How the Secure Act 2.0 Impacts Your Retirement

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Weekly Market Commentary
 





Your time is valuable.  That’s why our team stays on top of big legal changes that impact you.  We’re here to sift through the new laws and help you navigate the essential information that applies to your personal financial situation. 

Here’s what’s headed your way in 2023. 

Congress spent the final days of 2022 on new reforms designed to help Americans save more for retirement.

You may hear the changes called SECURE Act 2.0, which is a follow-up to the Setting Every Community Up for Retirement Enhancement (SECURE) Act enacted into law in late 2019.1

What does this mean for you and your retirement?

SECURE 2.0 contains dozens of provisions, but one key change is critical to understand.  

Starting January 1, 2023, the age at which owners of retirement accounts must begin taking required minimum distributions (RMDs) increases to 73 years of age.  One caveat, if you’ve already turned 72, you must continue taking distributions. 

What’s next?  Starting in 2033, RMDs may begin at age 75.2  

(Wondering what are RMDs again?  Click here for a refresher.)

There’s nothing you need to do at this time but know that we’re monitoring your financial plan and preparing for the future. 

SECURE 2.0 was tucked in the $1.7 trillion federal spending bill, so as more people become familiar with the legislation, expect more details to emerge.  In the meantime, if you have any questions, please give us a call.2

Sincerely,
Your Eagle Wealth Team
 
 


Homemade Aussie Bites


It’s a new year and so many of us are looking for a satisfying yet healthy post-holiday snack.  Give these grab-and-go granola muffins a try. 
 

24 servings
 
Ingredients:

  • 2 cups gluten-free oats (separated into 1 cup portions)
  • 1 cup cooked quinoa (gluten-free)
  • 1/4 cup dried apricots
  • 1/4 cup dried cherries
  • 1/2 cup pitted dates
  • 1/4 cup raisins
  • 1/4 cup honey
  • 1/4 cup pistachios
  • 1/2 cup coconut flakes
  • 3 tablespoons unsalted butter, melted
  • 1 teaspoon baking soda

 Directions:

  1. Preheat the oven to 350 degrees F. Spray a mini muffin tin with baking spray (optional)
  2. Use a food processor to process 1 cup of the oats until consistency is like flour. Pour into a medium size bowl. Add the remaining cup of oats and the quinoa. Stir to combine.
  3. No need to clean the food processor. Add the apricots, dried cherries, dates, and raisins. Pulse to break down the fruits into tiny pieces. Going all the way to a smooth paste is fine too. Add the oats and quinoa and back into the food processor.
  4. Add the honey, coconut flakes, pistachios, melted butter, and baking soda. Pulse until the mixture comes together. It will likely form a ball.
  5. Place about 1 tablespoon of the mixture into each mini muffin space. Press down to fill the muffin cavity.
  6. Bake for 12-14 minutes or until the edges start to brown.

Recipe adapted from the abakershouse.com
 


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%.1,2,3
 

Stocks Rally

A new year did little to change the market’s overall tenor as trading remained choppy. The first two trading sessions of a holiday-shortened week saw major averages swing wildly between gains and losses as investors balanced an improving outlook on inflation against concerns of faltering economic growth. Mega-cap technology and other high-growth names endured the brunt of the selling pressure.

Stocks took a decisive turn lower Thursday on strong private payroll growth and declining jobless claims, which heightened fears that the Fed would need to push interest rates higher for longer. However, stocks staged a powerful rally on Friday despite another strong job number, partly due to a deceleration in wage growth.

 

The Labor Market Juggernaut  

The Fed has communicated that it’s looking for weakening in the labor market before it can feel confident higher rates are working to slow inflation. Employment reports last week indicated that the Fed might need to wait a bit longer for evidence of a fading labor market.

Automated Data Processing’s (ADP) monthly employment report showed the private sector adding more jobs (235,000) than consensus estimates (153,000), with strong wage gains over the last year (+7.3%). Initial and continuing jobless claims fell in the last week of December and remained at pre-pandemic levels. Finally, the government’s monthly employment report showed employers adding a healthy 223,000 jobs in December.4,5,6 

THE WEEK AHEAD

KEY ECONOMIC DATA


Thursday:  Consumer Price Index (CPI). Jobless Claims.
Friday:  Consumer Sentiment.

 

The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision.

COMPANIES REPORTING EARNINGS


Friday:  Bank of America Corporation (BAC), JPMorgan Chase & Co. (JPM), Delta Air Lines, Inc. (DAL), UnitedHealth Group Incorporated (UNH), Citigroup, Inc. (C), Wells Fargo & Company (WFC), BlackRock, Inc. (BLK).

Source: Zacks, January 6, 2023
Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice.

Disclosures and Footnotes

Any companies mentioned are for informational purposes only, and this should not be considered a solicitation for the purchase or sale of their securities. Any investment should be consistent with your objectives, time frame, and risk tolerance.

1. The Wall Street Journal, January 6, 2023
2. The Wall Street Journal, January 6, 2023
3. The Wall Street Journal, January 6, 2023
4. CNBC, January 5, 2023
5. The Wall Street Journal, January 5, 2023
6. The Wall Street Journal, January 6, 2023
7. IRS.gov, July 7, 2022
8. Fast Company, August 22, 2012
 

Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost.

The forecasts or forward-looking statements are based on assumptions, may not materialize, and are subject to revision without notice.

The market indexes discussed are unmanaged, and generally, considered representative of their respective markets. Index performance is not indicative of the past performance of a particular investment. Indexes do not incur management fees, costs, and expenses. Individuals cannot directly invest in unmanaged indexes. Past performance does not guarantee future results.

The Dow Jones Industrial Average is an unmanaged index that is generally considered representative of large-capitalization companies on the U.S. stock market. Nasdaq Composite is an index of the common stocks and similar securities listed on the NASDAQ stock market and is considered a broad indicator of the performance of technology and growth companies. The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) and serves as a benchmark of the performance of major international equity markets, as represented by 21 major MSCI indexes from Europe, Australia, and Southeast Asia. The S&P 500 Composite Index is an unmanaged group of securities that are considered to be representative of the stock market in general.

U.S. Treasury Notes are guaranteed by the federal government as to the timely payment of principal and interest. However, if you sell a Treasury Note prior to maturity, it may be worth more or less than the original price paid. Fixed income investments are subject to various risks including changes in interest rates, credit quality, inflation risk, market valuations, prepayments, corporate events, tax ramifications and other factors.

International investments carry additional risks, which include differences in financial reporting standards, currency exchange rates, political risks unique to a specific country, foreign taxes and regulations, and the potential for illiquid markets. These factors may result in greater share price volatility.

Please consult your financial professional for additional information.

This content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG is not affiliated with the named representative, financial professional, Registered Investment Advisor, Broker-Dealer, nor state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and they should not be considered a solicitation for the purchase or sale of any security. Copyright 2022 FMG Suite.