US Steel Denied! | Stewardship Concepts Financial Advisors

I hope you had a great week. The kids are back in school, and the days are getting shorter. I'm trying my best to cherish every moment of sun as we head into the Fall. Thank you for joining me today for two minutes on the economy, an interesting story, and a financial planning secret.

Economy – No 0.50% Cut

It's been a rocky week for the market, trying to absorb incoming labor data. The nation is still adding jobs, but the monthly reports are proving less reliable as the Bureau of Labor Statistics (BLS) continues to revise the previous month's data lower. Stress continues to grow for some workers as full-time jobs fell while part-time jobs rose and the number of people working multiple jobs rose. Today's report will support having the Federal Reserve start lowering interest rates at its September meeting but does not appear to justify a rate cut of more than 0.25%.

Interesting Story – US Steel Denied! (probably)

There's a lot of Bipartisan support for blocking the sale of US Steel to Japan's Nippon Steel. Against the support of stockholders, the block is having political bipartisan support. It's highly politicized because it's headquartered in the swing state of Pennsylvania, and residents don't want the sale. Once a pinnacle of American Industry, the corporation was founded by historical business legends like J.P Morgan and Andrew Carnegie. It grew to be the first billion-dollar corporation. Since then, the company has failed to keep up with other steel companies in Japan, China, and India, which have adopted more innovative technology.

Financial Planning Secret – Popular Tax Myth

As a financial advisor in Spokane, I get a lot of questions. One common tax myth I encounter is misunderstanding how tax brackets work. An incorrect way to think is, "I don't want to make more money because it will put me into a higher tax bracket." This is incorrect. Yes, our tax brackets are progressive, meaning the more money you make, the higher the tax rate. But that higher rate is only on the next dollar made within that bracket. This means everyone's first $10,000 (including billionaires) is taxed at the same rate. But as someone makes more money, the next dollar is taxed at a higher rate. It sounds simple, but you'll take home more money if you make more money. If you enter a higher tax bracket, an excellent tax strategy is contributing money towards a (non-Roth) retirement plan, lowering your income. Check out my article on the difference between a traditional IRA and a Roth IRA. https://scfinancials.com/blog/f/traditional-ira-vs-roth-ira

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