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Week-in-Review: Week ending in 06.18.21

June 21, 2021 No Comments

The Bottom Line

  • Equities finished another volatile week solidly lower, with the S&P 500 dropping ‐1.9%. After leading large caps for three consecutive weeks, the small cap Russell 2000 fell sharply, losing ‐4.2% for the week.
  • The yield on the 10‐year U.S. Treasury was little changed, down‐1 basis point, but that masked some big swings in the bond market. Following a surprisingly hawkish tone by the Fed, short yields doubled and long yields fell.
  • Homebuilder confidence remains historically high, but it has been dropping lately and now building permits are falling too. Meanwhile May retail sales were softer than expected and unemployment claims unexpectedly rose.

Stocks battered, yield curve flatter

Global equities finished another volatile week solidly lower, as the U.S. Federal Reserve surprised markets by forecasting earlier‐than‐expected rate hikes and indicated it will discuss tapering asset purchases in coming meetings. The Federal Open Market Committee (FOMC) is now forecasting that it will hike rates twice in 2023 after previously predicting no hikes until 2024. Comments from St. Louis Fed President James Bullard—a non‐voting member this year—added to the Fed’s hawkish tenor with his comments Friday morning. The so called “reflation trade”, which favored value stocks and commodities, came under immediate pressure following the FOMC shift. The bond market also saw significant swings this week as the Treasury yield curve flattened noticeably, with the yield on the 2‐year note almost doubling and longer‐term yields, such as the 30‐year bond, falling (the 30‐ year US Treasury yield plunged ‐16 basis points on Thursday alone). The U.S. Dollar Index rallied to levels not seen since April. Economic data didn’t help as May retail sales came in softer than expected, manufacturing growth in New York and Philadelphia slowed, jobless claims snapped a string of weekly declines, and producer inflation ran hot.

Digits & Did You Knows

SLIGHTLY USED — The average age of vehicles on U.S. roads last year was 12.1 years, a record high. The average has been rising steadily for 15 years as car quality has improved, but the pandemic accelerated the trend (source: Dow Jones).

LEAVING TOWN — Between 7/01/19 and 6/30/20, 5 of the 10 largest cities in the U.S. saw their populations decline – New York City, Los Angeles, Chicago, Philadelphia and San Jose (source: Census Bureau, BTN Research).

SPENDING — Americans imported $278 billion of foreign goods and services in March 2021 and $274 billion of imports in April 2021, the 2 highest months in U.S. history (source: Bureau of Econ. Analysis, BTN Research).

Click here to see the full review.

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Source: Bloomberg. Asset‐class performance is presented by using market returns from an exchange‐traded fund (ETF) proxy that best represents its respective broad asset class. Returns shown are net of fund fees for and do not necessarily represent performance of specific mutual funds and/or exchange‐traded funds recommended by the Prime Capital Investment Advisors. The performance of those funds may be substantially different than the performance of the broad asset classes and to proxy ETFs represented here. U.S. Bonds (iShares Core U.S. Aggregate Bond ETF); High‐YieldBond(iShares iBoxx $ High Yield Corporate Bond ETF); Intl Bonds (SPDR® Bloomberg Barclays International Corporate Bond ETF); Large Growth (iShares Russell 1000 Growth ETF); Large Value (iShares Russell 1000 ValueETF);MidGrowth(iSharesRussell Mid-CapGrowthETF);MidValue (iSharesRussell Mid‐Cap Value ETF); Small Growth (iShares Russell 2000 Growth ETF); Small Value (iShares Russell 2000 Value ETF); Intl Equity (iShares MSCI EAFE ETF); Emg Markets (iShares MSCI Emerging Markets ETF); and Real Estate (iShares U.S. Real Estate ETF). The return displayed as “Allocation” is a weighted average of the ETF proxies shown as represented by: 30% U.S. Bonds, 5% International Bonds, 5% High Yield Bonds, 10% Large Growth, 10% Large Value, 4% Mid Growth, 4% Mid Value, 2% Small Growth, 2% Small Value, 18% International Stock, 7% Emerging Markets, 3% Real Estate.

