A Framework For Wealth Management We Believe In

Published Tuesday, January 23, 2018 at: 7:00 AM EST

The nation's No. 2 central banker warned in January that the new tax law poses risk to the creditworthiness of the nation. William C. Dudley, who had recently announced plans to leave the Federal Reserve Bank in May after heading the influential New York District for eight years, said the tax Act's near-term benefits ultimately could damage faith in the credit of the United States.

Mr. Dudley, who a helped guide the nation's interest rate policy in the recovery from the financial crisis, bluntly told a gathering of Wall Street executives that America's current fiscal path is unsustainable. It is one more thing to worry about, on top of the political crisis in Washington, D.C., the increasing likelihood of the Fed making a mistake on interest rate policy by quashing growth or allowing the economy to overheat and the nuclear standoff with North Korea. As always, plenty could go wrong.

Yet the Standard & Poor's 500 continued breaking records. While he may be right, Mr. Dudley's warning is reminiscent of the clarion call by former Fed chair Alan Greenspan in 1996, who warned of "irrational exuberance" over stocks. Stocks rose for three years before that bull market ended.

You can't ever be sure what the future holds, but research by several generations of the world's best minds gives us a framework for managing risk, a framework for wealth management that this firm believes in.

This article was written by a professional financial journalist for Preferred NY Financial Group,LLC and is not intended as legal or investment advice.

An individual retirement account (IRA) allows individuals to direct pretax incom, up to specific annual limits, toward retirements that can grow tax-deferred (no capital gains or dividend income is taxed). Individual taxpayers are allowed to contribute 100% of compensation up to a specified maximum dollar amount to their Tranditional IRA. Contributions to the Tranditional IRA may be tax-deductible depending on the taxpayer's income, tax-filling status and other factors. Taxed must be paid upon withdrawal of any deducted contributions plus earnings and on the earnings from your non-deducted contributions. Prior to age 59%, distributions may be taken for certain reasons without incurring a 10 percent penalty on earnings. None of the information in this document should be considered tax or legal advice. Please consult with your legal or tax advisor for more information concerning your individual situation.

Contributions to a Roth IRA are not tax deductible and these is no mandatory distribution age. All earnings and principal are tax free if rules and regulations are followed. Eligibility for a Roth account depends on income. Principal contributions can be withdrawn any time without penalty (subject to some minimal conditions).

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