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2021: Year-End Market Update Thumbnail

2021: Year-End Market Update

Articles Investments

As you prepare to spend time with friends and loved ones over the days to come, we wish you and yours nothing but health, peace, happiness, and a bright New Year! 


Year-End Market Update - Much to be Grateful For!


Despite two years of a global pandemic and major changes to how we have had to work, learn, and socialize, equities in general have produced another year of strong returns and retirement account balances have benefited greatly.  Below are the average year-to-date returns for each of the major stock asset classes this year as of 12/21/21: 


U.S. Real Estate - Approximately +34.76%

U.S. Small - Approximately +23.23%

U.S. Large - Approximately +23.21%

International Small - Approximately +8.84%

International Large - Approximately +7.43

Emerging Markets - Approximately -2.63%

Going forward, the expected future long-term return for stocks is always going to be positive and we continue to advise each of you to allocate the investments in your 457(b) accounts based on TIME, and NEVER based on current events or a “feeling” that you have.  

 

2022 Income Tax Brackets

 The fate of the Build Back Better Bill appears to be in limbo, but as it was passed in the House, the Bill did NOT change personal income tax brackets for 2022.  However, the IRS did slightly increase the income thresholds for each bracket:

  • 37% for incomes over $539,900 ($647,850 for married couples filing jointly)
  • 35% for incomes over $215,950 ($431,900 for married couples filing jointly)
  • 32% for incomes over $170,050 ($340,100 for married couples filing jointly)
  • 24% for incomes over $89,075 ($178,150 for married couples filing jointly)
  • 22% for incomes over $41,775 ($83,550 for married couples filing jointly)
  • 12% for incomes over $10,275 ($20,550 for married couples filing jointly)
  • 10% for incomes of $10,275 or less ($20,550 for married couples filing jointly)


457(b) Deferral Limits for 2022


457(b) Deferral Limits increased for 2022 as follows: 


*$20,500 under 50

*$27,000 turning 50 or older in 2022

*$41,000 Special 3 yr Catch-Up provision for those 50 and older 

*Annual limit includes any employer contributions from Central Pierce that you may be eligible for.


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

- Your DecisionPoint Financial Planning Team -