Diversified Asset Management, Inc. - 2022 2nd Quarter Newsletter
This quarter’s newsletter is filled with lots of relevant information for investors. Here is a list of topics included in this newsletter.
Pre-Retirees: Here’s How To Catch Up On Retirement Saving
If you’re a pre-retiree who needs to catch up on retirement saving, or if you don’t need the income from a portion of your IRA or 401(k) accounts and want to leave them to your children, here are important details for planning your future and leaving a legacy to your family: 2022 limits on contributions to federally qualified defined contribution retirement plans.
DC Basics. Defined Contribution (DC) plans are accorded tax advantages by the U.S. Government to encourage Americans to save and invest for retirement. Federally qualified retirement plans include a variety of employer-sponsored 401(k), 403(b), SEP IRA plans, as well as individually sponsored IRAs, SIMPLE IRAs, and Roth IRAs.
Ukraine, Inflation, Stock Losses And Times Of Investment Fear
Turmoil in the world, economic setbacks, and financial volatility can spark financial fear and anxiety in moments like this. This is a reminder that the most important thing you can do is talk about it with a professional.
New IRS Rules Make It Much Easier To Retire Early
Newly released rules in IRS Notice 2022-6 sharply hike distribution amounts permitted from qualified plans before age 59 ½.
The rules, which were released in January 2022, will allow many more individuals to take substantially equal periodic payments (SEPPs) from their IRAs or 401(k)s in their 50s. With The Great Resignation under way, this is one of the most important personal financial planning strategies of 2022.
“Simplification” Of College Financial Aid Requires Attention Now
The Consolidated Appropriations Act (CAA) of 2021, signed into law December 27, 2020, by President Donald J. Trump, was a massive $2.3 trillion spending bill. At 5,593 pages, Wikipedia says, it was also “the longest bill ever passed by Congress.”
An In-Depth Report For Investors On Key Economic Fundamentals
Supply chain problems, often cited in the media as the main cause of inflation, are expected to diminish greatly by the end of the year. The high inflation rate on goods is expected to revert to the normal 2% rate experienced for the decade preceding the pandemic by the end of 2022, and prices on some goods may even be rolled back to pre-pandemic levels. For example, lumber process at Home Depot soared in the Spring of 2021 but reverted to pre-pandemic levels by early Fall.
Rebalancing Helped Since Covid Struck
The 12-month returns for the past six quarters on stocks classified by industry sectors show here illustrate why a portfolio rebalanced once a year by professional is so important to investor success.
During the pandemic, both the Standard & Poor’s tech sector index was a big winner because shopping online was safer health-wise. So was watching Netflix. Google ads suddenly were more attracting more eyeballs. Apple and Microsoft earnings growth was four times earnings growth on the average S&P 500 stock, according to Fritz Meyer, an independent economist. The stock market’s ebullience was totally unexpected, of course.
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Robert J. Pyle, CFP®, CFA, AEP® founded Diversified Asset Management, Inc., in 1996 to provide personalized, comprehensive wealth management services to successful individuals, families, single women, and business owners. His specialty is addressing the complex financial needs of self-employed professionals, corporate executives, and small-business owners. Our disclosure can be found here. The views, opinion, information, and content provided here are solely those of the respective authors, and may not represent the views or opinions of Diversified Asset Management, Inc. Diversified Asset Management, Inc. cannot guarantee the accuracy or currency of any such third party information or content, and does not undertake to verify or update such information or content. Any such information or other content should not be construed as investment, legal, accounting, or tax advice.