. “Dad, why do you do that? You’re so embarrassing!” She told my daughter that he uses that maneuver often. What’s embarrassing, I ask? That’s called a lubricating payment. A bribe is when you pay someone for something they aren’t supposed to do. A lubricating payment is when you give a bit of a financial incentive to someone for something they’re going to do anyway, it just clears the path a little bit. Nothing wrong with that. And a few moments later, we were seated comfortably for our tasty lunch.
?
?After lunch, we spent Saturday evening walking around campus and Kirkwood Ave. A nice brunch on Sunday and I headed back to Michigan. The more times I visit her there, the more I like IU and Bloomington. The school is good, the campus is very pretty, the town is cool and the people are nice. It’s a pleasant experience. I had to take advantage of a different AirBnB for each night of my stay because the hotels were all booked. Only about 15-20 minutes from campus and thank goodness for state of the art GPS because I never would have been able to find them on my own in dark of night.
?
Why are people from IN called “Hoosiers?”? Good question, here you go.
?
One other offspring tidbit. My son and I text often about the baseball phenom that is Shohei Ohtani. Shattering baseball records, setting new ones and so forth. Likely the most talented player ever. Coor Light took notice when one of his foul balls broke their sign.
They seized the opportunity and turned it into a viral ad campaign. Well done Coors Light.
?
?This week’s comedian special review is Hannah Berner’s “We Ride At Dawn” recently released on Netflix. I was not familiar with Hannah, but she showed up in my feed so I thought I’d check her out. A friend, who knows I enjoy comedians, also suggested Hannah. In all honesty, I didn’t care for this special. She’s young and she performs with a lot of energy, but it was mostly raunchy material with some crowd work thrown in. I’m a comedy fan, and a grownup, so I don’t/won’t shy away from R rated material. Some of my favorite performers ever were crude from time to time. Richard Pryor, George Carlin, Dice Clay, Eddie Murphy, et. al. So call me prudish or whatever, but 30 minutes in when this attractive young comedienne is still telling gross jokes, I couldn’t take it any longer and turned it off. The crowd seemed to like it and she does have a certain contagious and even enjoyable presence about her, but the material turned me off. And then there was some crowd work, which can be funny, but I don’t particularly enjoy. I’ll look around for other work she’s done that might be more my style.
?
2, or possibly 3, live shows on the calendar for this week. Reviews to follow.
?
?
?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.
?
Join Zoom Meeting
?
?
This week’s chuckle is Zoltan Kaszas with some advice on how to win an argument.
Safe for work.
?
LF30 – “The only thing more dangerous than ignorance is arrogance.” – Albert Einstein.
?
?
Have a great week and stay healthy.
?
?
This material is for informational and educational purposes only. Osaic FA, Inc. and its representatives do not offer tax or legal advice.? Individuals should consult their tax or legal professionals regarding their specific circumstances.? ?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-7055469-092424
?
?
Want to get on my calendar? Click here, https://calendly.com/michael-acho
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]
Securities and investment advisory services offered through?Osaic FA, Inc.,?member FINRA/SIPC.?Osaic FA?is separately owned and other entities and/or marketing names, products or services referenced here are independent of?Osaic FA.
Please do not send any trading or transaction instructions through this email. They will not be executed. Please call the Osaic FA trade desk at 1-800-237-3813.
This message and any attachments contain information, which may be confidential and/or privileged, and is intended for use only by the intended recipient; any review, copying, distribution or use of this transmission is strictly prohibited. If you have received this transmission in error, please (i) notify the sender immediately and (ii) destroy all copies of this message. If you do not wish to receive marketing emails from this sender, please reply to this email with the word REMOVE in the subject line.
See Osaic FA’s Form CRS Customer Relationship Summary, available here, for succinct information about the relationships and services Osaic FA offers to retail investors, related fees and costs, specified conflicts of interest, standards of conduct, and disciplinary history, among other things. Osaic FA’s Forms ADV, Part 2A, which describe Osaic FA’s investment advisory services, Regulation Best Interest Disclosure Document, which describes Osaic FA’s broker-dealer services, and other client disclosure documents can be found here. ? CRN-5459027-020923