Economic Updates & Financial Articles
- Weekly Economic Update - 5/29/2023
- Monthly Economic Update - March, 2023
- Quarterly Economic Update - 4Q 2022
Retirement in Sight Newsletter:
- Retirement In Sight - March, 2023
Financial Articles:
- Capital Gains Tax When Selling Your Home - 4/3/2023
- Understanding FDIC Insurance - 3/27/2023
- The Pros and Cons of a NUA Strategy - 2/15/2023
- 2023 Annual Tax Guide - 2/13/2023
- Counteracting Capital Gains with Tax-Loss Harvesting - 2/6/2023
- New Retirement Contribution Limits for 2023 - 10/31/2022
- End-Of-The-Year Money Moves - 2022 - 10/3/2022
- Should We Reconsider What "Retirement" Means? - 10/3/2022
- Managing Probate When Setting Up Your Estate - 10/3/2022
Weekly Economic Update for 5/29/2023
THE WEEK ON WALL STREET
Markets moved in sync last week with perceived movement in debt ceiling talks, weakening early in the week and then surging on news of progress. A solid quarterly report and guidance from a mega-cap technology company helped with enthusiasm.
Overall, the markets were mixed, with the Dow Jones Industrial Average down 1.00%, while the Standard & Poor’s 500 gained 0.32%. The Nasdaq Composite index led, picking up 2.51% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, sank 2.92%.1,2,3
Weekly Economic Update for 5/22/2023
THE WEEK ON WALL STREET
Stocks rallied last week, propelled by growing optimism over reaching a deal on raising the debt ceiling and avoiding a technical debt default by the U.S.
The Dow Jones Industrial Average edged 0.38% higher, while the Standard & Poor’s 500 gained 1.65%. The Nasdaq Composite index advanced 3.04% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, lost 0.47%.1,2,3
Weekly Economic Update for 5/15/2023
Stocks were mixed last week as good inflation news was offset by mounting debt ceiling concerns and rekindled regional banking fears.
The Dow Jones Industrial Average lost 1.11%, while the Standard & Poor’s 500 slipped 0.29%. The Nasdaq Composite index rose 0.40% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, fell 0.67%.1,2,3
Weekly Economic Update for 5/8/2023
THE WEEK ON WALL STREET
A Friday rebound, triggered by a big tech company’s earnings beat and a strong jobs report, shaved much of the week’s accumulated losses.
The Dow Jones Industrial Average fell 1.24%, while the Standard & Poor’s 500 lost 0.80%. The Nasdaq Composite Index was flat (+0.07%) for the week. The MSCI EAFE index, which tracks developed overseas stock markets, slipped 0.62%.1,2,3
Weekly Economic Update for 5/1/2023
THE WEEK ON WALL STREET
Strong earnings from several mega-cap technology companies offset renewed regional banking jitters and weak economic data, leaving stocks higher for the week.
The Dow Jones Industrial Average gained 0.86%, while the Standard & Poor’s 500 added 0.87%. The Nasdaq Composite index rose 1.28% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, lost 0.60%.1,2,3
Weekly Economic Update for 4/24/2023
THE WEEK ON WALL STREET
Stocks remained resilient last week amid mixed earnings reports, hawkish Fed-speak, and lingering recession fears, closing out the five trading days with small losses.
The Dow Jones Industrial Average slipped 0.23%, while the Standard & Poor’s 500 lost 0.10%. The Nasdaq Composite index fell 0.42% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, added 0.10%.1,2,3
Weekly Economic Update for 4/17/2023
THE WEEK ON WALL STREET
The combination of an improving inflation outlook resulted in a week of uneven, albeit positive, performance, in which cyclical and financial stocks rallied while technology, real estate, and utilities lagged.
The Dow Jones Industrial Average gained 1.20%, while the Standard & Poor’s 500 rose 0.79%. The Nasdaq Composite index increased 0.29% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, added 2.08%.1,2,3
Weekly Economic Update for 4/10/2023
THE WEEK ON WALL STREET
Stocks ended a shortened week of trading mixed amid revived recession fears on Wall Street triggered by weak economic data. The Dow Jones Industrial Average gained 0.63%, while the Standard & Poor’s 500 slipped 0.10%. The Nasdaq Composite index lost 1.10% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, advanced +0.37%.1,2,3
Weekly Economic Update for 4/3/2023
THE WEEK ON WALL STREET
Stocks rallied last week on receding fears of a widening banking crisis, led by resurging investor interest in technology and communication services names.
