This time of year is always inspiring. Graduation marks the culmination of years of hard work and new beginnings. Watching the graduates walk across is a great time to reflect on where we’ve been and plant our feet towards where we are going. So far this year has shown a resilient market and we will continue to plan towards a brighter future.
In May, U.S. and global stocks rebounded from April declines, driven by strong technology sector performance and easing Treasury yields, with the S&P 500 rising nearly 5%. All sectors except energy saw gains, notably information technology and utilities. Non-U.S. developed market (MSCI World ex USA) also rose, though less sharply, while emerging markets (MSCI Emerging Markets) lagged. U.S. inflation slowed to 3.4%, core inflation to 3.6%, and the Eurozone saw a rise to 2.9%. Eased inflation renewed rate cut expectations, and U.S. Treasury yields fell, boosting the bond market. Small-cap stocks (Russell 2000) outperformed larger ones (S&P 500).
This month we are back in the swing of things with:
- Guide To Inheriting Accounts
- Understanding Capital Gains
- Retirement Plan: SIMPLE IRA
- The Finish
Guide To Inheriting Investment Accounts
Inheriting investment accounts after the death of a loved one can be a challenging and emotional experience. It’s not something most people plan for, but finding yourself in this situation means you need to quickly understand what you’ve inherited to make sound financial decisions.
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Take Control of Your Financial Future – Get a Second Opinion
Don’t leave your financial success to chance. Schedule your complimentary second opinion with ALNA Financial now. We are ready to provide you with the clarity and confidence you need to help optimize your strategy.
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Business Owner
Retirement Plan: SIMPLE IRA
Establishing a business retirement plan doesn’t need to difficult or costly and that’s why there are SIMPLE IRAs. Savings Incentive Match Plan for Employees (SIMPLE) IRAs are unique in their own way but can provide a great savings tool for a business looking to offer a benefit.
First, the differences between a SIMPLE and traditional 401K.
- SIMPLE IRA employees have a lower contribution limit of $16,000 with an additional $3,500 for catch-up contributions if participant is 50 or older.
- SIMPLE IRA employers generally have only two contribution options either 2% non-elective contribution or 3% match.
- SIMPLE IRA employer matching contributions are vested immediately
- SIMPLE IRA can only be distributed after a 2 year waiting period
- No annual filing requirement
- SIMPLE IRA set up cost and maintenance cost low to non-existent
SIMPLE IRAs are like Traditional 401ks
- New SIMPLE IRAs potentially qualify for Retirement Plan Startup Cost Credit.
- Employers can match a portion of employees contribution
Deciding to offer a business retirement plan is an important step and you should consider your goals as you work with a financial professional to make your decision.
*Withdrawals from a SIMPLE IRA before age 59½ are generally subject to a 10% penalty. The penalty for withdrawals before age 59½ increases to 25% if the withdrawal occurs within the first 2 years of establishing the account.
The Finish
Last month we welcomed Shayna to the the ALNA Financial team. Shayna will be assisting with all the administrative tasks.
Graduation strikes again! On June 7, 2024 my oldest son graduated from United States Marine Corps Bootcamp. Please keep my wife in your thoughts as she deals with a house full of Marines!
Semper Fi!
Lamont
Principal Wealth Advisor
