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By Michael Christodoulou

Michael Christodoulou
Michael Christodoulou

Are you expecting a tax refund this year? If so, what will you do with it?

Of course, the answer largely depends on the size of your refund. For the 2020 tax year, the average refund was about $2,800, according to the Internal Revenue Service. But whether your refund this year will be about that size, smaller or larger, you can find ways to benefit from the money.   

Here are some possibilities:

Contribute to your IRA 

You’ve got until April 18 to fully fund your IRA for the 2021 tax year. But if you’ve already reached the maximum for 2021, you could use some, or all, of your refund for your 2022 contribution. Assuming you did get around $2,800, you’d be almost halfway to the $6,000 annual contribution limit. (If you’re 50 or older, you can contribute up to $7,000.)

Invest in a 529 plan 

If you have children or grandchildren, you might want to invest your refund in a 529 education savings plan. A 529 plan’s earnings can grow federal income-tax free, and withdrawals are federal income-tax free provided the money is used for qualified education expenses. If you invest in your own state’s plan, you might get a tax deduction or credit. 

A 529 plan can be used to pay for college, vocational training and even some K-12 expenses in some states. Plus, if you name one child as a beneficiary, and that child’s educational journey does not require the funds from a 529 plan, you may change the beneficiary to another eligible family member of the original beneficiary.

Boost your emergency fund

You could use your tax refund to start or supplement an emergency fund. Ideally, this fund should contain three to six months’ worth of living expenses, with the money kept in a liquid, low-risk account. (If you’re already retired, you might need this fund to cover a full year’s worth of expenses.) Without such a fund, you might be forced to dip into long-term investments to pay for costly housing or auto repairs or large medical bills.

Add to the ‘cash’ part of 

your portfolio

It’s generally a smart move to keep at least a portion of your overall investment portfolio in cash or cash equivalents, because the presence of cash can help you in two ways. First, since its value won’t change, it can help cushion, at least to a degree, the effects of market volatility on your portfolio. And second, by having cash available, you’ll be ready to take advantage of attractive investment opportunities when they arise.

Reduce your debt load 

It’s not always easy to minimize your debt load, even if you’re careful about your spending habits. But the lower your debt payments, the more money you’ll have available to invest for your future. So, you may want to consider using some of your tax refund to pay off some debts, or at least reduce them, starting with those that carry the highest interest rates.

Donate to charity

You could use part of your refund to donate to a charitable organization whose work you support. And if you itemize on your tax return, part of your gift may be deductible.

A tax refund is always nice to receive  and it’s even better when you put the money to good use.

Michael Christodoulou, ChFC®, AAMS®, CRPC®, CRPS® is a Financial Advisor for Edward Jones in Stony Brook. Member SIPC.

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New Webster Bank corporate signage unveiled at a Long Island-based Webster branch.

It’s official. The Connecticut-based Webster Financial Corp. has completed its $10.3-billion acquisition of Sterling Bancorp, creating one of the largest commercial banks in the Northeast. The merger was initially announced in April 2021, and federal regulators gave the deal final approval in December of that year.

John R. Ciulla, President and Chief Executive Officer, Webster Bank and Webster Financial Corporation

With the merger, Webster Bank acquired Sterling National Bank’s 33 branches on Long Island, from Wading River in Suffolk County to Valley Stream on the border of Queens. The bank signs were changed this week.

“Today marks a transformative moment in Webster’s history that will greatly benefit our colleagues, clients, communities and shareholders,” said John R. Ciulla, President and CEO of Webster in a Feb. 1 press release. “Our bank will have enhanced scale, significant loan growth potential, best-in-class deposit franchises and a longstanding commitment to community development and corporate citizenship.”

The combined company has approximately $65 billion in assets, $44 billion in loans, and $53 billion in deposits based on balances as of December 31, 2021 and operates 202 financial centers in the Northeast region. 

The new headquarters of Webster is in Stamford, Connecticut, and Webster will have a continued multi-campus presence in the greater New York City area and Waterbury, Connecticut.

“The completion of the merger with Webster brings the best of our banks together, promising an elevated experience for our clients and colleagues as the financial services industry evolves,” said Executive Chairman Jack L. Kopnisky of the newly combined bank. 

Both Webster and Sterling clients will continue to bank as they normally do at their existing banking centers and through Webster’s and Sterling’s websites and mobile applications. For more information, visit www.websterbank.com.