The Dow Jones Industrial Average gained 3.22%, while the Standard & Poor’s 500 added 3.48%. The Nasdaq Composite index rose 3.37% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, advanced by 3.34%.1,2,3
Capital Gains Tax When Selling Your Home
When you sell your home, you may be liable for capital gains tax if it has appreciated in value over your ownership period.
Weekly Economic Update for 3/27/2023
THE WEEK ON WALL STREET
Modest gains in major market indices masked sharp volatility amid the uncertainty arising from mixed messages emanating from public officials and revived banking fears.
The Dow Jones Industrial Average gained 1.18%, while the Standard & Poor’s 500 added 1.39%. The Nasdaq Composite index rose 1.66% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, advanced by 3.29%.1,2,3
Understanding FDIC Insurance
What Is FDIC Insurance?
The FDIC is an independent government agency that helps protect bank depositors from the loss of uninsured deposits at an FDIC-insured bank. This organization oversees FDIC deposit insurance, which provides some protection to bank customers if an FDIC-insured institution fails. In other words, FDIC insures your money at the bank up to certain limits.
A bank failure is an unlikely situation, but it does happen. When this occurs, the FDIC provides depositors with an insurance payout. That can be up to $250,000 per depositor per institution for each account ownership category. When two banks failed in Q1 2023, regulators took steps above and beyond the $250,000 limit to protect deposits.1,2
Remember that if your bank is an FDIC-insured institution, you don't need to apply for FDIC insurance because coverage is automatic.
Weekly Economic Update for 3/20/2023
THE WEEK ON WALL STREET
Amid the reverberations of two U.S. banks being taken over by regulators and the spread of uncertainty to European banks, stocks trended higher last week on the strength of the technology sector.
The Dow Jones Industrial Average was flat (-0.15%), while the Standard & Poor’s 500 rose 1.43%. The Nasdaq Composite index picked up 4.41%. The MSCI EAFE index, which tracks developed overseas stock markets, was also flat (+0.05%).1,2,3
Weekly Economic Update for 3/13/2023
THE WEEK ON WALL STREET
Stocks tumbled last week as investors reconsidered their interest rate expectations after Fed Chair Powell’s Congressional testimony that rates may need to go higher. Stocks also were rattled when a west coast bank was placed into receivership on Friday following a run on deposits.
The Dow Jones Industrial Average dropped 4.44%, while the Standard & Poor’s 500 lost 4.55%. The Nasdaq Composite index fell 4.71% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, slipped 0.37%.1,2,3
Retirement In Sight for March, 2023
HOW LONG DO YOU KEEP YOUR RECORDS?
When it comes to keeping records, there tend to be Oscars and Felixes, like in Neil Simon’s The Odd Couple. The “Oscar” type tends to have papers everywhere, disorganized and perhaps just stacked in a shoebox or paper bag. It’s good to hold on to things, but when you need something, it’s also nice to have it right where you can find it for quick reference. For that reason, it’s nice to be a “Felix” about your records and keep them carefully organized. This also means destroying and throwing out what you no longer need.
The I.R.S. acknowledges that, in some cases, it’s okay to shred your tax returns after three years. Your tax professionals may have a different prescription for you, however, based on their understanding of your financial life. You might want to ask them what they suggested when you see them this year.
Monthly Economic Update for March, 2023
U.S. Markets
Stock prices stumbled in February owing to growing worries that the Fed would maintain its tight monetary posture in the face of continuing inflation.
For the month, the Dow Jones Industrial Average lost 4.19 percent, whereas the Standard & Poor’s 500 Index fell 2.61 percent. The Nasdaq Composite, up nearly 11 percent in January, dipped 1.11 percent.1
Weekly Economic Update for 3/6/2023
THE WEEK ON WALL STREET
A late-week surge, triggered by reassuring Fed-speak, propelled stocks higher last week.
The Dow Jones Industrial Average gained 1.75%, while the Standard & Poor’s 500 advanced 1.90%. The Nasdaq Composite index picked up 2.58% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, added 0.81%.1,2,3
Weekly Economic Update for 2/27/2023
THE WEEK ON WALL STREET
Concerns over a firmer monetary policy were heightened by fresh economic data, touching off a climb in bond yields and a slide in stock prices last week.
