{"id":666,"date":"2021-12-13T00:00:00","date_gmt":"2021-12-13T00:00:00","guid":{"rendered":"https:\/\/www.retirementrefined.com\/index.php\/2021\/12\/13\/markets-jump-last-week-inflation\/"},"modified":"2021-12-13T00:00:00","modified_gmt":"2021-12-13T00:00:00","slug":"markets-jump-last-week-inflation","status":"publish","type":"post","link":"https:\/\/www.retirementrefined.com\/markets-jump-last-week-inflation","title":{"rendered":"Markets Jump Last Week, Inflation?"},"content":{"rendered":"<p>The major stock indexes jumped last week, <strong>looking beyond the 6.8% US Consumer<\/strong> <strong>Price Index (CPI) rate reported<\/strong>.\u00a0 Stripping out food and energy, the inflation rate jumped 4.9%.\u00a0 Don\u2019t think anyone is looking at the lower number at this point, as higher food and energy costs can\u2019t be avoided at this time.<\/p>\n<p>For the week, the <strong>Dow rose 4.05%<\/strong>, the <strong>S&amp;P 500 3.85%,<\/strong> the <strong>Nasdaq Composite<\/strong> <strong>3.62%<\/strong> and the <strong>Russell 2000 Small cap index 2.45%.<\/strong><\/p>\n<p>Over the pond, <strong>foreign stocks<\/strong> climbed <strong>2.44%<\/strong> and <strong>Emerging Market Equities<\/strong> rising <strong>1.15%. <img fetchpriority=\"high\" decoding=\"async\" class=\"alignright size-medium wp-image-5043\" src=\"https:\/\/www.retirementrefined.com\/wp-content\/uploads\/2022\/01\/shutterstock_1326140090-300x200.jpg\" alt=\"\" width=\"300\" height=\"200\" \/><\/strong><\/p>\n<p><strong>Bond yields moved north<\/strong>, however are staying resilient, with the <strong>10-year yield<\/strong> finishing last week @ <strong>1.49%.<\/strong>\u00a0 <em>The US Treasury 2\u201310-year slope that we discuss, now sits @ .83%.\u00a0 That slope started the year @ .79%, increased to 1.24% on September 30, 2021.\u00a0 Certainly, worth paying close attention to the movement of all US Treasury securities at this point.<\/em><\/p>\n<p style=\"text-align: center;\"><strong>Required Minimum Distribution (RMD) Tables Changed<\/strong><\/p>\n<p>This is good news for most people with retirement accounts.\u00a0 <strong>Beginning in 2022<\/strong>, you\u2019ll notice the tables have been changed, <strong>lowering the minimum amount<\/strong> you need to withdraw annually from your various retirement accounts. <em>The new tables reflect longer life expectancies.<\/em><\/p>\n<p><strong>Example:<\/strong> Assume an <strong>IRA holder<\/strong> with an <strong>account balance on 12\/31\/2021 of $1,000,000.<\/strong>\u00a0 Let\u2019s assume this <strong>IRA holder will turn 75 sometime in 2022<\/strong>.\u00a0 Here\u2019s the difference in the requirement:<\/p>\n<ul>\n<li><strong>Old Table<\/strong>: $1,000,000 divided by the <strong>old factor of 22.9<\/strong> equals a minimum withdrawal of <strong>$43,668.12<\/strong> to satisfy the requirement<\/li>\n<li><strong>New Tables<\/strong>: $1,000,000 divided by the <strong>new factor of 24.6<\/strong> equals a minimum withdrawal of <strong>$40,650.40<\/strong> to satisfy the requirement.<\/li>\n<li>The <strong>difference<\/strong> is <strong>$3,017.72 less<\/strong> that needs to be withdrawn<strong> (or 6.9%).<\/strong><\/li>\n<\/ul>\n<p><strong>Example #2<\/strong>:\u00a0 Assume an <strong>IRA holder<\/strong> with an account balance on 12\/31\/2021 of $1,000,000.\u00a0 Let\u2019s assume this <strong>IRA holder will turn 72 sometime in 2022,<\/strong> and elects to take their first-year distribution in 2022, and not postpone to take 2 the following year.<\/p>\n<ul>\n<li><strong>Old Tables<\/strong>: $1,000,000 divided by <strong>25.6 <\/strong><strong>equals $39,062.50<\/strong> to meet the requirement.