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By Lisa Scott

Bail is a part of our justice system that seeks to ensure that those who are charged with crimes appear in court to be held accountable. When someone is arrested and charged, the court will set an appearance date with a hearing or trial usually weeks or months away. Prior to bail reform, there were no standards and judges did whatever they wanted for any charge to assess the person’s potential to flee and not return to court. Sometimes quantitative tools that can measure “risk” were used, and those have been found to be plagued with bias. 

If the person cannot pay the bail amount, they remain incarcerated until their case is resolved, either through a settlement, a hearing, a trial, or dismissal. If they post bail, the money is not returned until the case is finalized – which can be months or in some cases, years later (less 9% processing fee).

There is an obvious but complex problem inherent in this system. People with good credit or access to funds can post their own bail and go home. People who have no money or credit are held in jail until trial. For those on the bottom of the totem pole, a simple arrest, guilty or not guilty, can destroy a life, or a family. If they had, for instance, a minimum wage job, their incarceration will almost certainly lead to losing it. What happens to the rest of the family? What happens to any stability they may have had in their lives? The collateral damage of an arrest and even a relatively small but unaffordable bail can bring down the house. Average court costs can be over $15,000. 

The question we ask ourselves is not whether the justice system should continue to use bail, but whether or not the bail system is used justly. In America, we are innocent until proven guilty, but the bail system can end up being incredibly punitive even before guilt is established in court. 

New York State’s 2020 Bail Reform Act provided some relief and created uniform standards. For most misdemeanors and nonviolent felonies the law now required judges to release people with the least restrictive conditions necessary to reasonably assure the person will come back to court. Previously, the court could impose cash bail on any offense. The reform codified no cash bail and non-monetary bail conditions and provided for a third option of non-secured or partially secured surety bond (a loan due if the charged fails to appear). 

The Reform was amended in April 2020 to include more situations where judges can impose cash bail. They will also have more discretion in setting bail and other conditions of pretrial release. It did not abolish bail but greatly reduced the role of money and enhanced the rule of law in determining whether defendants will be freed or jailed pending trial. 

The new law, however, came under attack during the 2021 mid-term elections, especially from candidates campaigning on a “law and order” platform. Using a handful of instances of bail abuse, some tried to make generalizations about the new bail rules that data does not support. It is important to remember that bail (in its legal conception) was always about making sure people appear before the court, not punishing them before they’ve had their day in court. 

Results of bail reforms so far have been positive. Pre-covid data sets from state level bail reforms in New Jersey, New Mexico and Kentucky as well as reforms in 4 major cities and 5 counties have indicated decreases in pretrial jail population, decreased or unchanged ”new criminal activity” rates and no increase in recidivism. In New York City, data during covid shows that just under 4% of those released pre-trial under bail reform have been rearrested for violent felonies. 

This is a low percentage, yet this number is used to both support and criticize bail reform. As NYS Senator Julia Salazar of Brooklyn said, “It’s not really about facts. It’s about competing narratives about public safety” (City & State NY January 10, 2022). We must remember that bail reform saves lives and families and evens the playing field. The few cases of bail abuse are not enough to outweigh the benefits of these reforms. We support them every time we say the end the pledge of allegiance with “and Liberty and Justice for all.”

For more information: 

–January 18, 2022 article by Steven B. Wasserman in the New York Law Journal

–Brennan Center’s explanation of the NYS Bail Reform law at  https://www.brennancenter.org/our-work/analysis-opinion/new-yorks-latest-bail-law-changes-explained

–True cost of incarceration at https://finesandfeesjusticecenter.org/articles/who-pays-true-cost-incarceration    

Lisa Scott is president of the League of Women Voters of Suffolk County, a nonprofit, nonpartisan organization that encourages the informed and active participation of citizens in government and influences public policy through education and advocacy. For more information, visit https://my.lwv.org/new-york/suffolk-county or call 631-862-6860.

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By Michael E. Russell

Michael E. Russell

Interest rate hikes are in the forecast for 2022. But how many?

Jerome Powell, Chairman of the Federal Reserve has a perplexing problem: how to curb inflation, while not derailing the economy. Most analysts are expecting 3 to 4 increases, while Jamie Dimon, JP Morgan Chase CEO thinks 6 or 7 are possible.

What does all this mean? The Consumer Price Index rose7% in December from its year ago level. What caused this? COVID, supply chain issues, the government printing money as if there was an unlimited supply?  Maybe. We need to be aware that no mention is made of our 30 TRILLION-dollar deficit that is growing by the hour. It appears that fiscal irresponsibility is the norm in our Capitol.

