Retirement Planning

For many individuals, financial planning extends beyond managing their investments with the goal of a comfortable retirement in mind. It can also include the desire to make a positive impact through charitable giving. Charitable Gift Annuities (CGAs) have long been a popular way for individuals to address both their retirement goals as well as their philanthropic interests.

In December 2022, Congress passed a new spending bill which also contains many changes to retirement accounts. The changes are extensive, but here is a summary of specific changes that are most likely to impact you.

The popular image of retirement tends to emphasize numbers: a balance in a 401(k) or IRA; a date on the calendar; a quantity of years with the company; a pension plan vesting schedule. For most of us, the questions we ask ourselves as we approach retirement also tend to focus on concepts of numbers and quantity: Do I have enough saved? How much debt should I pay off? What will my medical costs be? What kind of budget should I set? And on it goes. 

It’s a well-known fact that people come in all shapes, sizes, and dispositions. Take a close look around at any family reunion and you’ll see it: the crazy aunt who drives too fast and laughs all the time; the bespectacled cousin who always looks like he’s adding a column of numbers, even when he’s talking to you; the grandfather who thinks the sky is always falling; the middle-aged mom who seems to not have a care in the world. And the list goes on.  

“How long?” That’s the question on many investors’ mind as we pass the halfway point of 2022. Since its highs last January, the broad equities market in the US, as measured by the S&P 500, fell just over 23% by mid-June, fulfilling the classic definition of a bear market. Since then, the index has clawed back about 6% of the loss, closing (at this writing) a bit below the 4,000 mark.