Tax Filing Reminder
Washington Trust Bank Blog
by Greg Owens
2d ago
We are well into March which means tax filing time is upon us. Now would be a good time to securely send your tax information to your tax preparer (if you haven’t already). It is also an especially high time to be alert and vigilant to scams and fraud regarding your personal information. Fraudsters are looking to take advantage of mailings and emails from financial institutions regarding tax info. You might check with the IRS website and/or your financial institutions websites for suggestions to make your info safer. With every tax season it’s a good time to be contacting your tax advisors abo ..read more
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Understanding US Market Returns in Presidential Election Years
Washington Trust Bank Blog
by Nicholas Reynolds
5d ago
Recently, many of our clients in Wealth Management & Advisory Services have been understandably curious about how this year’s elections might affect market returns. With the political landscape heating up, it is no surprise that investors are feeling a bit uneasy about what might lie ahead. Putting aside the partisan noise, I decided to take a closer look at US market performance during presidential election years since 1980. I reviewed total return data for large cap equities, small cap equities, and core fixed income to gain insights into how markets have typically fared during the elect ..read more
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Navigating Choppy Waters: Staying Invested and Focused in Turbulent Markets
Washington Trust Bank Blog
by Nicholas Reynolds
3M ago
Investing in the financial market can sometimes feel like sailing through unpredictable seas, especially during times of market stress and volatility. The waves of market uncertainty can make even the most seasoned investors uneasy, or at times even seasick. 2023 has been a time of turbulent markets. The graph below displays the year-to-date investment growth of a 60% equity and 40% fixed income portfolio (as illustrated by the MSCI All Countries World Index for equity and the Bloomberg Intermediate US Government/Credit Bond Index for fixed income). The graph shows that even with choppy waters ..read more
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SECURE Act 2.0’s Hidden Gems
Washington Trust Bank Blog
by Greg Owens
8M ago
The SECURE Act 2.0 was passed into law last December. If you recall, the original SECURE Act (Setting Every Community Up for Retirement Enhancement) was passed in 2019, but it needed some changes and add-on’s. The general idea of the SECURE Acts was to get people saving more for their retirement since the days of pensions are fading in the rear-view mirror. Also, some of the provisions change the timing of tax revenue to the government. Among the many things provided in the new law are: • The age to start taking required minimum distributions from your defined contribution plans increases to a ..read more
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Goals-Based Investing – A Superior Investment Approach and Improved Measurement of Financial Success
Washington Trust Bank Blog
by Nicholas Reynolds
9M ago
Investing is a powerful tool that helps reach financial goals and grow wealth over time. Investors have historically tried to measure the success or failure of their investments by comparing performance to market-based benchmark indices, such as the MSCI All Country World Index, S&P 500 Index, Bloomberg Government/Credit Intermediate Bond Index, 90 Day U.S. Treasury Bills, or perhaps some blend thereof. This practice follows the precedent and tradition set by the mutual fund investment management industry, where mutual fund manager performance is tracked against a benchmark index or peer g ..read more
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What in the World is FedNow?
Washington Trust Bank Blog
by Matthew Clarke
10M ago
Over the last five years, we’ve fielded quite a few questions about cryptocurrencies, blockchain and central bank digital currencies (CBDC). The latter appears to be popping up more frequently and tied to concerns about the rise of big brother and the potential of lost privacy. Along these lines, there have been a number of recent inquiries about FedNow and whether it is a CBDC or some new nefarious technology. Fear not as FedNow is not a digital currency nor a replacement for the dollar. Instead, it is simply a payment service. Try to think of it as Venmo, Zelle, PayPal or Cash App but create ..read more
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Washington State Capital Gains, Er, Excise Tax
Washington Trust Bank Blog
by Greg Owens
1y ago
As some of you may recall, the Washington state legislature had passed a 7% tax on capital gains on the sale of certain assets. This was to start January 1, 2022. Before it could take effect a trial court in Douglas County ruled that this was an invalid income tax in the state of Washington. In January of this year the Washington state Supreme Court heard arguments to sort this out. Last Friday they ruled that this tax is a valid excise tax. Let’s dig deeper. The arguments were these: in striking down the tax, the Superior Court said that any tax based on net income reportable on your federal ..read more
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When will the hurting stop? Given low housing supply, home prices have been increasing even as interest rates rise
Washington Trust Bank Blog
by Nicholas Reynolds
1y ago
2022 has been a challenging year for the markets and especially for residential real estate. Individuals looking to purchase a home have been negatively impacted by rising mortgage rates, which have significantly increased the cost of their expected monthly mortgage payment. Indeed, mortgage rates have risen significantly, adding to the cost of a mortgage. According to Bankrate.com, the 30-year national mortgage rate has increased 344 basis points to 6.67% as of 11/30/2022 (from 3.23% a year ago). While elevated, this recent 30-year mortgage rate is a slight improvement from the 12-month high ..read more
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Washington Capital Gains Tax Update
Washington Trust Bank Blog
by Greg Owens
1y ago
You may recall that in 2021 Washington state passed legislation to implement a 7% capital gains tax on certain asset sales, with the tax applying to profits that exceed $250,000. The assets subject to this tax are, in general, stocks, bonds, business interests, and tangible property, but not real estate. There are actually quite a few asset classifications that are exempt from this tax, so check with your tax preparer. After a lawsuit was filed and tried in Douglas County, the trial court judge declared the tax unconstitutional and invalid in March of 2022.  As expected, the state appeale ..read more
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A Decline in Personal Savings
Washington Trust Bank Blog
by Matthew Clarke
1y ago
According to the Bureau of Economic Analysis (BEA) US personal saving declined to an anemic 2.3% in October. The only time US personal saving has been this low was back in 2005 when it bottomed out at 2.1%. The US personal saving rate is the percentage of disposable personal income (DPI) that people are able to save. The BEA calculates the personal saving rate by subtracting taxes from personal income to arrive at “disposable personal income” and then subtracts personal outlays. What’s left is an estimate of personal savings. While October’s US personal saving report raised a few eyebrows, i ..read more
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