Another factor that is being ignored is what is called The Misery Index. This index came about during the Carter administration. During the late 70s, stagflation was rampant. We all know about inflation. I have mentioned price increases in my previous article, but little is mentioned in the media as the effects on middle and lower-income Americans.

A problem that will concern us in the coming months is one in which the Fed stops the repurchase of approximately $60 billion of Treasury and Agency securities each month. This means that the market will have to absorb more than $300 billion of maturing bonds in 2022. This may cause liquidity problems.

What about Crypto? Some investors purchased Bitcoin in 2010 at prices hovering around $100. On January 3 of this year, it rose to a price of nearly $61,000. Wow! A reality check has hit some investors. Those making purchases at that level have seen it fall to a level $36,000, a substantial drop.

As I mentioned previously, the lack of regulation and knowledge on the part of Washington warrants concern.

This week, the Dow Industrials lost 4.6%, the S&P dropped 5.7% and the Nasdaq slumped 7.6%. Is this the start of a 15-20% correction, maybe? The Nasdaq highflyers took some hits the past few weeks. Case in point, Netflix.  On January 3, it was priced at $597 a share. This past Friday, it closed at $397, losing 110 points on Friday — loss of 34% in 3 weeks.

This is the time for investors to evaluate their holdings and determine what their short-term liquidity needs are. Several of us have seen the crash of ’87, the Enron fiasco, the attacks on 9-11 and the severe drop of 2008. Those who stayed the course remained patient and had nice gains in their portfolios.

Remember, there are great companies to invest in. This may be an opportunity to start buying at these levels. I will mention a few that look promising. Nvidia, a chip maker with great earnings potential. I am a big believer that our major oil suppliers will make a transition to cleaner fuel, reducing the carbon footprint. Occidental Petroleum and Exxon Mobil are standouts.

Until next month, buckle up your seat belts!!

Michael E. Russell retired after 40 years working for various Wall Street firms. All recommendations being made here are not guaranteed and may incur a loss of principal. The opinions and investment recommendations expressed in the column are the author’s own. TBR News Media does not endorse any specific investment advice and urges investors to consult with their financial advisor. 

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By Michael Christodoulou

If you’re a certain age, you’ll need to withdraw money from some of your retirement accounts each year. But in 2022, the amount you must take out may be changing more than in other years — and that could affect your retirement income strategy.

Here’s some background: Once you turn 72, you generally must start taking withdrawals, called required minimum distributions, or RMDs, from some of your retirement accounts, such as your traditional IRA and your 401(k) or similar employer-sponsored plan. Each year, your RMDs are determined by your age and account balances. This year, the life expectancy tables used by the IRS are being updated to reflect longer lifespans. This may result in lower annual RMDs than you’d have to take if this adjustment hadn’t been made.

If you’ve started taking RMDs, what does this change mean to you? It can be a positive development for a few reasons:

Potentially lower taxes: Your RMDs are generally taxable at your personal income tax rate, so the lower your RMDs, the lower your tax bill might be.

Possibly longer “lifespan” for retirement accounts: Because your RMDs will be lower, the accounts from which they’re issued — including your traditional IRA and 401(k) — may be able to last longer without becoming depleted. The longer these accounts can stay intact and remain an asset, the better for you.

More flexibility in planning for retirement income: The word “required” in the phrase “required minimum distributions” means exactly what it sounds like — you must take at least that amount. If you withdraw less than your RMD, the amount not withdrawn will be taxed at 50%. So, in one sense, your RMDs take away some of your freedom in managing your retirement income. But now, with the lower RMDs in place, you may regain some of this flexibility. (And keep in mind that you’re always free to withdraw more than the RMDs.)

Of course, if you don’t really need all the money from RMDs, even the lower amount may be an issue for you — as mentioned above, RMDs are generally taxable. However, if you’re 70½ or older, you can transfer up to $100,000 per year from a traditional IRA directly to a qualified charitable organization, and some, or perhaps all, of this money may come from your RMDs. By making this move, you can exclude the RMDs from your taxable income. Before taking this action, though, you’ll want to consult with your tax advisor.

