April 2021 Financial Planning & Investment Newsletter

by Financial Design Studio, Inc. / April 21, 2021

April Investment Newsletter

In This Issue: Financial Planning & Investing

Each month we cover Financial Planning & Investing topics that apply to you. We cover a variety of topics to point out timely information that applies to you. See what’s in our Financial Planning & Investing April Newsletter April edition!

Investing:

Managing Interest Rate Risk In Your Bond Investments

Inflation is becoming a hot topic in economic circles. Three rounds of stimulus checks and economic support are pumping enormous amounts of money into the American economy. In response, long-term interest rates have risen from all-time low levels. This brings up an important topic for investors: How do we manage interest rate risk in bonds?

Understanding how changes in interest rates affect your bond investments is important. Clients look towards their bonds as a source of income and stability. But bond prices can move up and down, just like stocks. Thus, it’s important to understand why bond prices might move up or down.

Read the rest of the article here.

Tax Planning:

Tax Filing Deadline & Stimulus Payments – BE CAREFUL!

The tax filing deadline for your 2020 Federal tax return has been extended to May 17, 2020. This gives you a little breathing room to make sense of the recently passed legislation, which provided for another stimulus payment. More money is always great, right? Before you say yes too quickly, be very careful of the dollar amounts that are on your tax return!

On Wednesday of this week the IRS pushed back the Federal tax filing deadline to May 17th. Please read this carefully! The IRS pushed back the Federal tax filing deadline but not necessarily your State tax filing deadline. Some states have adopted the new deadline and it’s likely that all will; but it is not certain. In addition, people who live in Texas had already received a disaster declaration tax filing deadline of July 15th after the February freezing temperatures caused so much damage and loss. You need to be careful to know your own tax filing deadline(s)! These affect when you need to pay any remaining balances and how late you can make IRA contributions. To read the complete article click here!

Business Owners:

[Video] Business Owners, Separate Your Business And Personal Finances

This is specifically for our business owners. Trevore and I are going to talk about some things that our business owners should be thinking about, whether you are a one man, one woman shop, or you have a team surrounding you that you can separate yourself from your business.

What’s the very first thing people should be considering? Depending on your net income we want you to be thinking how to separate yourself both legally and also from a tax perspective. Like setting up an LLC so if your business is sued or has any type of legal issue…

Check out this video here!