September 2022- Do you have a Federal Student Loan or family members with student loans? The new Student Debt Relief Plan announced late last month will cancel $10,000 in federal student loan debt for individual borrowers whose income was below $125,000 ($250,000 for married couples) in 2020 or 2021, plus another $10,000 for Pell Grant recipients. Think you may NOT be eligible? Here are some considerations: --> First, to the extent an individual is a business owner and still has the ability to make deductible contributions to a retirement plan for 2021 (e.g., a self-employed person contributing to their own SEP IRA), if those contributions, and the corresponding deductions, reduce AGI enough to get under the applicable threshold, such contributions should be carefully considered. --> In addition, if the thresholds for single filers are also applied to married individuals who file separate returns, married couples with student debt should evaluate whether filing separate returns for 2021 makes sense, even if they normally file joint returns. If the debt forgiveness available to one spouse exceeds the additional tax burden (plus any other applicable costs, such as tax prep fees) created by filing separately, it could be a net win. Please read on to learn more and call us so we can help!

September 2022- Federal Reserve Chair Jerome Powell’s tough talk about bringing inflation down threw cold water on the markets this week, effectively ending the relief rally that started at the end of June. Powell strongly emphasized the central bank’s focus on inflation reduction, even at the cost of economic growth and unemployment, with this telling comment, “While higher interest rates, slower growth, and softer labor market conditions will bring down inflation, they will also bring some pain to households and businesses.  These are the unfortunate costs of reducing inflation. But a failure to restore price stability would mean far greater pain.”  These comments fueled fears that the Fed’s policies would lead to even weaker economic growth, rising unemployment, and lower corporate profits. Some of the recovery in equity prices since June was born of the belief that the Fed would begin lowering interest rates once the economy weakened.   Powell’s crystal clear declaration disabused investors of this Goldilocks scenario.

August 2022- The Seascape Capital Team spent a beautiful Volunteer Day at the Cross Roads House.  We support their mission to meet the immediate needs of homeless families and individuals, and to provide them with the tools and guidance they need to successfully return to permanent housing.  This transitional shelter has helped homeless families and individuals get back on their feet for forty years.  It has been our pleasure to support this great organization for most of the nearly twenty years we've been in business.