New Video — Breaking Down the SECURE Act 2.0

Eagle Wealth Management |




A few months ago, we shared that the Setting Every Community Up for Retirement Enhancement (SECURE) Act 2.0 passed last December.  We briefly mentioned there were changes to RMDs (required minimum distributions) but now the dust has settled and there’s plenty more to unpack.

This bill is loaded with complex modifications from the original 2019 legislation.  So, Eagle Wealth Practicing Partner, Mat Hunnicutt, CFP® took a deep dive into the changes and broke down the essential information and how it applies to you.   Check out the video here.
 

Run time: 4 minutes, 25 seconds


As always, please reach out if you have questions about the SECURE Act 2.0 or about your personal financial situation.  We’re here to help.

Until next week,
Your Eagle Wealth Team

 

Have You Gathered Your Tax Documents?


This time of year, the stack of tax paperwork you get in the mail can pile up.  While the countdown to Tax Day (Tuesday, April 18th) inches closer you may be starting to wonder if you’ve received all your tax documents.  If you’re just starting the process check out this Tax Prep Checklist: What to Gather Before Filing.  

And if you have questions about your investment tax documents, take a look at our Tax Season FAQ.  Inside we’ll share how to gather your tax documents online from Charles Schwab and SEI Private Trust Company. 

 

This IRS Tool Can Save You Time


Did you know you can instantly get an update on the status of your tax refund?  The IRS Where’s My Refund?  tool tracks when your tax return is received, when your refund is approved, and when it’s on the way.  (Keep in mind that while most refunds are issued in less than 21 days for taxpayers who file electronically, certain situations like suspected fraud or missing information can cause delays.)  To use the tool, you’ll need your Social Security Number, your filing status, and the exact refund amount on your return.  Once you enter your information, you’ll get a personalized refund date. 

So, check this item off your mental to-do list and reward yourself with your newfound “free time”.  Maybe you want to walk your dog, hunt for the best chocolate chip cookie near you, or simply do absolutely nothing — you decide how to celebrate completing your taxes.

 


The Week on Wall Street

Amid the reverberations of two U.S. banks being taken over by regulators and the spread of uncertainty to European banks, stocks trended higher last week on the strength of the technology sector.

The Dow Jones Industrial Average was flat (-0.15%), while the Standard & Poor’s 500 rose 1.43%. The Nasdaq Composite index picked up 4.41%. The MSCI EAFE index, which tracks developed overseas stock markets, dropped 3.12%.1,2,3

 

Stocks Gain Despite Banking Woes

Stock prices gyrated as investors wrestled with banking troubles that appeared to spread to Europe. Worries of financial instability rocked financials and sent bond yields falling. While the rush into Treasuries was expected, the dash into technology stocks was a surprise. Falling yields made the high-growth names more attractive, though investors targeted their buying in high-quality companies that offered defensive characteristics, such as profits, healthy cash flows, and strong balance sheets.

When Switzerland’s central bank provided a lifeline to a troubled Swiss bank, and a group of U.S. banks provided aid to a struggling regional bank, stocks powered higher on Thursday. Banking jitters, however, returned on Friday, closing out a tumultuous week and paring some of the week’s gains.

 

Reverse Psychology

Less than two weeks ago, Fed Chair Jerome Powell testified interest rates might have to be hiked higher and faster. Since then, two U.S. banks were placed in receivership, sparking worries of financial instability and changing the market’s outlook on future rate hikes. 

The question now is if the Fed will hike short-term rates at all. By Thursday, traders saw an 18.1% probability of no rate increase at the March Fed meeting, which concludes this Wednesday. Just a week ago, it was a 0% chance. Traders also see a 0% chance of a 50 basis point rate increase in March. A week earlier, there was a 68.3% probability. Where the market previously saw little likelihood of a rate cut this year, the probability of a rate cut by July was 63.7% by Thursday.4

THE WEEK AHEAD


KEY ECONOMIC DATA


Tuesday:  Existing Home Sales.
Wednesday:  FOMC Announcement. 
Thursday:  Jobless Claims. New Home Sales.
Friday:  Durable Goods Orders. Purchasing Managers’ Index (PMI) Composite Flash.

 

Source: Econoday, March 17, 2023
The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision.
 


COMPANIES REPORTING EARNINGS


Tuesday:  Nike, Inc. (NKE).
Thursday:  General Mills, Inc. (GIS), Darden Restaurants, Inc. (DRI).

Source: Zacks, March 17, 2023
Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice.

Disclosures and Footnotes

Any companies mentioned are for informational purposes only, and this should not be considered a solicitation for the purchase or sale of their securities. Any investment should be consistent with your objectives, time frame, and risk tolerance.

1. The Wall Street Journal, March 17, 2023
2. The Wall Street Journal, March 17, 2023
3. The Wall Street Journal, March 17, 2023
4. CME FedWatch Tool, March 16, 202

Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost.

The forecasts or forward-looking statements are based on assumptions, may not materialize, and are subject to revision without notice.

The market indexes discussed are unmanaged, and generally, considered representative of their respective markets. Index performance is not indicative of the past performance of a particular investment. Indexes do not incur management fees, costs, and expenses. Individuals cannot directly invest in unmanaged indexes. Past performance does not guarantee future results.

The Dow Jones Industrial Average is an unmanaged index that is generally considered representative of large-capitalization companies on the U.S. stock market. Nasdaq Composite is an index of the common stocks and similar securities listed on the NASDAQ stock market and is considered a broad indicator of the performance of technology and growth companies. The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) and serves as a benchmark of the performance of major international equity markets, as represented by 21 major MSCI indexes from Europe, Australia, and Southeast Asia. The S&P 500 Composite Index is an unmanaged group of securities that are considered to be representative of the stock market in general.

U.S. Treasury Notes are guaranteed by the federal government as to the timely payment of principal and interest. However, if you sell a Treasury Note prior to maturity, it may be worth more or less than the original price paid. Fixed income investments are subject to various risks including changes in interest rates, credit quality, inflation risk, market valuations, prepayments, corporate events, tax ramifications and other factors.

International investments carry additional risks, which include differences in financial reporting standards, currency exchange rates, political risks unique to a specific country, foreign taxes and regulations, and the potential for illiquid markets. These factors may result in greater share price volatility.

Please consult your financial professional for additional information.

This content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG is not affiliated with the named representative, financial professional, Registered Investment Advisor, Broker-Dealer, nor state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and they should not be considered a solicitation for the purchase or sale of any security. Copyright 2022 FMG Suite.