The tax-code has favorable rules for those with realized losses in taxable accounts by allowing them to offset realized capital gains and ordinary income.

Any losses realized in excess of capital gains can reduce one’s ordinary income by up to $3,000 annually and can be applied to future gains and ordinary income.

When the market falls, investors receive an opportunity to generate tax savings and potentially rebalance their account at a discount.

The rise in inflation has led to an eye-catching rise in the interest rate offered by Series I Savings Bonds, a.k.a. I Bonds. The 7.12% rate on the current I Bond issue is hefty, but it’s important to consider several important details. I Bonds may be most appropriate for those looking for an alternative to cash or certificates of deposit (CDs).

The last twelve months have been a wild ride, as the financial markets echoed the emotional ups and downs of a challenging year. The battle against the pandemic and the economy are on better footing. Still, worries persist about what may be next for stocks and bonds. Tomorrow’s challenges will be different than today’s. Even though they are unknown, we have the tools to learn, adapt, and survive.

Has the latest rise in interest rates signaled an end to the 40-year bull market for bonds? History suggests the answer is more subtle. Despite low yields, we believe it is still important to understand the role of high-quality bonds in a portfolio.

An 8% interest rate on savings accounts is a distant memory. Even then, it might not have been as good as you think. With interest rates low, it’s hard to see how cash keeps up with inflation. Based on history, that wouldn’t be all that unusual.

Interest rates are at historical lows and will likely remain low for several years. But bonds still play an important role in a balanced portfolio, especially when stocks struggle.

Heading into the November Election, it’s common for investors to be concerned about how the stock market will perform. Historical stock market performance suggests the market doesn’t really care which party takes office. Still, the economy and profitability are much bigger than the politics at any moment. That is still true today, as hard as that may be to believe.

Some say market timing is an investing sin. Yet we all engage in market timing to some degree. Some strategies are better than others and may help eliminate emotionally-driven errors.

Sometimes it’s tough being a shareholder in companies that are changing the world. Uber and Tesla have had a rough go of it recently. Picking winners is hard. Fortunately, you don’t have to.

Investing is more than throwing mutual funds together and hoping for the best. It takes strategy. Learn more about why the global market portfolio should be at the core of a long-term investment strategy.

In this note, we discuss how investing with too little risk can be dangerous. We also unpack the way that inflation will impact your financial plan.