This week President Biden delivers his first almost State of the Union address focusing on his first 100 days accomplishments and proposing his next steps. Going “Big” seems to be the overriding assessment of his proposals. A new, much larger role for government is a critical part of the changes to the American political landscape. Link to video: " target="_blank">https://www.youtube.com/watch?v=rgLfDD9hbx8 Reform and Stimulus $6 trillion proposed, $2 trillion passed, $4 trillion to go. Federal government...
Central Bank Digital Currency or CBDC. Have you seen this acronym “CBDC;” what is it? Think of Apple pay on an iPhone that is a “digital wallet” linking credit cards and bank accounts issued by a bank and cleared through Visa, MasterCard, American Express, or Discover. Those credit card transactions completed with the Apple pay app earn the bank and Visa/MasterCard etc., a fee of around 3%. Additionally, the purchaser may also earn you points...
Wednesday, April 14th this week was the direct listing of an SF company in the business of storing/trading/managing cryptocurrencies mainly Bitcoin. Coinbase (COIN) went public this week. We have been trying to understand what cryptocurrencies are and if and how they fit into portfolios. Although we have read a great deal, I have to admit that it is a hard reality for me to grasp. I know certain information: Blockchain computing is the mechanism used...
The butterfly emerging from the caterpillar cocoon. The butterfly spreads its wings and flies off-no transition. After over 1 year of quarantine, lockdown, and social distancing we are not as easily finding the transition to what comes next. As we meet with clients, each person is finding their own way forward. One trend in the news is looking back on the challenging year that introduced a whole new vocabulary of behaviors into daily practice. What...
2020 Important Tax Update and Retirement Contribution Changed Deadline Not only did the IRS extend the due date for tax filing to May 17th, 2021, but they have also extended the deadline to contribute to individual retirement accounts (IRAs). CA aligned the due date for state income taxes and tax filings with the extended IRS due date for federal tax filing as well. The annual $6,000 contribution limit ($7,000 for age 50 and up) can...
April 15th is a day enshrined in our personal financial calendars as the day that federal and state income taxes need to be filed. This year the IRS granted an extension. The federal tax filing deadline is now May 17th, 2021. As of today, California has not changed its state income tax filing due date. Also, the IRS is saying that estimated tax payments due on April 15th will still be expected. As far as...
Week number 53 means we are into the 2nd year of Covid-19. Does it feel like a year? Has our perception of time changed? Do we have better visibility into life after Covid-19? When will we be done with the pandemic? How will we look back at this last year? The answers to these questions, as well as many more will be forthcoming. Another priority is an analysis of what the United States did right...
After a significant amount of wrangling, wheeling and dealing, the Senate agreed on the Biden Administration’s rescue package initially passed by the House including a $15 minimum wage stripped from the bill in the Senate. Expectations are that the bill will be passed in the House with no changes and sent to President Biden for his signature. The President is scheduled to speak to the nation on Thursday night, tonight. The best analysis we have...
A couple of concerns on our minds this week. First, as my wife and I are poised to receive our 2nd dose of the Moderna vaccine soon. While we wait, we are contemplating how this will impact our behavior. I tend to be more risky than my wife, however it is very apparent to me that recency bias is at work. Human nature studies have shown that for many, whatever is happening now, the most...
Last week on the SAS blog, we discussed Covid Relief and the Economy. In light of the recently passed $1.9 trillion Coronavirus relief package, this week we offer more background on comparable economic conditions and relief responses. Will this time be different? Is or will $1.9 trillion be enough? GDP Economists and journalists seem to be focused on predictions for Gross Domestic Product (GDP) growth rates for 2021. The expectations are pretty staggering. Predictions range...
Covid Relief Path and the Economy Top Biden administration agenda items: first is the $1.9T Covid rescue package. The Democrats are moving ahead using a process called reconciliation that allows them to pass legislation with no Republican support. Just as the national recovery letter shape is a "K" so is the state/municipal recovery. As we read about the surplus in San Francisco’s budget this year, the future is more cloudy for the city budget with...
This week we have the historic 2nd impeachment trial beginning. Congress and the administration are moving forward with a massive stimulus relief bill to provide funding for vaccinations, a pathway for schools to reopen, rent relief, economic impact checks to be sent to all income qualified Americans, a proposed raising of the minimum wage, and a child tax credit resulting in cash for families with children. Current Events The cost of this package will approach...