The Dow Jones Industrial Average skidded 2.99%, while the Standard & Poor’s 500 dipped 2.67%. The Nasdaq Composite index sagged 3.33% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, retreated 1.23%.1,2,3
Weekly Economic Update for 2/20/2023
THE WEEK ON WALL STREET
Growing concerns about further interest rate hikes, prompted by fresh economic data, reversed early-week gains and left stocks mixed for the week.
The Dow Jones Industrial Average slipped 0.13%, while the Standard & Poor’s 500 fell 0.28%. The Nasdaq Composite index advanced 0.59% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, gained 0.52%.1,2,3
The Pros and Cons of a NUA Strategy
Employer-issued stocks can be one attractive benefit an employer can offer. But while it has its benefits, it's natural to wonder what happens if you leave that job.
That's where net unrealized appreciation (NUA) strategies can sometimes be helpful. An understanding of NUA strategies can help you determine what to do with those company stocks to potentially manage your tax bill.
Remember, this article is for informational purposes only and is not a replacement for real-life advice. Make sure to consult your tax professional before modifying your approach with any unrealized appreciation issues.
Once your tax professional has provided guidance, your financial professional can offer insights regarding your overall asset allocation if you decide to realize any gains. Asset allocation is an approach to help manage investment risk. Asset allocation does not guarantee against investment loss.
Weekly Economic Update for 2/13/2023
THE WEEK ON WALL STREET
Stocks drifted lower as a week of mixed earnings reports and resurgent worries over Fed monetary policy dragged on investor sentiment.
The Dow Jones Industrial Average slipped 0.17%, while the Standard & Poor’s 500 declined 1.11%. The Nasdaq Composite index lost 2.41%. The MSCI EAFE index, which tracks developed overseas stock markets, dipped 0.30%.1,2,3
2023 Annual Tax Guide
Understand Where Your Federal Tax Dollars Go
In this guide, we will explore where your tax dollars go, some of the ways tax filing may look different, and what you can do to prepare. Keep in mind, this guide is for informational purposes only and is not a replacement for real-life advice, so make sure to consult your tax, legal, and accounting professionals before modifying your strategy.
Before we dive into the upcoming tax brackets and what you can do to prepare for the upcoming tax season, it can be helpful to understand precisely how the government allocates your federal tax dollars.
In 2022, the federal government spent $6.27 trillion, which equals 25% of the nation’s gross domestic product. Further examination reveals that three significant areas of spending made up the majority of the budget.1
Weekly Economic Update for 2/6/2023
THE WEEK ON WALL STREET
Stocks were mixed last week following better-than-expected corporate reports and increasing optimism over a slowdown in interest rates.
The Dow Jones Industrial Average edged lower, slipping -0.15%. The Standard & Poor’s 500 rose 1.62% while the Nasdaq Composite index led, picking up 3.31%. The MSCI EAFE index, which tracks developed overseas stock markets, increased by 1.16%.1,2,3
Counteracting Capital Gains with Tax-Loss Harvesting
Tax-loss harvesting means taking capital losses (selling securities for less than what you initially paid for them) to offset any capital gains you may have.
While this doesn't get rid of your losses, it can help you manage your tax liability.
Keep in mind that this article is for informational purposes only and is not a replacement for real-life advice, so make sure to consult your tax or accounting professionals before implementing any tax strategy that may involve tax-loss harvesting.
Monthly Economic Update for February, 2023
U.S. Markets
Stocks rallied in January as moderating inflation, a better-than-feared earnings season, and healthy economic data put investors in a buying mood.
For the month, the Dow Jones Industrial Average rose by 2.83 percent, the Standard & Poor’s 500 Index jumped by 6.18 percent, and the Nasdaq Composite vaulted by 10.68 percent.1
Weekly Economic Update for 1/30/2023
THE WEEK ON WALL STREET
Stocks added to their early 2023 gains amid a busy stream of mixed corporate earnings results and conflicting economic data.
The Dow Jones Industrial Average gained 1.81%, while the Standard & Poor’s 500 added 2.47%. The Nasdaq Composite index rose 4.32% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, increased by 1.14%.1,2,3
Weekly Economic Update for 1/23/2023
THE WEEK ON WALL STREET
Stocks showed mixed results last week as recession fears resurfaced in response to weak economic data and a tepid start to a new corporate earnings season.
