Markets — A lot Going On! // Retirement Tax-Friendly States

Major market indexes were mixed last week with the Dow rising .94% and the S&P 500 .75%.

The Nasdaq Composite was flattish, dropping (.07%) however Small-caps lost (1.06%).

Over the pond, foreign stocks gained 1.56%, with Emerging Market stocks falling (.84%)

Bond yields remain range bond with the 10 Year US Treasury finishing the week with a yield of 1.3%.

As the summer winds down, there is plenty going on to pay attention to: 

  • The House will take up the Senate passed $1.1 trillion infrastructure bill 
  • The House will take up a massive debate on the new $3.5 trillion “human” infrastructure bill that currently is a 92-page blueprint. This will be highly debated!!  The results (depending how much is passed), will have significant impact on many planning areas going forward.  We’ll certainly be paying attention and passing along information as it becomes more definite.
  • Last week the government “JOLTS” report suggested there are now over 10 million jobs available in the United States. This a record!!  Think about this for a few!!
  • Inflation is currently running hot as the Consumer Price Index (CPI) registered a 5.4% July increase and the Producer Price Index (PPI) increased by 7.8%. Many economists are suggesting this will be the high of the current cycle.  Hope they’re correct.
  • If and when the Federal Reserve will “taper” and pull back from monetary stimulus!
  • The Covid Delta Variant situation is making some people take a pause. New cases are increasing daily; however, the consensus is this will not be significant, as we’ll peak in a short couple of weeks and then decline, similar to the recent situation in the U.K.

I certainly hope this holds true, however Covid has proven one definite for me: NO ONE is a true expert, as the information and guidance changes rapidly.

The Best States to Retire? 

Where to retire is a challenging decision for most!  From my years of guiding clients through the retirement process, I’ve concluded this decision takes a lot of time and thought, and should never be rushed.

Kiplinger’s released their survey listing the most friendly and unfriendly states to retire from a “tax” perspective.

Delaware ranked #1, followed by Arizona, Arkansas, Colorado, Hawaii, Nevada and South Carolina.

So which state ranked, last?  New Jersey, being the least tax-friendly state for retirees.  Other bottom-dwellers included Connecticut, Illinois, Iowa, Kansas, Nebraska, New York and Texas.

Keep in mind the rankings are for the prior year and can certainly change over time, however I see New Jersey as a constant front runner at the bottom.

Need an Old Tax Return?

Did you misplace, shred or lose an old tax return?  Don’t go crazy.

To receive a full copy, you can request by mail using Form 4506 on the IRS website or you can “google” it.  The cost is $43 per return and takes approximately 75 days to process.

If you want a simple summary, you can obtain an immediate transcript using the “Get My Transcript” online tool directly on the IRS website.







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