New Year Outlook and Bus490 update
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Reflecting on 2024 while looking ahead for the new year
Stocks had another very strong year in 2024. In fact, 2024 marked the first time the S&P 500 has enjoyed a +20% gain in back-to-back years since 1997–98. Last year didn’t start out so optimistically though. The list of worries among stock-market bears included high valuations, narrow leadership by the largest technology stocks, rising long-term interest rates, election uncertainty, deficit spending, and more. Stocks rallied through all of that without so much as one 10% correction.
The stock market’s surprising ascent in 2024 offers some important lessons for investors:
- The herd is often wrong. Wall Street underestimated the S&P 500’s price at year-end by about 15%. Remember, positive years for stocks are about three times more likely than declines.
- The trend is your friend. Employing technical analysis can help investors avoid mistakes. In an upward-trending market, don’t take a detour because of some bearish narrative the market may not care about.
- Bull markets typically run for a while. They last more than five years on average and rarely end when the U.S. economy is growing, especially when the Federal Reserve (Fed) is cutting interest rates. The current bull market is about 27 months old.
- Earnings drive stock prices. The fundamental value of stocks comes from a company’s earnings. S&P 500 companies will likely grow earnings 10% in aggregate in 2024 and may do so again in 2025.
- Focus on the long term. Don’t get scared out of the market by the headlines if you’re a long-term investor. “Time in the market” beats “timing the market.” Waiting it out through down periods is the best approach for nearly all investors. Since 1980, the annualized return for the S&P 500 is 12.1%.
The U.S. economy also offered investors another lesson — that betting against the U.S. consumer is often a losing bet — especially an employed U.S. consumer. Mortgage refinances during the pandemic and the wealth created by higher stock prices added fuel for more spending, particularly from upper-income consumers.
These are good lessons to tuck away as 2025 gets underway. The coming year may not bring quite as much joy to your portfolio as 2024, given how much good news is being priced into the stock market currently. Inflation pressures may re-emerge, and geopolitical threats could upend rallies. But, with steady economic growth, a healthy job market, growing corporate profits, and continued investment in artificial intelligence, the ingredients for another profitable year are in place.Reflec
Rentals, LLCs, and Taxes. Best practice for your holdings?
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Optimizing Your Real Estate Portfolio: Rentals, LLCs, and Taxation Strategies for Affluent Investors
Many high-net-worth individuals find themselves owning vacation homes or rental properties, often as a byproduct of investment diversification or lifestyle choices. While they may not have intentionally pursued a career as real estate moguls, these holdings frequently constitute a substantial portion of their overall net worth. The crucial question then becomes: how should these valuable assets be structured to maximize returns, minimize liabilities, and optimize tax efficiency?
This critical topic is explored in a discussion featuring Corrie Koopman from Action Tax, joining host Brock to delve into the intricacies of rentals, Limited Liability Companies (LLCs), and the complex world of taxation.
Is there a place for Bitcoin and Crypto in a portfolio?
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There has been tremendous excitement around digital assets. However, navigating the world of finance can be daunting, as investors try and sort the news headlines from the facts.
Is there a place for Bitcoin and crypto in a traditional investment portfolio? That’s the question we explore on the latest episode of the Meaningful Dividends podcast. We examine the potential benefits, risks, and complexities of incorporating cryptocurrencies into your investment strategy.
The Presidential Election’s Impact on Stocks
Market returns vary by presidential party in power, but no clear and consistent trend emerges.
Despite the perceived importance of this election, and presidential elections are important but can distract investors financially. policy changes also tend to be gradual due to checks and balances in our political system. What candidates promise on the campaign trail can differ from what they can actually enact.
When it comes to taxes, neither candidate is proposing a return to pre-Reagan era tax levels when the top marginal rates reached as high as 94%. When it comes to trade, tariffs may increase but they are unlikely to reach the levels experienced almost a century ago during the Great Depression. It’s important to keep these facts in perspective when planning for the next four years.
The bottom line? The election matters for many reasons, but its long-term impact on the stock market and economy is often overestimated. The economy has grown under Democrats and Republicans alike, and it’s important for investors to maintain perspective this election season.
LLC vs S-Corp: Choosing the Right Business Structure with CPA Joseph Anderson
Avoid Double Taxation
LLC or S-Corp?
Full Podcast Episode
Welcome to the latest episode of “Meaningful Dividends”! Dive into the key differences between LLCs and S-Corps with Joseph Anderson, a CPA from Duality Accounting. Discover how to choose the best business structure for your needs, as Joseph explains the tax implications, ownership flexibility, and practical considerations of each entity. Learn about the default tax treatment for LLCs, the option to elect S-Corp status, and the importance of paying a reasonable salary as an S-Corp owner. The discussion highlights the importance of consulting with tax professionals to make informed decisions that align with your business goals and strategy.
LLC vs Personal Ownership: What’s Best for Your Properties?
Full Podcast Episode
Welcome to the latest episode of “Meaningful Dividends”! Explore the pros and cons of holding properties in an LLC versus personal ownership in this informative episode with legal expert Russell Knight, partner at Smith Alling law firm. Dive into crucial topics like liability protection and how it can impact your real estate investments. Russell also shares insights on estate planning for property owners. Whether you’re a seasoned investor or just starting out, this episode offers valuable guidance and practical advice.
Navigating Dementia Care: Insights and Strategies with Tracy Cram Perkins
Mastering Reality Orientation in Dementia Care
(60 Second Short Video)
Full Podcast Episode
Welcome to the latest episode of “Meaningful Dividends”! Explore the heartfelt journey of dementia caregiving with expert Tracy Cram Perkins, author of Dementia Home Care, How to Prepare Before, During, and After. In this episode, Tracy shares personal insights on managing the challenges of caregiving, from understanding the different types of dementia to building a strong support network. Discover practical advice on using technology, planning ahead, and communicating effectively within families. Whether you’re a caregiver or seeking to understand the experience, this discussion offers essential guidance and emotional support to navigate the complexities of dementia care. Don’t miss this invaluable conversation!
Maximizing Estate Planning Before the 2025 Tax Sunset with James Jones
What Can You Do Now (60 Second Short Video)
Full Podcast Episode
Welcome to the latest episode of “Meaningful Dividends”! In this episode, estate planning expert James Jones from Sound Legacy Law discusses how you can shield your hard-earned money from the upcoming estate tax sunset and create a legacy for your loved ones. Don’t miss out on protecting your future!
Thriving in Today’s Economy: Stock Market Insights & Travel Adventures with Dean & Brock Bennion
Welcome to the latest episode of “Meaningful Dividends”! In this episode, we explore the current economic climate and reflect on recent travels.
Maximizing Your Business Value with Broker Taralee Muhli
In this insightful episode, we are joined by Taralee Muhli, an experienced business broker, who shares her expert advice on the crucial steps business owners need to take before selling their business. Taralee dives into the importance of early preparation and discusses when owners should start working with a business broker to ensure their business is in prime condition to attract potential buyers. From financial readiness to operational streamlining, Taralee provides a comprehensive roadmap for business owners aiming to achieve a successful sale. Tune in to learn how to maximize the value of your business and navigate the complexities of the selling process with confidence.
