Millennials/Markets/RMD Relief Expands!

For many years the Baby-Boomer generation drove the overall US economy.  When Boomers purchased minivans and SUV’s, sales BOOMED!  Whatever Boomers wanted, they purchased, and the markets along with the economy responded.  Do you recall the Real Estate Bubble??

Now, a new leader has emerged… Millennials! Millennials were born between 1982 and 2000; currently range in age from early 20’s to late 30s.  There are over 80 million millennials today! That is a huge number! Millennials are below their peak earning years, and currently spend far less than boomers, and Generation X-ers.  As this generation moves into their peak spending years, (40’s to their mid-50’s), their spending habits will be a huge driver of the economy and markets.

So how will Millennials spend their earnings going forward?  How will they spend their inheritances?  The answer will have a huge impact on the future of this country!!

RMD Relief (IRS)

The CARES Act, passed on March 27th, eliminated the need to take RMD’s for 2020.  Many people already received their distributions prior to the passage of the Act.  If you sent the funds back within 60 calendar days of receipt, it’s labeled as an indirect rollover and no taxes are due.  Most people who received funds in January and early February were not afforded this valuable option.

Last week the IRS opened the door to include anyone who has received funds from their IRA in 2020. You are now able to return the funds by August 31st, 2020 without any taxation.  This is window of opportunity to reduce your income tax, perhaps lower the tax on your Social Security Retirement Benefits, and perhaps even prevent you from moving into a higher Medicare Premium Tier.


Last week the markets experienced a little reality check, meaning the economic re-opening is going to be challenging.  I’m not suggesting anything awful; however, we should expect our situation to be a bit back and forth until a true resolution of Covid-19.

The Dow Jones retreated (3.31%), the S&P 500 (2.86%), the NASDAQ (1.90%) and the Russell 2000 (2.80%).  Over the pond fared a little better as loses were more muted, with the EAFE down (1.29%) and Emerging Market equities down (.14%).

Barclays Aggregate Bond Index increased .21% as bond yields remain range bond with the US 10 Year Treasury ending the week with a yield .64%.

The holiday shortened week will end with the all-important monthly employment number being released on Thursday @ 8:30am.   We can only wonder how much and how often our TV experts are going to suggest how we should interpret the data.

Keep your seat belts on for a while longer as we should expect the markets to continue not to know what direction.  As long as your shorter-term income needs are set, in time, this will all be in your rear-view mirror!!

Independence Day! 

Wishing all of you a very safe & Happy Fourth of July! Keep the American spirit alive by honoring this special occasion!







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