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The ‘Roar’

Summer has ended and Fall has arrived. The weather turned cooler immediately and the stock market, after cooling considerably in September, is heating up again. Also heating up are COVID-19 infections and restrictions as the predicted seasonal wave appears to be arriving on time, as scheduled. We are seeing signs that the long-stalemated Congress on more aid may be breaking and a deal is on the horizon, potentially after President Donald Trump caught a case. Investors remain uncertain about the upcoming US Presidential election however stocks are rallying back from their recent lows while bonds are stable.

2020 has been an object lesson in how trying to predict anything will likely result in a failure to be correct. In the face of massive unemployment, bankruptcies, business closures and increasing poverty, financial markets have remained volatile but remain firm. As hope for a vaccine continues to rise and treatment options improve for COVID-19, a restoration and reinvention of the economy looms large for the country and indeed, the world. Central banks have staved off the first wave of economic malaise to a degree. The challenge for the next round taken up by elected leadership is to invest the stimulus, rather than simply spend it. These issues are massively complex and a discussion on just one of them could easily take up volumes. This issue will focus on the things that we can predict and control – our own financial planning.

As the fourth quarter begins, so does the season for giving. Clients with children and grandchildren can use ‘annual exclusion’ gifts. These allow any person to give any other person $15,000 per year without tax. Married couples can double that number. Often, but not always, the recipient is a minor and these funds can go to 529 plans, UTMA (custodial accounts), or trusts for safekeeping. If you are not sure what is best for your family, we can help you decide.

Giving to charitable organizations and other philanthropies is calendar year sensitive to get deductions on your tax return. We recommend using appreciated stock instead of cash to maximize the tax benefits, if available. So-called ‘donor advised funds’ are plentiful these days. If you know that you want to donate but are not sure exactly where to donate, you can use one of these funds to accelerate the deduction and release the funds to the charity in the future. Not all donations will qualify for a tax deduction so please call your CPA to discuss it.

Tax loss harvesting season is also here. After the year’s wild swings, we will be reviewing portfolios and realizing losses, if appropriate, in taxable accounts. This will not result in a material allocation change but rather a swap into a security with similar exposure. You will ‘realize’ the loss for tax purposes.

Required minimum distributions from retirement accounts for 2020 were suspended by the CARES Act. Therefore, we will not be processing these as we ordinarily do at this time of year. However, if you would like to receive a distribution, then please contact us to arrange for one.


Finally, if you are an employee of a medium or large firm with comprehensive benefit packages, now is also the time of year to renew insurance coverages like health and disability insurance. We are available to help you decide the best choices amongst your available ones. We wish you a safe and healthy season!



Lionshead Wealth Management, LLC is an investment adviser in New York. Lionshead Wealth Management, LLC is registered with the Securities and Exchange Commission (SEC).  Registration of an investment adviser does not imply any specific level of skill or training and does not constitute an endorsement of the firm by the Commission.  Lionshead Wealth Management only transacts business in states in which it is properly registered or is excluded or exempted from registration.  A copy of Lionshead Wealth Management 's current written disclosure brochure filed with the SEC which discusses among other things, Lionshead Wealth Management's business practices, services and fees, is available through the SEC's website at: Past performance is not an indication of future results. Please note, the information provided in this document is for informational purposes only and investors should determine for themselves whether a particular service or product is suitable for their investment needs. Please refer to the disclosure and offering documents for further information concerning specific products or services. Nothing provided in this document constitutes tax advice. Individuals should seek the advice of their own tax advisor for specific information regarding tax consequences of investments. Investments in securities entail risk and are not suitable for all investors. This is not a recommendation nor an offer to sell (or solicitation of an offer to buy) securities in the United States or in any other jurisdiction. This document may contain forward-looking statements relating to the objectives, opportunities, and the future performance of the U.S. market generally. Forward-looking statements may be identified by the use of such words as; “believe,” “expect,” “anticipate,” “should,” “planned,” “estimated,” “potential” and other similar terms. Examples of forward-looking statements include, but are not limited to, estimates with respect to financial condition, results of operations, and success or lack of success of any particular investment strategy. All are subject to various factors, including, but not limited to general and local economic conditions, changing levels of competition within certain industries and markets, changes in interest rates, changes in legislation or regulation, and other economic, competitive, governmental, regulatory and technological factors affecting a portfolio's operations that could cause actual results to differ materially from projected results. Such statements are forward-looking in nature and involve a number of known and unknown risks, uncertainties and other factors, and accordingly, actual results may differ materially from those reflected or contemplated in such forward-looking statements. Prospective investors are cautioned not to place undue reliance on any forward-looking statements or examples. None of Lionshead Wealth Management or any of its affiliates or principals nor any other individual or entity assumes any obligation to update any forward-looking statements as a result of new information, subsequent events or any other circumstances. All statements made herein speak only as of the date that they were made.

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