Vaccine News Propelling Markets!
The popular consensus is that former Vice-President Biden is the president-elect and the republicans will hold the Senate leaving a split congress. Most market forecasters believe this is a perfect cocktail for more stock market gains.
Now, both Pfizer and Moderna have vaccines that look to be over 90% effective. The news is suggesting that those who desire to be vaccinated, should all be able to so by mid-2021.
Last week stocks (other than technology) surged with the Dow rising 4.19%, the S&P 500 2.21%, and the Russell 2000 small caps playing catch up, increasing by 6.13%.
Technology, which has led this market for approximately 3 years now, retreated (.53%). Being cooped up at home & stimulus has certainly led to increased spending in several areas of technology. The thought is once we are able to resume full recreational activities, we will…. so the “other” stocks are now moving higher.
With new Covid-19 cases surging, as expected, market participants should be hopeful and thankful we appear to be making true progress in placing this issue in the rear-view mirror.
Medicare Costs Rising Slightly for 2021
- Part B increasing from 144.60/month to 148.50, a 2.7% increase.
- Part D prescription drug programs are rising by an average of 8% from $41 to $58/month. (If you have not shopped your drug program for 2021, you have until December 7th). This is a must!!!
- Part A Hospitalization deductible increasing from $1408 to $1484. This is for those who do not have either a Medicare Supplement, or a Medicare Advantage Plan. To watch our short video on Medicare Advantage, click here.
- Medigap is expected to increase on average by 5%. This information should be forthcoming.
- Medicare Advantage Plan premiums have actually decreased as insurance companies have been reaping large profits from theses plans — (comments on this in a future blog)
Required Minimum Distributions RMD
We’ll probably find out early next year, whether or not 2021 RMD requirements are waived as in 2020.
Looking a little farther out, beginning in 2022 the percentage you’ll have to withdraw is going down, as the factors used to determine your %’s is changing. For example, someone age 72 in 2022 with an IRA account valued at 300K on 12/31/2021 would have to take out $11,719 in 2022, using the current tables. The new tables will reduce that amount to $10.949, a drop of approximately 6.5%.
This should enable many taxpayers to withdraw less, paying less in taxes and leaving more funds to continue to grow tax-deferred. This may also increase the appeal of doing Roth Conversions.
This is perfect time of the year to discuss Roth Conversions for 2020. If you would like to schedule a Zoom or phone call, please feel free to email us or give Ellen a call (856-354-3200 ext. 205).