China's Economy

WSJ: How bad is China’s economy?  Harder to tell than ever before.  Land sales, foreign investment data, and unemployment data have gone dark.  Even data on the number of cremations have been cut off.  In all, Chinese officials have stopped publishing hundreds of once available data sets. 

China is the world’s second-largest economy. When it slows down—or when accurate information about its economy becomes scarce—it creates uncertainty in global markets. In general, uncertainty can cause:

• Market volatility, especially in emerging markets and global equities.
• Supply chain disruptions, which may impact multinational companies your clients are invested in through mutual funds or ETFs.
• Commodity price fluctuations, which can affect inflation, interest rates, and purchasing power.

How reliable was this information in the first place? Since there was always uncertainty about this information, this may already be baked into the system.

 

 

Something Gives

WSJ and Reuters reporting that many economists and analysts predict “something gives” with tariffs before the end of May.

Why?  Most holiday ordering needs to be set around June 1.  So let the stockpiling begin! 

 

Retirement Industry Boom

Record Number of Americans Turning 65 Sparks Retirement Industry Boom – Wall Street Journal

You're part of the largest wave of retirees in history. That means more competition for the best financial products and more focus from the industry—but also more complexity.

It’s more important than ever to have a solid plan in place.

 

 

Cost of Living Adjustment

Social Security Recipients to Receive 2.5% COLA in 2025 Amid Rising Living Costs – Associated Press

Social Security is getting a small bump this year—but probably not enough to keep up with your actual living expenses.
That’s why it’s crucial to have a strategy for creating reliable income beyond Social Security.

Tariffs Trigger Corporate Earning Uncertainty

We've seen several large companies—like General Motors, Ford, and American Eagle—either scale back or completely pull their earnings forecasts.
That’s largely due to the uncertainty created by new tariffs and broader economic instability. When companies can’t confidently predict their future profits, it creates more ups and downs in the stock market.

This kind of volatility doesn’t mean we panic—but it does reinforce why we diversify your portfolio and focus on long-term strategy. The goal is to stay resilient no matter what headlines are driving short-term market reactions.

 

Market Rebounds - Wall Street Journal

After a challenging period, the S&P 500 has bounced back with an 18% gain—thanks to signs that inflation is cooling and growing optimism around international trade agreements.
That’s good news for your portfolio and overall market confidence. That said, we’re not out of the woods yet.
Markets are still sensitive to new developments, so it’s important we stay disciplined and avoid reacting emotionally to short-term moves.
Our long-term strategy is designed to help you benefit from these recoveries while staying protected through the ups and downs.

 

 

Financial Advisors Incorporate Retirement Coaches for Holistic Planning - MarketWatch

Retirement isn’t just about numbers—it’s about purpose and peace of mind.

That’s why I focus not just on investing, but on helping build a life that feels fulfilling in retirement.

 

401 (k) Giant to Allow Private Markets Investments in its Retirement Portfolios - Wall Street Journal

New investment options in 401(k) plans, such as private markets, could offer higher returns but also come with increased risks and fees.

It's crucial to assess whether these options align with your retirement goals and risk tolerance. Lawsuits will follow….

 

Senior Bonus?

A New 'Senior Bonus' Could Give Older Adults a $4,000 Tax Break. – MarketWatch

Let's keep an eye on this because the proposed tax deduction could provide additional relief for seniors, potentially reducing your tax burden. Understanding eligibility and how this fits into your overall financial plan, if it comes true, will help maximize your retirement income.

 

 

Question of the Day... 

I'm 90, and the RMDs and Taxes on My $1.5 Million Are Huge. Is It Too Late for Roth Conversions Now? – MarketWatch

As you grow older, managing your Required Minimum Distributions (RMDs) from retirement accounts like traditional IRAs and 401(k)s becomes increasingly important—but also more complicated. Once you’re required to start taking withdrawals, those distributions are taxed as ordinary income, which can push you into a higher tax bracket, increase Medicare premiums, or even affect how much of your Social Security is taxed.

 

Even if you're well into retirement, there are still strategies you can consider to minimize the tax bite. For example, partial Roth conversions—even later in life—can reduce the size of your tax-deferred accounts, lowering future RMDs and the taxes that come with them. This can also help you pass along wealth to your heirs more tax-efficiently.

 

In short, if you have a sizable retirement account and you're in your 70s, 80s, or even 90s, it's not too late to take a second look at your tax strategy. Small moves now can lead to meaningful savings down the road—for you and your family.