From the desks of Stanley Katz & Lauren Madera
HAPPY NEW YEAR!
Financial markets closed 2024 and entered 2025 with a dour tone. All three major US stock market indices were in the red for the week (i.e., DJIA: -1.37%, S&P 500: -1.58%, Nasdaq: -1.99%). US fiscal spending concerns have the three major rating agencies—Moody’s, Standand & Poor’s, and Fitch—debating whether to maintain the US’s AAA rating. In addition, weak domestic and international demand for US Treasuries sent the 10-year yield to 4.602%. That’s well above the S&P 500 dividend yield of 1.2%! Should we “get over it?” For a short read to start the new year, click the Argus Market Watch Daily Spotlight link below.
ClientFYI from ClientFirst: The IRS has increased 401k and 403b contribution limits for 2025. The same applies to most 457 plans and the federal government’s Thrift Savings Plan.
- If you are under age 50, the limit is $23,500.
- If you are age 50 or older, the limit is $31,000.
- However, count on the government to keep things exciting! Due to a change made under the SECURE 2.0 Act of 2022, the limit for employees who are age 60, 61, 62, and 63 is $34,750.
We bring this to your attention in case you would like to adjust the percentage or dollar amount you contribute from each paycheck to your retirement plan. Feel free to contact us if you need help or would like to discuss in greater detail.
In addition, we have linked a handy pamphlet from Fox Philanthropic Advisors summarizing 2025 tax rates, IRA limits, and other relevant information from the IRS.
Below are links to a number of third-party research reports that we have read and analyzed over the past week. We hope you will find the information interesting, useful, and worthwhile.
Argus:
Franklin Templeton:
Fox Philanthropic Advisors:
James Investment Research:
J.P. Morgan Asset Management:
Stanley Katz & Lauren Madera, Financial Advisors
ClientFirst Financial Strategies, Inc.
937-293-5500
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