Happy Friday! Today, I'll head off to the Bahamas on a sailing trip with my brothers and friends. My brother Mark will be the captain of our voyage. I'm excited to learn more about sailing, enjoy warmer weather, and hopefully do deep-sea fishing! Now, let's dive into a two-minute look at the economy, an interesting story, and a financial planning secret.
Economy – US Tariff Update
President Trump announced he is considering imposing 25% or higher tariffs on automobiles, semiconductors, and pharmaceuticals. He mentioned that these tariffs could increase over time and that US companies might get a phase-in period to shift domestic production. This follows previous tariff announcements on steel, aluminum, and Chinese goods, aiming to counterbalance foreign trade barriers.
Interesting Story – Ukraine Selling Rare Metals for Peace
Senior US and Russian officials, including Marco Rubio and Sergey Lavrov, met in Saudi Arabia this week to discuss ending the Ukraine war, excluding Ukrainian President Volodymyr Zelensky, who protested. Concerns arose that the talks might favor Russia, with discussions on rekindling business ties. Concurrently, the US proposed a mineral deal to Ukraine, seeking 50% ownership of its mineral deposits worth trillions as repayment for aid, which Zelensky rejected for lacking long-term security guarantees. A counterproposal from Ukraine is in the works, possibly linking mineral rights to broader peace negotiations.
Financial Planning Secret- Tax loss harvesting
Applicable to taxable investment accounts. Tax-loss harvesting is selling securities at a loss to offset capital gains tax liability (or up to $3,000 of income). This strategy allows you to maintain your investment by immediately buying similar securities to avoid the "wash-sale" rule, which prohibits claiming a loss if you buy the same or similar securities within 30 days before or after the sale. This strategy can lower your tax bill while keeping your portfolio aligned with your investment goals.
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About the Author
Noah Schwab CFP® is a financial advisor in Spokane, Washington, specializing in helping retirees with 401k tax strategies.
- Fiduciary. No commission, no insurance products
- Offering investment management and financial planning
