Sweeping changes for retirement plans were signed into law on December 29, 2022 as part of the Consolidated Appropriations Act. We break down the most important provisions based on whether you are retired or currently working.
Estate planning is the part of the financial planning process where you proactively put a plan in place in the event you become incapacitated or die. Cheery stuff, eh!? Anyone who is interested in making sure their wishes for themselves and their loved ones are carried out should do some level of estate planning.
While it can be tempting to cruise into the holiday season enjoying the spoils of another year gone by don’t forget to do one final check of your financial to-do list to make sure that you are getting everything out of 2022 that you can. Here is a quick list of some end-of-the-year planning tips.
Both the stock and bond markets took a big move down last week dropping the major indices back to their lowest levels of 2022. This latest move was the result of persistently high inflation and the Federal Reserve’s bark and bite which has increased the probability that a recession is on the horizon. Traditional recessions are uncomfortable for everyone, and they are devastating for those directly affected by job loss or business closures but for long-term investors they tend to give way to some of the best market returns. Markets will stabilize before the real economy feels good and before the confirming data comes in. The challenge to long-term investors is to remain resilient, confident and patient so that you are in the game when the market tide turns. This has been a historically challenging year for investors; almost all asset classes have lost money year to date. We recently concluded a deep dive on our client portfolio allocations and holdings; we remain convicted to both.
August reminded us that following one’s emotions is a great way to lose money in the equity markets. Most major equity markets declined in August. 2022 has been a challenging year for a 60% equity / 40% fixed income portfolio with both losing value year-to-date.
When planning for retirement, most Americans think mainly about using tax-advantaged savings vehicles like 401(k) or individual retirement accounts, while failing to consider the triple tax advantages associated with saving for future health care costs using a health savings account, or HSA.