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55% of coronavirus patients still have neurological problems three months later | MarketWatch

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Published: Aug. 9, 2020 at 9:11 a.m. ET By Nicole Lyn Pesce

Mounting evidence suggests COVID-19 could cause brain damage in adults and kids

“While lung scarring, heart and kidney damage may result from COVID-19, doctors and researchers are starting to clock the potential long-term impact of the virus on the brain.”

“Many COVID-19 patients have continued showing symptoms for months after the initial infection passed, reported neurological problems such as confusion and had difficulty concentrating (or brain fog), as well as headaches, extreme fatigue, mood changes, insomnia and loss of taste and/or smell.”

“The CDC recently warned that it takes longer to recover from COVID-19 than the 10- to 14-day quarantine window that has been touted throughout the pandemic. In fact, one in five young adults under 34 was not back to their usual health up to three weeks after testing positive. And 35% of surveyed U.S. adults overall had not returned to their normal state of health when interviewed two to three weeks after testing.”

“Now a study of 60 COVID-19 patients published in Lancet this week finds that 55% of them were still displaying such neurological symptoms during follow-up visits three months later. And when doctors compared brain scans of these 60 COVID patients with those of a control group who had not been infected, they found that the brains of the COVID patients showed structural changes that correlated with memory loss and smell loss.”

“The most severe illness and complications of COVID-19 appear to stem from the body’s immune response to the viral invader, as opposed to the virus itself causing damage.”

Read more: https://www.marketwatch.com/story/55-of-coronavirus-patients-still-have-neurological-problems-three-months-later-study-2020-08-07?mod=mw_latestnews&link=sfmw_fb

Income tax rates have increased relative to estate tax rates

Aside

Changes in the federal tax law make it increasingly important to focus on the income tax consequences of estate planning in addition to the estate tax consequences. For estates still subject to federal estate tax, the federal estate tax rate is 40%. These rates must be compared with the top federal income tax rates of 37% on ordinary income and 20% on long-term capital gains and qualified dividends, plus a 3.8% Medicare net investment income tax.

Furthermore, trust income tax rates must be taken into consideration. Trusts are taxed at the highest federal income tax bracket starting at $12,950 in annual trust income. Therefore, when transferring assets to a trust for estate planning purposes, consideration should be given to the potentially negative consequences of higher income taxes. Outdated estate plans may not provide the flexibility required to shift the income tax burden from the trust to individuals in potentially lower tax brackets.

Revisit your estate planning documents and gifting strategies with your attorney and tax professional to determine whether they are still appropriate, considering the Medicare net investment income tax, the current federal estate tax rate, and the increased applicable exclusion amount.

First-Time Investors should Stop Chasing Hot Stocks | TheStreet

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“Your savings rate is…the biggest determinant of how you do financially over time.” Christine Benz, the director of personal finance for investment research firm Morningstar

As the stock markets plunged across the globe in March, a wave of Americans saw an opportunity to start investing. But chasing hot stocks like Apple, Tesla or Amazon, according to financial experts, is akin to making the same old ‘tried and true’ investment mistakes as our forefathers and foremothers.

“Individual stocks are terrible investments for people just starting out,” according to Christine Benz, the director of personal finance for investment research firm Morningstar.

Active investing strategies, such as buying and selling individual stocks on trading platforms like Robinhood, often underperforms over the long-term versus more passive investment strategies, such as investing in low cost index funds that simply follow a stock market index like the S&P 500.

While chasing hot stocks may seem thrilling in the short-term while you’re winning, the keys to financial success and security are incredibly mundane. They include:

  • Creating and following a financial plan;
  • Disciplined and deliberate savings;
  • Investing for the long-term;
  • Time in the market beats timing the market;
  • Investing in market index mutual funds and ETFs; and
  • Diversification and asset allocation.

