Week of 2/17/2021

This is the time of year for tax preparation and we often receive questions about the timing of tax forms. Investment custodians like National Financial Services (NFS) have until February 15th to provide preliminary 1099s showing estimated information for taxable accounts. This is not considered final and you should not file a tax return until the official 1099 is issued. While the final 1099 is often the same, waiting will prevent the need to amend a filed return. Because NFS has received a mailing extension from the IRS, final tax forms will be provided no later than March 15th. Please let us know if you have any questions.

We learned: one great way to make the most out of the pandemic’s disappointments. When her wedding reception was cancelled last year due to COVID, our own Nicole wasn’t sure what to do with many of the supplies they had purchased for the party. She contacted a nursing home to see if they could use the items. Since visitations are not allowed, the staff has been trying to provide special occasions for the residents. Thanks to creative thinking, they’ll be able to make things more festive and enjoyable during a tough period. What other good ideas have you heard? We laughed: at this short video of an attorney who couldn’t remove a funny Zoom filter during a hearing. “I’m not a cat." We read: about the Great Smog of London, which brought the capitol to a standstill for four days in 1952 and was responsible for the death of 4,000 people. The smog was so thick that residents sometimes could not see their own feet. Some of the deaths were the result of people accidentally walking into the Thames and drowning. We've been: talking to many of you about refinancing mortgages given low interest rates. If you haven’t looked into this and would like to discuss it, please let us know! We recommend: News of the World, a new film starring Tom Hanks. We love a good western and this simple story is really well done, especially the performance of the young girl traveling with Hanks.

Q: All of the spending makes me think that the inflation has to increase. What does it look like right now? A: Inflation remains lower than the Federal Reserve’s 2% target, using Core Consumer inflation as the measurement. We have yet to see a significant increase in inflation due to COVID-related spending. This may be due to the normal lag between any government action and its effect on the economy. Recessions can also put deflationary pressure on costs (reducing the price of oil for example) and this will reduce the impact of more money entering the financial system. During the federal government’s response to the financial crisis, inflation did not become a problem despite some predictions of hyper-inflation, also because the crisis reduced the prices of assets (including stocks and housing). The COVID crisis is different, and inflation may yet be a problem. But it isn’t yet.

‌ ‌ ‌ Advisory Services offered through Lowry Financial Advisors, Inc., a Registered Investment Adviser. Securities and additional advisory services offered through Commonwealth Financial Network®, Member FINRA/SIPC, a Registered Investment Adviser. Advisory services offered through Lowry Financial Advisors, Inc, are separate and unrelated to Commonwealth. Lowry Financial Advisors, Inc. is located at 12921 SW 1st Rd, Suite 215, Tioga, FL 32669. 352-333-7990 Lowry Financial Advisors is the only advisory firm that helps its clients reach their goals through The Achieving Simplicity® Experience™, providing clarity and confidence in their personal and financial lives.