Bob's Blasts

October, 2019



As we head into the final quarter of 2019, trade disputes and slowing global growth have continued to impact markets.  While expectations for corporate earnings are low and volatility has picked up, a strong U.S. consumer and dovish central banks have helped keep markets near all time highs.  How quickly things have changed as it was just one year ago that the Federal Reserve was talking about rate hikes and balance sheet reductions only to completely reverse course in 2019.  

Looking ahead, most believe the Federal Reserve will continue to cut rates.  What might this mean for investors?

  • Low future return expectations for fixed income as yields are currently near all-time lows.
  • Don’t be surprised to see already low savings account interest rates go even lower. 
  • Consider short term CD’s for cash not needed in the next year. 
  • Be prepared for volatility as market expectations for rate cuts may not match actual central bank actions, especially if there is an uptick in inflation. 


New Financial Planning Tool   

We recently made a major investment in a software program (eMoney) that greatly enhances your ability and ours to see, in one place, not only all of your accounts with us but your total financial picture.  We intend to start using some of the planning tools during review meetings, and it would be helpful to have everything aggregated and up-to-date in the system.  For anyone who has yet to setup client portal access for eMoney and would like to do so, please reach out to Eric for assistance.

Year-End Planning

With only a couple months left in the year, we wanted to point out a few tasks that should be completed before December 31st:  

  • Max out retirement plan contributions if able.  ($19,000 for 401k, 403b and 457 plans plus an additional $6,000 if age 50 or older)
  • Ensure all required minimum distributions have been taken from qualified accounts. 
  • Ensure all charitable donations that you intend to take as a deduction on your 2019 tax return are completed.
  • Ensure all planned gifting at or below the gift tax exclusion is completed.  ($15,000 per person per recipient)
  • If you are utilizing a flexible spending account, ensure funds are used which don’t carry over to the following year. 
  • Make 529 contributions to take advantage of any 2019 state tax benefits if available. 
  • If you are a business owner, consider deferring or accelerating business expenses depending on your individual tax situation.  Consult your tax professional for assistance.
  • When you receive notification of your company’s benefit open enrollment period, don’t automatically default to the previous year’s elections and assume there is nothing worth changing.  Reach out if you have questions or want to review your benefits, especially if there are new options available.  

Take some time to clear up year-end tasks now so you have more time to relax and enjoy the holidays while others are scrambling to get things done at the last minute.  Reach out if you want help or have any doubt whether everything has been completed.  



This material is meant for general illustration and/or informational purposes only.  Views expressed in this newsletter may not reflect the views of Royal Alliance Associates, Inc.  It is our goal to help investors by identifying changing market conditions.  However, investors should be aware that no financial advisor can accurately predict all of the changes that may occur in the market.   This material should not be relied upon as investment advice.  Investors should note that there are risks inherent in all investments, such as fluctuations in investment principal.  Past performance is no guarantee of future results.  There is no guarantee that a diversified portfolio will outperform a non-diversified portfolio in any given market environment. This article contains forward looking statements and projections.  Past performance is no guarantee of future results. Neither Royal Alliance Associtaes, Inc. nor its representatives provide tax or legal advice.