Planned Solutions

On this episode of the Planned Solutions Incorporated Podcast, The risk of increased regulation, especially on US technology companies, has largely taken a backseat to other financial risks. This is even as China’s regulatory crackdown on their large technology companies caused their stock prices to drop in 2021 and European regulation has hindered growth in the sector for years. Now the US is becoming more and more active in seeking to rein in the power of its large technology companies, which should not only be a concern for investors but also has the potential to reduce innovation and slow economic growth.

Also, Stock prices have fluctuated so far in 2022 as the long-expected market correction (decline of 10% or more from the previous high) finally occurred in January. However, the fourth quarter earnings season continues to show strong growth in company earnings reports which may be a good sign for stock performance over the longer-term after the current market volatility subsides.

And, January retail sales show strong growth in consumer spending even as inflation pushes prices up. This data continues to support the argument that the reopening of the economy in the Spring of 2021 caused a sharp adjustment in retail spending patterns as spending on gasoline and clothing, which were depressed during the pandemic, recovered the most over the past year. Gasoline prices especially have been a large contributor to inflation, but the increased prices appear to have little impact on consumer gasoline purchases so far.

Plus a look at the Planned Solutions Incorporated Office Bulletin Board- What will they think of next? We all know the dangers of Phishing when it comes to email (never reply to an e-mail with personal information or click on links included in an email unless you have confirmed that they are valid) but now you can be SMShed!

SMShed (SMS texting from an unknown number) is the same thing as a phishing email, but via text message instead. Usually these come from an unrecognized number, and you should treat them suspiciously just like you would an email from an unknown person – generally by deleting without clicking on anything.

Please remember that you will not receive a text message from us directly regarding your accounts. If you do receive a text message from someone at our firm or from your custodian (Charles Schwab, American Funds, etc.) that is unsolicited, please notify us immediately. You can also call Schwab Alliance directly at 800-515-2157 if you have any concerns about the security of your account – they can add additional security such as (1) voice recognition or (2) a verbal password.

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

To subscribe to the Personal Finance Review (the written form of all the content we discuss on the podcast) please e-mail [email protected]

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

WEB SITE:

www.PlannedSolutions.com

#finance #invest #investment #stocks #inflation #deflation #bonds

On this episode of the Planned Solutions Incorporated Podcast, Interest rates have been rising which has some investors concerned that higher borrowing costs may hamper the pace of economic growth. However, the shape of the yield curve (longer-term interest rates rising faster than shorter-term interest rates) continues to signal strong economic growth in the future. Accordingly, the Federal Reserve Recession Indicator, which uses the yield curve to estimate the future pace of economic growth and the risk of a recession in the future, is currently signaling a less than 5% chance of a recession within the next year.

Also, The supply and demand for housing now seem to be in equilibrium, meaning the market is currently not oversupplied or undersupplied. This will likely lead to a cooling in housing prices as the homebuilder industry is able to meet the demand for new housing units. In addition, it is unlikely to lead to a sharp decline in housing prices as demand will likely remain strong enough to absorb the new supply.

And, Restricted Stock Units (RSUs) are a form of employee compensation that often creates some confusion around tax reporting. RSUs are not taxable when granted but rather trigger taxation when they vest. In addition, many employees sell a portion of the shares granted at vesting to cover the required tax withholding. These sales trigger a tax reporting obligation that needs to be reflected on the employee’s tax return. Therefore, it is important to track these transactions and make sure they are properly reported.

Plus a look at the Planned Solutions Incorporated Office Bulletin Board- The IRS recently announced that it mailed incorrect statements to some taxpayers who claimed the advanced child tax credit in 2021. The IRS has not stated how many of the 36 million families that received advanced payments have been mailed incorrect statements so it is unknown whether this issue will be widespread or limited to a smaller subgroup.

Tax season has technically opened as the IRS is now accepting e-filed tax returns. However, several federal and state tax forms have not yet been finalized. Therefore, not everyone will be able to file their tax returns early depending on which forms are

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

To subscribe to the Personal Finance Review (the written form of all the content we discuss on the podcast) please e-mail [email protected]

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

WEB SITE:

www.PlannedSolutions.com

#finance #invest #investment #stocks #inflation #deflation #bonds

On this episode of the Planned Solutions Incorporated Podcast, The US stock market has declined more than 10% to start the year. This officially puts the market in correction territory (a 10% or greater decline from previous highs) but is still well above bear market territory (a decline of 20% of more from previous highs). Stock market corrections are quite common and more often than not do not progress to a bear market. Therefore, investors should be careful about changing their risk level during these declines and instead focus on how their portfolios can be adjusted to take advantage of these declines.

