As the new year unfolds, we find ourselves again under new tax laws that create a need for many people to review and amend different areas of their financial and wealth planning. The SECURE Act, officially named the “Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019,” is seen as the first major retirement savings law in many years. It passed into law during December 2019 and became effective January 1, 2020. From a policy perspective, the goal of the SECURE Act is to encourage savings. Many of its provisions are aimed at making retirement accounts and plans available to a wider range of individuals. For those who already have retirement accounts, the most relevant changes center around the new rules related to contributions and eventual distributions, including what is required to happen, and when, with retirement accounts as they are inherited by beneficiaries.
Some of the key issues we will be tackling with our clients are the Act’s new rules related to the following (and likely other) planning issues:
Over the next couple of months, we’ll be diving deeper into a number of the major impacts of the SECURE Act in a series of Insight blogs. But if you find yourself in any of these situations, then this will be an important time for us to review the status of your retirement account and estate plan. Your Litman Gregory advisor can guide you through this process and work with your tax and estate professionals to help determine how this impacts you, and what the best solutions are for your goals. We encourage you to contact us with any questions about your specific situation.
Commentary from Our CIO—Second Quarter 2021
Global stock markets continued to surge in the second quarter. In our assessment of the macroeconomic backdrop and outlook, we continue to expect a strong global economic recovery over at least the next 12 months. In this quarterly commentary, our Chief Investment Officer, Jeremy DeGroot, reviews the current reasoning for our portfolio positioning, outlook on inflation, and forward-looking scenario analysis on the broader economy and markets.
Research Update: Increased Return Expectations for U.S. Stocks
As the economy and financial markets continue their recovery from the pandemic’s impact, our recent analysis resulted in improved expected returns for U.S. stocks. In this post we summarize our analysis and why we think an increased allocation to U.S. equities could benefit the risk-adjusted return profile of our portfolios.
Advisor Q&A: Tax Planning and the American Families Plan with Senior Advisor Chris Wheaton
The American Families Plan was recently released by President Joe Biden and includes many of the provisions outlined during his campaign. We asked Litman Gregory Senior Advisor, Chris Wheaton, to answer some questions about key proposed tax law changes, and related tax planning ideas for our clients to consider in 2021 and beyond.