The Dow Jones Industrial Average skidded 2.70%, while the Standard & Poor’s 500 declined 0.66%. But the Nasdaq Composite index gained 0.55% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, lost 0.50%.1,2,3
Weekly Economic Update for 1/16/2023
THE WEEK ON WALL STREET
Stocks rallied last week thanks to fresh confirmation of inflation’s cooling trend and growing optimism that an inflation slowdown may provide the Fed with space to ease up on future rate hikes.
The Dow Jones Industrial Average gained 2.00%, while the Standard & Poor’s 500 advanced 2.67%. The Nasdaq Composite index surged 4.82% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, jumped 3.32%.1,2,3
Weekly Economic Update for 1/9/2023
THE WEEK ON WALL STREET
A strong Friday rally triggered by fresh signs of moderating inflation pushed stocks into positive territory to begin the new year.
The Dow Jones Industrial Average rose 1.46%, while the Standard & Poor’s 500 advanced 1.45%. The Nasdaq Composite index gained 0.98%. The MSCI EAFE index, which tracks developed overseas stock markets, added 0.90% higher.1,2,3
Retirement In Sight for January, 2023
SHOULD YOU SAVE FOR RETIREMENT, COLLEGE, OR BOTH?
As some Gen Xers watch their kids grow up, they wonder if college should take priority over retirement. If you happen to be thinking along these lines, there are reasons you may want to think twice.
More than 90% of American families see college as “an investment in their future.” However, you don’t necessarily have to choose between your retirement strategy or helping your kids finance college.1
There is no “financial aid” program for retirement. There are no “retirement loans.” As important as your children are to you, they have their whole financial lives ahead of them. If you have to focus on either providing for yourself or for your children, it’s wise to put yourself first.
Monthly Economic Update January, 2023
U.S. Markets
Stocks were under pressure in December on renewed recession fears and concerns that the Fed may keep rates higher than markets anticipated.
The Dow Jones Industrial Average lost 4.17 percent for the month, while the Standard & Poor’s 500 Index fell 5.90 percent. The tech-heavy Nasdaq composite dropped 8.73 percent.1
Quarterly Economic Update for 4Q 2022
THE QUARTER IN BRIEF
The fourth quarter managed to repair some of the damage inflicted on stocks since the beginning of the year. Investor sentiment for much of the quarter rose due to a stronger-than-expected earnings season, a deceleration in inflation, and an increasing conviction that the Fed may begin scaling back on the pace of interest rate hikes. The mood, however, soured in December as recession fears were rekindled by continuing Fed hawkishness and weak economic data, sending stocks lower and paring some of the quarter's accumulated gains.
October began on a volatile note, as stocks soared in response to Britain's incoming prime minister's reversal of an earlier decision to cut taxes, a decision that had sent global markets lower at the end of September. This was soon followed by an extraordinary day in U.S. markets. An above-consensus inflation report sent stocks tumbling in early trading to levels not seen since 2020 before mounting a massive turnaround that by day's end had witnessed the Dow Jones Industrial Average surging 1,500 points from its midday low.1
Weekly Economic Update for 1/3/2023
THE WEEK ON WALL STREET
In a holiday-shortened week, erratic trading left stocks marginally down for the week.
The Dow Jones Industrial Average lost 0.17%, while the Standard & Poor’s 500 slipped 0.14%. The Nasdaq Composite index fell 0.30%. The MSCI EAFE index, which tracks developed overseas stock markets, edged 0.61% higher.1,2,3
Weekly Economic Update for 12/19/2022
THE WEEK ON WALL STREET
Hawkish comments by the Fed and weak economic data heightened investors’ recession concerns and sent stocks lower last week.
The Dow Jones Industrial Average lost 1.66%, while the Standard & Poor’s 500 retreated 2.08%. The Nasdaq Composite index declined 2.72% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, slipped 0.88%.1,2,3
Weekly Economic Update for 12/12/2022
THE WEEK ON WALL STREET
Recession fears and concerns that the Fed may consider a longer rate-hike cycle sent stocks lower for the week.
The Dow Jones Industrial Average dropped 2.77%, while the Standard & Poor’s 500 fell 3.37%. The Nasdaq Composite index lost 3.99% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, dipped 1.09%.1,2,3
Weekly Economic Update for 12/5/2022
THE WEEK ON WALL STREET
Stocks ended higher last week as investors navigated the crosscurrents of a potential easing in future rate hikes and continued strength in the labor market.
