The 20th Amendment was ratified on January 23, 1933 and moved up Inauguration Day to January 20th (and the first meeting of the new Congress to January 3rd). Originally, the Congress of the Confederation set March 4, 1789, as the date “for commencing proceedings” of the new government established by the U.S. Constitution. The four-month gap was needed in part because of the time it took to count and report votes and to travel to the nation’s capital.
Last week, the market was unable to sustain the upward trend it enjoyed through the first week of the year. The averages gave up big chunks of their prior week’s gains, but they’re all still showing modest year-to-date net gains. Both the NASDAQ Composite Index (COMP) and the S&P 500 Index (SPX) lost about 1 ½% for the week while the Dow Jones Industrial Average (DJIA) slipped about 1%.
Last week, the 10-year benchmark Treasury closed above 1% for the first time since March and the Treasury yield curve (2-year vs. 10-year maturities) traded at the widest spread since the summer of 2017.
December capped the worst year for U.S. job losses in records tracing back to 1939. In 2020 the economy shed a net 9.37 million jobs,
Once upon a time, about a year ago, the stock market dwarfs were all merrily skipping along, whistling a cheerful tune. They were climbing up the side of Mount Appreciation and they were climbing higher than they ever had before. Conditions were idyllic. The market dwarfs were as happy as could be. Suddenly, they were confronted by a treacherous hobgoblin, the specter of a worldwide COVID pandemic.
2020 featured roughly double the historical average of daily moves of 1% or more for the S&P 500. And one out of every 10 days last year featured a 3% plus gain or loss, approximately four times the historical average. (Source: awealthofcommonsense.com)
The U.S. mortality rate is expected to increase approximately 15% in 2020 when the final data is available.
Now that we’re literally on the cusp of the dawn of a new year, here are a handful of reminders to put the wraps on our year-end blog series. We hope you have found these useful and encourage you to take note and take action on the items that are pertinent to your financial situation.
RMDs Are Back in 2021
The one-year suspension of required minimum distributions (RMDs) ends today.
By Jeffrey R. Wolfe, Senior Vice President, Manager of Wealth Planning Strategies
So, you’ve made it through Christmas and the year of COVID-19. We’re almost to New Years and hopefully better times. That said, life’s responsibilities remain, and it’s a good idea to review your estate plan should something happen to you or a loved one.
First, make sure you have a plan in place! It’s estimated that over 50% of adult Americans do not even have a plan in place.