Also, The Federal Government has updated the life expectancies used to calculate Required Minimum Distributions (RMDs). The changes reflect the increase in life expectancies that has occurred in recent decades. For most ages this will reduce the percentage that tax-deferred retirement account holders are required to take each year, however in some cases, there may be no change or could even be a small percentage increase.

And, Taxpayers who received the Advanced Child Tax Credit during 2021 will be required to reconcile, or true-up, their payments with the IRS when they file their tax returns. In order to complete the required calculations, the taxpayer will need a copy of IRS Letter 6419 which will report the amount that the IRS paid on behalf of the taxpayers. Taxpayers should also be aware that the credit may need to be repaid if the status of their dependent(s) changed or the taxpayer’s income increased to the point where the credit is phased out.

Plus a look at the Planned Solutions Incorporated Office Bulletin Board- Taxpayers will be able to EFILE their federal tax returns starting Monday, January 24, 2022. While we always encourage filing an accurate and timely return, this year it is even more important to take the time to ensure you’ve gathered all the necessary information before submitting your return because of IRS delays due to limited resources and a backlog of tax returns. Therefore, any discrepancies may delay the processing of your potential refund, and should you need to amend your return you may be waiting much longer than the standard processing time.

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

To subscribe to the Personal Finance Review (the written form of all the content we discuss on the podcast) please e-mail [email protected]

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

WEB SITE:

www.PlannedSolutions.com

#finance #invest #investment #stocks #inflation #deflation #bonds

On this episode of the Planned Solutions Incorporated Podcast, The stock market has stumbled to start the year. However, digging deeper into the returns it appears that a major shift in market leadership may be occurring. Growth stocks have started the year in the red, led by a sharp decline in technology stocks. Meanwhile, value stocks have posted gains led by a sharp increase in the value of financial stocks. The cause appears to be an increase in interest rates, which typically hurts the valuations of growth stocks while benefiting financials, which may experience increased profits in a rising interest rate environment.

Also, It is increasingly common for investors to lose track of small retirement accounts. One reason for this is that employers may transfer small 401k account balances to IRAs rather than leaving the money invested in the plan. This can complicate financial planning strategies and even change the investment strategy to an IRA default option rather than the investment strategy selected by the plan participant.

And, Buy Now Pay Later programs have become popular with consumers as well as retailers. Retailers like it because it allows them to offer quick access to credit to customers to capture additional sales. Customers like it because these loans can be secured quickly with little or no underwriting. However, it is important that consumers be careful in taking on too much debt or missing payments which may adversely impact their credit score. Often the best practice is to save before buying rather than using short-term credit.

Plus a look at the Planned Solutions Incorporated Office Bulletin Board- Before preparing your 2021 income tax return(s) it is important to make sure that you have all of the tax forms and other tax information that you need. In some cases, this may mean being patient until all of your investment forms have been issued. This year it is once again especially important to account for the Economic Impact Payments (EIP) that were sent out to most taxpayers in early 2021 as well as any advanced child tax credit received.

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

To subscribe to the Personal Finance Review (the written form of all the content we discuss on the podcast) please e-mail [email protected]

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

WEB SITE:

www.PlannedSolutions.com

#finance #invest #investment #stocks #inflation #deflation #bonds

On this episode of the Planned Solutions Incorporated Podcast, The headline inflation rate for the 12 months ending in November was 6.8%, the highest since the 1970s. However, not all goods and services prices increased at the same rate. Energy alone made up 2.5% of the headline inflation rate while food added 0.85%, and vehicle prices added an additional 1.6%. Therefore, just three categories accounted for nearly 5% in inflation whereas most other categories increased at rates that we in line with or slightly above their long-term average.

Also, The personal residence exemption allows a single homeowner to exclude up to $250,000 and married couples to exclude up to $500,000 in gain from the sale of a personal residence and is often under-utilized. Homeowners with gains on their homes that start to exceed the amount of gain that can be excluded may want to consider selling their home to take advantage of the tax benefits and start the gain over on a new home.

And, For taxpayers over age 72, Required Minimum Distributions add a layer of complexity to managing their retirement accounts. This is especially true if the taxpayer is still working as the RMD rules for their employer’s retirement plan may be different than they are for other retirement plans. Therefore, it is important for taxpayers to manage their RMDs and where appropriate possibly implement strategies to reduce or simplify the administration of their RMDs.

