Outlook 2023

Where do we start after last year's markets?  One Capital Group American Funds portfolio manager says "There's a new reality taking shape in global markets."   On the beginning page of Outlook 2023, Jody Jonsson introduces the article's twelve subpoints by highlighting three concepts:  "From falling rates to rising rates", "From narrow to broad market leadership", and "From global to regional supply chains."  Be sure to read the whole intriguing article.

Here are two more Capital Group articles of current interest.  The economy in 2023:  Where we differ from market consensus opens with "The wisdom of crowds can be powerful.  But in times of heightened uncertainty, it can be helpful to understand potential risks."  The introduction ends with the obvious ". . . the views of individual portfolio managers and analysts may differ."  You'll have to read the "four contrarian scenarios" to understand why they think current market consensus may not necessarily be the most probable outcome.

More investment insights are condensed into 5 keys to investing in 2023, beginning the essay with "Investors are more than ready to turn the page on a turbulent 2022. . ."  It continues with five key actions investors could use to help stay on track with their investment goals. It is a variation of some of the ideas highlighted in the "Outlook" article above but still worth reading.



Increase in IRA Contribution Limits:  Starting this year (2023), but still depending on your income, the maximum IRA contribution is $6,500 total.  For those who are 50 years of age or older, the $1,000 catch-up limit still applies (i.e. $7,500 total).


Required Minimum Distributions (RMD):  As of the beginning of 2023, the minimum age for taking required distributions has been raised:  if at the end of this calendar year you will be 73 years old, then you will need to take RMD in 2024.  Call our office for more details.


Qualified Charitable Distributions (QCD):  For those above 70½ years of age, you may give to a charity directly from your Traditional IRA -- which means you don't need to pay taxes on that particular amount, plus you can satisfy RMD requirements for the year after you turn 73.  If you have been taking advantage of this QCD procedure, then you will want to fill out your tax forms correctly in order to receive the tax benefit.  Have your accountant take a close look at the QCD instructional sheet we compiled, based on a website article by Forbes.

Remember to call your financial professional at (402) 571-1505 if you have any comments or questions about your particular situation.