Cortburg Speaks Retirement

Race for a Vaccine

October 21, 2020 Miguel Gonzalez, MBA, AIF®, CPFA®, CRC® Season 2020 Episode 6
Cortburg Speaks Retirement
Race for a Vaccine
Chapters
0:00
Introduction
1:05
Weekly Educational Update
3:03
Week on Wall Street
7:39
Weekly Tax Tip
9:24
Healthy Lifestyle Advice
11:23
Green Living Idea
13:02
Quote of the Week
13:27
Conclusion
Cortburg Speaks Retirement
Race for a Vaccine
Oct 21, 2020 Season 2020 Episode 6
Miguel Gonzalez, MBA, AIF®, CPFA®, CRC®

Cortburg Speaks Retirement

Cortburg Speaks Retirement / Investment in Stock Market, Financial Planning, Retirement Planning, Money Management

1.Educational Update = Race for a Vaccine
 
 2. Week on Wall Street


3.Tax Tip =  The difference between 501(c)(3) Organizations and 501(c)(4) Organizations

 4.Healthy Lifestyle Advice = Yoga for Stability

5.Green Living Idea = What Does it Take to Become USDA-Certified Organic?

6. Quote of the Week

Show Notes Transcript Chapter Markers

Cortburg Speaks Retirement

Cortburg Speaks Retirement / Investment in Stock Market, Financial Planning, Retirement Planning, Money Management

1.Educational Update = Race for a Vaccine
 
 2. Week on Wall Street


3.Tax Tip =  The difference between 501(c)(3) Organizations and 501(c)(4) Organizations

 4.Healthy Lifestyle Advice = Yoga for Stability

5.Green Living Idea = What Does it Take to Become USDA-Certified Organic?

6. Quote of the Week

INTRODUCTION

Welcome to Cortburg Speaks Retirement

An audio podcast about investing in the stock market, financial planning, money management and retirement planning.  Each Wednesday, we help investors at all stages of life learn how to grow and preserve their money from first job through retirement.

Now here is your host, Miguel Gonzalez.

 

HOST

Hello and welcome to the CORTBURG SPEAKS RETIREMENT audio podcast.   On this episode, I am going to help you under how Covid19 developments can affect investment performance, recap last week on Wall Street, understand the difference between donating to a 501c3 organization and a 501c4 organization.  Our weekly healthy lifestyle advice is about YOGA  and the green living idea is to better understand what it seems to become USDA-certified organic.

 


 1st – weekly educational update

Race for a Vaccine

A U.S. drug company recently said that it’s in late-stage trials for its coronavirus vaccine and reported that it could be given to Americans as early as the end of the year.[i]

Great news. But it seems like every few days there’s a new update on a clinical trial for COVID-19. So we took the opportunity to check out the overall status for the development of a vaccine.

Much to our surprise, we learned that more than 150 vaccines are in development across the world. Hopes are high that at least one of these vaccines can be brought to market in record time to help manage the global crisis.[ii]

In the past, it has taken 10 to 15 years to develop a vaccine that’s ready for the market. The vaccine for the mumps, for example, took four years in the 1960s.2

Along with the rapid development, there has been some fear that the process may be moving along too quickly without the proper checks and balances. On September 8, nine drug companies attempted to ease those concerns, releasing a letter saying they would prioritize safety and uphold “the integrity of the scientific process” in their efforts to develop coronavirus vaccines.[iii]

We expect that news about potential vaccines may continue to influence the financial markets. Progress on vaccines also may affect the outlook for specific industries, like travel and leisure. At least one airline company believes that a vaccine may be critical to the ongoing recovery of the aviation industry.[iv]

Much like you, we’re watching the developments and hoping for amazing news that may help bring an end to the coronavirus. If you are concerned about the coronavirus, we welcome the chance to speak with you.

 

2nd – Week on Wall Street

A difficult week for stocks

 

Stocks treaded water last week amid fading prospects for a stimulus bill, fears of a second wave of COVID-19 cases, and increasing political and regulatory pressures on Big Tech companies.

 

The Dow Jones Industrial Average added just 0.07% while the Standard & Poor’s 500 eked out a gain of 0.19%. The Nasdaq Composite index picked up 0.79% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, slid 2.08%.[v],[vi],[vii]

 

Rocky Week 

The stock market began the week by posting strong gains on hopes of a fiscal stimulus bill. Also, investors were optimistic that earnings season would reflect an improving picture of corporate performance. 

 

But stocks stumbled midweek on a mixed bag of early earnings results, and an increase in COVID-19 cases in the U.S. and Europe. Disappointing news on some key COVID-19 treatment trials also weighed on the market, as did a jump in new jobless claims and a continued stalemate on a fiscal stimulus package. 

 

Stocks attempted to rally on Friday, emboldened by strong retail sales, but lost momentum as trading came to a close. 

 

Earnings Season Kicks Off

Earnings season began on an upbeat note as major banks mostly beat on revenue and profit expectations. Banks attributed the strength to rising consumer deposits, a drop in the amount of money set aside for failing loans, and strong results from their investment banking and trading units.[viii]

 

Airlines fared less well. Investors were disappointed with the quarterly reports even though the average daily cash burn at these companies generally improved. Airline management uniformly accompanied their earnings announcements with warnings of continued near-term weakness due to COVID-19.[ix]

 

THIS WEEK: KEY ECONOMIC DATA

Tuesday: Housing Starts.

