We would like to begin 2024 by looking back at the year we just finished. In many ways, 2023 was an interesting year for the financial markets. The stock market tried to recover from the bear market bottom of 2022, while the Federal Reserve continued to fight inflation with higher interest rates.
It was more than just an active year for the markets. Congress was busy making changes to laws that affect retirement planning. The SECURE Act 2.0, signed at the end of 2022, and the Consolidated Appropriations Act enacted three months later, brought many changes that impact retirement planning. Some changes were effective immediately, and others were delayed into the future.
The following are the seven most popular articles we published in 2023. They cover highlights from the financial year as well as good financial practices, and we hope they continue to inform your decisions about retirement.
Don’t Overlook These Inflation-Related Opportunities
Posted January 17, 2023
2022 will likely be remembered as the year of high inflation. Nearly everything costs more at the beginning of 2023, as every visit to the grocery store or gas station reminded us. Yet the effects of high inflation were not all bad. This article reviews several ways inflation opened opportunities for tax-efficient saving.
Homeownership: The Good, the Bad, and the Expensive
Posted February 21, 2023
A home is both an asset and a liability. Home prices have risen significantly over the past three years, along with the ongoing expenses of homeownership (due to inflation). So, is it better to own or rent? This article explores that question, comparing the costs of home ownership and renting.
Whether You Are Retiring Now or in 10 Years, the Consolidated Appropriations Act Could Help You Save
Posted April 18, 2023
Clocking in at well over 1,000 pages, the 2023 Consolidated Appropriations Act addressed provisions from the SECURE 2.0 Act, offering new ways to save for (and during) retirement. Some changes were immediate, while others were delayed until 2024, 2025, 2026, and even 2033. This article reviews some of the most important provisions affecting retirement planning—and when they became effective.
Ask the Adviser: How do I pay taxes on retirement income?
Posted January 3, 2023
For most people, paying income taxes requires a perspective shift once they retire. When you work, taxes are typically withheld from each paycheck, but retirement income is taxed differently than earned income. Still, many taxpayers must prepay taxes before their filing deadline. This article reviews the various strategies we use to ensure clients stay on top of their tax liability in retirement.
Ask the Adviser: What can I do to prepare for the estate tax exemption being reduced?
Posted July 5, 2023
The Tax Cuts and Jobs Act of 2017 significantly raised the estate tax exemption—that is, the amount of an estate that is exempt from estate taxes. This annual exemption is indexed to inflation and is expected to reach $14 million by 2025. The 2017 law is set to expire at the end of 2026, however, which means the exemption could decrease to $7 million at that time. This article explores strategies to consider for anyone impacted by the upcoming change.
Ask the Adviser: When should I change my asset allocation?
Posted March 7, 2023
Asset allocation is critical to helping investors weather volatility in the stock and bond markets. The ideal mix of stocks and bonds depends on your goals, risk tolerance, risk capacity, and timeframe. This article reviews five questions to ask yourself when determining whether to change your asset allocation.
Understanding RMDs Can Help You Save
Posted March 21, 2023
If you want to design a tax-efficient retirement, learning how and when to take required minimum distributions (RMDs) can be a crucial part of your overall strategy. This article comes in the form of a 10-question quiz designed to test your knowledge of the rules. Answers to the quiz, included at the end, offer explanations and sources for learning more.
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2024 is bound to bring plenty of market swings and legislative changes. Congress is already considering updates to Social Security, Medicare, and retirement accounts. As always, we will keep you informed of how these changes might impact your retirement planning through our longform articles and Ask the Adviser column. If there is ever a topic you would like to read more about, please let us know.