Plus a look at the Planned Solutions Incorporated Office Bulletin Board- As a reminder, the new higher contribution limits for retirement accounts will be implemented at the start of 2022. The new 401k contribution limit will increase to $20,500 for savers under age 50 and $27,000 for those age 50 and older. This increase will also apply to 403b and 457 retirement plans. If your goal is to maximize your retirement contributions through equal periodic payroll deductions you may need to increase your contribution election before your first paycheck of 2022 is issued.

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

To subscribe to the Personal Finance Review (the written form of all the content we discuss on the podcast) please e-mail [email protected]

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

WEB SITE:

www.PlannedSolutions.com

#finance #invest #investment #stocks #inflation #deflation #bonds

On this episode of the Planned Solutions Incorporated Podcast, It remains to be seen whether the recent bout of high inflation will persist longer-term. However, should inflation remain elevated, it is important to understand the impact that it may have on stock prices. This includes the potential for high inflation to lead to an increase in interest rates, which will likely have negative implications for growth stocks, while value stocks and high-dividend stocks may benefit from such an environment.

Also, Two of the last pandemic related stimulus programs are scheduled to end in the next couple of months. The expanded child tax credit payments that some households are receiving monthly in advance are scheduled to end on December 31, 2021. Also, the moratorium on federal student loan payments and the suspension of interest payments on those loans are scheduled to end in February 2022.

And, Year-end tax planning often involves tax-loss harvesting in which investors sell investments that have a tax loss to capture the tax benefit for the current or future tax years. However, in some years tax-gain harvesting may also be advisable, especially when taxpayers can use past losses to offset the gain, will avoid taxes on the gain due to low income for the tax year, or expect income tax rates on capital gains to increase in future years.

Plus a look at the Planned Solutions Incorporated Office Bulletin Board- The 2021 SmartVault files have been created; this can be a good place to store any donation receipts, car registrations taxes, property tax payments, estimated tax payments, etc. while we wait for the tax season to begin.

Chase is once again contributing to the Sacramento Business Review (SBR) January economic update event. The SBR is a collaboration between members of the Sacramento Chartered Financial Analysts (CFA) Society and the Sacramento State University School of Business.

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

To subscribe to the Personal Finance Review (the written form of all the content we discuss on the podcast) please e-mail [email protected]

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

WEB SITE:

www.PlannedSolutions.com

#finance #invest #investment #stocks #inflation #deflation #bonds

On this episode of the Planned Solutions Incorporated Podcast, After 18 months of volatility the Federal Reserve Senior Loan Officer Survey appears to be signaling a normalization in the market for loans. Lenders tightened lending standards for both consumer and business loans in 2020 but are now loosening those standards to encourage more borrowers to apply. Meanwhile, demand for mortgage loans increased in 2020 but has since declined while the demand for consumer loans (auto, credit card, and personal loans) has recovered this year.

Also, Many people are leaving corporate life for the freedom and flexibility that may come from being self-employed. However, working as an independent contractor rather than as an employee may come with some additional taxes and expenses. It may also reduce access to a number of common employee benefits which should be taken into consideration.

And, When someone passes after setting up a trust to handle their financial affairs there are a series of actions that are required by law to protect the interests of all parties involved. Therefore, the successor trustee as well as the beneficiaries or other interested parties should be aware of the legal requirements in order to meet their fiduciary duty and protect their rights. This is especially important when there are disagreements about how the trust should be administered.

Plus a look at the Planned Solutions Incorporated Office Bulletin Board- Planned Solutions will soon be sending out our tax engagement letters and organizers in early January. We will also be posting the organizers in SmartVault a few weeks before mailing the organizers.

At Planned Solutions, we have been engaged in training about cyber security.

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

To subscribe to the Personal Finance Review (the written form of all the content we discuss on the podcast) please e-mail [email protected]

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

WEB SITE:

www.PlannedSolutions.com

#finance #invest #investment #stocks #inflation #deflation #bonds

On this episode of the Planned Solutions Incorporated Podcast, There are many ways to categorize investments, one being

productive assets and another being speculative assets.

Productive assets are valued based on the earnings and

cash flows that they produce. The value of speculative

assets are based on what other investors are willing to pay

for them as there are no current benefits, such as income,

that make these assets desirable. Based on the differences,

these assets often behave very differently, with the value

of speculative assets often being far more volatile than the

value of productive assets.