Here are a couple of final points to keep in mind. First, not all your retirement accounts are subject to RMDs­ — you can generally keep your Roth IRA intact for as long as you want. However, your Roth 401(k) is generally subject to RMDs. If you’re still working past 72, though, you may be able to avoid taking RMDs from your current employer’s 401(k) or similar plan, though you’ll still have to take them from your traditional IRA.

Changes to the RMD rules don’t happen too often. By being aware of how these new, lower RMDs can benefit you, and becoming familiar with all aspects of RMDs, you may be able to strengthen your overall retirement income situation.

Michael Christodoulou, ChFC®, AAMS®, CRPC®, CRPS® is a Financial Advisor for Edward Jones in Stony Brook. Member SIPC.

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By Nancy Burner, Esq.

Nancy Burner, Esq.

As we enter a new year, it’s important that there is an understanding of the updated estate and gift taxes on both the federal and state level. 

The Tax Cuts and Jobs Act (the “Act”) increased the federal estate tax exclusion amount for decedents dying in years 2018 to 2025. The exclusion amount is for 2022 is $12.06 million. This means that an individual can leave $12.06 million, and a married couple can leave $24.12 million dollars to their heirs or beneficiaries without paying any federal estate tax. This also means that an individual or married couple can gift this same amount during their lifetime and not incur a federal gift tax. The rate for the federal estate and gift tax remains at 40 percent.

There are no 2022 changes to the rules regarding step-up basis at death. That means that when you die, your heirs’ cost basis in the assets you leave them are reset to the value at your date of death. 

The Portability Election, which allows a surviving spouse to use his or her deceased spouse’s unused federal estate and gift tax exemption, is unchanged for 2022. This means a married couple can use the full $24.12 million exemption before any federal estate tax would be owed. To make a portability election, a federal estate tax return must be timely filed by the executor of the deceased spouse’s estate. 

For 2022 the annual gift tax exclusion has increased to $16,000. This means that an individual can give away $16,000 to any person in a calendar year ($32,000 for a married couple) without having to file a federal gift tax return. 

Despite the large Federal Estate Tax exclusion amount, New York State’s estate tax exemption for 2021 is $5.93 million. As of the date of this article, the exact exclusion amount for 2022 has not been released. It is anticipated to be a little over $6 million in 2022. New York State still does not recognize portability.

New York has a three-year lookback on gifts as of January 16, 2019. However, a gift is not includable if it was made by a resident or nonresident and the gift consists of real or tangible property located outside of New York State; while the decedent was a nonresident; before April 1, 2014; between January 1, 2019, and January 15, 2019.

 Most taxpayers will never pay a federal or New York State estate tax. However, there are many reasons to engage in estate planning. Those reasons include long term care planning, tax basis planning and planning to protect your beneficiaries once they inherit the wealth. 

In addition, since New York State has a separate estate tax regime with a significantly lower exclusion than that of the Federal regime it is still critical to do estate tax planning if you and/or your spouse have an estate that is potentially taxable under the New York State law. 

Nancy Burner, Esq. practices elder law and estate planning from her East Setauket office. Visit www.burnerlaw.com

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LIVE WEBINAR: Burner Law Group, P.C. presents a free webinar titled 2022: The Year of Trusts on Thursday, Jan. 20 at 2:30 p.m. Attorney Britt Burner will discuss the anatomy of trusts, the types of trusts used in Estate and Medicaid planning and how they can benefit you and your loved ones. To RSVP, call 631-941-3434 or email [email protected].

 

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By Michael E. Russell

Michael E. Russell

The S&P rebounded with the biggest weekly increase since February. There have been some encouraging signs, specifically, that the Omicron variant may have less severe symptoms than the Delta variant.

A major concern is growing inflation. Fed Chairman Jerome Powell has radically changed his position on fiscal tightening. This is due to severe price increases that we have seen over the past 6 months.

This week, at the conclusion of the FOMC meeting, we will have a much clearer picture as to what the FED is thinking.

This past week all sectors of the market were higher. Tech and energy were the leaders, while discretionary and utilities did well also. These 2 sectors were up 2.5%

The U.S. Department of Labor reported initial jobless claims fell again. The numbers indicated almost full employment.

CPI data which measures the prices to consumers for goods is used as one measure of inflation.  November numbers indicate a 0.8% on top of a 0.9% advance in October.  These numbers are troublesome in that they are the highest in more than 40 years. For those of us that were around then, think about the years of the administration of Jimmy Carter. As a side note, I remember that the administration sold the Presidential yacht Sequoia for $60,000! I thought that the Treasury was down to its last $60,000.

