A few months ago, we shared that the Setting Every Community Up for Retirement Enhancement (SECURE) Act 2.0 passed last December.  We briefly mentioned there were changes to RMDs (required minimum distributions) but now the dust has settled and there’s plenty more to unpack.

This bill is loaded with complex modifications from the original 2019 legislation.  So, Eagle Wealth Practicing Partner, Mat Hunnicutt, CFP^® took a deep dive into the changes and broke down the essential information and how it applies to you.   Check out the video here.
 

Run time: 4 minutes, 25 seconds

As always, please reach out if you have questions about the SECURE Act 2.0 or about your personal financial situation.  We’re here to help.

Until next week,
Your Eagle Wealth Team

This IRS Tool Can Save You Time

Did you know you can instantly get an update on the status of your tax refund?  The IRS Where’s My Refund?  tool tracks when your tax return is received, when your refund is approved, and when it’s on the way.  (Keep in mind that while most refunds are issued in less than 21 days for taxpayers who file electronically, certain situations like suspected fraud or missing information can cause delays.)  To use the tool, you’ll need your Social Security Number, your filing status, and the exact refund amount on your return.  Once you enter your information, you’ll get a personalized refund date. 

So, check this item off your mental to-do list and reward yourself with your newfound “free time”.  Maybe you want to walk your dog, hunt for the best chocolate chip cookie near you, or simply do absolutely nothing — you decide how to celebrate completing your taxes.

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, dropped 3.12%.^1,2,3

Stocks Gain Despite Banking Woes

Stock prices gyrated as investors wrestled with banking troubles that appeared to spread to Europe. Worries of financial instability rocked financials and sent bond yields falling. While the rush into Treasuries was expected, the dash into technology stocks was a surprise. Falling yields made the high-growth names more attractive, though investors targeted their buying in high-quality companies that offered defensive characteristics, such as profits, healthy cash flows, and strong balance sheets.

When Switzerland’s central bank provided a lifeline to a troubled Swiss bank, and a group of U.S. banks provided aid to a struggling regional bank, stocks powered higher on Thursday. Banking jitters, however, returned on Friday, closing out a tumultuous week and paring some of the week’s gains.

Reverse Psychology

Less than two weeks ago, Fed Chair Jerome Powell testified interest rates might have to be hiked higher and faster. Since then, two U.S. banks were placed in receivership, sparking worries of financial instability and changing the market’s outlook on future rate hikes. 

The question now is if the Fed will hike short-term rates at all. By Thursday, traders saw an 18.1% probability of no rate increase at the March Fed meeting, which concludes this Wednesday. Just a week ago, it was a 0% chance. Traders also see a 0% chance of a 50 basis point rate increase in March. A week earlier, there was a 68.3% probability. Where the market previously saw little likelihood of a rate cut this year, the probability of a rate cut by July was 63.7% by Thursday.⁴