We are pleased to announce
the promotion of Elizabeth Wilson, CPA to the position of Chief Financial
Officer.
Elizabeth joined
the company as Corporate Controller in 2014, and was most recently Vice
President, Finance & Tax Services. As part of the executive management team
at VNFA, she oversees firm-wide financial operations as well as strategic and
risk management, in addition to serving as Head of Tax Services.
VNFA Executive Management Team (left to right): Judianne Harris CMO, Matthew Petrozelli CEO, Elizabeth Wilson CFO
Elizabeth is a Certified Public
Accountant with more than 15 years of experience in accounting and management.
A graduate of Muhlenberg College in Allentown with a B.A. in Accounting and
Business Administration, Elizabeth moved back to the Lehigh Valley from New
York City to join the VNFA team. She was recognized in 2018 by the PICPA
(Pennsylvania Institute of Certified Public Accountants) with the Young Leader
Award; and in 2019 was named the Lehigh Valley Business CFO of the Year Rising
Star.
by Connor Darrell CFA, Assistant Vice President – Head of Investments Global equities continued to ride the wave of momentum created by the agreement of a “Phase One” trade deal between the U.S. and China and extended their advance into record territory. President Donald Trump and Chinese Vice Premier Liu He finally signed on the dotted line last week, officially stamping the first bit of tangible trade progress to date. The agreement mandates that China increase its imports from the United States by approximately $200 billion and decreases U.S.-enacted tariffs on Chinese goods. Progress has also been made with respect to intellectual property protections and the opening of Chinese financial markets, but much work remains to be done on these two key areas of contention, leaving the door open for additional headline risks and setting the stage for a drawn out negotiating process that could extend beyond Donald Trump’s first term as president. Substantial U.S. tariffs will continue to remain in place as the negotiations continue, but markets have clearly looked positively upon the progress that has been made thus far.
In the bond market, yields remained
largely unchanged throughout the week as investors continued to favor
risk-assets such as equities. With the Federal Reserve on what is expected to
be an extended pause with respect to rate changes, there has been little new to
report in terms of monetary policy of late. However, in comments last week,
Federal Reserve Bank of Dallas President Robert Kaplan became the first Fed
official to explicitly acknowledge that recent actions by the Fed to inject
liquidity into the financial system may have led to an increase in investor
risk-taking. He warned that the central bank should be cognizant of its impact
on risk appetite in financial markets moving forward as it considers future policy
changes. Kaplan’s comments echo the sentiment of many market “bears” who have
argued that equity market valuations have become stretched as a result of
elevated levels of enthusiasm among investors.
by Christopher Popp, CPA, MST The IRS has launched a new and improved Tax Withholding Estimator which can be found here https://www.irs.gov/individuals/tax-withholding-estimator. The new estimator incorporates the changes from the redesigned Form W-4. The IRS urges everyone to see if they need to adjust their withholding by using the Tax Withholding Estimator to perform a Paycheck Checkup. If an adjustment is needed, the Tax Withholding Estimator gives specific recommendations on how to fill out their employer’s online Form W-4 or provides the PDF form with key parts filled out.
Beginning
in 2020, income tax withholding is no longer based on an employee’s marital
status and withholding allowances, tied to the value of the personal exemption.
Instead, income tax withholding is generally based on the worker’s expected
filing status and standard deduction for the year. In addition, workers can
choose to have itemized deductions, the Child Tax Credit and other tax benefits
reflected in their withholding for the year.
The
estimator allows users to choose the refund amount they prefer from a range of
different refund amounts to help workers more effectively adjust their
withholding. The exact refund range displayed is customized based on the tax
information entered by that user. Based on the refund amount selected, the Tax
Withholding Estimator will give the worker specific recommendations on how to
fill out their W-4. This new option allows users who seek either larger refunds
at the end of the year or more money on their paychecks throughout the year to
have just the right amount withheld to meet their preference.
The
new Tax Withholding Estimator also features numerous other enhancements,
including one allowing someone who expects to receive a bonus to indicate
whether tax will be withheld. Other improvements added, include mobile-friendly
design, handling of pension income, Social Security benefits and
self-employment tax.
THE NUMBERS Sources: Index Returns: Morningstar Workstation. Past performance is no guarantee of future results. Indices are unmanaged and cannot be invested into directly. Three, five and ten year returns are annualized excluding dividends. Interest Rates: Federal Reserve, Freddie Mac
U.S. ECONOMIC HEAT MAP
The health of the U.S. economy is a key driver of long-term returns in the stock market. Below, we grade 5 key economic conditions that we believe are of particular importance to investors.
US ECONOMY
CONSUMER HEALTH
VERY POSITIVE
The consumer has been the bedrock of the US economy through much of the current expansion and we have seen little to suggest that this cannot continue.
CORPORATE EARNINGS
NEUTRAL
Corporate earnings growth was weak throughout 2019 as a result of slowing in the global economy and trade policy uncertainty. However, analysts are expecting mid to high single digit earnings growth in 2020, which will be important to sustaining recent levels of equity returns.
EMPLOYMENT
VERY POSITIVE
December’s headline jobs growth number of 145,000 missed consensus expectations, though the unemployment rate remained stable at 3.5%; a 50-year low. Despite the softer than anticipated results in December 2019 was an incredibly strong year for the labor market, and it remains the healthiest area of the economy.
INFLATION
POSITIVE
Inflation is often a sign of “tightening” in the economy and can be a signal that growth is peaking. Recent inflationary data has increased slightly, but inflation remains benign at this time, which bodes well for the extension of the economic cycle.
FISCAL POLICY
POSITIVE
The Tax Cuts and Jobs Act of 2017 lowered the effective tax rates for many individuals and corporations. We view the cuts as a tailwind for economic activity over the next several years.
MONETARY POLICY
POSITIVE
With the Federal Reserve expected to refrain from any further adjustments to interest rates without a material change in the economic outlook, it is unlikely that changes in Fed Policy will disrupt the economic cycle in the near future. Furthermore, the low absolute level of interest rates remains a positive for markets.
GLOBAL CONSIDERATIONS
GEOPOLITICAL RISKS
NEUTRAL
We see the possibility for short-term spikes in volatility as a result of tensions between the US and Iran, but do not believe that these risks rise to a level that could undermine economic output. We also view recent progress toward a trade agreement between the US and China as a positive development for the global economy.
ECONOMIC RISKS
NEUTRAL
Due to low inflation and weak economic activity, central banks around the world remain in a very accomodative stance. We have seen some recent evidence of modest recovery in places like Germany, but overall we expect global economic growth to remain modest.
The “Heat Map” is a subjective analysis based upon metrics that VNFA’s investment committee believes are important to financial markets and the economy. The “Heat Map” is designed for informational purposes only and is not intended for use as a basis for investment decisions.
Donna D’Imperio, EA Client Relationship Manager & Tax Preparation Specialist Years at VNFA – 20 Years
“I always preach to our clients that they should ask any and all questions they have, because I do not want them walking out the door with any doubts in their head. If I don’t know the answer, I will get them an answer.”
About
Donna:
I work with Frank Stettner in the New Jersey office. My many roles involve tax preparation,
customer service, meetings with clients, effectuating money and account
transfers and daily management duties of the Phillipsburg office. I enjoy the
challenge of helping people with transferring estates. The best part of my
position is getting to know our valued clients on an intimate basis, and I look
forward to our new relationships.
Interests/Hobbies:
When
not in the office, I am usually outside doing something or spending time with
my grandchildren. I enjoy traveling and
having new adventures with friends or new acquaintances.
