Two important developments are worthy of exploration in this quarter's commentary. First, rising intermediate and long-term interest rates are creating a markedly different environment for bonds and the broader investment landscape. Second, the trends that have characterized stock market returns over the last few years continued to an even greater degree in the fourth quarter and full year 2024.
QCDs (Qualified Charitable Distributions) are not widely utilized but can be very beneficial to taxpayers aged 70 1/2 or older, who are charitably inclined and carry high IRA balances.
Investors were treated to a bumpy ride in the third quarter, but stocks are at record highs as the final three months of 2024 get underway, and bonds are solidly in the green. The Federal Reserve’s long-awaited reduction in interest rates played a crucial role in the solid returns on stocks and bonds.
Many of the TCJA's provisions will expire at the end of 2025 unless Congress extends them. Given the political uncertainty, some wealthy households may wish to revisit their estate plans over the next year and consider pulling forward planned bequests to take advantage of the greater lifetime exemption.
Global stock returns were mixed yet relatively flat in the second quarter—except for a handful of mega-cap U.S. companies (“The Magnificent Seven”), which once again dominated the return of market capitalization-weighted indices.
Congratulations on your move to America! As you embark on this new chapter, it's essential to understand the financial landscape and make informed decisions about your personal finances.