Investments
Contrasting 1031 Exchanges with Opportunity Zones
Both are techniques used to defer capital gains taxes on the recent or planned sale of an asset. They can even potentially eliminate them over time, through a step-up in basis at death in the instance of the 1031 exchange or a 10 year holding period in the instance of the Opportunity Zone. Though there…
Read MoreQualified Longevity Annuity Contracts (QLAC)- The Treasury’s Effort to Ease Managing the Risk of Outliving Retirement Funds
Actual IRS QLAC Final Regs A copy of the actual final regulations is linked above. This article is intended to provide accurate, detailed summary information about the QLAC regulations in the following areas: 1) RMD changes resulting from the use of QLAC’s 2) QLAC Definition and qualifications 3) Planning implications Longer life expectancy, the shift from defined retirement plans with…
Read More50 Years Historical Financial and Economic Data in One Spreadsheet with Illustrative Commentary
(click on the image to view the spreadsheet in full size) The purpose of this exercise initially was to help put into context the data and assumptions we, as financial planning practitioners use, such as assumed tax rates, interest rates and inflation when we are building financial plans. How do they compare to the past?…
Read MoreWhy the Fed’s Monetary Expansion hasn’t caused excessive inflation
Expanding the monetary base can and has caused significant inflation historically.The truth is that credit long ago became a larger factor in inflation than did actual money in circulation. While the monetary base has expanded, credit has contracted. So much so that the fed’s massive QE programs have effectively offset the loss of credit banks…
Read MoreThe Potential Impact of Rising Interest Rates on the Equity Risk Premium
This is a brief article on the impact of Monetary policy on treasury interest rates, which impact equity market valuations through the Equity risk premium.. The New York Federal Reserve released an article by Fernando Duarte and Carlo Rosa May 22, 2013 titled “Are Stocks Cheap a Review of the Evidence” supporting the notion that the low-interest rate environment, caused by the…
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