Planning Ahead | Tax Documents | Game Recommendation

Planning in the New Year: As you continue to consider your financial goals for 2022 and beyond, keep in mind that these are going to be personal and certainly vary depending on individual values and plans. Oftentimes we want an easy path to follow to produce the results we’re aiming for. But successful results require some hard work for you and your advisor. Why? Because success and outcomes and values are so personal. This simple graphic represents it well:

Reach out to your advisor today if you have developing thoughts or goals on which you’d like input. We are eager to help you move forward on this front.

Economic Headlines:

• Nasdaq falls deeper into correction territory: U.S. stock indexes dropped sharply on Thursday, January 20 extending a sell-off that has dragged the tech-heavy Nasdaq into correction territory. Wall Street started out the day strong but the rally quickly fizzled, and the Nasdaq closed down by 1.3 percent, putting it nearly 12 percent below the record high it set in November. The Nasdaq has been struggling as concerns about rising interest rates have dragged down technology and other growth stocks. (Reuters, CNBC)
• Mortgage Rates: Mortgage rates jumped to their highest level in 22 months last week as Treasury yields rose. The rate on the 30-year fixed mortgage rose from 3.45 percent last week to 3.56 percent. Homebuyers rushed to lock in rates before they went any higher, with mortgage applications to purchase homes increasing by 8 percent last week. (Yahoo Finance)
• Fixing Supply Chain Issues: Intel plans to spend $20 billion on a new chip-making complex in Ohio, the Wall Street Journal and the New York Times reported. The facility, to be built near Columbus, would boost Intel’s push to expand its chip-making business. The White House said that the company’s investment would help the United States meet its goal of increasing domestic production of computer chips as a shortage of semiconductors, largely manufactured in Taiwan, hampers production of automobiles and other products. “The COVID-19 pandemic shined a spotlight on the fragility in the global semiconductor supply chain,” the White House said.

Tax Documents: Many of you are already working to collect what is needed to complete your 2021 taxes. As you do, please be aware that TD is in the process of sending out theirs. Some of you may have already received your 1099-R. For those of you who made a Qualified Charitable Distribution (QCD) in 2021, be aware that TD will include your full distribution amount on the 1099-R, including any QCD. You can let your CPA know of any QCD you made. If you need documentation specifically related to your QCD, please reach out to us. Otherwise, you’ll be able to download your tax documents from your online portal with TD and copies will come in the mail in the next few weeks.

Retirement Planning:  Are you or a friend retiring in 2022?  If so, make sure to max out 401k contributions before the last paycheck. You may need to edit your percentage contribution or edit to a flat dollar amount for each pay period to maximize your 2022 tax benefit. If you are over 50, you can contribute $27,000 to your 401k. Let us know how we can help.

Game time: Tired of endless hours of screen time? Looking for a new fun game to play with the kids or grandkids?  Try “Cover your Assets.”