Advisory services offered through Prime Capital Investment Advisors, LLC. (“PCIA”), a Registered Investment Adviser. PCIA doing business as Prime Capital Wealth Management (“PCWM”) and Qualified Plan Advisors (“QPA”).

© 2021 Prime Capital Investment Advisors, 6201 College Blvd., 7th Floor, Overland Park, KS 66211.

Blog

Week-in-Review: Week ending in 06.11.21

June 14, 2021 No Comments

The Bottom Line

● U.S. stocks rallied again late in the week, this time enough to set new record highs. The S&P 500 gained + 0.4%, and the small cap Russell 2000 led for the third straight week with a gain of +2.1%.
● On Thursday, the Labor Department reported that consumer inflation jumped +5.0% from last year, the most since August 2008. Core inflation, which excludes food and energy, jumped +3.8% ‐‐ the most since 1992.
● Used Vehicle prices are surging, up +4.6% from the previous month, and up +48.2% from a year ago. Prices in all major market segments were significantly higher than a year ago, with pickup trucks leading the price gains.

Stocks start soft, but rise to new highs

U.S. stocks finished mixed in another choppy week of trading following a pattern that has persisted for several weeks in which weakness in the beginning of the week subsides to strength at the end of the week. The S&P 500 posted fresh records on Thursday and Friday. In a counterintuitive market reaction to May Consumer Price Index (CPI) data that was well above expectations, bond yields fell. The yield on the 10‐year U.S. Treasury note dropped ‐10 basis points to 1.45%, its lowest level in a month. Normally one would expect bonds to struggle after such a strong inflation report, but investors must be taking the Fed at its word that they are not close to tapering. One asset that did behave as anticipated given the unexpectedly strong inflation data, was Oil, which ended the week above $70 a barrel for the first time since October 2018, up +95% in the last year. With stocks hitting all‐time highs, the Cboe Volatility Index (VIX) fell to 15.65, its lowest level since February 20 of 2020. Stocks were up overseas as well, buoyed by eurozone economic growth that contracted less than expected. Plus the WorldBank provided a boost, increasing their Global GDP growth forecast to 5.6% this year, revised up from 4.1%.

Digits & Did You Knows

DISAPPEARING ACT — If you bought a 5‐year U.S. Treasury note this week in June of 2020 (at a yield of around 0.33% at the time), the rise in Consumer Price Index (CPI) – a prominently used gauge of inflation – in one year already outpaced all five years of the interest payments you will receive (source: Bloomberg).
COME FLY WITH ME — There were over 1.8 million airline travelers per day over the last week in the U.S., the highest amount since March 13, 2020. This time in June of 2020 the U.S. was averaging 400,000 per day and at the COVID‐19 low last April, U.S. airline travelers averaged below 100,000 per day (source: TSA.gov, Compound Capital).

Click here to see the full review.

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Source: Bloomberg. Asset‐class performance is presented by using market returns from an exchange‐traded fund (ETF) proxy that best represents its respective broad asset class. Returns shown are net of fund fees for and do not necessarily represent performance of specific mutual funds and/or exchange‐traded funds recommended by the Prime Capital Investment Advisors. The performance of those funds may be substantially different than the performance of the broad asset classes and to proxy ETFs represented here. U.S. Bonds (iShares Core U.S. Aggregate Bond ETF); High‐YieldBond(iShares iBoxx $ High Yield Corporate Bond ETF); Intl Bonds (SPDR® Bloomberg Barclays International Corporate Bond ETF); Large Growth (iShares Russell 1000 Growth ETF); Large Value (iShares Russell 1000 ValueETF);MidGrowth(iSharesRussell Mid‐CapGrowthETF);MidValue (iSharesRussell Mid‐Cap Value ETF); Small Growth (iShares Russell 2000 Growth ETF); Small Value (iShares Russell 2000 Value ETF); Intl Equity (iShares MSCI EAFE ETF); Emg Markets (iShares MSCI Emerging Markets ETF); and Real Estate (iShares U.S. Real Estate ETF). The return displayed as “Allocation” is a weighted average of the ETF proxies shown as represented by: 30% U.S. Bonds, 5% International Bonds, 5% High Yield Bonds, 10% Large Growth, 10% Large Value, 4% Mid Growth, 4%Mid Value, 2% Small Growth, 2% Small Value, 18% International Stock, 7% Emerging Markets, 3% Real Estate.

