The 2024 election season will likely be seen as one of the most unpredictable and unprecedented election years in modern American history. Despite how it all unfolded and the geopolitical instability abroad, the market remained resilient, with market volatility well-below average compared to other presidential election years. Now that the election has been decided, where do markets go from here?
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The Federal Reserve’s recent decision to cut interest rates by 50 basis points has sent ripples through financial markets. While this move is intended to stimulate economic growth, it may also have implications for various aspects of your financial life.
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As we enter the traditional wedding month of June, we wanted to explore the range of expenses that can be related to this special event.
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As the presidential race heats up, there is a common question on investors’ minds: “How might the looming White House vote impact the markets?”
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The SECURE Act was hailed as the most substantial retirement legislation passed in over a decade. It contained important changes to Individual Retirement Accounts (IRAs) and other qualified accounts intended to help investors save more and be better prepared for the future.1
The passage of the SECURE Act in 2019 added complexity to how these types of trusts could be set up, resulting in limitations on their usefulness as long-term financial solutions. The SECURE 2.0 Act included a modification to help rectify this situation.
SECURE 2.0 resolves an issue with the SECURE Act and clarifies that, in the case of a special needs trust established for a beneficiary with a disability, the trust may provide for a charitable organization as the remaining beneficiary without triggering the truncated payout period. This change provides a welcome, though limited, enhancement to special needs trusts designed to receive retirement benefits and qualify as see-through trusts under the SECURE Act provision for applicable multi-beneficiary trusts (AMBTs).2,3
While this provision allows most charities to be named as remainder beneficiaries after the death of a disabled or chronically ill beneficiary—without disqualifying that initial disabled beneficiary from stretching the IRA over their lifetime—grantors must be careful to avoid naming disqualified charities such as private foundations as the remainder beneficiary.3
A special needs trust is a legal arrangement that allows a disabled or chronically ill person to receive income without reducing their eligibility for the public assistance disability benefits provided by Social Security, Supplemental Security Income, or Medicaid.
A grantor, such as a parent or guardian, creates a special needs trust and appoints a trustee to oversee the disbursement of assets from the trust to the disabled beneficiary. The trust is designed to supplement the beneficiary’s government benefits but not replace them.
A special needs trust is one strategy for those who want to help someone in need. The trust seeks to manage the risk that the person will lose their eligibility for government programs that require income or assets to remain below a certain limit.5
Many grantors will set up a special needs trust that names a charity as the remaining beneficiary in the event the original beneficiary dies before the funds are depleted. SECURE 2.0 now allows that practice to continue.
It’s important to remember that using a trust involves a complex set of tax rules and regulations. So, we believe it’s critical to work with professionals familiar with the emerging rules and regulations.
People caring for others with disabilities must pay attention to a wide range of considerations so it’s easy to understand if changes in government regulations or tax programs get overlooked.
As financial professionals, we have resources that highlight new rules and regulations so we can help our clients take advantage of emerging opportunities. If you are interested in learning more, please let us know. We are happy to explore whether this new legislation might benefit or complement some of the preparations you have already made for a family member with a disability.
One month into the new year, and one thing’s for certain: The presidential election will continue to grab headlines and grip the nation’s attention for the better part of 2024. How might this impact investors in terms of perceptions and actual market performance? We explore these questions, in the context of historical data, in this week’s Markets in a Minute.
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As we look down the open road of a new year, the question is whether the rally that began in 2023 will continue into this year. While there are still plenty of risks (more on this below), there are good reasons to believe the rally has staying power. Still, investment opportunities may look different this year if, as we expect, the rally broadens to sectors and smaller companies that have lagged.
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Today we so often hear central bankers discuss “long and variable lags” in monetary policy that it almost appears cliché. But it wasn’t always understood that way.
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This year has presented us with a number of challenges that continue to have a meaningful impact on our investments. As 2022 comes to a close, what might be in store for financial markets?
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We’re approaching the end of 2022, which means tax season is right around the corner. To help you prepare for this coming tax season, we’ve put together a year-end tax planning checklist to keep you organized & on track.
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