Beware A Rotation In Stock Leadership Stock Market Dips To Start 2024 Electric Vehicle Tax Credits

In this episode of the Planned Solutions Incorporated Podcast, The Magnificent Seven (the seven most valuable companies included in the S&P 500 index) increased in value by 75% in 2023, whereas the remaining 493 stocks in the index increased by 12%. This has captured the attention of investors and the financial press. However, what is often ignored is the large losses these stocks reported in 2022. In fact, over two years these seven stocks have had an overall performance very similar to the S&P 500 index as a whole. Also, The US stock market dipped to start 2024. However, the decline was just a small fraction of the gains realized over the final two months of 2023. In addition, the dip may just be the result of the normal ups and downs of the market, investment risk management activities, or tax planning. And, The new electric vehicle tax credits offer taxpayers up to $7,500 in tax savings. However, this credit is very complicated when it comes to determining which vehicles will qualify for the credit. In addition, there are new income limitations that will exclude certain high-income taxpayers from qualifying for the tax credit. Finally, in some cases, the credit may be assigned to the dealer in exchange for a lower price to allow taxpayers to benefit at the time of purchase rather than waiting until tax time. Plus a look at the Planned Solutions Incorporated Office Bulletin Board - Before preparing your 2023 income tax return(s) it is important to make sure that you have all tax forms and other tax information that you need. In some cases, this may mean being patient until all your investment forms have been issued. In other cases, it may mean being careful to thoroughly go through your mail looking for tax forms. For example, mortgage companies often send out Form 1098, which reports the interest paid during the year, with the monthly mortgage statement. So, it is important to sort through all the pages in the mailing to see if your tax forms were included with the most recent statement. Also, more and more companies are posting tax forms online rather than mailing them. Our tax organizer, or your tax return from the previous year, may be used to compare the information that was reported in the prior year with the tax forms that have been received to see if anything is missing. As always, if you have any questions about investment tax forms or the forms that will be needed to prepare your tax returns in general, feel free to give us a call or send an e-mail so we can make sure you file a complete and accurate tax return. Chase Armer's book- Financial Planning Insights is now available at: https://www.amazon.com/Financial-Planning-Insights-Decades-Planner/dp/1098306279?ref_=ast_author_mpb To subscribe to the Personal Finance Review (the written form of all the content we discuss on the podcast) please e-mail [email protected] The Personal Finance Review is published and distributed biweekly by Planned Solutions, Inc. for informational purposes only. Please seek the advice of a qualified financial planner before taking any action. Planned Solutions, Inc.