It has been a little over a year since the world learned of COVID-19 and its crippling effects, and the U.S. fell into a recession, its 6th recession in the last 40 years since 1980. A lot has changed since then, and the past year has transformed nearly every aspect of our world. Living through a global pandemic has driven dramatic shifts in our jobs, eating habits, childcare, and even our use of time.
One year later. All of us are experiencing burnout towards Zoom, masks and virtual workouts, and working from home. However, there seems to be a glimmer of hope for what lies ahead of us this year.
We Thank You.
Our team is especially thankful for all our clients who stayed the course last year, practiced patience, discipline, and controlled their emotions. Last year’s market volatility wasn’t for the faint of heart, but together we confronted the uncertainty with discipline and strength.
Despite the global pandemic, your continued commitment also allowed us to rebrand our practice. We feel that this new brand is a true reflection of our team and the enhanced client experience that you will continue to receive. Our team is evolving, and we look forward to sharing new enhancements to our financial planning process soon.
What about the markets and your finances?
This summer could be the start of a new roaring twenties. Experts suggest that the pent-up demand from this past year will drive an economic boom as millions of Americans, newly vaccinated and $1,400 richer, make up for the lost time by booking flights and vacations, going on cruises, visiting family out of state. Approximately $18 trillion is sitting in American’s savings accounts right now – a record amount.
Much of this cash is just waiting to be unleashed into the economy. Things seem to be headed in the right direction.
Finally, the tax deadline is fast approaching. Many people don’t think about taxes until they’re facing the May 17th deadline. But it’s always beneficial to think about tax planning all year long. One of the best ways to save on income taxes is to max out your 401(K) contributions. You can contribute up to $19,500 into your 401(k) in 2021, and if you are age 50 or over, you can make an additional “catch-up” contribution of $6,500.
But this is just the beginning.
We’re here to review the things that can impact your taxes by estimating tax payments, the sale of a residence, distributions from qualified plans or IRAs. Even reviewing your estate plan may help reveal some additional tax-reduction strategies that are appropriate to your situation.
COVID-19 has taught us that life is finite and showed us that it is important to get our finances in order so that we can stay protected from uncertainty. We care deeply about you and your families – and we will be here, for whatever comes next, to help you plan for what matters most. We are reminded that “where there is hope . . . there is life.” – Anne Frank.
Let’s keep this hope moving forward this year, and we’ll continue to help you plan for the unexpected in any way that we can, with integrity, compassion, and commitment.
Frank Holmes of U.S. Global Investors, https://www.advisorperspectives.com/commentaries/2021/03/12/this-summer-could-be-the-start-of-a-new-roaring-twenties, 3/12/21.
H. Nicole Mullinix and Mindy M. Zatta are Registered Representatives of Lincoln Financial Advisors Corp. Securities and investment advisory services offered through Lincoln Financial Advisors Corp., a broker/dealer, and registered investment advisor. Insurance offered through Lincoln affiliates and other fine companies. It is not our position to offer legal or tax advice. Mosaic Wealth Consulting is not an affiliate of Lincoln Financial Advisors. 370 Southpointe Blvd., Suite 200, Canonsburg, PA 15317 Toll-Free: 844-863-9843 CRN-3504058-032321.