<\/li>\n<li><strong>New Tables<\/strong>: $1,000,000 divided by <strong>27.4\u00a0equals $36,496.35<\/strong> to meet the requirement<\/li>\n<li>The difference is <strong>$2,566.15 less<\/strong> that needs to be withdrawn <strong>(or 6.56%).<\/strong><\/li>\n<\/ul>\n<p><em>Calculating and Keeping track of your annual RMD requirement is extremely important to avoid any unnecessary IRS penalties. We have extensive experience in this area.\u00a0 If you have one IRA, the calculation and choice is straight-forward.\u00a0 When you have multiple IRA accounts and\/or 401K\u2019s and 403B\u2019s, you must be aware of the aggregation rules.<\/em><\/p>\n<p>Annually, we field several questions finding many taxpayers have uncertainty knowing if they are truly satisfying the RMD requirements.<\/p>\n<p>For clients, we track RMD\u2019s very closely and have separate files for each client, showing each year\u2019s calculations and withdrawals.<\/p>\n<p>For nonclients with questions, please feel free to <a href=\"https:\/\/retirementrefined.com\/ready-to-schedule\/\">schedule a consultation<\/a> to discuss your requirements, as well as see how you can use Qualified Charitable Contributions to further reduce your Income Tax situation.<\/p>\n<p>&nbsp;<\/p>\n<p>Below are the two tables for you to compare your factors. The <strong><span style=\"color: #3366ff;\">old table is on the left in blue<\/span><\/strong>, and the <strong><span style=\"color: #ffcc00;\">new table that will be used in 2022<\/span><\/strong> is on the right, in gold.<\/p>\n<p><strong>\u00a0 OLD (2021) Lifetime Table:\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 NEW (2022) Lifetime Table:\u00a0<\/strong><\/p>\n<p><img decoding=\"async\" class=\"alignleft size-medium wp-image-5037\" src=\"https:\/\/www.retirementrefined.com\/wp-content\/uploads\/2022\/01\/2021-297x300.png\" alt=\"\" width=\"297\" height=\"300\" \/><\/p>\n<p><img decoding=\"async\" class=\"alignleft size-medium wp-image-5038\" src=\"https:\/\/www.retirementrefined.com\/wp-content\/uploads\/2022\/01\/2022-297x300.png\" alt=\"\" width=\"297\" height=\"300\" \/><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p><strong>\u00a0<\/strong><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The major stock indexes jumped last week, looking beyond the 6.8% US Consumer Price Index (CPI) rate reported.\u00a0 Stripping out food and energy, the inflation rate jumped 4.9%.\u00a0 Don\u2019t think anyone is looking at the lower number at this point, as higher food and energy costs can\u2019t be avoided at this time. For the week, [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":667,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"post_statement":"","post_description":"","post_cta":"","post_button":"Read More","post_button_url":"","compliance_id":"","post_disclaimer":"","footnotes":""},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/www.retirementrefined.com\/wp-json\/wp\/v2\/posts\/666"}],"collection":[{"href":"https:\/\/www.retirementrefined.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.retirementrefined.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.retirementrefined.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.retirementrefined.com\/wp-json\/wp\/v2\/comments?post=666"}],"version-history":[{"count":0,"href":"https:\/\/www.retirementrefined.com\/wp-json\/wp\/v2\/posts\/666\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.retirementrefined.com\/wp-json\/wp\/v2\/media\/667"}],"wp:attachment":[{"href":"https:\/\/www.retirementrefined.com\/wp-json\/wp\/v2\/media?parent=666"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.retirementrefined.com\/wp-json\/wp\/v2\/categories?post=666"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.retirementrefined.com\/wp-json\/wp\/v2\/tags?post=666"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}