INSIGHTS

The Medicare Open Enrollment Period is the time during which Medicare beneficiaries can make new choices and pick plans that work best for them. Each year, Medicare plan costs and coverage typically change. In addition, your health-care needs may have changed over the past year. The open enrollment period is your opportunity to switch Medicare health and prescription drug plans to better suit your needs. Please see the attached article for a complete breakdown of Medicare Open Enrollment including what is new for 2021. 

We’ve all seen the headlines: “Cancellations, Opt-Outs, and Virus Cases Put Heat on College Football” (The New York Times) “5 Ways COVID-19 Will Change Higher Education Forever – and How Colleges Can Adapt” (USA Today) “On Campus But Under Lockdown — a Day in the Life of a College Student During Covid-19” (CNBC)

On November 3rd, 2020 Americans will elect our next President. But even though the election is several months away, there is already a lot of speculation about what the stock market will do if either candidate gets elected. Unfortunately, much of that speculation is wrapped in fear with investors worrying that if the other guy (i.e. the candidate they don’t support) wins then the stock market will collapse or the economy will stagnate or taxes will go sky high or some other terrible calamity will occur that will wipe out wealth and destroy capitalism.

Saving money for retirement in a tax-deferred account has many benefits – but you can only defer taxes so long before they must be paid, which is why U.S. tax law requires a Required Minimum Distribution (RMD). An RMD is the amount of money that must be withdrawn annually from a tax deferred account (including traditional IRAs, SEP IRAs, and Simple IRAs) once the owner reaches a certain age. RMDs are taxed as ordinary income.

Over the past few years, tax law changes have created planning challenges and opportunities for owners of IRAs looking to maximize the after-tax value of their legacy.  We covered one key strategy, Roth conversions, in our DHG Insights feature Examining Roth Conversions in the Current Legislative Landscape.  For charitably inclined IRA owners over 70 ½, Qualified Charitable Distributions (QCDs) often provide the most tax efficient way of funding charitable goals.

DHG Wealth Advisors LLC, an independent, fee-only Registered Investment Advisory firm owned by Dixon Hughes Goodman LLP (DHG) is pleased to announce that Bill Laird has been named Co-Chief Investment Officer.

The tax-free growth that Roth Individual Retirement Accounts (IRAs) offer have long made them a desirable planning tool, but paying taxes on the initial contribution or conversion can be cost prohibitive, which is why many people prioritize tax-deferred savings for retirement. However, three significant pieces of legislation present unique tax planning considerations in 2020 that take advantage of the many benefits of a Roth IRA.

The COVID-19 pandemic has affected numerous aspects of our daily lives. We are isolated from friends and family, forced to change long-awaited plans and unsure of what the economic future holds. Things that felt important six weeks ago may suddenly feel unimportant or even be forgotten entirely, but it is critical to maintain a long-term perspective when it comes to investing and planning, even in the face of short-term disruption. During these stressful and uncharted times, it is important to stay focused on preserving both your physical and mental well-being, along with your financial well-being.

The outbreak of COVID-19 has led to a global health pandemic that is having an enormous impact across the world, and our hearts go out to everyone who has been impacted.  At DHGWA, our passion is to enrich our clients' lives by providing financial clarity and peace of mind. While it’s impossible to know what the outcomes of this global health crisis will be, and how long it will last, we are committed to providing insights on global market activity, and what that means for you. We take our responsibility as your advisor very seriously and are here to help you navigate through this storm.  The latest brief from DHGWA Insights looks at the recent market volatility and reminds investors to stay focused on their long-term goals.

When a market reaction is as violent as the current one, it is always due to fear. More specifically, fear of the unknown. Having no idea what will occur tomorrow, much less the next several weeks, months or years in the future, allows human emotions and psyches to run rampant and envision the absolute worst possible situation.