Advisory services offered through Prime Capital Investment Advisors, LLC. (“PCIA”), a
Registered Investment Adviser. PCIA doing business as Prime Capital Wealth Management
(“PCWM”) and Qualified Plan Advisors (“QPA”).
© 2021 Prime Capital Investment Advisors, 6201 College Blvd., 7th Floor, Overland Park, KS 66211.

Blog

Week-in-Review: Week ending in 06.04.21

June 7, 2021 No Comments

The Bottom Line

● U.S. stocks rallied on the week but still couldn’t close above their May 7th all‐time high. The S&P 500 gained + 0.6%, but the small cap Russell 2000 led for the second straight week with an advance of +0.8%.
● On Friday, the Bureau of Labor Statistics reported that the Nonfarm Payrolls grew by +559,000, but missed expectations for a +675,000 gain. Still, the unemployment rate fell to 5.8% from 6.1%, better than forecasts of 5.9%.
● Gauges of U.S. manufacturing and services growth from ISM and Markit both showed better‐than‐expected growth, with records from the services sector. The OECD forecasts global growth of +5.8% this year.

Stocks up, but not quite enough…

U.S. stocks were up for the Memorial Day shortened week, with the S&P 500 gaining +0.6%, leaving it just 2.71 points from its May 7th all‐time high. The Russell 2000 small cap index was up +0.8%, while the tech‐heavy Nasdaq Composite gained +0.5%. Friday’s May Employment Report showed a solid acceleration in job growth, but at a pace that was below forecasts. Still the unemployment rate fell to 5.8%from 6.1%, better than expectations of 5.9%. The employment report seemed to cool concerns about the Fed reining in its extremely‐accommodative monetary policy. U.S. Treasuries rose following the employment report, with the yield on 10‐year note falling ‐7 basis points (bps) to 1.55%, down ‐4bps for the week. A Goldilocks economy might be in the making with employment improving, but at a cool enough pace to keep the Fed with its loose monetary policy, but allow economic growth at a hotter pace, like with the May manufacturing and services growth as reported by the ISM and Markit (detailed on the following page). Overseas growth looks good too, as the Organization for Economic Cooperation and Development said that the global economy is set to grow +5.8% this year and +4.4% next year.

Digits & Did You Knows

NOT A BIG NUMBER — At its peak, 3.7 million home mortgages (out of 52.4 million nationwide) had requested and received forbearance protection afforded through the CARES Act that was signed into law by President Trump on 3/27/20. As of March 2021, the forbearance mortgage total had fallen to 2.2 million, or just 4.2% of all mortgages (source: Federal Reserve Bank of New York, BTN Research).
DID YOU NEED IT? — 40.3% of college graduates aged 22 to 27 are working in jobs in which they are “underemployed,” i.e., a job that typically does not require a college degree. Historically, 33.5% of college grads are “underemployed” (source: Federal Reserve Bank of New York, BTN Research).

Click here to see the full review.

