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2019: Year End Wrap-Up Thumbnail

2019: Year End Wrap-Up

As 2019 draws to a rapid close, we wanted to share with you some important information so you can plan financially for 2020.  Please be sure to scan the entire email below and stop on those topics which interest you.

Market Update - Can Stocks Keep Going Up?

As most of you are aware, 2019 has provided exceptional investment returns for both stock and bond investors.  Most equity asset classes will finish the year with gains of between 20-30%.  Even bond funds have produced above average returns this year.

Question:             Will stocks keep going up?

Answer:               The expected future return for stocks will always be positive!

No one knows in advance how the stock market will perform in 2020, but the odds of another year of positive returns are very high.  In 2018, global stocks were negative. After a negative return year, the markets typically experience at least two years of positive returns.  In addition, concerns over a recession in 2020 have virtually vanished.  The current consensus among economists is that U.S. GDP growth (the best measure of economic activity) will be between 1.9% and 2.4% in 2020 - not too hot and not too cold.  Finally, the bi-partisan passing of the USMCA trade agreement (supported by the majority of labor unions), and the likely signing of the “Phase 1” Chinese trade deal, should significantly remove some of the clouds hanging over the economy and the markets.

DecisionPoint 457(b) Account Reviews

We will be starting our semi-annual reviews of your individual 457(b) accounts in early January.  I will be emailing you the results of those reviews with potential recommendations. 

IRS 457(b) Deferral Limits for 2020

The IRS increased annual 457(b) deferral limits for 2020 as follows:

Under 50$19,500
50 or Older$26,000
Special 3-Year Catch Up (at 50 or older)$39,000

As always, please reach out if we can be of assistance!

Happy New Year! 

- Your DecisionPoint Financial Planning Team -