6 Things to Remember When Markets Fall

Maintain your composure – and long-term focus – when volatility emerges.

It can be unsettling for investors when their portfolios and the markets start heading into the red. Here are six investing basics to keep in mind during volatile times.

1. Periods of volatility are normal.

All markets move in cycles, and periods of steep contraction are completely normal. While the length of market contractions varies, periods of growth and expansion are usually waiting on the other side. The markets have proven remarkably resilient over the long term, and while returns can be quite volatile year-to-year, they’re generally positive over multi-year periods.

2. Don’t panic.

Letting emotions dictate your investing strategy is a risk you shouldn’t take. Short-term decisions can have long-term consequences on your portfolio. Being patient can pay dividends.

3. Know your portfolio.

Understand your investments and how specific assets represent different goals and outcomes. Keep in mind your risk tolerance and investment timeline, and if either has changed, consider talking to your financial advisor about rebalancing your portfolio. Diversification can potentially help balance risk during a downturn and mitigate extreme swings in value.

4. Stay the course.

Remember your financial plan and long-term goals and stick to them. A disciplined investment approach is a sound strategy for handling market downturns and will likely enable you to participate when the markets rebound.

5. Consider opportunities.

Working with your financial advisor, determine whether periods of volatility are a good time to take advantage of investment opportunities in line with your long-term plan.

6. You’re not alone.

Your financial advisor is available to answer your questions and provide help when you need it. He or she can guide you through difficult markets and be the independent voice that helps you stay focused on your long-term goals.

Investing involves risk and investors may incur a profit or a loss. Past performance may not be indicative of future results. Diversification does not ensure a profit or protect against a loss.

Links are being provided for information purposes only. Raymond James is not affiliated with and does not endorse, authorize or sponsor any of the listed websites or their respective sponsors. Raymond James is not responsible for the content of any website or the collection or use of information regarding any website’s users and/or members. Raymond James does not provide tax or legal services. Please discuss these matters with the appropriate professional.

Veal or Chicken Cutlet With Ham and Fontina Cheese (Alla Valdostana)

Cooking Time: 45 minutes
Serves: 4
Difficulty Level: Easy

Val d’Aosta is a wonderful northern Italian region with a great culinary tradition. This is a “secondo” dish or entrée. It can easily be made with chicken or pork cutlet.

Ingredients

800 gr (1.7 lb) veal, chicken or pork cutlets (8 slices, each approximately 0.2 lb)
200 gr (7 oz) prosciutto ham (4 slices, each 1.7 oz )
120 gr (4 oz) fontina cheese (4 slices, each 1.0 oz)
6 medium eggs
300 gr (10 oz) breadcrumbs
200 gr (7 oz) all-purpose flour
Sea salt
Black pepper
1lt (4 cups) sunflower oil

Mise en place:
Lightly pound veal slices with kitchen mallet (put them between parchment paper sheets so you don’t tear the meat).
Egg wash (crack 6 eggs into a large bowl and whisk evenly with a fork).

Directions

Lay 8 veal slices next to each other on a table/cutting board and lightly season them with salt and pepper. Put a slice of ham on top of each veal slice, then a slice of cheese on top of each ham slice.

Cover the 4 veal slices with the other 4 slices of veal letting the lightly seasoned side face the internal side (with ham and cheese), as if you are making a sandwich.

Lightly season each “sandwich” with salt and pepper and set them apart.

Put 4 cups of sunflower oil into a large pan with high edges and let it reach 340° F before starting to fry.

Meanwhile, flour the meat “sandwiches” with all-purpose flour, then soak them in the egg wash and breadcrumbs, repeating the process “egg wash/breadcrumbs” for the second time, tapping the meat sandwiches to let the breadcrumbs stick nicely.

Fry the veal until golden brown (8/10 minutes approximately), then remove them from the oil and place on absorbent paper to dry the excess oil.

Plate the veal, which you may enjoy with a side of French fries or roasted potatoes and a light salad. It’s great with a crisp and dry white wine such as Pecorino or Verdicchio.

Article printed from LA CUCINA SABINA: https://www.lacucinasabina.com

URL to article: https://www.lacucinasabina.com/recipe/veal-or-chicken-cutlet-with-ham-and-fontina-cheese-alla-valdostana/

Links are being provided for information purposes only. Raymond James is not affiliated with and does not endorse, authorize or sponsor any of the listed websites or their respective sponsors. Raymond James is not responsible for the content of any website or the collection or use of information regarding any website’s users and/or members. Raymond James does not provide tax or legal services. Please discuss these matters with the appropriate professional.

