January 2021 Newsletter
January 1, 2021July 2021 Newsletter
April 4, 2022
April 2021 Newsletter
Dear friends,
as I begin this newsletter, over 4 million doses of vaccine were administered in the US in one day for the first time. This is an extraordinary achievement and one that certainly warrants optimism for a more normal life in the near future. The deaths of over 550,000,000 people, however, will continue to remind us of the humbleness humanity needs to maintain in the face of mother nature and other events beyond our control. Our team at Pegasus is always available to help you navigate the quickly moving financial landscape in the wake of these events and assist you with whatever tools and information we can provide.By Rodd D. Berro
All Time Highs - Part II!
As per last quarter’s newsletter, yes, the markets continue to grind higher with promising vaccine news and another 1.9 Trillion dollars (with a “T”) of stimulus. The Dow Jones Industrial Average ended the quarter up 7.8% while the S&P 500 increased 5.8%, the Russell 2000 small cap index continued at its torrid pace rising 12.4% while the Nasdaq Composite finally came back to earth showing “only” a 2.8% gain. The bond market was the center of attention with both fears of inflation and the promise of 6 or 7 percent GDP growth fueling interest rates higher. The 10-year Treasury moved from .93% at the end of last year to 1.75% by March 31st and the 30-year ended at 2.63% from a December 1.65%. Gold dropped 9.5% for the quarter ending at $1,713.80 per ounce while oil rose 21.93% to $59.16 per barrel. Recapping the extraordinary fiscal and monetary response to the pandemic we have had government packages of $2.2 trillion, $900 billion and $1.9 trillion in addition to the $3 trillion expansion of the Federal Reserves balance sheet and we are probably going to have an additional package in the form of infrastructure spending of as much as another $2.25 trillion. This should keep inflation fears and GDP growth humming along, but who will be buying all this debt? One possible customer could come from overseas. In 2013 43% of the US debt was owned by foreign investors while now it is less than 30%. The Federal reserve maintained 12.5% of the US debt on their balance sheet in 2013, now it rests at 22%. If buyers cannot be found and the Federal Reserve decides not to take any more into their coffers, rates may continue to rise as they did in the first quarter until they are enticing enough for investors to buy. Time will tell if this tests the continual rise of the equity indexes.
Tax Deadlines
The IRS has announced an extension to the 2020 tax filing deadline to May 17, 2021, for individual tax filing, income tax payments, and IRA contributions. NY, NJ, & CT have also extended the state personal income tax deadline to May 17th. Other state deadlines may be different, taxpayers should view their individual state tax agency website to confirm new deadlines. Estimated quarterly tax payments that were originally due on April 15, remain due on that date. To ensure time sensitive tax payments & IRA contribution requests are processed before the tax filing deadline, we encourage clients to submit requests to our office by May 1st.
Checks
If you are submitting a check for deposit into your Charles Schwab account, either through the Schwab Mobile App or the mail:
- Make check payable to your account name and #, or include the account # on the memo line.
- If the check is an IRA contribution, write the contribution year on the memo line.
- Do not write or sign over the encoded account # at the bottom of the check.
- Be sure to endorse the back of the check, write “For Deposit Only” and your account #.
Schwab Alliance
schwaballiance.com/
Schwab Mobile App
1-800-515-2157
Secure, online access to your accounts is easy, visit the Schwab Alliance website or Schwab Mobile App to view account balances & transactions, access tax documents, open new accounts, and more.
Pegasus Client Portal
Securely upload & download documents in the portal
To Access the Client Portal:
pegasusassetmgt.portal.tamaracinc.com
To Download Documents from the Client Portal:
- Click on the Documents tab at top of screen
- Click “All Documents” in blue on the left side of the screen
- Click a check mark next the documents you want to download
- Towards the top in the blue box, click on the down arrow next to the word “Action”
- Click “Download” & follow your computer’s prompts for a downloaded document
To Post Documents to the Client Portal:
- Click on the Documents tab at top of screen
- Click “All Documents” in blue on the left side of the screen
- Click on the down arrow next to the word “Action” in the blue box
- Click on “Post Documents”
- Select the file to upload
- Click “Post” on the bottom right
Retirement Accounts
Be sure to contact your tax professional before taking any action on this information.
IRA CONTRIBUTIONS:
- The 2021 contribution limit is $6,000; or $7,000 if you’re age 50 or older; or your taxable compensation for the year if less than the above.
- There is now no age limit on making regular contributions to traditional or Roth IRAs if you have taxable compensation.
IRA DISTRIBUTIONS:
- Your Required Minimum Distribution (RMD) is the minimum amount you must withdraw from your IRA each year at a certain age.
- You will have a RMD if you turn 72 years old in 2021.
Please contact our office if you would like to make a contribution to your IRA or open an IRA.
Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Pegasus Asset Management, Inc.), or any non-investment related content, made reference to directly or indirectly in this newsletter will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this newsletter serves as the receipt of, or as a substitute for, personalized investment advice from Pegasus Asset Management, Inc.. Please remember to contact Pegasus Asset Management, Inc., in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services. Pegasus Asset Management, Inc. is neither a law firm nor a certified public accounting firm and no portion of the newsletter content should be construed as legal or accounting advice. A copy of Pegasus Asset Management, Inc.’s current written disclosure statement discussing our advisory services and fees is available for review upon request.