Are higher taxes coming to go along with inflation? It sure looks that way. And while some of the spin is being directed at the Billionaire’s tax—that actually kicks in at a tenth of a billion dollars—there are plenty of other tax hikes proposed for more modest earners too.
After the significant decline in price over the last 6 months, it may appear that the market is now a 'bargain'. The forward P/E (10-yr average 2009 – 2019 Price/Earnings Ratio) of the S&P 500 at a price of $4000 and EPS (Earnings Per Share) of $237.18 is 16.9. This is below the 5-year average (18) and equal to the 10-year average (16.90). However, the 5 and 10-year averages are heavily skewed by the pandemic surge in forward multiples which rose to over 23 in the back half of 2020 as investors, flush with stimulus cash and backed by historically accommodative monetary policy, bid up stock prices to historic levels.
We have heard from clients and financial institutions that attempts at fraud have increased. We want to make sure that you know how to recognize a fraudulent attempt to access your private information. “Scammers” will pose as bank representatives, IRS agents, employees of the State Franchise Tax Board, and anyone whom you may be inclined to trust with financial information. Contact us anytime you receive a request for information that may make you uncomfortable. It is always better to wait to provide information than to risk being a victim of fraud. We will help you in determining how to verify whether a request is valid, and we will advise you in how to report fraud.
Stock Markets have nearly erased the gains of 2021 as inflation persists and a war rages on in Ukraine. Tune into the May 2022 edition of Pacific Wealth Management's Proactive Asset Management Webinar to learn about why markets are so challenging this year, and how PWM is navigating the investment landscape.
The first four months of 2022 have been challenging for most investors as stocks and bonds have simultaneously declined this year. The U. S. Federal Reserve Bank is now actively unwinding its unprecedented monetary and fiscal stimulus response to the pandemic. COVID-19’s impact on our lifestyles, along with $Trillions of stimulus, has precipitated the highest inflation we have seen in 40 years.
Estate planning is arguably the most emotionally difficult aspect of financial planning. It forces people to contemplate their mortality and that of their loved ones. It is of vital importance, however, for those who want to name heirs and maximize what they will leave to them. Sound estate planning addresses a person’s personal, and sometimes private, wishes for how assets will be distributed upon death. It also seeks to minimize federal and state estate and gift taxes.