Mueller – The Fed – IRA Bankruptcy Protection




Mueller – The Fed – IRA Bankruptcy Protection




Hopefully we can now put the Mueller investigation in the rear view mirror and move forward. The report conclusions will mostly likely prove to be Market neutral. The China issue is certainly far from being Market neutral. If we do get a deal, it sounds as if Tariffs will remain in place to some degree, perhaps as a tactic to ensure compliance. As the inter-workings of Trade are extremely complicated, you don’t have to be an expert to realize that Tariffs do reduce overall corporate profitability and will impact the Markets and the economy. I would love to be a fly on the wall during the negotiations.


Federal Reserve


A significant unknown for the Markets, has been eliminated with the fact that the Federal Reserve has stated no rate hikes in 2019 and the “Quantitative Tightening” will be ending in September 2019. Knowing that interest rates will stay lower for longer should prove to be valuable, at least in the near to intermediate term period.


The Federal Reserve has increased rates 9 times since late 2015. During the course of that time, Market based Treasury Yields on the 10 and 30 year varieties have only increased slightly. Last week we witnessed the 3 month Treasury Yield surpassing the yield of a 10 Year US Treasury. This yield curve inversion is causing significant debate about whether or not this signals an upcoming recession. We keep reading that it typically takes a year or two after the inversion for an actual recession to occur. It’s hard not to find a business news station that is not discussing the issue. Interestingly, just about all of the pundits who attempt to guess, get it wrong, time after time, however still attempting to sound as experts!


Market Wrap


Last week was down for most stock indexes with the Dow off (1.34%), the S&P 500 losing (.75%). The Nasdaq Composite fell (.60) and the Small Cap Russell 2000 falling (3.05%).


Bonds, as measured by the Barclays Aggregate rose .87% reflecting Federal Reserve announcements.


Over the pond saw MSCI EAFE Index down (.33%) and the Emerging Market Stock Index UP .24%.


IRA Bankruptcy Protection


On April 1, 2019, the Inflation-Adjusted Cap on IRA bankruptcy protection will increase from $1,283,025 to $1,362,800 which applies to Traditional and Roth IRA’s. It does not however apply to company Retirement Plans.


Company Retirement Plans have unlimited bankruptcy coverage under the terms of the Employee Retirement Securities Act (ERISA). What happens when you roll your 401K to an IRA and you have more than the IRA bankruptcy limit of $1,362,800? The amounts that you rollover from your 401K will retain full Bankruptcy protection while in your IRA, so keep good records of how and when you moved your Retirement accounts.



Question of The Week


Social Security:

What is the last year you can be born to be eligible to receive 100% of your projected Full Retirement Age Benefit at age 66?

a) 1965

b) 1954

c) 1960

d) 1975


For a listing of our upcoming Educational Workshops detailing what you need to know about Social Security, please click here Social Security Workshop.




Answer to Last Week’s Question


Major league baseball opens up the 2019 season on March 28th.


What team had the highest “average” ticket pricing in 2018?

a) Boston Red Sox

b) New York Yankees

c) Los Angeles Dodgers

d) Chicago Cubs

e) Washington Nationals


The correct answer is –

d) Chicago Cubs


Please join us for our next Workshop!


Social Security Planning Workshop

Wednesday, April 17, 2019 – 6:30 pm–8:00 pm

Cherry Hill Library – 1100 Kings Hwy North – Cherry Hill – 08034


RSVP By Clicking Here Register for Social Security Planning Workshop


 Call 856-354-3200 x205



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