This monthly communication, “Financial Bullet Points,” will quickly and easily cover the main financial issues we see affecting the markets without being bogged down with a lot of details.
Written by Bob Barber, Matthew Barrovecchio, and Don VandeVanter; Prepared on October 24th, 2024
The Bullet Points for November are:
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- Year End Tax Strategies: Remember to max out those company-sponsored retirement plans before December 31st. Otherwise, you will needlessly pay more income taxes than you need to. Those under 50 can put away $23,000 this year or $30,500 if over 50, which does not include any match your company may give. Another idea is the charitable contribution, which can be cash or non-cash assets like stocks or real estate. If you’re unsure where to give, open a Donor-advised fund (which we can help you do) for the tax deduction this year and fund the actual charities of your choice anytime. For many more year-end tax strategies, call the office at 830-609-6986. That call may be worth thousands of dollars in tax savings for 2024.
- CD Rates: As of October 2024, CD rates have dropped from around 5% to the mid-4 % range for six-month to one-year terms. Three- to five-year terms are now in the 3% range. This is due to the Federal Reserve cutting its benchmark rate for the first time since March 2020. Further cuts are expected, which means CD rates will decline even more. Our Ultra Conservative, actively managed bond portfolio is an alternative to CDs with daily liquidity and no liquidation fees. The present net yield after management fees and expenses is 4.47% at the time of this writing.
- November Important Events: The first few weeks of November may increase volatility in the markets and investment portfolios due to the Presidential election and the expected interest rate announcement by the Federal Reserve. Given these events, it is important to remember not to abandon one’s long-term plan to satisfy short-term fears. Staying objective and focusing on the long term is critical for investors
- Normalizing Yield Curve: As reported in last month’s bullet points, the yield curve continues to normalize (where long-term interest rates are higher than short-term), generally a good sign of a stable and growing economy.
- It’s RMD Season: For those age 73 and older with IRAs, we want to remind you to take care of your Required Minimum Distribution (RMD) and/or Qualified Charitable Donation (QCD) for the 2024 year if it’s not been done yet. We emphasize getting this done before the start of the holiday season to ensure it is completed before the required end of the year. A QCD is a tax-efficient way to satisfy your RMD and help your favorite charities.
- Continuing Education and Scriptures. This month’s programs for Christian Financial Perspectives are listed below along with our Scriptures for the month:
- Ep 212 – 11/05/24 – Voting Biblical, Investing Woke
- Ep 213 – 11/19/24 – Money Saving Ideas for Christmas Spending
- Philippians 4:4-7 – Rejoice in the Lord always. I will say it again: Rejoice! Let your gentleness be evident to all. The Lord is near. Do not be anxious about anything, but in every situation, by prayer and petition, with thanksgiving, present your requests to God. And the peace of God, which transcends all understanding, will guard your hearts and your minds in Christ Jesus.
Remember, we moved to releasing episodes every other week to give people more time between episodes to listen or watch. To tune in, search “Christian Financial Perspectives” on almost any podcast platform or YouTube.
Visit our channel: www.cfa.lc/yt
Until next time, have a great Thanksgiving with your friends and family as we get into the Holiday Season.
If you would like further explanation of any of the bullet points mentioned, please call or text (830) 609-6986 during business hours or email us by clicking here.
Bob Barber
Senior Wealth Advisor & President
Matthew Barrovecchio, CFP®
Senior Wealth Advisor
Don VandeVanter, CPA
Wealth Advisor
Christian Financial Advisors®