3 Things I'm thinking about:

1. The Secure Act 2.0 is now law. This legislation is intended to strengthen our retirement system. Here are some of the main changes that may impact our clients:
·       The age to start Required Minimum Distributions (RMDs) from an IRA or a workplace retirement plan has increased to 73. In 2033, it will increase to age 75.
·       The penalties for missing RMDs will be reduced. 
·       If you’re over 50 and working, you can contribute more to your workplace 401(k). The “catch-up” amount for workers 50 or older (which is currently $7,500) will be indexed to inflation starting in 2023. 
·       A second catch-up was added: Workers age 60-63 can now make $10,000 catch-up contributions, and these will also be indexed to inflation.
·       Roth 401(k) plans used to require RMDs, which never made any sense- why make someone spend their non-taxable money when they don’t need to? Under the Secure Act, this requirement has been removed.

I’m excited about the tax planning opportunities that will benefit our clients. 

2. Money and happiness. When we’re unhappy and our funds are scarce, we tend to think there is a connection between the two. Often, our thinking ends there. When we don’t take time to reflect, we end up believing that if we just had more, we would be happy…

But everyone knows money doesn’t buy happiness. So why is this on my mind?

Imagine a different situation: You have enough money. You even have a little extra money you could spend, burning a hole in your brain and your bank account. 

As you go through your day, you notice you are unhappy about something. As soon as you notice your unhappiness, you may also notice a temptation to spend the money to fix the problem.

I’m challenging myself to stop when I notice this happening. What is at the root of my unhappiness? Will buying this thing really save me time, make my life easier, or make me feel better? Or am I just making an excuse to buy something because I still believe I can buy happiness?

3.  Sports betting is having a moment. There was a crescendo of advertising for sports betting in the months leading up to 2023. It’s now legal to place bets on football games (real or imaginary), basketball scores, horse races, whatever- and with phone apps, it’s never been easier to wager. Most sportsbooks offer free bets to entice new bettors to give it a try.

Sure, a single wager is exciting. Unfortunately, sports gambling is almost always a losing proposition in the long term. The odds simply don’t favor you, and high costs can quickly eat away at winnings. It’s said there are only two types of gamblers: those who lose and those who lie. 

Most people who gamble don’t become problem gamblers. But we are seeing explosive growth in sportsbooks, and there are bound to be more people who develop addictive, problematic gambling habits. Compulsive gambling can drain bank accounts, wreck marriages, alienate families, and end careers.

I’ve seen it happen.

If you or anyone in your household thinks they may have a problem, call 1-800 GAMBLER. 
  
2 Recent Reads:

1. Atomic Habits by James Clear: This book has been super popular and for good reason: It helped me get a better understanding of the habits I don’t even notice and what triggers them. 

2. Cautionary Tales with Tim Harford: As a history buff, I love the way this podcast illustrates the ways we fail by spinning interesting historical tales.  
 


A snapshot (or two) from my life:

Here are two snapshots of my garden: The height of July bean-picking, and the cold dead of January. I can’t believe this is the same place in my back yard! I’m planning out this summer’s garden and getting excited about what we might harvest. I always have a hard time imagining anything growing right now. It’s a reminder that life has seasons, and I need to be patient.  
 
2022 Tax Forms:

If you have taken a distribution from a retirement account or if you own a non-retirement account that has received income or experienced a taxable distribution in 2022, you can expect to receive a form 1099.

Most mutual fund companies will mail their 1099s by January 31. However, they are allowed to extend that date to February 15 if they require more time to report accurate information.

If you own a brokerage or managed account with Kestra Financial, be aware that those 1099s will be mailed four "rounds":
  • The first two mailings will be January 21 and February 11, and will encompass the majority of accounts.
  • Subsequent mailings will be sent on February 25 and March 4, and will likely include accounts that hold alternative investments like real estate investment trusts (REITs) and unit investment trusts (UITs).

If you have established online access to your accounts, most firms will make tax forms available for download by or before the mailing dates mentioned above.


Upcoming Office Closures:

  • Monday, February 20th - President's Day
With You On Life’s Journey
720 McKinley Ave. NW Canton, OH 44703 Phone 330.893.0113 Fax 330.800.9207

Securities offered through Kestra Investment Services, LLC, (Kestra IS), member FINRA/SIPC. Investment Advisory Services offered through Kestra Advisory Services, LLC, (Kestra AS) an affiliate of Kestra IS. Pleasant Wealth is not affiliated with Kestra IS or Kestra AS.