What to expect for 2022

Wow! So many things to ponder. Putin-Ukraine, China-Taiwan, OPEC, Southern Border Immigration.

The energy sector will be one to focus on. Gas and oil prices are already up 50%.

Supply chain issues will still be in the forefront. Cargo ships are laying at or outside the port of Los Angeles; some have been there for more than 50 days.  A shortage of chips, meat prices up 30%, vegetables up 22%, etc. With all of this inflationary data, the stock market keeps going up. The reason for this is simple. TINA! — There is no alternative.

I am a staunch follower of Jim Cramer.  I closely monitor what the holdings are in his charitable trust. Here are some of my favorites: Abbot Labs, Advanced Micro Devices, Alphabet (Google), Amazon, Apple, Chevron, Costco, Ford and Wells Fargo

Costco is a well run company, opening new facilities in France and China as well as 19 more in the U.S. As I mentioned before, containers destined for Costco are delayed for up to 2 months. If the supply chain issue is resolved, the earnings should be even more robust.

Ford should be looked  at also. Their truck division, specifically the all electric F150, should add to earnings.

To summarize, the stock market should continue to climb with 5-10% corrections interrupting its upward momentum. For those crypto currency followers, I would expect some government regulation to occur.

From my family to yours, we wish all a great holiday and a happy and healthy New Year!

Michael E. Russell retired after 40 years working for various Wall Street firms. All recommendations being made here are not guaranteed and may incur a loss of principal. The opinions and investment recommendations expressed in the column are the author’s own. TBR News Media does not endorse any specific investment advice and urges investors to consult with their financial advisor. 

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By Michael Christodoulou

Michael Christodoulou
Michael Christodoulou

As you know, 2021 was full of challenges. We were still feeling the effects of the COVID-19 pandemic when supply chains shut down and inflation heated up. So, if you’re like many people, you might not be sorry to see the year come to a close. But now it’s time to look ahead to 2022. And on a personal level, you may want to set some New Year’s resolutions. You might resolve to improve your health and diet, and possibly learn some new skills, but why not make some financial resolutions, too?

Here are a few ideas to consider:

Prepare for the unexpected. If you haven’t already created an emergency fund, now may be a good time to start. Ideally, you’d like to have three to six months’ worth of living expenses in this fund, with the money kept in a low-risk, liquid account. (If you’re retired, you may want your emergency fund to contain up to a year’s worth of living expenses.) Once you’ve got this fund established, you may be able to avoid dipping into long-term investments to pay for short-term needs, such as costly home or auto repairs or large medical bills.

Boost your retirement savings. The pandemic caused many us to reevaluate our ability to eventually enjoy the retirement lifestyles we’ve envisioned. In fact, 33% of those planning to retire soon said they started to contribute even more to their retirement savings during the pandemic, according to a study from Age Wave and Edward Jones. This year, if you can afford it, increase your contributions to your IRA and your 401(k) or other employer-sponsored retirement plan.

Reduce your debt load. The less debt you carry, the more money you’ll have available to support your lifestyle today and save and invest for tomorrow. So, this year, resolve to cut down on your existing debts and avoid taking on new ones whenever possible. You can motivate yourself by measuring your progress – at the beginning of 2022, record your total debts and then compare this figure to your debt load at the start of 2023. If the numbers have dropped, you’ll know you were making the right moves.

Don’t overreact to the headlines. A lot can happen during a year. Consider inflation – it shot up in 2021, but it may well subside in 2022. If you changed your investment strategy last year to accommodate the rise in inflation, would you then have to modify it again when prices fall? And inflation is just one event. What about changes in interest rates? How about new legislation coming out of Washington? And don’t forget extreme weather events, such as wildfires and floods. 

Any or all of these occurrences can affect the financial markets in the short term, but it just doesn’t make sense for you to keep changing the way you invest in response to the news of the day. Instead, stick with a strategy that’s appropriate for your goals, risk tolerance and time horizon. You may need to adjust this strategy over time, in response to changes in your own life, but don’t let your decisions be dictated by external events. 

These aren’t the only financial resolutions you can make – but following them may help you develop positive habits that can help you face the future with confidence.

Michael Christodoulou, ChFC®, AAMS®, CRPC®, CRPS® is a Financial Advisor for Edward Jones in Stony Brook. Member SIPC.

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By Nancy Burner, Esq.

Nancy Burner, Esq.