The Dow Jones Industrial Average edged 0.24% higher, while the Standard & Poor’s 500 gained 1.13%. The Nasdaq Composite index improved by 2.09% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, rose 1.68%.1,2,3
Monthly Economic Update for December, 2022
U.S. Markets
Stocks surged higher in November on rising optimism that the Fed would slow down future interest rate hikes.
The Dow Jones Industrial Average gained 5.67 percent, while the Standard & Poor’s 500 Index picked up 5.38 percent. The tech-heavy Nasdaq Composite rose 4.37 percent.1
Weekly Economic Update for 11/28/2022
THE WEEK ON WALL STREET
Growing optimism that the Fed may be ready to ease future interest rate hikes sent stocks higher in a quiet trading week.
The Dow Jones Industrial Average gained 1.78%, while the Standard & Poor’s 500 added 1.53%. The Nasdaq Composite index improved 0.72% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, advanced 2.33%.1,2,3
Weekly Economic Update for 11/21/2022
THE WEEK ON WALL STREET
The stock market edged lower last week as it digested a crosscurrent of conflicting economic data and contrasting comments from Fed officials.
The Dow Jones Industrial Average was flat (-0.01%), while the Standard & Poor’s 500 declined by 0.69%. The Nasdaq Composite index lost 1.57% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, fell 0.88%.1,2,3
Retirement In Sight for November, 2022
DO YOU UNDERSTAND THE SOCIAL SECURITY "EARNINGS PENALTY?"
If you keep working or return to work after receiving Social Security benefits, your benefits may seem reduced, perhaps if your annual income exceeds a certain threshold. This phenomenon is known as the Social Security "earnings penalty."
The "earnings penalty" can potentially affect you if you are younger than Social Security's full retirement age (FRA), which ranges between 66 and 67 for baby boomers.
Before you reach your FRA, Social Security will deduct $1 from your benefit payments for every $2 you earn above its yearly earnings limit. For 2022, that limit is $19,560. Similarly, Social Security deducts $1 in benefits for every $3 you earn above another threshold in the year you reach your FRA. For 2022, this limit is $51,960. (Both of these limits get adjusted for inflation.)
Weekly Economic Update for 11/14/2022
THE WEEK ON WALL STREET
A cooling inflation number ignited a powerful rally on Thursday, sending stocks to strong gains for the week.
The Dow Jones Industrial Average gained 4.15%, while the Standard & Poor’s 500 added 5.90%. The Nasdaq Composite index rose 8.10% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, picked up 5.72%.1,2,3
Weekly Economic Update for 11/7/2022
THE WEEK ON WALL STREET
Hawkish comments by Fed Chair Jerome Powell, following the announcement of another 75 basis points interest rate hike last week, cast a pall over financial markets, sending yields higher and stocks lower.
The Dow Jones Industrial Average slipped 1.40%, while the Standard & Poor’s 500 declined 3.35%. The Nasdaq Composite index lost 5.65% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, fell 1.04%.1,2,3
Monthly Economic Update for November, 2022
U.S. Markets
Stocks posted big gains in October, propelled by better-than-expected corporate reports.
The Dow Jones Industrial Average led, gaining 13.95 percent. The Standard & Poor’s 500 Index tacked on 7.99 percent, while the Nasdaq Composite added 3.90 percent.1
Weekly Economic Update for 10/31/2022
THE WEEK ON WALL STREET
Stocks overcame poor earnings results from some of America’s largest companies to post gains last week as investors cheered positive earnings surprises, easing inflation and a rebound in economic growth.
The Dow Jones Industrial Average rose 5.72%, while the Standard & Poor’s 500 advanced 3.95%. The Nasdaq Composite index added 2.24% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, gained 4.89%.1,2,3
New Retirement Contribution Limits for 2023
The Internal Revenue Service has released new limits for the coming year. After months of high inflation and financial uncertainty, some of these cost-of-living-based adjustments have reached near-record levels.
Individual Retirement Accounts (IRAs). IRA contribution limits are up $500 in 2023 to $6,500. Catch-up contributions for those over age 50 remain at $1,000, bringing the total limit to $7,500.
