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In this episode of the Planned Solutions Incorporated Podcast, Margin debt, the amount of money investors borrowed to increase the risk of their investment portfolios, has fully recovered from its low in the first quarter of 2020. This is a sign that investors are once again embracing market risk and are borrowing to bid stock prices higher. While an increase in margin debt may be a good sign for stocks in the short-term, when margin debt gets too high it may be a sign that the increase in stock prices may not be sustainable. Also, As we enter 2021 there are two economic forces that may support US economic growth. These are the wealth effect in which increased asset prices support increased household spending and pent up demand which may cause a spike in demand for goods and services that have been unavailable due to COVID-related economic restrictions. And, Beneficiary elections on retirement accounts determine who will receive the account upon the owner’s death. These designations supersede and wills or trusts. In addition to selecting beneficiaries and the percentages, they will receive an account owner can elect per stirpes or per capita election. This election will determine how the account will be divided should a designated beneficiary predecease the account owner. Plus a look at the Planned Solutions Incorporated Office Bulletin Board-We recently discovered that our tax program has scheduled a major software update for January 7th. This update will impact the formatting of the tax organizers and letters that we send out to our tax clients each year. Therefore, rather than sending the organizers shortly after the first of the year which was our goal, we will need to delay the mailing of the tax organizer packets. Our new goal is to have all the organizers sent out by the third week of January. We are sorry for any inconvenience this may cause. All of us at Planned Solutions would like to wish you a happy New Year. New Year’s Day often brings with it a feeling of renewal and expanded possibilities for the future. We hope that 2021 fulfills this promise allowing us to put 2020 behind us as we look to the future and the many opportunities that the New Year, and an eventual post-COVID, new normal takes hold. Happy New Year! Chase Armer's book- Financial Planning Insights is now available at: store.bookbaby.com/book/financial-…anning-insights www.amazon.com/Financial-Plannin…1586894022&sr=8-1 To subscribe to the Personal Finance Review (the written form of all the content we discuss on the podcast) please e-mail Katie@PlannedSolutions.com The Personal Finance Review is published and distributed on a biweekly basis by Planned Solutions, Inc. for informational purposes only. Please seek the advice of a qualified financial planner before taking any action. Planned Solutions, Inc. ADDRESS: PHONE: 1130 Iron Point Road, Suite 170 (916) 361-0100 Folsom, CA 95630 (800) 750-2111 E-MAIL: FAX: Shannon@PlannedSolutions.com (916) 361-0191 WEB SITE: www.PlannedSolutions.com #finance #invest #investment #stocks #inflation #deflation #bonds