Read more: https://www.thestreet.com/personal-finance/first-time-investors-stop-chasing-hot-stocks-do-this-instead-nw

Why would anyone own bonds now? There are at least five reasons | MarketWatch

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Published on www.MarketWatch.com: Aug. 4, 2020 at 12:52 p.m. ET

By Ben Carlson

Bonds play a role in an investment portfolio, even amid historically low interest rates

What’s the better performer 2020 year to date — the red-hot Nasdaq 100 index of tech behemoths (Apple, Microsoft, Amazon and Alphabet, etc.) or boring, old long-term bonds?

The Nasdaq 100 ETF QQQ is up an astonishing 25.5%. But the long-term treasury ETF TLT is up 27.3%. Surprisingly, long-term bonds are outperforming tech stocks.

Yet, according to Deutsche Bank, we’re now experiencing the lowest government bond yields in well over 200 years:

Fixed income assets, such as bonds, typically provides regular cash and lower volatility when markets hit turbulence.  And, bond prices often are uncorrelated to equities. Stocks typically do well in periods of economic growth, whereas bonds typically do well in periods of declining economic activity and recessions.  Additionally,  bonds offer downside protection and moderate upside potential as investors tend to seek out the safety of U.S. government and investment-grade corporate bonds amid stock market uncertainty.

Many investors have been saying for years that bond coupon rates and yields can only go up from here, and yet, they’ve done nothing but fall more. And maybe they’ll fall even further and possibly go negative like in Europe and Japan (something we should not rule out in the U.S. if the pandemic worsens).

But eventually short-term movements in rates will wash out and the long-term returns will be based more on the current bond yields. When you consider how paltry those yields are, investors in fixed-income are guaranteed to see minuscule returns from here over the long haul.

So why own bonds at historically low yields? Some reasons:

  1. Bonds hedge stock-market volatility
  2. Bonds can be used to rebalance
  3. Bonds can be used for spending purposes
  4. Bonds protect against deflation
  5. There are other asset class options, but there aren’t many

Although bonds and bond funds have done extremely well in 2020, the bottom-line regarding bonds and bond funds…you can either earn less income from low yielding bonds to better protect your capital or earn more income from dividend paying stocks to accept more risk in your portfolio.

Read the entire opinion article at: https://www.marketwatch.com/story/why-would-anyone-own-bonds-now-there-are-at-least-five-reasons-2020-08-04

References:

  1. https://www.fidelity.com/insights/investing-ideas/bond-funds-portfolio-protection

How Vaccines Work, How They’re Developed and What’s the Latest on One for COVID-19

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By Andrea Klemes, DO, FACE, CMO MDVIP

Since the coronavirus pandemic began in early 2020, we’ve heard a lot about vaccines. There have been promises for quick vaccine development as well as warnings about how long it really takes to develop a safe, effective vaccine.

You’ve also probably heard that a coronavirus vaccine is necessary for us to return to normal. The good news? Surprising progress has been made in creating vaccines for COVID-19. As of now, there are more than 160 vaccines in various stages of development, and many are already into the human testing phase. While the path to success is still uncertain, never in human history have so many scientists and resources been devoted to a single public health crisis.

In July, multiple vaccine manufacturers released preliminary data from phase 1 studies that showed new vaccines are well tolerated and created antibodies. This is good news because it shows success in human subjects; in phase 1 trials, small groups of people receive the vaccine. Three vaccines are either currently in a later phase of development, where they are being tested on thousands of people, or about to enter that phase.

While it’s good news, there’s a long way to go. Here’s a quick primer on how vaccines work, how they’re developed and where we stand developing a vaccine for the current coronavirus outbreak.

How Vaccines Work
Vaccines work by mimicking a virus or bacteria that enters the immune system to build up antibodies. Ironically, vaccines are one of our oldest modern medical treatments. The first effective vaccination — to smallpox — was developed in the late 18th century. Over the last 220 years, scientists have advanced the process and effectiveness for vaccines.

