In This Issue:
1. Quarterly Meeting
2. Taxes: Mid-year Withholding Check
3. Inflation and Your Portfolios
Top Topics is a timely email for Acadia Clients only. We are providing information and guidance on current issues of great importance to you.
Kennebunkport, Maine. Image courtesy of Wadetous.com (No affiliation of any kind).
Summer!
Pandemic? What pandemic? Seemingly overnight, we've been released to return to (mostly) normal life. Perhaps some of you will travel, visit family, or just enjoy some mask-free breathing. Whatever your plans, Mary and I wish all of our Clients a safe and blessed summer.
Topic: Quarterly Meeting
The third quarter (July throughSeptember) is upon us, and it serves as a great opportunity for a mid-year review to see how things are going in 2021. Let's meet for either a comprehensive review or at least a brief chat to answer any questions or discuss your future plans.
Please be sure to let me know beforehand if you have any notable changes to your income, career/retirement plans, or just have a special "dream" you would like me to consider.
Did we already meet recently, but you still have things to discuss? No problem; schedule yourself and let's talk.
Topic: Mid-year Withholding Check
With all the last-minute tax law changes, the modified Child Tax Credit, and the various economic credits, our 2020 tax year was turbulent. Some of these changes are still in play, and some of you experienced employment changes in the past year.
All these changes can lead to either an oversized tax refund, or a large tax bill. But don't worry. Make an appointment, and we'll walk through the IRS withholding calculation site to ensure you are on track for a "no surprises" 2021 tax filing.
Topic: Inflation and Your Portfolio
It is perhaps no surprise that inflation has come roaring back with the reopening of the economy, and a stubbornly lagging work force. Inflation will always come calling when supplies are scarce and demand is high. With changes in inflation, we can sometimes expect changes to interest rates, which can then impact the profitability (return) of your stock and bond holdings.
To this end, we have modified some of the bond holdings so they will adapt to interest and inflationary changes. In short, they're shorter. Meaning, we have moved to shorter term bonds and bonds that adjust to inflation (Treasury Inflation Protected Securities - TIPS). Although no one can predict the markets, we can at least adjust to a new environment.