6B • DEC. 15, 2023
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Dave Says...’Stuff’ just doesn’t do it times just like everyone else. A job layoff can take your breath away. An illness can leave you completely broke. Little kids in the house may not know exactly what’s going on, but there’s stress in the air. They’re told, “Times are tough, so we can’t go on BY DAVE RAMSEY, CEO, Ramsey vacation this year,” or “We Solutions, and an eight-time No. have to move,” or “Christ1 national best-selling author, mas is going to be slim.” and host of The Ramsey Show My parents were in the ost families have real estate business and money problems at were building homes. Then, some point. And when I was the economy went sideways a little kid, our family went and left them in a mess. through tough financial Outside forces brought trou-
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ble to our house. We never went without food, shelter, or anything else, but the air changed in our home. I always thought money would solve the problem, so I vowed that one day I would become a millionaire. I doubt I even knew what that meant, but in my head, I thought it meant money would never be a problem. Believe it or not, I’m a spender by nature. I’ve always enjoyed spending money. Of course, when I was young and immature, that idea of spending for fun led
me into the trap of thinking if I got enough “stuff,” I would be happy. I would’ve never admitted it out loud, but there was also the stupid idea deep down that if I got enough stuff, I would be happy and safe, or if I got the right stuff, people would be impressed. With that driving force, I went about the business of earning piles of money so I could spend piles of money. But a funny thing happened. The stuff became . . . unsatisfying. There was never completion or peace after a purchase, only the need to
buy more. Stuff just doesn’t do it. By the time I was 26, I was a millionaire making $250,000 a year. Not long after that, due to some really dumb business decisions, I went broke and lost everything. That was 30 years ago. I also met God during this time, who did bring me peace and completion. I finally realized I was pouring stuff down a spiritual hole, and stuff is not designed to fill that hole. No matter how many cars I bought, or fancy dinners I ate, or cool
places I traveled to, there was always something still missing. During the following decades, we slowly began rebuilding wealth . . . this time while always giving. In the process, we discovered there’s much more joy in giving than in stuff. If you haven’t experienced the joy of giving, there’s no better time to start than during the holiday season. Who knows? It might just be the encouragement you need to become a giver all year long. Merry Christmas, everyone!
Stock Market Insights: The fruits of November – gains in stocks and bonds
DR. RICHARD BAKER, AIF®, is the founder of and an executive wealth advisor at Fervent Wealth Management. https://www. facebook.com/Dr.RichardBaker
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ne of my friends messaged me last week and said, “Can I please have
several more Novembers?” Yes, the markets in November were that good. Both stocks and bonds had solid gains in November. The Russell 2000 Small Cap Index has gained over 11% since the end of October, and the S&P 500 has gained almost 9%. After one of its best months in decades, Small Caps is up almost 3% so far in December, beating all the other major categories. Investors are feeling more confident that the Federal Reserve will begin shifting
away from rate hikes and toward rate cuts. When the Fed lowers rates, it will pull long-term interest rates down and greatly help mortgage rates, breathing life back into the housing market. Companies in the smallcap index have been helped by the market’s belief that rates are about to start lowering since they are more rate-sensitive than largecap stocks. Not only that, but small-cap valuations are looking more attractive. The S&P Small Cap 600 In-
dex (which has a more profitable company mix than the Russell 2000) is trading at a 30% discount compared to the S&P 500. This smallcap rally may have legs in the short term, but I will continue to keep my accounts underweight to small caps until I see how they do in early 2024. Looking ahead, the lower gas prices, falling goods prices, higher stock values, and rising wages should keep the momentum going for more stock gains in the coming year. I’m reminded
of Warren Buffett’s sidekick, Charlie Munger, who passed away last week. “The world is full of foolish gamblers, and they will not do as well as the patient investors.” When I think of good Novembers, I think of opening the mason jar of green beans and pouring it into the pan. Looking at those green beans we grew, picked, and snapped, I knew we were about to enjoy the fruits of our labor finally. November and December are a time for us to enjoy the fruits of our
labor in the market over the year. I can’t guarantee several more November returns for my buddy, but patient investors have been rewarded in 2023 and will continue to be. No one knows what will happen through the end of the year, but stocks historically do well in December, even after strong gains the month prior. This would be a fitting end to what has been a great year for the stock market. Have a blessed week! www.FerventWM.com
Top year-end tax planning tips from Ramsey Solutions BY DAVE RAMSEY, RAMSEY SOLUTIONS Well, folks—it’s the most wonderful time of the year. It’s the tax season countdown! Woo-hoo! Only a few more sleeps until the tax man comes down your chimney, demanding his share of the milk and cookie dough you’ve been working hard for all year. (Get it? Cookie dough?) Key takeaways Last week, we covered three takeaways: Your financial situation and goals, adjusting withholding, and contrib-
uting more to your retirement accounts. Here’s what we discuss in this article: • Tax deductions are great for saving money on taxes, but most require you to itemize instead of taking the standard deduction. Make sure itemizing will save you money when you file. • Work with a tax pro before making any major financial pivots before year’s end, especially when it affects your income or mortgage. Set yourself up to take
advantage of tax deductions and credits. Believe it or not, you can still make some financial moves before year’s end to make the most of tax deductions. A few of these moves require you to make payments now (that you’d have to make in January anyway) to save on taxes in April, but if you want in on these last-minute savings strategies, you’ll have to get the ball rolling as soon as possible! Let’s go over the details. Pay your property tax
bill early. If you own a home or rental property, chances are, you have your estimated property taxes rolled into your monthly mortgage payments. But for those of you who don’t have a mortgage or don’t include your property taxes in your mortgage payment, you can reduce your taxable income by paying your property tax for the year in full by December 31. That way, you can write off your property taxes when you file your return. Here’s a list of property types that are tax-deductible: • Primary home
• Qualified co-op apartments • Vacation homes • Land • Property outside the U.S. • Cars, RVs and other vehicles • Boats To write off your property taxes, you’ll have to itemize deductions, so make sure you would be saving more by itemizing rather than taking the standard deduction. The standard deduction for tax year 2023, by the way, is $13,850 for single filers and $27,700 for married couples filing jointly. And looking ahead, those numbers are increasing to
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$14,600 for single filers and $29,200 for married couples filing jointly. As the IRS continues to increase those numbers year after year, more people will come out on top by simply taking the standard deduction over going through the hassle of itemizing. Pay your January mortgage bill early. Along the same lines as deducting property tax is your mortgage interest deduction. If you bought your primary home or a second home after December 15, 2017, you can deduct the mortgage interest you paid during the tax year on the first $750,000 of your mortgage debt (and on the first $1 million of your mortgage debt if you bought a house on or before December 15, 2017). If you are married filing separately, the mortgage limit drops to $375,000. A simple end-of-year strategy to stretch this deduction to its limit is to make your January mortgage payment before December 31. That way, you can deduct the interest portion of your January payment (along with the rest of the interest you paid this year) on Schedule A of your 2023 tax return. Again, you’ll have to itemize to get this deduction, but with your mortgage interest added into your list of itemized deductions, you might be able to beat the 2023 standard deduction amount. Sweet! Make any last-minute charitable contributions. The IRS made a lot of special adjustments for taxSEE TAX TIPS, PAGE 7B