Modern vaccines are simple in concept: create a synthetic compound that behaves like a real live pathogen that doesn’t cause illness. The compound will instead provoke the immune system to create antibodies that teach the body to react quickly and forcefully if the real pathogen invades the body.

Antibodies are an essential part of your immune system. When a pathogen, like bacteria or a virus, invades your body, antibodies bind to the invader and neutralize it, minimizing its damage. Your body came with some antibodies, which were passed from your mother. But most antibodies are developed over time when you’re exposed to pathogens. Vaccines make that natural process happen without infecting you with a real virus or bacteria.

How Vaccines Are Made
There are four basic types of vaccines, but regardless of the type, the process to produce safe and effective vaccines is typically long and difficult. When we’re not in crisis mode, vaccine labs can take anywhere from 10 to 15 years to develop a new vaccine. Of course, when we’re in the throes of a pandemic, labs generally move quicker. For example, during the mumps outbreak, a vaccine was generated in four years – the quickest in U.S. history.

Labs are currently working on an even faster timetable, with hopes that a COVID-19 vaccine might be available by the end of 2020 or by the middle of next year.

The reason it takes so long it that there are five phases of vaccine development:

  • Exploration: In this stage, drug companies investigate different approaches to the vaccine. Historically, this phase lasts between two and four years; however, evolving technology has help quicken the pace of this phase for some vaccines, including COVID-19. Another factor that has helped speed up the exploratory stage of the COVID-19 vaccine is information sharing among scientists; for example, scientists genetically mapped the virus as early as January — something that would have taken much longer 10 or 20 years ago. Also, since COVID-19 is similar to SARS — another coronavirus that caused a six-month pandemic in 2003 — scientists working on the COVID-19 vaccine were able to learn from those working on the SARS vaccine — a significant head start.
  • Preclinical: Once researchers develop a vaccine candidate, it’s tested in cell cultures and animals to see if it triggers an immune response without damaging cells. This takes about a year. And if the vaccine doesn’t work, researchers circle back to the exploration phase. But if it is successful, it moves on the testing phase.
  • Testing: Vaccines are tested through clinical trials – research studies that evaluate the effectiveness and safety of vaccines, medications, medical devices, surgical procedures or behavioral interventions on a group of people. Most trials start with a small group of people (phase 1), and, if they go well, they are expanded to include a moderate size group of people (phase 2) and then a large group (phase 3). Of course, if issues arise during clinical trials, the vaccine reverts to the preclinical phase.
  • Regulatory review: If clinical trials go well, the drug company submits a Biologics License Application and product label for the vaccine. In the United States, applications and labels are sent to the U.S. Food and Drug Administration (FDA). In the U.S., this process takes about 10 months, although in a circumstance such as the COVID-19 pandemic, the process will probably be accelerated.
  • Production: Once the drug manufacturers have been given a green light, they can begin producing the vaccine. In the U.S., the FDA continues overseeing the production of the vaccine.


Where COVID-19 Vaccines Stand
At the end of July there were 23 vaccines in clinical testing and another 137 in pre-clinical development, according to the World Health Organization.

Dr. Erica Saphire, an infectious disease authority and professor at La Jolla Institute for Immunology, recently told medical officials that the earliest a vaccine may be available is January 2021, but it’s more likely that a viable vaccine won’t be available until July 2021 or later. Even when one is available, it will take time to get the vaccine manufactured and distributed. Of course, once a vaccine is available, healthcare workers, first responders and those at the highest risk – nursing home patients, for example — will probably be the first to have access to the vaccine.

Until a vaccine is available, continue to take precautions such as wearing a face mask and social distancing to lower your risk of contracting COVID-19. And continue working closely with your physician to help you control chronic conditions and maintain a strong immune system that can lower your chances of developing serious complications should you catch COVID-19.

Wearing a Facial Mask in Public

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Updated:  August 5, 2020, 10:45 p.m.