Answering Four Common Questions About COVID-19 and 529 Plans

Learn how virtual classes, gap years, K-12 expenses and refunds may impact your education savings.

The COVID-19 outbreak has upended normal life across the world, and higher education has been no exception. As more college students respond to the pandemic by taking a gap year (i.e., a year-long break from school) or opting for reduced course loads, you may be wondering what these and other changes could mean for your 529 plan. Fortunately, we’ve got answers.

My college student is enrolled in virtual classes this semester. What expenses are covered under my 529 plan?

Higher education expenses that would normally be covered under a 529 plan also apply to virtual classes. These expenses include tuition, books, school supplies, fees, computer equipment and peripherals. Room and board will also be covered if your student is enrolled at least half time. To explore estimated expenses for an academic year, visit the respective college or university’s cost of attendance page.

If my college student takes a gap year or enrolls in fewer classes this semester, how would it affect my education savings?

Since 529 plans do not have an expiration date, your funds will be ready when you need them. This means you can resume distributions as you normally would once your student returns to school. If your student has opted for a reduced course load, then tuition, supplies and fees will all be covered by your 529 plan. However, they will need to be enrolled at least half time for room and board to qualify under your plan. If you have any questions regarding your student’s level of enrollment (partial, half time or full time), contact their educational institution.

I have a K-12 student. Can I use my 529 plan to purchase a computer? What about tutoring services?

The K-12 provision in 529 plans applies exclusively to tuition expenses. You may use up to $10,000 each year to cover these costs. While K-12 distributions are considered a qualified expense under federal law, not every state treats K-12 distributions in the same manner. To determine how your state treats K-12 distributions, consult with a local tax professional.

I received a refund from my student’s school. What are my options?

You have several options when it comes to managing amounts refunded by the school. The first is to use the refunded amount toward other qualified education expenses that same calendar year. This will ensure that your 1099 matches the incurred expenses. The second option is to re-contribute the refunded amounts back into the 529 plan within 60 days of the day the school issued the check. This contribution will be counted as a current year contribution. Just remember to safely store documentation of the refund and re-contribution for your records.

Earnings in 529 plans are not subject to federal tax and in most cases state tax, as long as you use withdrawals for eligible education expenses. However, if you withdraw money from a 529 plan and do not use it on an eligible education expense, you generally will be subject to income tax and an additional 10% federal tax penalty on earnings. Investment products are: not deposits, not FDIC/NCUA insured, not insured by any government agency, not bank guaranteed, subject to risk and may lose value.

Links are being provided for information purposes only. Raymond James is not affiliated with and does not endorse, authorize or sponsor any of the listed websites or their respective sponsors. Raymond James is not responsible for the content of any website or the collection or use of information regarding any website’s users and/or members. Raymond James does not provide tax or legal services. Please discuss these matters with the appropriate professional.

Your Post-CARES Act Guide

Explore the act’s impact on year-end planning.

Signed into law on March 27, 2020, the Coronavirus Aid, Relief and Economic Security (CARES) Act offered an estimated $2 trillion in fiscal stimulus to help individuals and businesses cope with the economic impact of COVID-19. But what effects could this legislation have on your year-end planning? More than you may think, starting with your retirement savings.

Deciphering the fine print

If you’re among those with required minimum distributions (RMDs), perhaps the biggest impact of the CARES Act was the waiver of RMDs for the 2020 tax year, which also pertained to inherited and beneficiary-qualified account holders. Do keep in mind, however, that while this means you do not have to take an RMD at all this year, your future RMDs could be slightly higher as a result.

The CARES Act also gives you until December 31, 2020, to withdraw up to $100,000 in what’s called coronavirus-related distributions (CRDs) if you or another qualified individual experienced a financial hardship (e.g., healthcare expenses, layoffs or furloughs) due to COVID-19.

While CRDs aren’t subject to the IRS’s mandatory 20% withholding fee and are exempt from the 10% early distribution penalty tax, it’s important to note that doesn’t waive your potential tax liability. Fortunately, you have options. For instance, you can elect to have your CRDs taxed in 2020 or ratably over a three-year period. You can also repay all (or even a portion) of your CRDs to an eligible retirement plan within the three-year limit and file an amended tax return to receive a refund on any taxes you already paid. And if you’re worried about exceeding your plans’ annual contributions limits, there’s more good news: These re-contributions, which are considered a tax-free rollover, won’t count against you.

Heeding caveats

When it comes to the CARES Act’s impact on your retirement planning, there are crucial caveats to keep in mind. If you had already withdrawn your 2020 RMD prior to the legislation going into effect, for instance, you cannot now repay your plan. Additionally, if you think you’ll end up in a lower tax bracket for 2020, you may still want to withdraw your distributions. You may also want to consider converting your assets from a traditional IRA to a Roth IRA – since you don’t have to satisfy the RMD requirement that normally accompanies these conversions.

