Join the conversation and feel free to submit a question to our experts.Submit a question
Stay up to date and have the STA Weekly Report and 401k Plan Manager emailed to you.Subscribe
Read STA's Featured ArticlesRead More
INSIDE THIS EDITION:
Stocks Start Year with a Bang…Proceed with Caution
Does a Flattening Yield Curve Mean We Are Close to Recession?
Weekly Technical Comment
Happy Birthday Roth IRA – and Tax Changes to Disallow Recharacterization Starting in 2018
401k Plan Manager
In two months, the climb from the depths of the financial crisis market low is set to reach nine years. The cumulative S&P 500 gain is now 306 percent, not including dividends. That’s better than any other except the 1987-2000 run — which was a stunning 582 percent.
The market so far in 2018 is showing signs it might be ready to accelerate toward those heights, on an uncommon combination of faster growth and plentiful liquidity.
Last week’s 2.6-percent S&P 500 gain in four days would have made it the best week of 2017, a sign of expanding risk-taking appetites and more eagerness among buyers. To be aggressively optimistic on this stock market now is to bet that it can challenge the greatest bull market of all-time — the 13-year run that ended in early 2000.
Weekly Technical Comment
Global Stocks Start Year with a Bang…Proceed with Caution?
Global stock markets started off the new year with a bang. U.S. stock indexes exploded to record highs for the best start in years. Foreign stock benchmarks did the same, including the FTSE All World Stock Index which also hit a new record. New records were set in North America, Europe, and Asia and in both developed and emerging markets. So, what’s there not to like?
Happy Birthday Roth IRA – and Tax Changes to Disallow Recharacterization starting 2018
By Scott A. Bishop, CPA/PFS, CFP®
Most people know that 2018 starts a year with a brand new tax law (some of the highlights can be found in this linked summary). However FEW know that it is the 20th anniversary of the Roth IRA…I started my first personal Roth IRA in 1998! I was talking about this anniversary with team as part of Ed Slott’s Elite IRA Advisor GroupSM. The Slott team had a lot of thoughts to share.
The year 1998 seems like a long time ago. In January 1998, Bill Clinton was in the White House and about to be impeached. The Unabomber was in the news and the Spice Girls were winning music awards. January 1, 1998 also brought us the launch of Roth IRA. However, unlike other ‘90’s memories, the Roth IRA is still going, stronger than ever. You may already be reaping the tax benefits of your own Roth IRA. Or, maybe you’ve hesitated to open one. The 20th anniversary may be the time for you to take the plunge…
Before we proceed, I wanted to let you also know that my friend and IRA Guru Ed Slott, CPA also reviewed and wrote me a Forward to our Retirement Survival Guide that will appear in the 2018 update. I talk about the benefits of the Roth IRA many times in the guide where we help you with an eye toward “Planning for Retirement the R.I.T.E. Way®” (R.I.T.E. Stands for “Retirement Income Taxed Efficiently).
Ed Slott was recently quoted in Forbes as saying (and I agree):
To celebrate the 20th Anniversary of the Roth IRA, Ed Slott and Company wanted to share 20 Roth IRA facts you need to know to maximize the value in YOUR Retirement Plan:
Disclaimer: Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by STA Wealth Management, LLC (“STA”), or any non-investment related content, made reference to directly or indirectly in this newsletter will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this newsletter serves as the receipt of, or as a substitute for, personalized investment advice from STA. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. STA is neither a law firm nor a certified public accounting firm and no portion of the newsletter content should be construed as legal or accounting advice. A copy of the STA’s current written disclosure Brochure discussing our advisory services and fees is available upon request. If you are a STA client, please remember to contact STA, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services.
and for exploring our website. Whether you are looking for someone to partner with you in protecting and growing your assets, or you are an experienced financial advisor interested in joining the STA team, we want to hear from you. Please reach out to us using the information below, or by completing the online form, and we’ll be in touch as quickly as possible!
281.822.8800 (Houston area)
800 Town & Country Boulevard, Suite 410
Houston, TX 77024
For directions to our offices, click here.