Tax season is upon us! In this newsletter, we share information to help you navigate this tax season and prepare for the year ahead, including an update on tax documents at Schwab; higher limits for retirement account contributions, gifting, and other tax provisions; and a way to pay your tax bill online. As always, please reach out to your Hemington team if you have any questions.
Download our Special Tax Newsletter (PDF 250kB)
SECURE 2.0 Updates
The Setting Every Community Up for Retirement Act 2.0 (SECURE 2.0) law was passed in 2022. SECURE 2.0 has over 90 provisions with various effective dates. For 2023, one of the most notable provisions for many retirees was the delay in required minimum distributions (RMDs) to age 73. Below are several SECURE 2.0 provisions that are effective “beginning after 2023,” and one provision that is delayed.
Download our Winter 2023-24 Newsletter (PDF 5.4MB)
U.S. Recession — Are We There Yet?
The prediction of an impending U.S. recession seems to be a perennial topic. According to a recent Wall Street Journal article, most experts expect a recession in the U.S. within the next few quarters (if we are not there already)… and we have heard a similar refrain for the past several years. With these unsettling headlines, many investors are concerned about the impact a recession could have on their portfolio.
Download our Summer 2023 Newsletter (PDF 2.1MB)
The SECURE Act 2.0 & Tax Planning
There has been much ado about the SECURE Act 2.0. Passed into law as part of the year-end omnibus bill, this new retirement law will impact tax planning. The SECURE Act 2.0 builds on the SECURE Act and is much longer with over 90 provisions. Although none of its provisions are (arguably) as impactful as the elimination of the stretch IRA, the sheer volume of provisions means that the law may impact more people. We have summarized key provisions; many become effective in 2023, and others will be phased in over the coming years.
Download our Special Tax Edition Newsletter (PDF 1.7 MB)
Making Sense of the Bond Market
This year has been challenging for investors. While investors generally expect a bumpy ride in equity markets, the bond markets have given an unexpectedly difficult ride, too, with the worst performance for fixed income on record. Never before has the Bloomberg U.S. Aggregate Bond Index experienced three negative quarters in a row, as bond prices have taken a hit. The reward? Fixed income investments now offer higher yields, which investors have been clamoring for over the past decade.
Download our Winter 2022 Newsletter (PDF 2.5MB)
Understanding the Cryptic in Cryptocurrencies
The prefix crypto- is derived from an ancient Greek word meaning “I conceal” or hidden or secret. This is an appropriate starting point for a discussion of cryptocurrencies. Since the first one, Bitcoin, was mined in 2009, there remains much misunderstanding of what cryptocurrencies are and what role, if any, they could play in a portfolio.
Download our Spring 2022 Newsletter (PDF 3.2 MB)
Special Tax Edition – Hemington Newsletter
Tax season is upon us once again – and experts are warning that taxpayers should brace for a difficult filing season. The Internal Revenue Service (IRS) opened its tax filing window on January 24th, over two weeks earlier than in 2021, because, it said, limited funding and continued Covid challenges could cause delays. As of December 31st, the IRS had a backlog of 6 million unprocessed individual returns, far higher than the more typical 1 million unprocessed returns at the start of a usual tax season.
Download our Special Tax Edition Newsletter (PDF 1.7 MB)
Giving Back
Growing up, my parents always reminded us to save, give, and spend—in that order. It’s a lesson that enabled all eight of us to not only be financially responsible but also to prioritize helping others. As the CEO of Hemington, I want to share with you our company plans for giving back.
Download our Winter 2021-22 Newsletter (PDF 1 MB)
High Net Worth Estate Planning Considerations
The lifetime federal estate tax exemption of $11.70 million – the amount that each person can transfer without incurring federal gift or estate taxes – is the highest that it has ever been. For many high-net worth families, this has created a tremendous opportunity for passing wealth to the next generation. However, this window may soon close.
Download our Fall 2021 Newsletter (PDF 1.5 MB)
A Year in Review
The past year was unprecedented — everyone agrees. On March 13, 2020, a national emergency was declared in response to the COVID pandemic. No one knew what the virus would mean for our health, the economy, or our investments. Governments mandated the closure of schools and nonessential businesses, and people were told to stay home, causing unemployment to skyrocket and GDP to plummet. At the same time, the U.S. went through what was arguably the most contentious election in our lifetimes, and oil prices hit the bottom of the barrel with the first negative oil futures. To say there was considerable uncertainty as an investor would be an understatement.
Download our Summer 2021 Newsletter (PDF 1.4 MB)
Dividends in the Age of COVID
An astute client recently reached out to us to find out why the couple’s dividend payouts in 2020 were significantly less than in prior years – and more importantly, would they be able to take their usual portfolio distributions? This is a great question, and we thought it would be helpful to broadly share our response. (Spoiler alert: The answer is yes.)
Download our Spring 2021 Newsletter (PDF 811KB)
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