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Source: Bloomberg. Asset‐class performance is presented by using market returns from an exchange‐traded fund (ETF) proxy that best represents its respective broad asset class. Returns shown are net of fund fees for and do not necessarily represent performance of specific mutual funds and/or exchange‐traded funds recommended by the Prime Capital Investment Advisors. The performance of those funds may be substantially different than the performance of the broad asset classes and to proxy ETFs represented here. U.S. Bonds (iShares Core U.S. Aggregate Bond ETF); High‐YieldBond(iShares iBoxx $ High Yield Corporate Bond ETF); Intl Bonds (SPDR® Bloomberg Barclays International Corporate Bond ETF); Large Growth (iShares Russell 1000 Growth ETF); Large Value (iShares Russell 1000 ValueETF);MidGrowth(iSharesRussell Mid‐CapGrowthETF);MidValue (iSharesRussell Mid‐Cap Value ETF); Small Growth (iShares Russell 2000 Growth ETF); Small Value (iShares Russell 2000 Value ETF); Intl Equity (iShares MSCI EAFE ETF); Emg Markets (iShares MSCI Emerging Markets ETF); and Real Estate (iShares U.S. Real Estate ETF). The return displayed as “Allocation” is a weighted average of the ETF proxies shown as represented by: 30% U.S. Bonds, 5% International Bonds, 5% High Yield Bonds, 10% Large Growth, 10% Large Value, 4% Mid Growth, 4%Mid Value, 2% Small Growth, 2% Small Value, 18% International Stock, 7% Emerging Markets, 3% Real Estate.

Advisory services offered through Prime Capital Investment Advisors, LLC. (“PCIA”), a
Registered Investment Adviser. PCIA doing business as Prime Capital Wealth Management
(“PCWM”) and Qualified Plan Advisors (“QPA”).
© 2021 Prime Capital Investment Advisors, 6201 College Blvd., 7th Floor, Overland Park, KS 66211.

Blog COVID-19 Month in Reveiw

Month in Review: May 2021

June 4, 2021 One Comment

Quick Takes

● Heavyweight bout. Much of May was a battle between rising inflation fears and growing optimism from the U.S. economic recovery. Overall, though, the data points to an economy, and corporate earnings picture, that remains in an upswing.
● All’s well that ends well? There were no corrections in May, but trading was choppy. In both the second and third weeks of the month the S&P 500 traded more than ‐4% below the May 7th all‐time high, yet closed May just ‐0.7% off the record. In 11 of May’s 20 trading days, VIX was above 20 but ended at 16.8.
● Everybody’s still a winner. For the second straight month all major asset classes had positive returns, although May’s gains were more modest. Both U.S. and developed international equities are up double digits in 2021, and U.S. real estate is up +18.1%.
● Fixed income was flat. Bonds rose in May, but just barely. The best performers were Treasury‐inflation protected securities (TIPS) and investment‐grade bonds. After a rapid rise in Q1, the 10‐year Treasury yield spent April and May almost entirely in a range between 1.5% and 1.75%, closing May at 1.58%.

Asset Class Performance

May was defined by positive, yet modest, gains for all major asset classes. International developed and emerging market equities led in May. International bonds also finished ahead of U.S. bonds as the U.S. dollar fell further.

Vaccinations & Improving Economy Have Investors Smiling

COVID‐19 trends continue to make material improvements on virtually all fronts. The U.S. has administered over 295 million vaccines, with more than 40% of the population now fully vaccinated. The 7‐day average of new positive cases has declined to the lowest levels since the start of the pandemic and are now down ‐94% from their January highs. The 7‐day average of deaths per day is now under 400, ‐88% from their January highs. The percentage of positive COVID‐19 tests in the U.S. fell below 2% for the first time, a new pandemic low. With all the progress on the vaccination and COVID‐19 case fronts states and businesses began to fully reopen. That has resulted in a U.S. economic recovery unlike any in recent history. Consumers have trillions in extra savings and stimulus funds, banks have amassed capital, business are eager to hire and restock inventories, and new businesses are being established at the fastest pace on record. That all has investors in an optimistic mood. Rather than “Sell in May and Go Away”, investors sent the S&P 500 to new all‐time highs on May 7th while the Cboe VIX volatility index fell to 16.7, near its lowest levels since early 2020. But the remainder of May was a battle between the bulls and bears as the speed of the recovery led to bouts of inflationary scares and shortages of goods, raw materials, and workers. Private sector wages and salaries are up a staggering +19.4%in the past year and are now +5.5% above pre‐COVID levels. Consumer spending was the biggest driver of real GDP growth in Q1, including spending increases for motor vehicles and parts that increased +66.2%, durable goods that rose +48.7%, and food services and accommodations

