The end of last year brought some big changes, so we kicked off 2023 with a recap of important planning considerations. Chief Planning Officer Jeffrey Levine mentioned that we are still processing the huge impact of SECURE Act 2.0. passing in December, which introduced nearly 100 changes affecting retirement planning. In the webinar, he answered questions from clients about the implications of some of the changes.
Chief Investment Officer Kevin Grogan shared his thoughts on what markets are expecting from the Federal Reserve this year on the pace of interest rate increases. He pointed out that monetary policy works with a lag, and the economy won’t start seeing the full effects from rate increases for six to 18 months. However, there are some early signs that higher rates are slowing parts of the economy, and many economists are predicting a recession this year.
The good news for markets – it’s been a solid month year to date. All stock markets have delivered positive returns so far this year, with international markets outpacing the U.S. market. Kevin reminded clients that despite the predictions for a recession this year, the markets are forward-looking and are discounting potential future earnings and dividends well into the future.
Beacon Hill Private Wealth is an independent, fee-only, fiduciary investment advisor providing evidence-based wealth planning solutions that simplify our clients' financial lives. Founder Tom Geoghegan, CFP®, CIMA®, CPWA®, RMA® is also a member of the National Association of Personal Financial Advisors (NAPFA).
Recorded January 31, 2023.
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