Quarterly Newsletter
4th Quarter 2009
Start Out the Year Right
Children who earned any income from a job in 2009 can contribute to a Roth IRA, which can give them a huge head start on their future. They can contribute no more than the amount they earned for the year—with a $5,000 maximum in 2009—but even a small investment can make a big difference over the long run.
[Read More]Potential Tax Breaks You Shouldn’t Overlook
Children who earned any income from a job in 2009 can contribute to a Roth IRA, which can give them a huge head start on their future. They can contribute no more than the amount they earned for the year—with a $5,000 maximum in 2009—but even a small investment can make a big difference over the long run.
[Read More]Around ICMA-RC
2010 retirement contributions. The maximum 401(k) and 457 contribution limits remain at $16,500 for 2010, the same as the 2009 level. Workers who are age 50 and older during 2010 may still “catch-up” by contributing an extra $5,500. IRA contribution limits for 2010 remain at $5,000 for people under age 50, and $6,000 for those age 50 or older during the year. In addition, the maximum contribution to defined-contribution plans will remain at $49,000 per participant, plus any catch-up contributions that apply, which includes both employee and employer contributions.
[Read More]Market View
The stock market tends to be a forward-looking indicator, falling before recessions are officially declared and rising before economic recoveries begin. This chart shows the magnitude of the equity rally corresponding to each U.S. economic contraction since 1923.
[Read More]Vantagepoint Fund Changes
Starting in January the Vantagepoint Milestone 2010 Fund,1 the underlying fund of the VantageTrust Milestone 2010 Fund, will have a much higher percentage of its assets allocated to equity funds and the multi-strategy fund and a significantly lower allocation to fixed income funds. In addition, the Fund’s glide path (the path that a fund’s asset allocation follows over time) is being extended so that the point where the Fund’s asset allocation becomes constant, (the “landing point”) is 10 years later than the name of the Fund. Similar changes are occurring with the Vantagepoint 2015 Fund.
[Read More]Investing Spotlight
Having a systematic plan for periodically adjusting your asset allocation is an integral element of the portfolio review, and now may be a good time of year to review your portfolio and make sure you’re still on track.
[Read More]Ask ICMA-RC
A new rule that takes effect in 2010 will enable more people to have tax free retirement income from a Roth IRA. In the past, you could only roll over money from a traditional IRA to a Roth if your modified adjusted gross income for the year was no more than $100,000 (whether married or single). That $100,000 income limit disappears in 2010, enabling anyone with a traditional IRA to pay taxes and convert the account to a Roth, where it can grow tax-free for the future.
[Read More]An Expanded Tax Break for Home Buyers
More people can now qualify for tax breaks for buying a home. A new law extends the $8,000 first-time home buyer tax credit beyond its original November 30, 2009, deadline. The credit is now available to qualifying first-time buyers who sign a binding contract by April 30, 2010, and close by June 30, 2010. The definition of first-time home buyer remains the same—to qualify, you must not have owned a home during the three years leading up to the purchase of your new home.
[Read More]Early Warning Signs of Credit Card Trouble
People tend to wait too long before getting help with their credit problems. But if you take action as soon as you see any of the following early-warning signs, you’ll have more options for improving your situation. And this is a particularly good time to keep a close eye on your credit situation, as your bills from the holidays start to come due. Here are some signs of trouble and what you can do to get help.
[Read More]