Masks are important tools in slowing or stopping the spread of COVID-19.

Wearing masks in public has become a politically charged subject. Even with the rise of COVID-19 infections and deaths across the South and West, Americans continue to debate the need to wear facial coverings in public despite the plethora of scientific evidence showing mask effectiveness in preventing the virus spread.

Despite the universal recommendation to wear masks while out in public from government officials, epidemiologists and medical experts, there stills appears to be a reluctance by the American public to adhere to the guidelines.

Everyday while out in public, even in locations and inside establishments where facial coverings are mandatory, you can observe people out in public refusing to wear masks or wearing them incorrectly and ineffectually.

Periodically, you can observe people with their noses, a critical pathway of the respiratory system, exposed from beneath their masks or their masks worn on their chins.

Whether donning masks incorrectly was being done out of ignorance or political sensibilities, it accomplishes the same end, it does not help reduce the public spread of the coronavirus.

Cloth masks

Cloth masks are at their best when preventing the wearer of the mask from spreading the virus to other people, either when they are already sick, asymptomatic, or even pre-symptomatic.

N95 masks or surgical masks work

According to the CDC, N95 masks and surgical masks are best used in a medical setting, when the amount of virus in the environment is quite a bit higher. The intention of these masks is to reduce the transmission of the virus to the person wearing the mask.

Wearing a mask

Wearing a mask in your neighborhood, in your workplace, or around your community is a way to show you care about those around you. You are essentially saying, “I care about you. I am member of this community. And my intention is to not give this infection to you, even if I don’t know if I’ve got it.”

Washing cloth masks

Cloth masks should be washed every day. It’s helpful to have multiple cloth masks available so you can rotate through your supply while others are washing or drying.

N95 masks or surgical masks are intended to be worn through the course of one day and discarded.

Your Weight, BMI and Health Risk

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Over the past several months, our daily lives have radically changed in ways both large and small. From how we go about our weekly errands, to how we seek healthcare, to how we socialize with our wider communities. Social physical distancing has quickly brought to the forefront just how intrinsic human interaction is to our physical, mental and emotional well-being.

As is always the case in times of crises, we can find hope in the examples of mindfulness, resilience and adaptability shown by people across the country. Regarding our physical health, times of crises reveal the importance of healthy living and habits that promote health and well-being.  Subsequently, it is equally important to conduct a self-assessment of weight and health risk using three key measures:

  • Body mass index (BMI)
  • Waist circumference
  • Risk factors for diseases and conditions associated with obesity

Body Mass Index (BMI)

BMI is a useful measure of overweight and obesity. It is calculated from your height and weight. BMI is an estimate of body fat and a good gauge of your risk for diseases that can occur with more body fat. The higher your BMI, the higher your risk for certain diseases such as heart disease, high blood pressure, type 2 diabetes, gallstones, breathing problems, and certain cancers.

Although BMI can be used for most men and women, it does have some limits:

  • It may overestimate body fat in athletes and others who have a muscular build.
  • It may underestimate body fat in older persons and others who have lost muscle.

Use the BMI Calculator or BMI Tables to estimate your body fat. The BMI score means the following:

BMI

  • Underweight — Below 18.5
  • Normal — 18.5–24.9
  • Overweight — 25.0–29.9
  • Obesity — 30.0 and Above

Waist Circumference

Measuring waist circumference helps screen for possible health risks that come with overweight and obesity. If most of your fat is around your waist rather than at your hips, you’re at a higher risk for heart disease and type 2 diabetes. This risk goes up with a waist size that is greater than 35 inches for women or greater than 40 inches for men. To correctly measure your waist, stand and place a tape measure around your middle, just above your hipbones. Measure your waist just after you breathe out.