Thursday: Jobless Claims. Existing Home Sales. Index of Leading Economic Indicators.

 

Source: Econoday, October 16, 2020

The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision.

 

THIS WEEK: COMPANIES REPORTING EARNINGS

Monday: Halliburton (HAL), PPG Industries (PPG), International Business Machines (IBM)

Tuesday: Netflix (NFLX), Lockheed Martin (LMT), Procter & Gamble (PG), Snap (SNAP), Texas Instruments (TXN)

Wednesday: Verizon (VZ), Abbott Laboratories (ABT), CSX Corp. (CSX), Chipotle Mexican Grill (CMG)

Thursday: AT&T (T), Intel Corp. (INTC), Coca Cola Co. (KO), American Airlines (AAL), Southwest Airlines (LUV) 

Friday: American Express (AXP)

 

Source: Zacks, October 16, 2020

 

Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice.

 

 

3rd – weekly tax tip
501(c)(3) Organizations vs. 501(c)(4) Organizations: What’s the Difference?

Whether you’re donating to a local animal shelter, a soup kitchen, or an arts program, it feels great to give back. There are many different types of organizations to support. Let’s look at two of the most common:

  • 501(c)(3) organizations are nonprofit organizations that are dedicated to religious, charitable, or educational purposes. Donations to 501(c)(3) organizations may be tax deductible. These organizations may not attempt to influence legislation or participate in any campaign activity for or against political candidates. 
  • 501(c)(4) organizations are social welfare groups that can engage in more lobbying and advocacy. Contributions to 501(c)(4) organizations may not be tax deductible. 

 

It’s important to know what kind of organization you are donating to if you want to know if your contributions can be tax deductible. 

* This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax professional.

Tip adapted from IRS.gov[x]

 

4th – healthy lifestyle advice
Yoga for Stability

You don’t have to pull out the yoga mat and get your designer leggings on to enjoy some of the many benefits of this relaxing practice. Even if you’ve never done yoga before, these poses may help you improve your balance and stability:

●       Knee to Chest - Start by standing with your feet hip-width apart with your hands on your hips. This is called mountain pose. Now, lift your left knee to hip height so your upper leg (thigh) is parallel with the floor. Flex your left foot and hold this pose for 3 deep breaths. Repeat on the other side. 

●       Tree Pose - Start with the same mountain pose as the first movement. Now, shift your weight into your left foot, and allow your right knee to turn out to the side as you bring your right foot in to rest at your left ankle, shin, or thigh depending on what’s comfortable. Make sure you’re not putting your foot on the joint itself. 

●       Dancer Pose - Start in mountain pose. Bend your right knee and slowly lift your right foot off the ground. As you do that, lift your left arm to balance yourself. Hold for 3 breaths and repeat on the other side.  

Tip adapted from SilverSneakers.com[xi]

 

5th – Green Living Idea
What Does it Take to Become USDA-Certified Organic?

It seems like nearly every product in the grocery store has an organic option, but what does “organic” really mean? Are all organic products created equal?

When looking at organic produce, there is one certification that stands above the rest: USDA organic. To get this certification, a farm or business must:

●       Adopt organic practices that apply to soil quality, animal raising practices, pest control, and use of additives. 

●       Submit an application to the USDA.

●       The certifying agency then conducts an on-site review of the operation.

●       If the applicant complies with the USDA organic regulations, a certificate is issued. 

USDA organic businesses may also have to reapply for their certification to ensure that they are still adhering to organic practices. Now you know why a clamshell of organic strawberries is always more expensive!

Tip adapted from USDA.gov[xii]

 

6th – quote of the week

“Every action you take is a vote for the type of person you wish to become”

– James Clear

 

Make sure to visit our website, www.CortburgRetirement.com.  Our site is filled with educational videos, eBooks, publications, and financial calculators designed to help you learn more about your finances.  As you search our site, send us a note regarding any questions you may have about any particular investment concepts or products. We will get back to you quickly with a thoughtful answer.

This is Miguel Gonzalez, Retirement Specialist and Managing Partner, with Cortburg Retirement Advisors signing off for this week’s educational update.  

 

DISCLOSURES  

Opinions expressed are subject to change without notice and are not intended as investment advice or a solicitation for the purchase or sale of any security. Please consult your financial professional before making any investment decision. 

All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.

This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.

CRC conferred by The International Foundation for Retirement Education.

Securities offered through LPL Financial. Member FINRA/SIPC. Investment advice offered through Private Advisor Group, LLC, a registered investment advisor.  

Private Advisor Group, LLC and Cortburg Retirement Advisors, Inc. are separate entities from LPL Financial.

Investing involves risk including possible loss of principal.


[i]  FoxBusiness.com, September 13, 2020
[ii]  NationalGeographic.com, September 9, 2020
[iii]  USNews.com, September 8, 2020
[iv]  CNBC.com, September 13, 2020
[v] The Wall Street Journal, October 16, 2020
[vi] The Wall Street Journal, October 16, 2020
[vii] The Wall Street Journal, October 16, 2020
[viii] CNBC.com, October 13, 2020
[ix] CNBC.com, October 14, 2020
[x]  IRS.gov, May 27, 2020
[xi] SilverSneakers.com, July 17, 2020
[xii] USDA.gov, July 17, 2020 

Introduction
Weekly Educational Update
Week on Wall Street
Weekly Tax Tip
Healthy Lifestyle Advice
Green Living Idea
Quote of the Week
Conclusion