CORLEYWEALTHMANAGEMENT.COM
HOT TOPIC: Election 2020: Uncertainty Creates Potential for Market Swings
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How elections move markets in 5 charts
Dear Clients:
We plan to resume regular office hours Thursday. We will continue to monitor the storm and keep you informed of any updates. Please stay safe.
Sincerely,… Chris Corley
Football is America’s most popular sport and arguably our most popular form of entertainment. Last year, 43 of the top 50 most-watched TV broadcasts were football games.
-Axios, September 9, 2020
Dear Clients:
In preparation for Hurricane Sally's landfall, we are taking precautions for the safety of our clients and staff. Our office in Mobile will be closed tomorrow, Tuesday, September 15th. We plan to resume regular office hours Wednesday. If you have a scheduled appointment, we will be contacting you to reschedule. We will continue to monitor the storm and keep you informed of any updates. Please stay safe.
Sincerely,
Chris Corley
CORLEYWEALTHMANAGEMENT.COM
Why Family Businesses Should Have Succession Plans
“There are only two industries that call their customers ‘users’: illegal drugs and software.”
-Edward Tufte The Social Dilemma
The fourth quarter is usually the best performing quarter for equities, being higher 79% of the time and on average, up 3.9%.-Yahoo Finance, October 1, 2020
During the pandemic, residential electricity consumption rose 10% against a 12% decrease in commercial usage and a 14% decrease in industrial electrical consumption. From April to July, total excess expenditure on residential electricity was $6 billion with electricity bills up, on average, $20 per month.-The University of Chicago, October 7, 2020
CORLEYWEALTHMANAGEMENT.COM
Business Cycle Basics: Recessions Begin and End Before We Know It
“Money can’t buy you happiness, but it can buy you a yacht big enough to pull up right alongside it.” -David Lee Roth
In reaction to the plunge in stocks in mid-March, 42% of investors sold at least one stock while 24% sold all of their holdings. 69% of those who sold stock at the beginning of the pandemic greatly regretted it while 19% said they were somewhat regretful.
-CNBC, January 15, 2020
Regardless of party, the S&P performs better in a president’s first term than in the second.
-MorningBrew, November 1, 2020
Even in the face of the pandemic, financially, most Americans are doing surprisingly well. Americans' disposable income was $15.7 trillion per year in September, up significantly from its pre-crisis level. Average earnings are $29.50 per hour, up from $28.69 in March, and with credit card balances plunging Americans have managed to save 14.3% of their income in September, roughly twice the pre-crisis savings rate.
-Axios, November 21, 2020
Amazon added 427,300 employees between January and October, pushing its workforce to more than 1.2 million people globally. The number of workers at Amazon is now approaching the entire population of Dallas, Texas.-Axios, November 27, 2020
6,100.....the number of children Santa must deliver gifts to per second, for a successful journey around the globe on Christmas Eve.
Amazon strained to meet its two-day delivery window early on the pandemic, but over the course of 2020, Amazon responded to increased demand. It boosted its fleet of cargo ships to 80, added 220 packaging facilities, and hired hundreds of thousands of new employees. One analyst estimated Amazon could capture 42 cents of every dollar spent this holiday season. -Marketplace December 4, 2020
CORLEYWEALTHMANAGEMENT.COM
HOT TOPIC: How COVID-19 Has Changed Consumer Behavior and the Future of Retail
Lumber is the most reported material shortage among commercial contractors and the problem is getting worse. The National Association of Home Builders estimated the spike in lumber price has increased the price of a single-family home by over $16,000 this year.-National Association of Home Builders
Roughly 80% of New York City’s income tax revenue comes from 17% of its residents. If just 5% of those families decided to move away, it would cost the city $933 million in lost tax revenue.
-City&State New York, December 9, 2020
When stocks finish the first five trading days of the new year higher, the S&P 500 has been positive the rest of the year with an average gain of 13.6%. In the first five trading days of 2020, the S&P 500 rose 0.8% and for the year, the index was up 16.26%.
-CNBC, January 8,2020 & CNBC, December 31, 2020
In observance of Martin Luther King, Jr. Day,
SA Stone and the markets will be closed Monday, January 18, 2021.
Last year, the amount of U.S. currency in circulation soared at a rate unseen since WWII and was the biggest one-year percentage increase since 1945. When all that cash builds up, it tends to look for a place to go, leading to economic boom times.-CNBC, January 6, 2021
From the day Biden was elected until the day he was sworn in as President, the S&P 500 traded up 14.3%. That’s the best performance between Election Day and Inauguration Day in history.
