Perspectives & News

I am not surprised with the three-year 80%+ gain of the US equity market (SP 500)! Corporate profits and labor productivity gains were fairly well forecasted in our outlook from early June of 2022: we stated that inflation was transitory rather than structural (CPI hit a 9% annualized rate in May of 2022) and that once the Federal Reserve started withdrawing the excess fuel and increasing the price of fuel (fuel being the money supply and interest rates being the cost of fuel) that inflation would start it’s descent to the 2-3% level. We made assumptions that the pressure of wage increases were going to subside, consumers and corporations were in great financial shape due to the massive amount of liquidity injected into the system, and that Government spending would likely stay excessive, all contributing to an the economy that had lots of positive support rather than believe what most economists said: “we are headed into a recession”. As we noted at that time, “this is the most predicted recession that will never happen.” Wow, was that last statement ever more right!!!

With the Tax Cuts and Jobs Act (TCJA) set to expire at the end of 2025, tax rates are expected to increase as they revert to pre-2018 levels. This shift presents a critical planning window for Roth strategies, as individuals can take advantage of the current lower tax rates.

By now, most people are aware the Secure Act, passed in 2020, contained major changes to the rules surrounding distribution requirements from Inherited IRAs for accounts inherited in 2020 or after. Primarily, this law eliminated the Stretch IRA provision for non-spousal beneficiaries. For the last several years, however, the requirements have been vague and undefined by the IRS.

Presidential elections in the U.S. can elicit strong emotions and anxiety for investors and often bring significant attention to the stock market, as investors anticipate how political outcomes might influence economic policies. Historically, market behavior around election time follows certain trends, driven largely by uncertainty and speculation about future policy changes.

As the population ages, the term “Elder” has become increasingly common in discussions. You may have heard it in phrases like “Eldercare,” “Elder Law,” or “Elder Finance.” This can be confusing, so we’d like to explain and simplify the concept of eldercare planning.

Clients often come to us with questions on estate planning. We at MCF are here as a guide and resource to help you navigate the decisions you must make while drawing up your estate plan. One decision you must make when estate planning is choosing an executor. Someone you trust to ensure your wishes are carried out. Let’s walk through what being an executor involves.