Private Client Newsletter
October is now behind us and it has delivered on its track record as a historically favorable month for stocks, offering some respite for investors as major equity indices rose for the month. The downside pressure on equities had gotten a bit overdone after investor pessimism during September reached lows not witnessed in quite a few years. From a contrarian perspective, extreme pessimism can often be followed by a market bounce. Such a reaction can serve as a reminder not to react too quickly to near-term market developments. Gains in October helped deliver that message again, though they have only slightly offset this year’s losses during what has been a very tough environment for capital markets.
It's Long-Term Care Awareness Month
It's expected that 56% of those age 65 and older may require Long-Term Care with an average lifetime cost of $298K according to a U.S. Department of Health and Human Services and Urban Institute, February 2021 release. Click here to read the full report.
- Make sure your estate planning professional takes a potential LTC need into consideration
- Consider LTC or hybrid LTC insurance as a strategy for mitigating SOME of the costs.
- Schedule a meeting with your advisor for us to analyze your exposure and relative resistance.
Financial Planning Tip of the Month
- The limit on deferrals to 401(k) plans, 403(b) plans, most 457(b) plans is increased to $22,500 from $20,500.
- The annual additions limit for defined contribution plans is increased from $61,000 to $66,000 and the compensation limit is increased from $305,000 to $330,000.
- 2023 IRA maximum contributions will increase to $6,500 for those under 50, and $7,500 for those 50 and older.
Join the 20% of Wendell Charles clients who are currently on track to maximize their IRA contributions for the 2022 Tax year! Reach out to us to make a contribution or update your periodic today!