Along with being overweight or obese, the following conditions will put you at greater risk for heart disease and other conditions:

Risk Factors

  • High blood pressure (hypertension)
  • High LDL cholesterol (“bad” cholesterol)
  • Low HDL cholesterol (“good” cholesterol)
  • High triglycerides
  • High blood glucose (sugar)
  • Family history of premature heart disease
  • Physical inactivity
  • Cigarette smoking

For people who are considered obese (BMI greater than or equal to 30) or those who are overweight (BMI of 25 to 29.9) and have two or more risk factors, it is recommended that you lose weight. Even a small weight loss (between 5 and 10 percent of your current weight) will help lower your risk of developing diseases associated with obesity. People who are overweight, do not have a high waist measurement, and have fewer than two risk factors may need to prevent further weight gain rather than lose weight.

Talk to your doctor to see whether you are at an increased risk and whether you should lose weight. Your doctor will evaluate your BMI, waist measurement, and other risk factors for heart disease.

The good news is even a small weight loss (between 5 and 10 percent of your current weight) will help lower your risk of developing those diseases.

References:

  1. https://www.nhlbi.nih.gov/health/educational/lose_wt/risk.htm#limitations

Purpose of Saving

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Save for the long term. Saving and investing are a marathon. To power through saving and investing, you need purpose, patience and stamina.

As a general rule, it’s recommended that individuals save and invest 15% of their gross income into a retirement fund or funds like a 401(k), 403(b), IRA, etc. The exact amount depends on the individual, but the sooner individuals begin saving, the better.

Delaying saving until you have more money to contribute could mean less funds in the future, as your investment won’t have as much time to earn compounding interest.

The impact of compounding is greater the earlier you start saving. You’ll earn not only from the money you invest but also from previous earnings. Not to mention, the sooner you work savings into your budget, the easier it will be to live within your means and prioritize savings in the future.

No matter how little, contribute what you can to your selected plan. Any time you see an increase in salary, receive a bonus or pay off a debt, consider increasing your contribution.

“Savings is the money set aside for emergencies and major purchases like a vehicle or a house. Savings is about setting aside money for future use.”

Most Americans don’t feel prepared for retirement. Fully 58% of workers with pay of more than $100,000 indicated they are not saving enough for retirement; that percentage increases to 69% across income levels. Additionally, 18% of people who earn more than $100,000 say they live paycheck to paycheck which makes it difficult to save for retirement, according to a survey of 8,000 workers by global advisory firm Willis Towers Watson. Frankly, the problem is simply that Americans aren’t saving enough.

Experts say there are ways to up your retirement savings, even if you’re feeling financially stretched. First, look for ways to slash your current spending to free up extra cash or consider a side gig to earn more.

Saving money takes effort and discipline

“Do not save what is left after spending but spend what is left after saving.” Warren Buffet

Saving does requires self discipline and desire to save and to not spend more than you earn. That lack of frugality could explain why 58% of Americans have less than $1,000 in savings. But, saving money can be simple when you develop the correct mindset and create positive savings habits. Add, savings can get easier to accomplish when you actually know where your earnings go month after month.

Automate your savings

Automate your savings is about setting aside a portion of your earnings that would go directly into either a bank account or a retirement plan, depending on your financial goals and plan. You can also set automatic transfers from your checking to savings accounts to fund important goals and create automatic bill pay so you never forget to handle a fixed expense. With an automatic transfer of a portion of your earnings, you’re effectively paying yourself first as a means to save money, and at the same time, you will not really miss the cash you’re socking away.

Reasons to Save and Invest

If you require motivation to save money, make a competition or game out of saving money. By making it interesting and competitive, saving should become more deliberate. Thus, a good way to boost your cash reserves is to find someone who’s willing to engage in a savings contest.This will encourage you to save money that will put you on the path of buying yourself more financial security.

Another trick to staying motivated and on track, set small saving goals and milestones that will give you a sense of progress. For example, make a point to celebrate saving and investing accounts reach $10K, $25K and $100K in assets.

