April 2022

Posted on April 22nd, 2022

Geopolitical tensions and inflation strike:
Markets uniformly down 2022 Q1

from Clint Edgington, CFA
World equity markets’ great 2021 is not continuing in 2022, while fixed income markets’ underwhelming performance last year is.

Inflationary pressures have been in the works for some time.
Beacon Hill Commentary from January 2021:
“It’s difficult to think about how the immense amount of money pumped into our economy by the monetary and fiscal stimulus works; that the money pumped in has to bubble back up somewhere. 
While future real returns (returns after inflation) are paltry or negative for bonds, it’s likely going to weigh on stock returns as well….  My guess is to assume the Fed will likely get its wish of higher inflation. Riding that wave through inflation resistant assets is probably prudent.”

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Secure Act 2.0 Passes in the House
from, Anne Zavaglia, CFP®

Retirement savings legislation is one area lawmakers come together and show bipartisan support. The House passed the Securing a Strong Retirement Act of 2022 by a vote of 414 to 5 at the end of March. Also known as Secure Act 2.0,it aims to take measures from the SECURE Act a step further.

First introduced in 2021, major changes include increasing the RMD age from 72 to 75, requiring automatic enrollment for all 401(k) and 403(b) plans, and increasing catch-up contribution limits.

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April 18 Tax Filing Deadline

This year’s due date to file your 2021 tax return, or request an extension and pay taxes owed, is April 18, 2022.

Making the Most of Your Tax Refund

The IRS issued more than 128 million income tax refunds for the 2020 filing season, putting $355.3 billion into the hands of U.S. consumers.1 For most recipients, such a sudden influx of cash prompts an important question: What’s the best way to use the money?

Last year, 27% of consumers said they planned to spend their refund on everyday expenses, whereas equal numbers (8%) planned to either “splurge” or take a vacation.2 But what about your other options?

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Working While Receiving Social Security Benefits

The COVID-19 recession and the continuing pandemic pushed many older workers into retirement earlier than they had anticipated. A little more than 50% of Americans age 55 and older said they were retired in Q3 2021, up from about 48% two years earlier, before the pandemic.1

For people age 62 and older, retiring from the workforce often means claiming Social Security benefits. But what happens if you decide to go back to work? With the job market heating up, there are opportunities for people of all ages to return to the workforce. Or to look at it another way: What happens if you are working and want to claim Social Security benefits while staying on your job?

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