TRUE GRIT
Some of you may already be familiar with the work of psychologist and popular TED talker Angela Duckworth on the concept of grit, which she refers to as “passion and perseverance for very long-term goals;” the dictionary, meanwhile, defines grit more broadly as an ability to display courage and resolve in the face of challenge.
From a pragmatic, “big picture” perspective, this could easily be making reference to the entire process of investing; certainly, this long-term practice we are pursuing together requires a healthy degree of grit from which to draw the courage, conviction, and discipline to prudently grow our clients’ wealth in pursuit of their – of your – most important long-term goals.
Financial literacy is vital for everyone, as it involves having a working knowledge of money management. Without essential financial skills like budgeting, investing, and retirement planning, life can become much more difficult. Financial Literacy Month provides an opportunity to prioritize financial literacy and take advantage of resources to improve your financial situation now and in the future. Here are 6 tips to help you get started.
The Washington State Supreme Court has ruled that the excise tax on capital gains is constitutional and valid. As such, the Department of Revenue will continue collecting the tax which is due April 18, 2023. A filing extension will be granted if the taxpayer files a federal extension and requests a Washington extension prior to the original due date, but the tax must still be paid in full by April 18th (April 15th in future years). Any tax paid after that date is subject to a late payment penalty of up to 29% of the tax due.
The tax law places limits on the dollar amount of contributions to retirement plans and IRAs and the amount of benefits under a pension plan. IRC Section 415 requires the limits to be adjusted annually for cost-of-living increases. The following table presents various limits adjusted for 2023 that you might be subject to.
We welcome the New Year with a new law aimed at changing the way we think about retirement savings. President Biden signed the SECURE 2.0 bill on December 29, 2022, making the retirement package law. The package includes 90+ new provisions, including those designed to broaden access to workplace retirement plans and raise the age when required minimum distributions begin. Here are the top 10 takeaways we want you to be aware of.
Now's the time to compare Medicare plans for 2023. Visit Medicare.gov through December 7 to compare plans and make any changes. If you decide to change plans, your new coverage will start January 1. Why compare plans for next year? Plans change, and your health care needs, or situation may have changed, too. Think about what benefits matter to you and find a Medicare plan that fits your needs.
ARE YOU NOT ENTERTAINED?!?
Forgive me; no sooner had the words hit the page than it occurred to me that “entertained” is almost certainly not the word you would have chosen. Stunned perhaps? Or maybe nauseous would have been a better choice. A twenty-five percent bear market decline in stocks disrupted by sporadic and occasionally quite violent counter-trend rallies; a huge spike in the number of one to two percent swings up or down in the market from one day to the next and some of the largest intra-day reversals ever seen.
When deciding whether to rollover your 401(k) to an IRA, you should weigh the pros and cons to determine the option that protects your assets. A Rollover IRA is an account that allows you to move funds from your prior employer-sponsored retirement plan into an IRA. Carefully consider all your available options, which may include but not be limited to keeping your assets in your former employer's plan; rolling over assets to a new employer's plan; or taking a cash distribution (taxes and possible withdrawal penalties may apply).
BACK WHERE WE STARTED, HERE WE GO ‘ROUND AGAIN
Another year under our belts, another one already storming out of the gate. Before 2022 completely gets away from us, though, conventional wisdom dictates that, as investors, it is our duty to stop and scrutinize the books we only just barely closed this past December 31st. The purpose?