that jumped +26.6%. Gains like those, even off the extraordinarily low bases from the depths of last year’s COVID lockdowns, are bound to create inflation concerns. U.S. stocks pulled back more than ‐4% from the May 7th all‐time highs in both the second and third weeks of the month, and VIX volatility spiked to about 28 and 26 on each of those declines. But in the end the bulls took the victory as investors pushed aside the inflation fears in favor of recovery optimism. The S&P 500 rose +0.7% to post its fourth consecutive positive month, and sixth of the past seven. The small‐cap Russell 2000 index, which is more leveraged to the economic reopening, posted its eighth straight positive month for the first time since 1995.

Importantly, vaccination rates in Europe have picked up after a relatively slow start. That has helped Eurozone economic sentiment improve for four straight months and hit its highest level since 2018.The COVID crisis in India has also made much needed progress with over 190 million vaccines so far administered–only behind the totals of US and China. As a result, those economies are also rebounding nicely. As seen in the chart above, both developed and emerging international PMIs are rising and are well into expansion levels (above 50). The MSCI EAFE Index gained +3.3% in May, outperforming U.S. stocks for the first time in 2021.

Bottom Line: Global equities rallied for the sixth time in seven months as vaccinations helped accelerate the recovery for most countries. Ongoing fiscal stimulus and improving earnings also boosted investor confidence.

Click here to see the full review.

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©2021 Prime Capital Investment Advisors, LLC. The views and information contained herein are (1) for informational purposes only, (2) are not to be taken as a recommendation to buy or sell any investment, and (3) should not be construed or acted upon as individualized investment advice. The information contained herein was obtained from sources we believe to be reliable but is not guaranteed as to its accuracy or completeness. Investing involves risk. Investors should be prepared to bear loss, including total loss of principal. Diversification does not guarantee investment returns and does not eliminate the risk of loss. Past performance is no guarantee of comparable future results.

Source: Bloomberg. Asset‐class performance is presented by using market returns from an exchange‐traded fund (ETF) proxy that best represents its respective broad asset class. Returns shown are net of fund fees for and do not necessarily represent performance of specific mutual funds and/or exchange‐traded funds recommended by the Prime Capital Investment Advisors. The performance of those funds may be substantially different than the performance of the broad asset classes and to proxy ETFs represented here. U.S. Bonds (iShares Core U.S. Aggregate Bond ETF); High‐YieldBond(iShares iBoxx $ High Yield Corporate Bond ETF); Intl Bonds (SPDR® Bloomberg Barclays International Corporate Bond ETF); Large Growth (iShares Russell 1000 Growth ETF); Large Value (iShares Russell 1000 ValueETF);MidGrowth(iSharesRussell Mid‐CapGrowthETF);MidValue (iSharesRussell Mid‐Cap Value ETF); Small Growth (iShares Russell 2000 Growth ETF); Small Value (iShares Russell 2000 Value ETF); Intl Equity (iShares MSCI EAFE ETF); Emg Markets (iShares MSCI Emerging Markets ETF); and Real Estate (iShares U.S. Real Estate ETF). The return displayed as “Allocation” is a weighted average of the ETF proxies shown as represented by: 30% U.S. Bonds, 5% International Bonds, 5% High Yield Bonds, 10% Large Growth, 10% Large Value, 4% Mid Growth, 4%Mid Value, 2% Small Growth, 2% Small Value, 18% International Stock, 7% Emerging Markets, 3% Real Estate.

Advisory services offered through Prime Capital Investment Advisors, LLC. (“PCIA”), a
Registered Investment Adviser. PCIA doing business as Prime Capital Wealth Management
(“PCWM”) and Qualified Plan Advisors (“QPA”).
© 2021 Prime Capital Investment Advisors, 6201 College Blvd., 7th Floor, Overland Park, KS 66211.

