NestEgg NEWS – August 2019

 

MARKET UPDATE:

The market volatility of August has abated for now as our markets have been relatively calm for the past 10 days. Earlier this month, market volatility started with concerns over the U.S. trade war with China. Market volatility continued when the bond market indicated a recession ahead via the yield curve inversion.

So what lies ahead? Let’s start with a quick look into the rear-view mirror.

The DOW is still up 12% so far this year, while the bond market is up 4-6% depending on bond duration. We expect trade war negotiations to continue dictating future market volatility. Economic indicators showing further slowing of the economy will provide additional market volatility. The potential upside will be if the federal bank decides to further reduce interest rates. At the same time, we will soon enter the 3rd quarter of an election cycle with many consequences.

So what should an investor do?

If recent market volatility has caused you angst, it’s time to come see us to review your portfolio and consider re-balancing.

  

PUP-DATE:

Lily cools off after eating 2.5 lbs of cheese, a great afternoon snack

Lily attempts to celebrate national ice cream day with our son, Johnny “Rocket”

  

IRMAA:

There have been recent changes to the cost of Medicare, which are important to understand. As your taxable income increases in retirement, there is a potential to pay higher medicare premiums as outlined in the table below.  If your taxable income is above $170,000 Married / $85,000 Single, you will begin to pay more for Medicare.  This is a congressional response to rising Medicare “Entitlement” programs.

 

 

TAXES ON SOCIAL SECURITY BENEFITS:

On a topic related to Medicare Costs, there is also a sliding scale on the taxes for Social Security benefits you receive.  If your combined income was more than $34,000 Single / $44,000 Married, you will pay taxes on up to 85% of your Social Security benefits. The table below shows the incremental income levels and the associated taxability of benefits.

 

KELLY’S MOVIE REVIEW:

This is a wonderful story told by “Enzo” a golden retriever, who loves “Denny” (his person) with every ounce of his being. The two first bond at the racetrack, where Denny spends the majority of his time. Enzo takes the viewer through each chapter of their story together, the good, the bad and the VERY sad. Make sure you bring your box of tissues to this one!

 

 

 I hope you found this to be educational and helpful. As we always emphasize, it is our job to assist you! If you have questions or would like to discuss anything in further detail, please give us a call.

As always, feel free to pass this on to someone important to you.

Thank you very much for the trust and confidence you’ve placed in our team.

 

 

Eric Tarver
Financial Advisor – Wood Tarver Financial

Kelly Wood
Financial Advisor – Wood Tarver Financial