You cannot save your way to financial independence and wealth. The only reasons to save are to create an emergency fund, to set aside money for a short term major purchase like a house or vehicle, and to invest it.  Saving money will put you on the path of buying yourself more financial security.

The difference between saving and investing comes down to accumulating money vs. making money grow. Both are important and it essential to understand how to make saving and investing work together. It’s important to put your money to work for you. Put your saved money into investment accounts and never use these accounts for anything, not even an emergency.  This will force you to create an emergency fund.

Avoid debt that doesn’t produce cash flow

“Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn’t … pays it.” Albert Einstein

Make it a personal financial rule that you will never use debt that doesn’t make you money. You should only borrow money to purchase assets that increase your income or create positive cash flow. Financially savvy people use debt to leverage investments and grow cash flows. Financially non-savvy spenders use debt to buy good and services that make others richer.

Debt is one of the big three destroyers wealth and can wreck havoc on one’s ability to achieve financial security and independence. It can quickly get out of hand especially when people habitually spend more than they earn to live a lifestyle they cannot afford. Debt can compound to the detriment of a spender if consumers fail to pay off credit card balances each month.

References:

  1. https://makingcents.navyfederal.org/knowledge-center/retirement-savings/making-a-retirement-plan/planning.html
  2. https://www.marketwatch.com/story/1-in-5-people-making-more-than-100000-a-year-are-still-living-paycheck-to-paycheck-2020-02-11?mod=retirement&link=sfmw_fb
  3. https://www.schwab.com/resource-center/insights/content/youre-saving-should-you-be-investing-too?SM=uro#sf229772500

COVID-19 vs. 1918 Spanish Influenza Pandemic | The Daily Social Distancing Show with Trevor Noah

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One of the lessons experts learned from the 1918 flu pandemic is how quickly the pandemic was forgotten and how fast it disappeared from the political discourse.

The one lesson learned from a pandemic should be to never forget because forgetting doesn’t lead to positive public health outcomes.

There has been several global public health emergencies since 1918 such as SARS in 2003 and the 2009 H1N1pandemic influenza. Yet, these events have caught authorities and the general public by surprise, but not the epidemiologist who have been studying pandemics were not surprised.

Another lesson to remember is that governments have the responsibility to prepare for a pandemic; they have the obligation to invest in public-health systems to protect their citizens from both the threat and the reality of the next pandemic.

References:

  1. https://news.harvard.edu/gazette/story/2020/05/harvard-expert-compares-1918-flu-covid-19/

Companies Start to Think Remote Work Isn’t So Great After All | The Wall Street Journal

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Projects take longer. Collaboration is harder. And training new workers is a struggle. ‘This is not going to be sustainable.’

“Four months ago, employees at many U.S. companies went home and did something incredible: They got their work done, seemingly without missing a beat. Executives were amazed at how well their workers performed remotely, even while juggling child care and the distractions of home.”

“Now, as the work-from-home experiment stretches on, some cracks are starting to emerge.

  • Projects take longer.
  • Training is tougher.
  • Hiring and integrating new employees, more complicated.
  • Workers appear less connected and
  • Younger professionals aren’t developing at the same rate as they would in offices, sitting next to colleagues and absorbing how they do their jobs.”

“Months into a pandemic that rapidly reshaped how companies operate, an increasing number of executives now say that remote work, while necessary for safety much of this year, is not their preferred long-term solution once the coronavirus crisis passes.”

“No CEO should be surprised that the early productivity gains companies witnessed as remote work took hold have peaked and leveled off, he adds, because workers left offices in March armed with laptops and a sense of doom.”

“Few companies expect remote work to go away in the near term, though the evolving thinking among many CEOs reflects a significant shift from the early days of the pandemic.”

Read more: https://www.wsj.com/articles/companies-start-to-think-remote-work-isnt-so-great-after-all-11595603397

Reference:

Cutter, Chip, Companies Start to Think Remote Work Isn’t So Great After All, The Wall Street Journal, July 24, 2020 11:10 am ET