Desmond Wealth Management, Inc.

Wealth Matters eNewsletter - October 2020 -

A federal tax credit for the purchase and installation costs of a residential solar system is fading away. After being 30% of the cost for several years through 2019, the credit amount drops to 26% in 2020 and then 22% in 2021, the final year of the credit. However, there is a lot to consider before making the final decision to install a solar system. Is it worth it, and is it the right financial move for you? Please call for a consultation before signing any contract to make sure a solar system is appropriate for you.

If you have some extra cash on hand you’ve decided to invest in the stock market, you might feel as if the pressure is on. Nobody enjoys seeing the market take a dive shortly after they jump in. Unfortunately, we never know when it might do exactly that. Should you go ahead and invest the entire amount right away, or should you invest gradually, such as in 12 monthly installments? In financial jargon, this is known as lump-sum investing (all at once) vs. dollar-cost averaging... (over time). In more approachable terms, it’s often described as plunging vs. wading into the deep end of the market. Which one should you use? In terms of raw expected returns, lump-sum investing is preferred, but sometimes, there are equally valid, if less tangible, reasons to favor dollar-cost averaging. In this two-part series, we’ll explore both possibilities. See more

During the COVID-19 pandemic, a backlog of millions of pieces of unopened mail accumulated in trailers set up outside IRS facilities, including payment checks. IRS computers began automatically spitting out tax-due notices, including to those who had mailed in payments. The IRS says that you should not cancel or put a stop-payment on any checks. The payments will be posted as of the date when they were received by the IRS, not the date when the Service processes them. In most cases, this will eliminate or minimize penalties and interest for late payments.

Many individuals are puzzled. For those under the age of 75, the news headlines are likely the grimmest in memory. How can stock prices flirt with new highs while the news is so discouraging? One financial columnist recently observed that the stock market looks increasingly divorced from economic reality. Is it? Let’s dig a little deeper.

The days are starting to get noticeably shorter, and if you even believe it, we're most of the way through 2020. What a year it's been so far! We hope you are enjoying these last days of summer and that you had a wonderful Labor Day weekend. In light of all that is going on in the world and in our communities, our current overriding interest is the general well-being and health of our clients. Whether this season finds you close to home or out on the 'front-line', wellness i...s vital. A recent article from John Hopkins specifically outlined some suggestions to promote good health and balance including: - Greeting the Day, Starting with a Routine that Supports Self-Care Breathing for Stress Relief - Moving and Stretching, Indoors and Out - Eating Well Keeping in mind that often it is the little things that help save the day, here are some specific ideas from the John Hopkins article that resonated with the Desmond Wealth Management Team: Staying Focused It can be hard to concentrate on work when your daily routine is off-kilter and the future is uncertain. Consume social media conservatively. Aromatherapy can make your home office more conducive to calm productivity. It's important to remember that essential oils are not effective treatments for disease, but they can help uplift mood or create a more relaxing environment. Practicing Mindfulness It's also important to keep in touch with friends, especially the ones who uplift you, as well as to give people the benefit of the doubt during this challenging time. Practicing mindfulness and gratitude are also beneficial for your well-being. Spending time each day to say positive affirmations for yourself can improve your mental health and mood. We wish for you much health and happiness, wherever you may be. Desmond Wealth Management and Desmond Consulting Group

President Trump issued a Presidential Memorandum on August 8, 2020, that directs the Treasury Secretary to use his authority to defer the withholding, deposit and payment of employees’ portions of Social Security taxes from September 1 through December 31, 2020. The goal is to put more money in the pockets of workers during the COVID-19 pandemic emergency. If you have questions about the payroll tax deferral and how it would affect you, please give this office a call.

Sending warm greetings to all those who work with utmost dedication and promise throughout the year! We wish you more energy, more positivity & more success. May you always shine bright! Our best to you and yours this Labor Day 2020.

In selecting or retaining a financial advisor, how do you know if you’re making a wise choice? This is a challenging subject, indeed. First, the stakes are high. The quality of your selection, or lack thereof, can literally make or break your family’s fortune. Also, the choices can be bewildering. It can be difficult to determine what to look for and who to trust. Let’s cut through some of the confusion.

As the November elections approach, you might want to know what the two front-running presidential candidates’ tax plans for the future are. The following is an overview of their positions, at least what is known now. However, the political and economic landscapes can change, and there is no assurance these plans won’t be revised or that they will have eventual Congressional backing. However, the information may be helpful as you look toward future tax planning.

Unfortunately, the fiduciary standard has been under attack lately. A recent Securities & Exchange Commission (SEC) overhaul has downplayed, rather than strengthened, its significance by overlaying it with a new industry standard, paradoxically called Regulation Best Interest" or Reg BI. Despite its promising name, Reg BI may muddy what clarity had existed between higher & lesser standards of care. By attempting to apply the same broad rules to both full-time fiduciary investment advisors & typical broker-dealer investment advisors, Reg BI has the potential to discount the still-stark differences between them.

We are still waiting for the dust to settle on what President Trump’s executive orders mean for taxpayers and business owners. There is a lot of talk about legal challenges and how Congress may react, but here is a summary of what we know now.

There are only so many hours in the day to do all the fact-checking you’d like to when deciding who and what to believe. How do you approach this never-ending challenge?