I hope you are enjoying the new year. In addition to reflection and refreshing goals, those taking distributions from IRAs – including IRAs inherited prior to 2020 – also need to refresh their distribution calculation using updated IRS Tables.
A strong finish to the year but a weak start to 2022. And watch the real interest rates and impact on growth stocks.
You can feel the energy and excitement of youth (and the older youth!) this time of year. Soak it in and enjoy this holiday season – but also remember that energy is present year-round. After the holiday season passes and the grind sets in, continue to recognize this and encourage them accordingly… but without “measuring you by the yardstick of my own years.”
Most markets began drifting lower mid-month but end-of-month news from the Federal Reserve and COVID variants caused a major pullback.
Social Security benefits are rising 5.9% in 2022. Headline CPI was up 6.2% year-over-year. The Fed says it is transitory. Here are some pictures to help put in context
We escaped the scary month of October on the equity front but inflation concerns took away the treats.
Enjoy the raise! With the release of CPI today, the SS benefit increase is now known. If still working the maximum earnings subject to the 6.2% portion of FICA went up by 2.9%.
Social Security and Medicare are important programs providing income and health coverage during retirement. Will the programs be around when you retire? The answer is yes, but benefits may be reduced. Here is an overview in Q&A format.
As the weather starts to cool in September, so too did the markets – except for commodities.
Get ready for a nice raise!
After a mid-month dip, most risky assets resumed their strong run higher. Continued low rates are a good thing… until they aren’t.
The freeze on student loan payments and 0% interest has been extended until early next year. Be sure your budget is ready for next February because the debt is still there.