Money Matters with Ken Moraif

The Devil Is In The Detail

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February 12th, 2017 - The Trump administration’s announcements continued on their torrid pace last week as President Trump said that they would be unveiling their new tax plan within weeks.

The market received this news with enthusiasm as the anticipation of corporate taxes going down significantly could represent a major stimulus and an increase in value for corporate America.

The reduction of corporate income taxes in the United States would not only give companies more money to do business with, but it would also make America a more attractive place for foreign companies to do business.

Currently, it makes sense for a company to manufacture their product several time zones away, ship it through unfriendly waters, paying tariffs and bribes along the way so as to get it to our shores. Once it arrives here, they then have to ship it to the stores where their customers lie.

They do all this because it is cheaper than having to pay our corporate taxes. These companies would much rather manufacture their product in the United States right next door to their customer and not have to go through all of that. If our taxes were competitive and made it viable to do their business here in the United States, this should create many jobs and would signal to the world that America is open for business.

Foreign companies would be incented to build their plants here in the United States, and US companies would be incented to keep their business here.

The greatest asset that we have in the United States is our consumer. Because of our consumer, we should be able to attract all of this business into the United States because they want to sell to us. In the process, this should stimulate the economy and create millions of jobs.

It is against this backdrop that the stock market will be evaluating whether the future is brighter and dimmer than it is today and acting accordingly. Last week, the market viewed it very favorably.

Our fearless forecast of Dow 21,000 may very well be reached by midyear, and we may have to adjust it at that time. However, we all know that the devil is in the details. We have not seen what the actual tax plan is, what the effect on the deficits will be, or how the Democrats will respond to it.

  • Do you know if you have enough money to retire on?
  • What are the 5 strategies that you can use to reduce your income taxes?
  • How do you plan for your retirement cash flow?
  • What should you do to maximize your Social Security benefits?
  • Are you properly diversified?

We would love to review your entire financial plan, analyze what you have and see if we can help you. If we can, that's terrific, if not that's fine too. Either way, there is no charge or obligation, and we will part friends!

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As we have seen with the Immigration Executive Order, just because the president wants something done does not mean that it will happen or that it will happen quickly.

We also have to be careful not to get overly excited about the upside. Every president has had an unexpected event that took them away from their agenda. Donald Trump will most likely not be any different. A sudden event that changes the psychology of everything could have a very detrimental effect on the stock market.

That is why we must always be prepared to take defensive action. We are thankful that we have a sell strategy that has proven itself in the past and that should help us to avoid major losses in the future.

The market can turn around very quickly and very unexpectedly. The 2008 bear market wiped out 12 years of gains in just 17 months. Many of you participated in that bear and the one in Y2K. I am sure that you do not want to do that again.

Clients who followed our lead were out of the stock market during the great market crash of 2008.

Over 50? Click here to schedule a free financial consultation to learn how to help protect your retirement from the next market crash

We do not want to see crippling losses happen to anybody. It is why I write this email; it is why our advisory firm exists, it is why I do my radio show and why we have our seminars. I want to help as many people as possible not to become poor and to have peace of mind.

I would like to invite you to come to one of our seminars. They are designed for those of you who are retired or retiring soon, and they are free.

At the free retirement seminar we will answer these burning questions:

  • How do I avoid the three basic “pitfalls” of retirement distribution planning?
  • Am I on track to be able to retire?
  • When should I take Social Security? 62? 66? 70?
  • How do I protect my retirement from the next market crash?
  • Am I diversified properly?
  • How much can I afford to spend during my retirement?
  • What is the best investment I can use to fight inflation with?
  • How do I determine how much risk is appropriate for me?
  • Do I take my pension or a lump sum?
  • How do I avoid having 85% of my social security being taxed?
  • Should I rollover my 401(k)?
  • How do I reduce my income taxes in the future?

Click here to reserve your spot at the next free retirement planning seminar

When people ask me “what do you do for a living?” I say, “we sell peace of mind.” Our product is peace of mind. If our clients can feel peace of mind during times of great market adversity like we have had over the last few years, then we have delivered our product.

Click here to listen to this week's podcast and hear the following topics:

  1. Why The Stock Market Likes Trump's Tax Plans
  2. Why You Should Not Have A Budget
  3. What Happens To Social Security If You Work?
  4. Our Goal: To Keep You From Becoming Poor & Give You Peace Of Mind
  5. Estate Tip: The Risks Of Having A Joint Account With Your Kids

There is nothing more important to us than that. It is our singular goal to keep our clients from becoming poor. Preserving the wealth that they have built is job number one for us. I encourage you to join the Money Matters family!

I believe that avoiding large losses is the single most important thing that we should be concerned about as investors.

Perhaps you were given a package by your employer. Perhaps you sold an asset and want to know how to properly invest the proceeds. Perhaps you inherited money and want to keep it safe and grow it if you can. Perhaps you just want a second opinion. These are all reasons for you to take advantage of all of the resources that we at Money Matters have to offer you.

We want to help you to achieve your financial goals.

Thank you for subscribing to this newsletter. I hope it finds you and yours in good health and spirits.

Ken Moraif, CFP®, MBA

 

P.S. If you have any friends that you would like to introduce to the Money Matters family, please send them our way. Friends do not let friends buy and hold!!

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