 

Uncategorized

Week-in-Review: Week ending in 05.28.21

June 1, 2021 No Comments

The Bottom Line

● Stocks rallied during the week to close within 1% of their all‐time high. The S&P 500 gained +1%, but small cap Russell 2000 and tech‐heavy Nasdaq led with gains of
+ 2.4% and +2.1% respectively.
● On Friday, the U.S. Department of Commerce reported that the core personal consumption expenditures price index, the Fed’s favorite inflation measure, surged +3.1%year over year in April, its fastest rise since 1992.
● Despite the higher than expected rise in inflation, bond yields backed off from last week’s levels, with the yield on the U.S. 10‐year Treasury note falling ‐3 basis points to 1.59% after being as low as 1.55% on Monday.

Stocks nearly back to record highs

U.S. stocks rallied during the week as the S&P 500 gained+1.2% to closed just ‐0.7% from its May 7th all‐time high of 4,232. Growth stocks in the Communications Services and Information Technology sectors along with the cyclical sectors of Industrials and Materials led the way. The choppy trading that marked much of May subsided in the final week as the Cboe Volatility Index (VIX) fell to 16.7, down from 20.2 last Friday, and marking its lowest level since April 16. A key inflation indicator, the core personal consumption expenditures price index, rose +3.1% from April of 2020, faster than expectations of +2.9%, and the biggest increase since 1992. Despite the inflation surge, bonds still managed to stay positive for the week. After testing the bottom of its recent trading range at 1.55% on Monday, the yield on the 10‐year U.S. Treasury note ended the week at 1.59%, down 3 basis points from the prior Friday. So called “meme stocks” had a surprise revival during the week, fueled by traders in Reddit’s WallStreetBets forum, with names like AMC Entertainment more than doubling in price. Meanwhile in Washington, President Biden proposed the largest U.S. budget since World War II, with a $6 trillion price tag.

Digits & Did You Knows

HEY BIG SPENDER — 59% of US households made a “large purchase” during the first 4 months of 2021, i.e., January 2021 through and including April 2021, the highest percentage reported in 5 years. “Large purchases” include furniture, home repairs and automobiles (source: Federal Reserve Bank of New York, BTN Research).
ROADTRIP — U.S. drivers are projected to use 9.0 million barrels a day of gasoline during the summer of 2021, up from 7.8 million barrels a day of gasoline used during the 2020 “pandemic‐summer”, but still down from 2019’s 9.6 million barrels a day of gasoline consumed (source: Energy Information Administration, BTN Research).

Click here to see the full review.

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Source: Bloomberg. Asset‐class performance is presented by using market returns from an exchange‐traded fund (ETF) proxy that best represents its respective broad asset class. Returns shown are net of fund fees for and do not necessarily represent performance of specific mutual funds and/or exchange‐traded funds recommended by the Prime Capital Investment Advisors. The performance of those funds may be substantially different than the performance of the broad asset classes and to proxy ETFs represented here. U.S. Bonds (iShares Core U.S. Aggregate Bond ETF); High‐YieldBond(iShares iBoxx $ High Yield Corporate Bond ETF); Intl Bonds (SPDR® Bloomberg Barclays International Corporate Bond ETF); Large Growth (iShares Russell 1000 Growth ETF); Large Value (iShares Russell 1000 ValueETF);MidGrowth(iSharesRussell Mid‐CapGrowthETF);MidValue (iSharesRussell Mid‐Cap Value ETF); Small Growth (iShares Russell 2000 Growth ETF); Small Value (iShares Russell 2000 Value ETF); Intl Equity (iShares MSCI EAFE ETF); Emg Markets (iShares MSCI Emerging Markets ETF); and Real Estate (iShares U.S. Real Estate ETF). The return displayed as “Allocation” is a weighted average of the ETF proxies shown as represented by: 30% U.S. Bonds, 5% International Bonds, 5% High Yield Bonds, 10% Large Growth, 10% Large Value, 4% Mid Growth, 4%Mid Value, 2% Small Growth, 2% Small Value, 18% International Stock, 7% Emerging Markets, 3% Real Estate.