-Marketwatch, January 20, 2021
CORLEYWEALTHMANAGEMENT.COM
Five Tips to Regain Your Retirement Savings Focus in 2021
In a president’s first year, February is historically the worst month for equities. From 1927 to 2017, the S&P 500 fell an average of 4% in such months.-Barron’s, January 22, 2021
So far, 82% of companies have reported a positive earnings surprise for the fourth quarter of 2020. If that rate holds, it will mark the second-highest percentage of EPS surprises since FactSet began tracking the metric in 2008.
-FactSet, January 29, 2021
CORLEYWEALTHMANAGEMENT.COM
When You Can’t Speak for Yourself
It takes 919 pounds of rare earth minerals to build one 15-ton, F-35 fighter jet, a critical set of components that are about to be much harder to find. China, which controls about 80% of the global supply, is considering an export ban.
- arsTECHNICA, February 16, 2021
Dividends paid out by U.S. corporations last year hit a record high – rising 2.6% to $503.1 billion.-MarketWatch, February 22, 2021
Mining bitcoin requires users to solve complex mathematical equations using high-powered computer setups. The electricity consumption used in the process leaves an annual carbon footprint equal to the nation of New Zealand.-CNBC, February 22, 2021
Hoping your St. Patrick's Day is filled with fun and cheer. May the blessings of St. Patrick be with you.
Key Retirement and Tax Numbers for 2021
Every year, the Internal Revenue Service announces cost-of-living adjustments that affect contribution limits for retirement plans and various tax deduction, exclusion, exemption, and threshold amounts. Here are a few of the key adjustments for 2021.
Estate, Gift, and Generation-Skipping Transfer Tax
The annual gift tax exclusion (and annual generation-skipping transfer tax exclusion) for 2021 is $15,000, the same as in 2020.
The gift and estate tax basic exclusion amount (and generation-skipping transfer tax exemption) for 2021 is $11,700,000, up from $11,580,000 in 2020.
Standard Deduction
A taxpayer can generally choose to itemize certain deductions or claim a standard deduction on the federal income tax return. In 2021, the standard deduction is:
$12,550 (up from $12,400 in 2020) for single filers or married individuals filing separate returns
$25,100 (up from $24,800 in 2020) for married individuals filing joint returns
$18,800 (up from $18,650 in 2020) for heads of households
The additional standard deduction amount for the blind or aged (age 65 or older) in 2021 is:
$1,700 (up from $1,650 in 2020) for single filers and heads of households
$1,350 (up from $1,300 in 2020) for all other filing statuses
Special rules apply if you can be claimed as a dependent by another taxpayer.
IRAs
The combined annual limit on contributions to traditional and Roth IRAs is $6,000 in 2021 (the same as in 2020), with individuals age 50 and older able to contribute an additional $1,000. The limit on contributions to a Roth IRA phases out for certain modified adjusted gross income (MAGI) ranges. For individuals who are covered by a workplace retirement plan, the deduction for contributions to a traditional IRA also phases out for certain MAGI ranges. (The limit on nondeductible contributions to a traditional IRA is not subject to phase-out based on MAGI.)
2021 MAGI Ranges: Roth IRA contributions, Single/HOH is $125K-$140K. Traditional IRA contributions, Single/HOH is $66K-$76K. Married filing jointly is $198K-$208K for Roth. $105K-$125K for Traditional.
The 2021 phaseout range is $198,000–$208,000 (up from $196,000–$206,000 in 2020) when the individual making the IRA contribution is not covered by a workplace retirement plan but is filing jointly with a spouse who is covered. The phaseout range is $0–$10,000 when the individual is married filing separately and either spouse is covered by a plan.
Employer Retirement Plans
Employees who participate in 401(k), 403(b), and most 457 plans can defer up to $19,500 in compensation in 2021 (the same as in 2020); employees age 50 and older can defer up to an additional $6,500 in 2021 (the same as in 2020).
Employees participating in a SIMPLE retirement plan can defer up to $13,500 in 2021 (the same as in 2020), and employees age 50 and older can defer up to an additional $3,000 in 2021 (the same as in 2020).
Kiddie Tax: Child’s Unearned Income
Under the kiddie tax, a child's unearned income above $2,200 in 2021 (the same as in 2020) is taxed using the parents' tax rates.
This information is not intended as tax, legal, investment, or retirement advice or recommendations, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek guidance from an independent tax or legal professional. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. This material was written and prepared by Broadridge Advisor Solutions. © 2021 Broadridge Financial Solutions, Inc.
The total economic stimulus passed by the U.S. government over the past year is $5.3 trillion. That's a number so mind-bogglingly enormous that it becomes almost impossible to comprehend, so here's another way to put it: More than $43,000 per U.S. household.-Axios, March 11, 2021
New research shows that consumers are saving more than they have in decades, as well as repaying a record $83 billion in credit card debt in 2020.
-CNBC, March 8, 2021