Whether your trust requires its own EIN depends on the type of trust that you have. An Employer Identification Number (“EIN”) is a nine-digit number that the Internal Revenue Service (“IRS”) assigns to identify an entity for tax reporting purposes. An EIN, also known as a federal tax ID number, functions like a social security number.

Generally, revocable trusts do not need an EIN as they are grantor trusts and the trust’s income is reported on the tax return of the trust creator. If you have created a revocable trust, you may revoke the trust at any time and “regain” possession of the trust assets. Accordingly, a revocable trust is an extension of the grantor who created the trust. The grantor pays the income taxes generated by the revocable trust and uses the social security number of its grantor as its tax ID. Couples with a joint revocable trust both hold the power to revoke the trust, either person’s social security number can be used. A separate tax ID is necessary if they do not file taxes jointly.

A revocable trust becomes irrevocable at the grantor’s death. At that time, the trust requires an EIN, as the trust can no longer be associated with the deceased grantor’s social security number. The trust must file its own taxes.

Some lifetime irrevocable trusts are also grantor trusts and therefore taxed to the grantor just like a revocable trust. While it is not required for these trusts to maintain a separate tax ID, it is sometimes a good idea to assign same. We usually assign a federal tax ID when we do Medicaid Asset Protection Trusts. If an irrevocable trust is not classified as a grantor trust, an EIN is required as the trust is considered a “separate entity” from the grantor.

If your trust requires an EIN, an application is submitted to the IRS as soon as possible. The application contains information from the grantor and the trust to answer a series of questions for the IRS. A trustee can either apply online, or mail/fax IRS Form SS-4. If a trustee applies online, the EIN is available in a matter of minutes. If the application is completed by fax or mail, it may take a few weeks to receive the EIN.

Discuss any questions relating to the need of a separate tax ID for your trust with an experienced estate planning attorney or tax advisor. Since the income tax rate for a trust is usually so much higher than that for an individual, the question of how your trust is taxed is an crucial consideration when considering trusts.

Nancy Burner, Esq. practices elder law and estate planning from her East Setauket office. Visit www.burnerlaw.com.

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By Michael E. Russell

Michael E. Russell

To the readers who have missed the Investing 101 column by Ted Kaplan, I have spoken to his lovely wife Elizabeth and will try to follow in his footsteps.

To say that present times are challenging is an understatement. Supply chain issues, higher gas prices at the pump, heating oil and natural gas prices are expected to increase by 60% this season. We have seen shortages at the supermarket and shortages of corks for wine bottles!!! We have housing shortages, federal deficits approaching $25 trillion. We have an economy that is still robust with 10.2 million jobs unfilled.

The 10-year treasury is now at 1.62% and  analysts are expecting an increase to almost 3%. We have not seen rates this high in almost 12 years. A key measure of the bond market as quoted in The New York Times expects inflation to increase by 3% per annum over the next 10 years. It appears that the Federal Reserve will have to take major steps to halt this inflation creep.

In spite of these negative factors, investor’s wealth increased by $9.7 trillion, 23.5% for the year!

That being said, the University of Michigan’s survey stated that this has not trickled down to the average family. Their economic outlook shows the lowest confidence in the economy in more than 10 years. What this says is that employment is up, wages are up, but their income in real terms is down. The Consumer Price Index has jumped 0.9% in October, bringing the year-over-year increase to 6.2%. The most in more than 3 decades!

For many investors, according to Randall Forsyth of Barron’s, the growing concerns about rising prices and interest rates present a problem. In this scenario, bonds may not serve as a buffer in the classic 60/40 equities to bonds portfolio.

Morningstar is looking for a 7.5% gain in equities next year while analysts at Bank of America believe the S&P will be flat.

With all the potential negative news out there, I still believe there are stocks with solid dividends that have potential for growth.

A conservative play is New York Community Bank, NYCB. This bank has over 1200 branches with a dividend of 6%.

I believe that the major energy suppliers are attractive at these levels. Energy demand is high and will continue to be so.  ExxonMobil, XOM, is currently trading at $63. This is 25% below its 5 year high. It is paying a 5.5% dividend.

In closing, let me wish everyone a healthy holiday season.

Michael E. Russell retired after 40 years working for various Wall Street firms. All recommendations being made here are not guaranteed and may incur a loss of principal. The opinions and investment recommendations expressed in the column are the author’s own. TBR News Media does not endorse any specific investment advice and urges investors to consult with their financial advisor. 

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