Checking In with Ara – December 2023
Hey everyone! Hope that you had a great Thanksgiving. I wanted to share some updates and insights as we approach the end of the year.
Thanksgiving Reflections and Market Overview
I recently spent a wonderful Thanksgiving with my family in Palm Springs, enjoying golf and delicious food. In the financial markets, despite some ongoing uncertainties, we’ve seen a positive trend this year. There’s potential for a “Santa rally” as consumer spending reaches pre-Covid levels.
Investment Opportunities in Current Market Conditions
In our recent meetings, we’ve been discussing annuities coming out of surrender. The current higher interest rate environment and market volatility present new investment opportunities. We are exploring these options, focusing on downside protection and higher interest rates, tailored to each unique situation.
Year-End Financial Planning
As 2023 draws to a close, it’s crucial to address:
- Required Minimum Distributions (RMDs)
- Roth conversions
- Tax loss harvesting
Let’s Connect
If we haven’t had the chance to meet this year, I encourage you to schedule a meeting with me at your earliest convenience. Your financial well-being is my top priority.
I wish you a fantastic holiday season and look forward to our next conversation.
Watch the video above to hear directly from Ara about the latest updates and insights.
Important Information:
You should always seek counsel of the appropriate advisor prior to making any investment decision. All investments are subject to risk including the loss of principal.
This material should not be considered a solicitation of an offer to sell/buy any specific security or offering. Investors should consult a financial professional to determine whether risks associated with an investment in the shares are compatible with their investment objectives.
Traditional IRA account owners have considerations to make before performing a Roth IRA conversion. These primarily include income tax consequences on the converted amount in the year of conversion, withdrawal limitations from a Roth IRA, and income limitations for future contributions to a Roth IRA. In addition, if you are required to take a required minimum distribution (RMD) in the year you convert, you must do so before converting to a Roth IRA.
IRA withdrawals will be taxed at ordinary income rates. Withdrawals prior to age 59½ may also be subject to a 10% penalty tax.
Roth IRA distributions of principal from a Roth IRA are tax-free; however, any earnings will be taxed at ordinary income rates and a 10% penalty tax will apply if withdrawn prior to age 59½ or within five years of the date the Roth IRA was established, whichever is longer.
Annuities are long-term investment products designed for retirement purposes. Guarantees are based on the claims-paying ability of the issuer subject to their terms and conditions. Early withdrawals may be subject to surrender penalties and, if taken prior to age 59½, may be subject to an additional 10% federal tax. Annuities are not FDIC insured. Certain terms and conditions apply, so please read insurance company materials carefully.
Insurance services offered through LPL Financial or its licensed affiliates. CA Insurance Lic. #0518721
Ara Freedman is a registered representative with, and securities and advisory services offered through LPL Financial, a registered investment advisor and member FINRA/SIPC. The investment professionals are affiliated with LPL Financial and are conducting business using the name Lucia Capital Group, a separate entity from LPL Financial.
Here's Something Else You'll Enjoy
