Many of us are old enough to remember when the Department of Labor’s (DOL’s) top three initiatives seemed to be timeliness of contributions, timeliness of contributions, and, well, timeliness of contributions. Of course, that issue inherently relates to current employees who are actively participating in a plan.
Don’t ever say, “It won’t happen to me.” We are all at risk and the stakes are high – both for your personal and financial well-being and for our Firm’s standing and reputation. Cybersecurity is everyone’s responsibility. By following the tips below and remaining vigilant, you are doing your part to protect yourself and others.
A mania around heavily‐shorted stocks, weaker than expected GDP data, and disappointing new vaccine results weighed on global stocks this week. Most major indices fell ‐3to‐4%, the worst week since October. The Cboe Volatility Index (VIX) spiked to 33.1 from 21.9 last Friday. However, bonds weren’t bothered much by all the stock commotion as the 10‐year U.S. Treasury yield was down two basis point to 1.07% (though it fell to 1% earlier in the week).
2020 has taught us a lot. Difficult times have a tendency to do that. We’ve all recognized that there are things we should never take for granted, such as family, friends, co-workers, our jobs and our home. Even mundane tasks like grocery shopping and haircuts have become a dystopian prospect.
As a small business owner, you may think starting a retirement plan for your company is out of reach. You may face two main concerns: cost and time. Commonly, those concerns often lead to these misconceptions:
On Thursday, the S&P 500 set another record high, and most major equity indexes posted solid results for the week. The technology‐heavy, growth‐oriented Nasdaq led with a +4.2% return and the S&P 500 gained +1.9%.
In 2017, tax reform debate included discussion of lowering the amount that workers were able to save in tax-deferred retirement plans to $2,400 from $18,500. Amounts contributed over $2,400, up to the cap, were slated to be taxed as those monies were deposited into the retirement plan with tax free distributions–when made in compliance with the tax code.
Equities began and ended the week with losses to mark their first weekly decline of the new year. Small companies, however, were able to advance and have now been positive in 10 of the last 11 weeks. The 10‐year Treasury yield rose as high as 1.18% early in the week but then backed off to finish at 1.08%. The 10‐year UST yield began the year at 0.91% and rose for each of the first five days before falling for 3 of the last four.
The year 2020 will forever be marked as the year of COVID-19; a virus that saw more than 20 million infected and took more than 300,000 American lives; more than 1.5 million around the globe; a pandemic that forced the entire world to shut down. This virus is still impacting our lives and infecting more than 200,000 every day. Recent vaccine developments finally offer some light at the end of the proverbial tunnel and reasons for optimism.
Stocks overcame a pair of contentious Senate runoff races, protestors storming the US Capitol, and a disappointing employment report to advance for the week and close at new all‐time highs. Bond markets have begun to price in higher inflation, greater‐than‐expected fiscal stimulus, and increased Treasury issuance with the 10‐year Treasury yield jumping 20 basis points, its biggest weekly increase.