A lot of people are under the impression that tax planning is only for high-wealth individuals. However, like financial planning, just about everyone can benefit from some level of tax planning, whether that means becoming better acquainted with the various tax savings options available, or making proactive decisions based on your current financial situation.

If the Coronavirus’ effect on the markets has taught us anything, it’s that every single person reading this should start the process of creating an emergency fund. This is not just an idea, nor is it a savings account, but rather, it is a separate pool of money to only use in emergencies. So, how do you even start the process of creating an emergency savings fund?

The answer is MAYBE. It depends upon the outcome of a mighty battle that surprisingly is not focused on the medical progress regarding Covid-19. Although the virus is unquestionably the underlying cause of the problem, interest rates, money creation and corporate earnings are the focal points of this conflict. Federal Reserve policy regarding interest rates and QE – the injection of enormous amounts of money into the financial system – are on one side and the sharp decline of corporate earnings are on the other. It’s the Fed and TINA vs. bad corporate earnings.

“DON’T FIGHT THE FED” is an old stock market adage that means the Fed has unlimited money and power over short-term interest rates so don’t be on the opposite side of their current policy. Historically going against the Fed has been hazardous to one’s wealth. In the current situation the Fed has lowered interest rates to near zero and has committed unlimited QE to fight the virus problem. So as we have said before the Fed is all in.