Welcome to our monthly Economic, Capital Market, and Financial Planning tip of the month.

For those new to our writings, we touch on the most pertinent Financial “stuff” along with a video that has even more specialized details of the latest month as well as this post.

Ok…let’s go!

VIDEO

You Tube Direct Link   or   Vimeo Direct Link

Another special Tax saving Financial Planning Tip:

Be sure to Catch that Catch up provision !

Getting slightly older has some great benefits such as the catch up provision, be sure to take advantage of it :

• 401k Catch up $6000 in 2015 for age 50+
• HSA Family and individual $1000 catch up for age 55+ (note 55 not 50)
• IRA, SIMPLE, 403b, 457b (IRS website)

Those turning 50/55 years young this year should contact your employer (if applicable) to make sure you are enrolled and receiving maximum benefits.

With taxes being more prevalent (being PC here) since the tax payers relief act sunset, every savings counts!

Swiss Unpegs the Peg

The pressure of the worlds lower rates were too much for the Swiss to take. After promising they would hold the peg to the Euro, in sudden turn around fashion they let the peg go.

A quick view of this chart shows the pain that occurred for many on the wrong side of this exchange.

1. Other countries following suit
2. Swiss residents/natives now are much less competitive, in the short-term
3. Push back against the artificially lowering of rates AGAINST world governments (a slight loss of confidence towards them)

These concerns arising from the Swiss moves may have larger implications, not to worry, we are watching carefully.

US Rates continue their Dive

The underestimate of worlds lower rates on our US rate continues but not only ourselves, but almost all other. Rates have continued to fall even as our economy picks up steam. Another side effect, in addition to our Swiss comments above.

Lower rates, a negative predictor of future economic growth in the past may not be giving the correct signal at this time. Time will tell, but we think these are artificially low and will normalize in the coming quarters. Read “Higher Rates” coming soon!

Hope you are having a great start to the year!

John A. Kvale CFA, CFP