Advisory services offered through Prime Capital Investment Advisors, LLC. (“PCIA”), a
Registered Investment Adviser. PCIA doing business as Prime Capital Wealth Management
(“PCWM”) and Qualified Plan Advisors (“QPA”).
© 2021 Prime Capital Investment Advisors, 6201 College Blvd., 7th Floor, Overland Park, KS 66211.

Uncategorized

The Student Loan + Retirement Savings Balance

April 27, 2021 No Comments

Should you pay off your student loans or save for your retirement first? This question poses the trade-off: having less money to pay toward student loans or not contributing as much to your retirement account. Especially for young professionals who have less disposable income, the challenge is determining how best to designate those funds.

Here are some things to consider when deciding how to allocate your money:

  • Before you make any other financial decision, set aside an emergency fund: This fund should amount to at least 3 to 6 months’ worth of your expenses.
  • Prioritize creating a personal monthly budget: Evaluate your monthly income (based on take-home rather than gross) and estimate your monthly expenses. Subtract those expenses (including your student loans) from your total income and that difference will give you an idea of how much is leftover to put toward retirement.
  • If your student loan interest is high, consider putting more toward debt: Paying more toward your debt will help you pay less in interest and more toward the principal loan amount.
  • Contribute what you can: Many advisors can attest to the fact that steady contributions to a retirement fund (even $20 or $50 a month in the beginning) will build itself over time because of compound interest. Starting younger gives the account more time to grow with interest AND investment returns, plus having a retirement plan through your workplace could mean you’ll receive employer matches, which is basically “free money”.

In summary, how to handle your finances is based on a number of personal factors like your debt load and how much you’ve already saved for retirement. Balance your short- and long-term goals and set yourself up for a secure future. Need more advice? Contact our team at https://qualifiedplanadvisors.com/contact-us/ and someone will reach out to you shortly!

 

Advisory products and services offered by Investment Adviser Representatives through Prime Capital Investment Advisors, LLC (“PCIA”), a federally registered investment adviser. PCIA: 6201 College Blvd., 7th Floor, Overland Park, KS 66211. PCIA doing business as Prime Capital Wealth Management (“PCWM”) and Qualified Plan Advisors (“QPA”). Securities offered by Registered Representatives through Private Client Services, Member FINRA/SIPC. PCIA and Private Client Services are separate entities and are not affiliated

Blog

Tax Filing Need-to-Knows for 2020

April 1, 2021 No Comments

Have you filed your 2020 taxes yet? We know it can be overwhelming doing your taxes in general and with 2020 being the year of the pandemic, there are even more questions surrounding this year’s tax season and Tax Day. Our advisors are here to help – check out answers to some of the most-asked questions of this year:

  • Are Stimulus Checks Taxable? They’re not considered taxable income. Because they’re an ‘Economic Impact Payment’, the IRS doesn’t count it toward your income. They will still need to be reported on this year’s taxes though and can be filled out on the new entry in the 1040 form.
  • How will unemployment affect my taxes? Unemployment is considered taxable income, so even though the government increased typical weekly unemployment payments, you will still owe taxes on any benefits you received.
  • Last year, tax filings were delayed. Will that happen again this year? The deadline has been extended to May 17th.
  • What happens if I deferred my college loans, rent payments, or mortgage payments? You will not be penalized for this and will not need to take it into consideration when filing this year.
  • If I worked from home in 2020, can I claim deductions for my home office expenses? Unfortunately, you cannot deduct those unreimbursed costs because the Tax Cuts and Jobs Act eliminated those deductions through 2025.
  • What if I owe money for my taxes but can’t pay? You can ask the IRS for a payment plan. The IRS offers different types of installment plans to fit what works best for you.

If you haven’t started yet, here is a helpful checklist you might need to complete the job:

  • Personal Information – 2019 Taxes from State and Federal, Social Security Number
  • Income Information – Including your W-2 forms and 1099 forms
  • Deductions – Including Retirement Account contributions, educational expenses, medical bills, property taxes or mortgage interest, charitable donations, classroom expenses, and state and local taxes.
  • Credits – Child Tax Credit, Adoption Expense Information, First Time Homebuyer Tax Credits, etc.

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