Weekly Market Commentary
Stocks ended higher Friday, reversing earlier losses. A report showing faster-than-expected job growth in February encouraged investors. Despite the rebound, the NASDAQ was negative for a third week in a row. For the week, the Dow rose 1.85 percent to close at 31,496.30. The S&P gained 0.84 percent to finish at 3,841.94, and the NASDAQ fell 2.05 percent to end at 12,920.15.
|Returns Through 3/05/21||
|Dow Jones Industrials (TR)||1.85||
|NASDAQ Composite (PR)||-2.05||0.37||49.08||22.00||23.62|
|S&P 500 (TR)||0.84||2.57||29.30||14.35||16.21|
|Barclays US Agg Bond (TR)||-0.80||-2.93||-0.26||5.08||3.46|
|MSCI EAFE (TR)||-0.49||0.66||18.64||5.09||8.64|
Source: Morningstar.com. *Past performance is no guarantee of future results. Indexes are unmanaged and cannot be invested into directly. Three- and five-year returns are annualized. The Dow Jones Industrials, MSCI EAFE, Barclays US Agg Bond, NASDAQ and S&P, excluding “1 Week” returns, are based on total return, which is a reflection of return to an investor by reinvesting dividends after the deduction of withholding tax. (TR) indicates total return. MSCI EAFE returns stated in U.S. dollars.
Smaller Homes — The average size of a single-family home built in the United States in 2019 was 2,509 square feet, the fourth consecutive year that the national average size has declined (source: Census Bureau, BTN Research).
Record Low Set a Year Ago — The yield on the 10-year Treasury note closed at 1.46 percent on Friday, Feb. 26. The all-time record-low close for the 10-year note was .50 percent set on March 9, 2020. 10-year notes have been traded in the U.S. since 1790 (source: Treasury Department, BTN Research).
All My Work — The average American worker has increased their productivity by 50 percent in the last 21 years. As of Dec. 31, 2020, an average worker can complete in two hours, the same amount of work that it took them three hours to finish as of Dec. 31, 1999 (source: Department of Labor, BTN Research).
WEEKLY FOCUS – Don’t Shred Those Tax Documents Yet
Once you complete this year’s taxes, you may wonder what to do with that pile of records, 1099s, receipts, and bank statements. The IRS recommends holding on to any documents related to the income you’re reporting or any deduction or credit you’re claiming, including:
- Proof of income, including W-2s and 1099s, bank and brokerage statements, K-1 forms, and spousal-support payment records
- Bills and invoices, credit card statements, mileage logs, and cancelled checks
- Financial records related to real property, including paperwork from the purchase or sale of a home and all documents associated with the costs of buying, selling, or managing rental properties
- Investment records related to stock transactions, IRAs, and other retirement accounts
If you’re not sure whether to keep a document or not, err on the side of caution and store it in your files. How long you should hang on to all those documents varies, depending on the action, expense, or event that the document records. The IRS has the right to review all tax returns filed during the Period of Limitations, the time in which you can amend your tax return to claim a credit or refund or the IRS can assess additional tax. That period is typically three years from the date you filed for any given year.
Some documents should be kept even longer. For example, the IRS recommends keeping employment tax records for at least four years after related taxes become due or are paid, whichever is later. Tax records related to property should be kept until the period of limitations expires for the year you dispose of the property. If you believe you may have under-reported your annual income by 25 percent or more, you should keep your return and related documentation for six or seven years.
It’s best to create digital copies of all your documents. That way, if the printed version is lost or destroyed, you’ll have a backup.
We are happy to work with you and your tax professional to help keep your financial records up-to-date and create a personal financial plan tailored to your habits and lifestyle. Call us today.
We do not provide tax advice; coordinate with your tax advisor regarding your specific situation.
Securities America and its financial professionals do not provide tax advice. Consult a tax professional for specific details.
This commentary brought to you by J. Graydon Coghlan, CRPC
and the team at CFG Wealth Management, Inc.
4370 La Jolla Village Drive, Suite 630 San Diego, CA 92122
Phone: (858) 550-3960 Fax: (858) 550-3969 Toll Free: (800) 884-5121
* The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks. NASDAQ Composite Index is an unmanaged, market-weighted index of all over-the-counter common stocks traded on the National Association of Securities Dealers Automated Quotation System. The Morgan Stanley Capital International Europe, Australia and Far East Index (MSCI EAFE Index) is a widely recognized benchmark of non-U.S. stock markets. It is an unmanaged index composed of a sample of companies representative of the market structure of 20 European and Pacific Basin countries and includes reinvestment of all dividends. Barclays Capital Aggregate Bond Index is an unmanaged index comprised of U.S. investment-grade, fixed-rate bond market securities, including government, government agency, corporate and mortgage-backed securities between one and 10 years. Written by Securities America, Copyright November 2020. All rights reserved. Securities offered through Securities America, Inc., Member FINRA/SIPC. SAI#3482518.1