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Weekly Perspective

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April 8, 2024

It's a jam-packed holiday week!

More than a dozen holidays are celebrated this week, including:

 

  • Bat Appreciation Week,

  • International Trombone Week,

  • National Library Week,

  • Take Your Poet to School Week, and

  • America Saves Week.

 

This year, America Saves Week encourages people to build a secure financial future by saving for what matters most. That could mean setting aside money in an emergency fund, a college savings fund, a retirement account, or another opportunity. For some people, saving includes investing, buying stocks, bonds, and other assets with the goal of growing wealth, generating a stream of income, or doing both.

 

Why is saving important?

 

The Library of Economics and Liberty cited the Concise Encyclopedia of Economics to provide some insight to economists’ big-picture view of saving. “…consider an economy in which there is a single commodity, say, corn. The amount of corn on hand at any point in time can either be consumed (literally gobbled up) or saved. Any corn that is saved is immediately planted (invested), yielding more corn in the future. Hence, saving adds to the stock of corn in the ground, or in economic jargon, the stock of capital. The greater the stock of capital, the greater the amount of future corn, which can, in turn, either be consumed or saved...”

 

At a more granular level, saving confers a tax benefit to Americans who qualify, reported Kate Dore of CNBC, but few eligible taxpayers claim it.

 

“The retirement savings contribution credit, or ‘saver’s credit,’ can help low- to moderate-income filers offset part of the funds added to an individual retirement account, 401(k) plan or other workplace plan…For 2023, your adjusted gross income can’t exceed $21,750 for single filers or $43,500 for married couples for the 50% credit. The percentages drop to 20% and 10%, respectively, as earnings increase, with a complete phase-out above $36,500 for individuals or $73,000 for joint filers.”

 

If any members of your household qualify, you may want to let them know about the tax credit.

Securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through Private Advisor Group, a registered investment advisor. Private Advisor Group and Parks Wealth Management are separate entities from LPL Financial. 

* Government bonds and Treasury Bills are guaranteed by the U.S. government as to the timely payment of principal and interest and, if held to maturity, offer a fixed rate of return and fixed principal value. However, the value of fund shares is not guaranteed and will fluctuate.

* Corporate bonds are considered higher risk than government bonds but normally offer a higher yield and are subject to market, interest rate, and credit risk as well as additional risks based on the quality of issuer coupon rate, price, yield, maturity, and redemption features.

* The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. You cannot invest directly in this index.

* All indexes referenced are unmanaged. The volatility of indexes could be materially different from that of a client’s portfolio. Unmanaged index returns do not reflect fees, expenses, or sales charges. Index performance is not indicative of the performance of any investment. You cannot invest directly in an index.

* The Dow Jones Global ex-U.S. Index covers approximately 95% of the market capitalization of the 45 developed and emerging countries included in the Index.

* The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.

* Gold represents the afternoon gold price as reported by the London Bullion Market Association. The gold price is set twice daily by the London Gold Fixing Company at 10:30 and 15:00 and is expressed in U.S. dollars per fine troy ounce.

* The Bloomberg Commodity Index is designed to be a highly liquid and diversified benchmark for the commodity futures market. The Index is composed of futures contracts on 19 physical commodities and was launched on July 14, 1998.

* The DJ Equity All REIT Total Return Index measures the total return performance of the equity subcategory of the Real Estate Investment Trust (REIT) industry as calculated by Dow Jones.

* The Dow Jones Industrial Average (DJIA), commonly known as “The Dow,” is an index representing 30 stock of companies maintained and reviewed by the editors of The Wall Street Journal.

* The NASDAQ Composite is an unmanaged index of securities traded on the NASDAQ system.

* International investing involves special risks such as currency fluctuation and political instability and may not be suitable for all investors. These risks are often heightened for investments in emerging markets.

* Yahoo! Finance is the source for any reference to the performance of an index between two specific periods.

* Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.

* Economic forecasts set forth may not develop as predicted and there can be no guarantee that strategies promoted will be successful.

* Past performance does not guarantee future results. Investing involves risk, including loss of principal.

* The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee it is accurate or complete.

* There is no guarantee a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.

* Asset allocation does not ensure a profit or protect against a loss.

* Consult your financial professional before making any investment decision.

* This is not intended to be a substitute for specific individualized tax advice. We suggest you discuss your specific tax issues with a qualified tax advisor.

* These views are those of Carson Coaching, and not the presenting Representative, the Representative’s Broker/Dealer, or Registered Investment Advisor, and should not be construed as investment advice.

* This newsletter was prepared by Carson Coaching. Carson Coaching is not affiliated with the named firm.

Sources:

https://www.reuters.com/business/finance/bis-chief-says-central-banks-cusp-holy-grail-soft-landing-2024-01-22/

https://www.barrons.com/articles/stock-market-performance-quarter-outlook-0e5168a0?mod=hp_LEAD_1_B_4 (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2024/04-08-24_Barrons_The%20Stock%20Market%20Had%20a%20Great%20Start%20to%20the%20Year_2.pdf)

https://www.bloomberg.com/opinion/articles/2024-04-01/the-stock-markets-just-delivered-a-powerful-reminder?embedded-checkout=true (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2024/04-08-24_Bloomberg_Financial%20Markets%20Just%20Delivered%20a%20Powerful%20Reminder_3.pdf)

https://www.reuters.com/markets/us/feds-kashkari-says-2024-rate-cuts-under-threat-if-inflation-continues-stall-2024-04-04/

https://www.bloomberg.com/opinion/articles/2024-04-05/stocks-pullback-before-us-jobs-needs-perspective (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2024/04-08-24_Bloomberg_How%20Seriously%20You%20Should%20Take%20the%20Market%20Pullback_5.pdf)

https://www.bloomberg.com/news/articles/2024-04-05/us-jobs-report-is-set-to-show-a-slower-pace-of-hiring-be-says? (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2024/04-08-24_Bloomberg_US%20Jobs%20Report%20is%20Set%20to%20Show%20a%20Slower%20Pace%20of%20Hiring_6.pdf)

https://www.bls.gov/news.release/empsit.nr0.htm

https://www.barrons.com/livecoverage/stock-market-today-040524?mod=article_inline (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2024/04-08-24_Barrons_Dow%20Soars%20on%20Otherwise%20Down%20Week%20for%20Markets_8.pdf)

https://home.treasury.gov/resource-center/data-chart-center/interest-rates/TextView?type=daily_treasury_yield_curve&field_tdr_date_value=2024

https://www.holidays-and-observances.com/april-8.html

https://americasavesweek.org

https://www.econlib.org/library/Topics/HighSchool/SavingandInvesting.html

https://www.cnbc.com/2024/04/02/heres-who-can-claim-a-special-tax-credit-for-retirement-savings-.html

https://www.washingtonpost.com/nation/2024/04/03/moon-time-nasa-space-white-house/? (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2024/04-08-24_Washington%20Post_What%20Time%20is%20it%20On%20the%20Moon_14.pdf)

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