Broker Check

Monday Money Report

| December 20, 2021

Last week was a roller coaster, as the markets reacted before the Fed met on Wednesday, and then again after the meeting.  Down, up and down again.  The Federal Reserve announced they will taper bond purchases at a faster rate, reducing each month’s purchases by about $30 billion dollars.  This puts them on track to stop buying bonds in February.  At that point, they would consider raising interest rates.  Which means what, exactly?

Depending on the state of the economy, defined by inflation and unemployment, the Fed may raise rates as many as three times in 2022. This contracts the monetary supply as it costs more to borrow funds. But none of that is bad for stocks. While there is no crystal ball, 2022 should still be a positive year for the market. Maybe not the 25% we’re up this year, but still growing. And as Florida’s head coach Billy Napier quoted from Young Jeezy, “Scared money don’t make money.”  If you have a plan, stick to it.  And if you don’t have a plan, the new year is a great time to develop one.

This is our last Monday Money Report of the year, and we have a laundry list of action items for you:

If you are looking for tax deductions, remember your favorite non-profits. Even if you don’t itemize, you’re allowed a $300 deduction for charitable donations on top of the standard deduction.  That’s $600 for married couples.

You have until the end of the year for Roth conversions as well, protecting all the future growth in your Roth account from future taxation for your lifetime plus ten years.  If you really have charitable intent, we can pair a Roth conversion with a charitable donation.

Don’t forget to take any Required Minimum Distributions from retirement accounts if you’re 72 or older, or if you’ve inherited an IRA.

At CovingtonAlsina, tax loss harvesting is a daily activity.  But if you haven’t kept on top of that throughout the year, take some time to check for losses in your portfolio and evaluate those positions.  It might be a good time to sell and offset some of your gains.

Finally, if you have young adults coming home for the holidays, this is a great time to make sure they have a Power of Attorney and Medical Directive in place.  We have the Maryland state forms here and are happy to notarize them for you.

Be sure to check out our website at, as well as our Facebook page.

Securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through Great Valley Advisor Group, a Registered Investment Advisor. CovingtonAlsina and Great Valley Advisor Group are separate entities from LPL Financial.

All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly. 

This information is not intended to be a substitute for specific individualized tax advice.  We suggest that you discuss your specific tax issues with a qualified tax advisor.


The opinions voiced in this show are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which strategies or investment(s) may be appropriate for you, contact the appropriate qualified professional prior to making a decision.