On this episode of the Planned Solutions Incorporated Podcast, The US stock market has started 2021 on a strong note. Helping to fuel the market rally has been a sharp increase in the level of margin debt (money borrowed in order to purchase investments). Typically, an increase in margin debt is a sign that investors are very bullish which can be a good sign in the short term. However, margin debt must be repaid at some point which means it could cause a wave of selling in the future.

Also, The just-in-time inventory management model has been adopted by many manufacturers as a way to reduce costs. Now that model is causing supply shortages of many goods that have been in high demand due to a lack of the inputs that are needed. This could cause manufacturers to change their tactics and hold larger inventories, the cost of which may be passed on to consumers.

And, Technology continues to take over more and more areas of everyday life by using standardized rules or algorithms to simplify decision-making. Finance is no different as technology platforms have attempted to use simplified models to offer investment management services at a low cost. However, investors should be aware that these trading programs often do not take into account their overall financial picture, including their tax situation, and may create inefficiencies such as an increased tax liability.

Plus a look at the Planned Solutions Incorporated Office Bulletin Board- The 2020 tax return deadline is right around the corner. Taxpayers have until Math 17th to file their personal income tax returns or apply for an extension of time to file. However, an extension of time to file a tax return is not an extension of time to pay any tax due. Therefore, taxpayers should complete as much of their tax return as possible before May 17th in order to be able to estimate the amount of tax due, if any, before the May 17th deadline. Taxpayers who file for an extension but fail to pay any tax due may be subject to a late payment penalty as well as interest on the amount due up until the date that the tax due is paid.

Now that tax season is nearing an end many taxpayers are wondering how long they need to keep their tax records. For most taxpayers, the statute of limitations for the IRS to audit or make changes to a taxpayer’s tax return is three years from the due date of the return or the date the return was filed. Therefore, most taxpayers may now destroy their tax records from the 2017 tax year.

Chase Armer's book- Financial Planning Insights is now available at:

store.bookbaby.com/book/financial-…anning-insights

www.amazon.com/Financial-Plannin…1586894022&sr=8-1

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The Personal Finance Review is published and distributed on a biweekly basis by Planned Solutions, Inc. for informational purposes only. Please seek the advice of a qualified financial planner before taking any action.

Planned Solutions, Inc.

ADDRESS: PHONE:

1130 Iron Point Road, Suite 170 (916) 361-0100

Folsom, CA 95630 (800) 750-2111

E-MAIL: FAX:

[email protected] (916) 361-0191

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