All things considered, you may be unsure if now’s the right time to convert your assets to a Roth IRA. While you’ll certainly want to discuss the matter with your advisor and tax professional, you might conclude that the answer is a resounding yes. That’s because converting when your retirement account values are low helps diminish your potential tax impact. Another worthy consideration? You’ll have to pay income tax on whatever amount you convert – and income tax rates are set to increase after December 31, 2025, when the Tax Cuts and Jobs Act expires.

Prioritizing philanthropy

True to its acronym, the CARES Act also included temporary provisions to promote charitable giving and provide additional gifting opportunities. If you itemize your charitable cash contributions, for example, the act allows you to deduct up to 100% of your adjusted gross income (AGI), instead of the usual 60%. Even if you don’t itemize, the CARES Act still works in your favor with an above-the-line deduction for cash contributions up to $300. So no matter how you go about it, prioritizing philanthropy under the CARES Act is sure to be a win/win.

Next steps

As you prepare for year-end and the upcoming tax year:
•Speak with your advisor to determine whether to skip or withdraw this year’s RMDs.
•If you need to take a distribution from a qualified plan, your advisor can help you determine the best options.
•Consider if now’s the best time to convert from a traditional to a Roth IRA.
•Maximize your impact by reviewing your charitable giving plans under the CARES Act.

Sources: proconnect.intuit.com; forbes.com; investornews.vanguard; pillsburylaw.com; washingtonpost.com; aarp.org; tannerycompany.com; vanwiefinancial.com; ibmadison.com

Please note, changes in tax laws may occur at any time and could have a substantial impact upon each person’s situation. While we are familiar with the tax provisions of the issues presented herein, as financial advisors of Raymond James, we are not qualified to render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional.

Links are being provided for information purposes only. Raymond James is not affiliated with and does not endorse, authorize or sponsor any of the listed websites or their respective sponsors. Raymond James is not responsible for the content of any website or the collection or use of information regarding any website’s users and/or members. Raymond James does not provide tax or legal services. Please discuss these matters with the appropriate professional.

Double Marinated Prawns Carpaccio

Carpaccio (Raw fish) brings us back to ancestral traditions that have now been made popular with growing popularity of sushi. Behind such an elementary (apparently) dish are hidden techniques, skills and different stories, which have developed over the centuries. We take precautions, to ensure the safety of this dish. Here we share with you the secrets behind a Prawns Carpaccio, with his extremely delicate double marinade, that gives you an explosion of sea flavors.

Ingredients

8 jumbo shrimp (prawns) (If you buy fresh jumpo shrimp, make sure you freeze them for at least 24 hours before you expect to cook with them, then defrost them and store in the refrigerator so that you begin with thawed shrimp)

1 lemon

1 orange

4 slices of Rye bread

2 raspberries

6 mint leaves

Extra virgin olive oil

Mediterranean Sea Salt

Ground Black Pepper

Directions

On a cutting board, clean the prawns as follows: remove the outer shell on the tail by using your hands and make an incision at the back of the prawn with a knife to eliminate the black gut. Set aside the prawns heads. Once the prawns are cleaned, put them in a bowl.

Now proceed with the marinade of the prawns. Add a drizzle of EVO oil, a pinch of salt, a pinch of pepper and the zest of a lemon and an orange. Mix by hand, or gently with a spoon.

By using a round teacup, obtain four round slices (molds) of rye bread and toast them in the oven for 5 minutes at 350 °F.

Now take the bowl with the heads of the prawns and squeeze them by hand to obtain the juice and emulsify with a drizzle of EVO oil (stir it with a fork).

On a cutting board, coarsely chop the marinated prawns into cubes.

Serve by laying a slice of toasted rye bread on the bottom of a plate, then lay a dose of prawns (about a full tablespoon) on it and drizzle with the emulsion sauce. Garnish the top by adding half of a raspberry and the chopped mint leaves, then serve.

This dish pair perfectly with a Vermentino white wine.

Buon Appetito!

Recipe from La Cucina Sabina: https://www.lacucinasabina.com/recipe/double-marinated-prawns-carpaccio/

Links are being provided for information purposes only. Raymond James is not affiliated with and does not endorse, authorize or sponsor any of the listed websites or their respective sponsors. Raymond James is not responsible for the content of any website or the collection or use of information regarding any website’s users and/or members. Raymond James does not provide tax or legal services. Please discuss these matters with the appropriate professional.