Remember, the only choice is optimism, the pessimists never get it right.

The month of October is notable for, among other things, two anniversaries many would like to forget. The flash crash of 1987 where the S&P lost 20% of its value in a single day and the financial crisis of 2007-2009 both happened in the month of October.

Scary yes but for long term investors, this last Friday found the 3 main indices at or near all-time highs. Just remember that every year, market fluctuations could show a 15% decline and every 5 or 6 years a bear market with more than a 20% downward swing. But also remember that the dividend on the S&P 500 continues to rise and dividends are what we spend in the supermarkets.

As we approach the year-end, the attached article about Qualified Charitable Distributions can help minimize the impact Required Minimum Distributions have on determining the amount of Social Security income is taxed. There are other ripple effects as well. If you have some questions about this issue, please don’t hesitate to give me a call.

One way to combat this is those over 70 ½ are allowed to direct charitable donations from IRAs directly to the charity of choice. The distribution satisfies the RMD requirement but does not impact your taxable income. If you’re in this category, please take a look at the attached article about the rules of what is called a Qualified Charitable Distribution or QCDs.

The noise coming out of Washington is loud and confusing, led by none other than our President. As the battle continues, I’m not sure anything will pass and become law. I’ve never done advising on what might happen, so we wait and find out what actually becomes law.

October is still a very pretty month so Jean & I hope you can enjoy the weather while it’s still great. As always, should you have any questions or wish to meet with or talk with me, please don’t hesitate to email, or call.

Doug Alden

Link to article…

Office 828.668.0665
Cell 828.713.4602

doug@theliberatedinvestor.com

PS: This is not an offer to buy or sell securities. No investment process is free of risk, and there is no guarantee that the investment process or the investment opportunities referenced herein will be profitable. Past performance is not indicative of current or future performance and is not a guarantee. The investment opportunities referenced herein may not be suitable for all investors.

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