Happy February Everyone!
Well, here we are. It is cold snowy, and our heating bills are going up like the stock market. But we do have some good things happening. The vaccination is starting to get distributed and it is just a matter of time before we get ours. Hopefully by the time Spring rolls around, things will be heading towards what was once normal.
In the past few weeks some of you have received letters regarding you Minimum Distributions on your IRA’s. The big question is whether you must take them. Because of COVID-19, Uncle Sam suspended RMD’s for 2020. But, as it stands now, you will have to withdraw them for 2021. Also, if you turned 70 ½ in 2020, you can now wait until your 72 to start taking Minimum Required Distribution. Anyone that turned 70 ½ before then unfortunately is out of luck.
One other thing that you should know is that the “Stretch IRA” no longer exists. This means that if you inherit an IRA from a family member, you have ten years to liquidate it. That does not mean this you have to liquidate it all at once. It just means that you have a ten-year window. If it is not done, the remaining money is taxed at a 50% rate. Ouch!
Finally, I would like to regale you with my 2021 predictions. I heard a lot of people preach gloom and doom when Joe Bidon got elected. But I really do not think it will be the case. I believe that the growth will be more moderate than the past few years. So, everyone that got double digit returns last year, I would not count on it this year. I do believe that the tech sector as well as health and science sector will be worth looking at.
Now I did make a prediction on the Super Bowl this year. As much as I wanted Tom Brady and the Gronk to win, I picked the Chiefs. To be honest, I only picked them because my friend lost a bet to me earlier in the year and when he has to pay up on a bet, he whines more than my grandson does when his diapers need to be changed. So, to avoid that, I went with the Chiefs.
I hope that you all have a safe February and get your shots when you can.