Our CEO dropped by the WDIY studio yesterday to discuss VNFA’s partnership with the station during the upcoming fall membership drive.
Our team will once again expand each donation in support of public radio to include funding for meals through Second Harvest Food Bank. Last year, VNFA’s contribution on behalf of WDIY listeners provided 12,865 meals thanks to this unique partnership.
The recorded interview with Matt Petrozelli and Jessica Dokachev from Second Harvest will air during the pledge drive beginning on October 14.
“Your Financial Choices” The
show airs on WDIY Wednesday evenings, from 6-7 p.m. The show is hosted by
Valley National’s Laurie Siebert CPA, CFP®, AEP®.
This week, Laurie will discuss: “10 Years of Your Financial Choices on WDIY.”
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.
CONSUMER SPENDING
A
Our consumer spending grade remains an A. Surveys of US consumers continue to indicate that the consumer is in a strong position, and recent GDP data provided further evidence of healthy consumer spending.
FED POLICIES
A-
Our Fed Policies grade has been increased to A- after the Federal Reserve cut its interest rate target by 25 bps following its most recent meeting. This marks the second time the Fed has cut interest rates in the past few months, but Chairman Jerome Powell hinted that he does not expect “a more extensive series of rate cuts” moving forward.
BUSINESS PROFITABILITY
B-
With most S&P 500 companies having reported Q2 earnings, the EPS growth rate for the second quarter is close to zero. Despite the weak growth rate, almost 75% of companies have beaten consensus estimates this quarter.
EMPLOYMENT
A
The US economy added 130,000 new jobs in August, below the consensus expectations of analysts. However, despite the lower than expected job creation, there was evidence of an acceleration of wage growth. The labor market continues to look quite healthy.
INFLATION
A
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.
OTHER CONCERNS
INTERNATIONAL RISKS
7
Following a re-escalation of the US/China trade dispute, we have raised our “international risks” metric back to a 7. Other key areas of focus for markets include the ongoing Brexit negotiations, rising economic nationalism around the globe, and escalating tensions in the Middle East.
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.
by Elizabeth Wilson CPA, Vice President – Finance & Tax Services The October 15 deadline for filing your 2018 tax return is quickly approaching. If you filed a six-month extension request by April 15, then your final return as well as any additional amount owed to the IRS is due. Here are some things to keep in mind between now and then.
An extension to file your return does not also extend the amount of time you are given to pay your tax liability. Taxpayers with payments due when filing after the April 15th deadline should expect to pay both a late filing penalty and interest. If you are due a refund, there is good news – the late filing penalty is eliminated. For more information on how the IRS calculates penalties and interest, see the IRS website Tax Topics.
If you can’t pay what you owe the IRS in one lump sum, you may qualify for alternative payment options. For example, if you owe less than $50,000 you most likely qualify to apply for an installment agreement which gives you an extended period of time to meet your tax obligations. Refer to the IRS Newsroom for more information.
Self-employed individuals that have extended their return have until October 15 to fund their retirement plans. The IRS provides information on the various types of retirement plan options for self-employed individuals at IRS.gov.
As we approach the close of the
2018 tax year, it is good time to contact your financial advisor and/or tax
professional to discuss tax planning for 2019. Keep in mind that Q4 2019
estimated payments are due by January 15, 2020.
by Connor Darrell CFA, Assistant Vice President – Head of Investments There was much for the markets to digest last week, with the Federal Reserve opting to cut interest rates once again by an additional 25 bps. The committee of Fed policymakers were divided in their decision, with two members arguing that no cut was needed and one arguing for a larger cut. Stocks sold off marginally following the decision, but ultimately stabilized and were set to end the week in positive territory before news broke on Friday afternoon that lower-level Chinese officials cut their visit to the U.S. short. Markets interpreted this as a negative sign for the higher-level trade talks scheduled for early October.
In the bond market, yields crept lower as rising geopolitical risks in the Middle East seemed to push investors toward the relative safety of U.S. Treasuries. But with some members of the Federal Reserve policy committee dissenting this past week, markets will likely have less clarity about the future direction of interest rates throughout the remainder of 2019. Given this lack of clarity, investors should expect more interest rate volatility in the months ahead.
Our team celebrated our VP of Finance & Tax Services last week as she was honored as the Rising Star at the Lehigh Valley Business CFO of the Year Awards. Elizabeth Wilson, CPA was recognized along with seven other financial professionals from non-profit and for-profit businesses at a breakfast ceremony Sept. 11.
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.
CONSUMER SPENDING
A
Our consumer spending grade remains an A. Surveys of US consumers continue to indicate that the consumer is in a strong position, and recent GDP data provided further evidence of healthy consumer spending.
FED POLICIES
B+
Our Fed Policies grade remains a B+ after the Federal Reserve opted to cut its interest rate target by 25 bps following last month’s meeting. The cut was widely anticipated by markets, and if history is any representation, it is unlikely to be the last.
BUSINESS PROFITABILITY
B-
With most S&P 500 companies having reported Q2 earnings, the EPS growth rate for the second quarter is close to zero. Despite the weak growth rate, almost 75% of companies have beaten consensus estimates this quarter.
EMPLOYMENT
A
The US economy added 130,000 new jobs in August, below the consensus expectations of analysts. However, despite the lower than expected job creation, there was evidence of an acceleration of wage growth. The labor market continues to look quite healthy.
INFLATION
A
Inflation is often a sign of “tightening” in the economy, and can be a signal that growth is peaking. Despite a tight labor market, we continue to see no signs of an increase in inflation. This bodes well for the extension of the economic cycle.
OTHER CONCERNS
INTERNATIONAL RISKS
7
Following a re-escalation of the US/China trade dispute, we have raised our “international risks” metric back to a 7. Other key areas of focus for markets include the ongoing Brexit negotiations, rising economic nationalism around the globe, and escalating tensions in the Middle East.
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.
“Grit is
that ‘extra something’ that separates the most successful people from the rest.
It’s the passion, perseverance, and stamina that we must channel in order to
stick with our dreams until they become a reality.”–Travis Bradberry
Pension Decisions: Lump Sum vs Payment Plan Spend 5 minutes with Michael A. Ippoliti, MBA, CFP® as he provides an overview of the options facing individuals with pension decisions. He highlights some general pros and cons of lump sum versus monthly payments to take into consideration. WATCH NOW
