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Tax loss harvesting is the practice of selling an asset in your taxable investment account that has experienced a loss and replacing it with a similar asset to maintain the overall allocation within your portfolio. By realizing, or “harvesting,” the loss you are able to offset taxes on both gains and income. It’s a practice used during downturns to offset gains that may have been realized from sales when markets were at much higher levels.  Tax loss harvesting only applies to taxable investment accounts, not retirement accounts, like IRAs or 401ks as those are tax-deferred.

While created with good intentions, I have mixed feelings about the recent CARES Act provisions allowing for $100,000 in CRDs (coronavirus-related distributions) from retirement accounts like 401Ks and IRAs. These provisions are designed to help people who are facing a cash shortage now and have savings in 401Ks or IRAs.

In March, the Treasury Department and Internal Revenue Service announced the deadline to file and pay taxes is automatically extended from April 15, 2020, to July 15, 2020 in an effort to give taxpayers more time to deal with their taxes amid the coronavirus outbreak.

As schools closed, people around the world began adjusting to a new norm of “social distancing.” These measures were adopted to stem the spread of the Coronavirus and guard against its economic impact. We need to remember that the US economy is resilient, even with these external shocks and challenges. The S&P 500 Index, which is an index of the 500 largest US publicly traded companies, went from a record high on February 19th to a bear market depleting a quarter of the index’s value. A bear market occurs when stock prices fall 20% or more from their recent highs. This drop in the S&P 500 Index occurred in less than a month’s time. This rapid deterioration of the stock market is mostly due to the uncertainty about when the epidemic will be under control. In these times of uncertainty, how do you protect yourself from making a rash decision with regards to your finances?

As we start to emerge from various shelter-in-place orders across the country, Susan, Kate, and I thought that it’s a great time to share an inspirational perspective for this month’s newsletter.

By: Pat Cote

What does being “rich” actually mean?  I was recently asked this question by a client when we started talking about HENRYs (High Earners, Not Rich Yet).  It is a great question and the answers will vary from person to person.  Please note that we are talking about being financially rich, as there are other aspects of our lives that can also be rich.

By: Kate Hennessy

You have spent the past 40+ years accumulating assets and saving.  You’ve been on autopilot and have enjoyed the ride.  You have this number in your head – I want to retire at 65, 67, or 70.

The SECURE Act became law on December 20, 2019 and the intent of this new law is to strengthen retirement security.  Having enough income in retirement is an important concept in financial planning.  When we work with our clients and ask them what financial success means to them, the overwhelming response is security - knowing they will not outlive their assets. 

Submitted by Susan Powers on January 10, 2020

The new Setting Every Community Up For Retirement Enhancement (SECURE) Act was just signed by President Trump on December 20,2019.  For individuals and small business owners, there are several ways the SECURE Act may affect you.  Highlighted below are a few of the ways the new legislation will impact IRA and employer plan withdrawal options and new rules for small businesses starting a retirement plan effective January 1, 2020. 

IRA and Employer Plan Withdrawals

Submitted by Kate Hennessy on December 27, 2019

With the new year and new decade upon us, one of your resolutions may be to save more or get your financial house in order.  I wanted to kick off the year with the top three reasons why people don’t ask an expert for help with their finances.  For those of you that haven’t hired an advisor, one or more of the reasons may resonate with you.

Pat Cote - 12/17/2019 - originally aired on Sirius XM Channel 132, Business Radio Powered by the Wharton School

Submitted by Susan Powers on December 7, 2019

I recently hosted an evening with friends, food and wine where we discussed the current state of markets, the unique needs of women investors and the importance of aligning your investments with your goals.

The audience was diverse: single, married, small business owners, contractors working from home and retirees.  Their perspectives and questions were equally diverse.