Also, The IRS announced that the 2022 tax calculations will be adjusted 3.19% to account for inflation. This means that a number of tax numbers including the standard deduction, the tax brackets,

the annual gifting limit, and the estate tax exemption equivalent will all be increased in 2022. These adjustments should lead to tax

savings in 2022 for most filers

And, Many taxpayers were able to skip their Required Minimum

Distributions (RMDs) in 2020 due to the suspension of this

requirement under the CARES Act. However, RMDs are back in

2021, so it is important for taxpayers to make sure these are

processed by year-end. In addition, taxpayers may want to

review their tax withholding as their distributions may be larger

in 2021 due to investment performance and taxpayers being

two years older than they were in 2019, the last year RMDs were

required.

Plus a look at the Planned Solutions Incorporated Office Bulletin Board- All of us at Planned Solutions want to wish you a happy holiday season and a wonderful New Year. Also, we want to make you aware that Planned Solutions will be closed: Thursday and Friday, November 25th and 26th for the Thanksgiving Holiday Friday, December 24th for the Christmas Holiday Friday, December 31st New Years’ Eve. Please note that any paperwork or forms that need to be processed before year-end should be submitted by December 15th at the latest. Otherwise, it may be challenging for Planned Solutions,

as well as the service providers that we contract with, to process the forms before the end of the 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

To subscribe to the Personal Finance Review (the written form of all the content we discuss on the podcast) please e-mail [email protected]

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

WEB SITE:

www.PlannedSolutions.com

#finance #invest #investment #stocks #inflation #deflation #bonds

On this episode of the Planned Solutions Incorporated Podcast, The US inflation rate has been hovering around 5% for several months this year. This has created some financial strain for some households. However, with some planning, there are some small steps that consumers can take to reduce their personal inflation rate to a level that is more in line with the long-term average, rather than today’s elevated level.

Also, The Build Back Better tax and spending bill has been under negotiations in the House and Senate for the past several weeks. In the process the bill has changed significantly including the total price tag decreasing from $3 trillion to an estimated $1.75 trillion as several spending proposals were dropped. Many tax provisions included in the original draft of the bill have also been dropped.

And, The child and dependent care tax credit was expanded for 2021. The American Rescue Plan Act increased both the amount of child and dependent care expenses that qualify for the credit and the percentage of those expenses that may be claimed as a tax credit. This increased the previous maximum amount of the tax credit from $600 for one child and $1,200 for two children to $4,000 for one child and $8,000 for two children. With such a large amount at stake, it is important to understand the rules related to this credit.

Plus a look at the Planned Solutions Incorporated Office Bulletin Board- Our office has been a construction zone recently. Part of this was planned and part of it was unplanned. The planned portion includes a renovation of the lobby and bathroom facilities in our building which continues, but we hope will be completed soon

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

To subscribe to the Personal Finance Review (the written form of all the content we discuss on the podcast) please e-mail [email protected]

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

WEB SITE:

www.PlannedSolutions.com

#finance #invest #investment #stocks #inflation #deflation #bonds

On this episode of the Planned Solutions Incorporated Podcast, The global supply strain has been stressed during the pandemic and is still struggling to catch up. The challenges can be simplified into three phases: blockages, shortages, and bottlenecks. In general, it appears that the global economy has largely moved past the blockages caused by the pandemic and there is no longer a major shortage of goods being produced. However, bottlenecks, especially those at transportation hubs, continue to be a challenge.

Also, The Social Security Administration recently announced that it will be increasing Social Security benefits by 5.9% in 2022, the largest increase since 1982. However, Medicare is expected to increase its premiums by $10, or 7%, which will offset some of the increase in Social Security benefits for many retirees. The Social Security wage base will also increase by 2.9%.

And, Student loan debt has become a major consideration for many graduates who are burdened with high debt that may hinder their ability to engage in long-term financial planning. In addition, recent changes to the laws have increased the options for paying back student loan debt which include income-based repayment options, public service loan forgiveness, and a 20-year repayment period after which student loan balances are forgiven.

Plus a look at the Planned Solutions Incorporated Office Bulletin Board- Daryl and Chase attended the virtual monthly meeting of the Financial Planning Association of Northern California. The program this month was focused on student loan strategies.

As a reminder, Planned Solutions reports, as well as most investment statements, are available to be sent electronically rather than in paper form.

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

To subscribe to the Personal Finance Review (the written form of all the content we discuss on the podcast) please e-mail [email protected]

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

WEB SITE:

www.PlannedSolutions.com

#finance #invest #investment #stocks #inflation #deflation #bonds