Roth IRAs. The income phase-out range for Roth IRA contributions increases to $138,000-$153,000 for single filers and heads of household, a $9,000 increase. For married couples filing jointly, phase-out will be $218,000 to $228,000, a $14,000 increase. Married individuals filing separately see their phase-out range remain at $0-10,000.
Weekly Economic Update for 10/24/2022
THE WEEK ON WALL STREET
A positive start to a new earnings season and late-week hopes for a near-term easing in Fed rate hikes lifted investors’ spirits and powered stocks to gains for the week.
The Dow Jones Industrial Average jumped 4.89%, while the Standard & Poor’s 500 advanced 4.74%. The Nasdaq Composite index added 5.22% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, gained 1.66%.1,2,3
Weekly Economic Update for 10/17/2022
THE WEEK ON WALL STREET
Stocks were mixed last week amid wide intra- and inter-day price swings, as technology shares bore the brunt of the downdraft.
The Dow Jones Industrial Average gained 1.15% for the week. Meanwhile, the Standard & Poor’s 500 slipped 1.55%, and the Nasdaq Composite index dropped 3.11%. The MSCI EAFE index, which tracks developed overseas stock markets, lost 2.48%.1,2,3
Weekly Economic Update for 10/10/2022
THE WEEK ON WALL STREET
A powerful two-day stock rebound cemented a positive week for investors as a new trading month began.
The Dow Jones Industrial Average rose 1.99%, while the Standard & Poor’s 500 added 1.51%. The Nasdaq Composite index increased 0.73% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, gained 3.42%.1,2,3
Quarterly Economic Update for Q3 2022
U.S. Markets
Stocks took investors on a roller coaster ride in the third quarter, with an early summer rally coming to an abrupt end after the Fed pledged to continue fighting inflation.
The Dow Jones Industrial Average dropped 6.65 percent during the quarter. The Standard & Poor’s (S&P) 500 Index fell 5.28 percent, while the Nasdaq Composite lost 4.11 percent.1
Monthly Economic Update for October, 2022
U.S. Markets
Stocks trended lower in September as investors retreated in the face of rising bond yields and growing recession fears.
The Dow Jones Industrial Average dropped 8.84 percent, while the Standard & Poor’s 500 Index fell 7.95 percent. The Nasdaq Composite lost 9.13 percent.1
Weekly Economic Update for 10/3/2022
THE WEEK ON WALL STREET
Rising recession fears and uncertainty in the bond and currency markets sent stocks to new 2022 lows last week.
The Dow Jones Industrial Average declined 2.92%, while the Standard & Poor’s 500 slumped 2.91%. The Nasdaq Composite index fell 2.69%. The MSCI EAFE index, which tracks developed overseas stock markets, lost 1.94%.1,2,3
End-Of-The-Year Money Moves - 2022
What has changed for you in 2022? This year has been as complicated as learning a new dance for some. Did you start a new job or leave a job behind? That's one step. Did you remarry? There's another step. Did you retire? That's practically a pirouette. If notable changes occurred in your personal or professional life, you might want to review your finances before this year ends and 2023 begins. Proving that you have all the right moves in 2022 might put you in a better position to tango with 2023.
Even if your 2022 has been relatively uneventful, the end of the year is still an excellent time to get cracking and see where you can manage your overall personal finances.
Keep in mind that this article is for informational purposes and is not a replacement for real-life advice. Please consult your tax, legal, and accounting professionals before modifying your tax strategy.
Should We Reconsider What "Retirement" Means?
An executive transitions into a consulting role at age 62 and stops working altogether at 65; then, he becomes a buyer for a church network at 69. A corporate IT professional concludes her career at age 58; she serves as a city council member in her sixties, then opens an art studio at 70.
Are these people retired? Not by the old definition of the word. Our definition of “retirement” is changing. Retirement is now a time of activity and opportunity.
Generations ago, Americans never retired – at least not voluntarily. American life was either agrarian or industrialized and formalized retirement was not something they would have recognized. Their “social security” was their children.
Managing Probate When Setting Up Your Estate
The probate process can be expensive for some estates. Settling an estate through probate can cost you both time and money. It could take up to a year for the estate to be settled, plus attorney’s fees, appraiser’s fees, and court costs may eat up as much as 5% of a decedent’s assets. Probating an estate valued at $400,000 could cost as much as $20,000.1
What can you do to help your heirs have as smooth of a transition process as possible? There are a few steps that may help you along the way:
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