Dear Investor,
The past year and a half have tested all of us, but overall, the economy continues to strengthen, COVID-19 trends are greatly improving, and this still relatively young bull market is alive and well. As the leaves turn colors and begin to fall to the ground, there are many reasons to be thankful.
The economy slowed considerably in the third quarter (as the growth rate of gross domestic product [GDP] slowed to 2.0% from 6.7% in the second quarter), well below the 10% that was expected back in early June. The good news is— this likely isn’t the start of a new trend. The COVID-19 Delta variant slowed the economy considerably in the third quarter, but growth is expected to pick up in the next few quarters. Big purchases were likely pushed back a few months, which helps the growth outlook for the fourth quarter. Additionally, consumer balance sheets remain very healthy, with trillions of dollars in savings and money market accounts. The consumer, which makes up about two-thirds of the economy, is in very good shape heading into 2022.
Required Minimum Distribution Update
As a reminder, Required Minimum Distributions are now required for those age 72 and above, or those who will turn 72 this tax year.
For those of you that are required to take a distribution from your retirement accounts, please schedule a meeting here prior to December 31st to go over your preferences, or contact our office any time at 888-701-7305 as we will need a verbal confirmation to initiate the transfer.
Your options for distributions include:
- Move money to your trust or non-retirement account
- Move money to your checking or savings account
- Qualified charitable contribution which is non-taxable
We will be proactively reaching out in the coming weeks to those who have yet to satisfy their RMD for the 2021 tax year. Rest assured, we will communicate with you if you have an outstanding RMD!
If you would like to set up an automatic RMD distribution each year, please contact us at info@wendellcharles.com
You can read more about RMDs on the IRS's website here.
Holiday Schedule
As the holiday season approaches, please note that our offices will be closed on the following days:
- Thursday, November 25th
- Friday, November 26th
- Friday, December 24th
- Friday, December 31st
Quarterly Board Meetings for your Household Finances
We've found that meeting monthly can be too frequent, while annually isn't often enough.
Going forward, we are suggesting that each household discuss finances on a quarterly basis, similarly to how a business would run. If you would like help or guidance with managing your family's finances, contact us to learn more about our Quarterly Financial Planning Subscriptions.
The SmartVestor program is a directory of investment professionals. Neither Dave Ramsey nor SmartVestor are affiliates of Wendell Charles Financial or LPL Financial.
Registered representatives with, and Securities and advisory services offered through LPL Financial, a registered investment advisor, Member FINRA & SIPC.
The LPL Financial Registered Representatives associated with this website may discuss and/or transact securities business only with residents of the following states: California, Hawaii, New York, Washington, Iowa, Illinois, Indiana, Virginia, Michigan, Minnesota, Maryland, Arizona, Utah, Nevada, Colorado, Oregon, Tennessee, and Texas.