Month: January 2021

SRP 1st Quarter Participant Webinar

SAFER ONLINE

Identity theft and cybercrime increased drastically during the pandemic. There has been a significant increase in this type of criminal activity in recent years.

With our partners from Invesco, we will discuss “Financial” and “Non-Financial” Identity theft and its impact on all generations of the family, including children and Senior Citizens, who are most at risk.

Learn practical tips for staying safer online!

All retirement plan participants and eligible employees are welcome!

Please join us on Tuesday, February 9th (1:00pm EST / 12:00pm CST / 10:00am PST) for this live Participant Education event!

REGISTER HERE:    https://srpretire.zoom.us/webinar/register/WN_AAkN5Q6fT8ODXR3gBGBlBQ

Limited space available so register today!

This session will be recorded.

 

Strategic Retirement Partners and its associates do not provide tax advice.  Accordingly, any discussions of U.S. tax matters contained herein (including any attachments) is not intended for written to be used, and cannot be used, in connection with the promotion, marketing or recommendation by anyone unaffiliated with Strategic Retirement Partners of any of the matters addressed herein or for the purpose of avoiding U.S. tax-related penalties.

Securities offered through LPL Financial, Member FINRA/SIPC. Investment advisory services are offered through Global Retirement Partners, an SEC Registered Investment Advisor. Global Retirement Partners and Strategic Retirement Partners (SRP) are separate entities from LPL Financial. Global Retirement Partners, Strategic Retirement Partners, and LPL Financial are not affiliated with Invesco.

Global Retirement Partners employs (or contracts with) individuals who may be (1) registered representatives of LPL Financial and investment advisor representatives of Global Retirement Partners; or (2) solely investment advisor representatives of Global Retirement Partners.  Although all personnel operate their business under the name Strategic Retirement Partners (SRP) they are each possibly subject to differing obligations and limitations and may be able to provide differing products or services.

The Saver’s Tax Credit

The Saver’s Tax Credit can give an added boost to those saving for retirement.

You may be eligible for a tax credit, which could reduce your federal income tax liability, for contributing to your 401(k), 403(b), 457 or IRA plan. If you qualify, you may receive a Saver’s Tax Credit of up to $1,000 ($2,000 for married couples). The deduction is claimed in the form of a non-refundable tax credit, ranging from 10% to 50% of your annual contribution.

Remember, when you contribute a portion of each paycheck into your retirement plan on a pre-tax basis, you are reducing the amount of your income subject to federal taxation. And, those assets grow tax-deferred until you receive a distribution. If you qualify for the Saver’s Tax Credit, you may even further reduce your taxes.

Eligibility depends on your Adjusted Gross Income (AGI), your tax filing status, and your retirement plan contributions. To qualify for the credit, you must be age 18 or older and cannot be a full-time student or claimed as a dependent on someone else’s tax return. You generally must also subtract the amount of distributions from the contributions you made.

Use this chart to calculate your credit for the tax year 2021. First, determine your AGI (Adjusted Gross Income) – your total income minus all qualified deductions. Then refer to the chart below to see how much you can claim as a tax credit if you qualify.

The credit is applied to your contribution up to $2,000, or $2,000 each if married filing jointly.

For example:
• A single employee whose AGI is $20,000 defers $2,000 to a 401(k) or 403(b) plan will qualify for a tax credit equal to 20% of their total contribution. That’s a tax savings of $400.
• A married couple, filing jointly, with a combined AGI of $35,000 each contributes $2,000 to their workplace retirement plans or IRAs. They will receive a 50% credit on both of their contributions, resulting in tax savings of $2,000.
With the Saver’s Tax Credit, you may owe less in federal taxes the next time you file. To claim the credit, use IRS Form 8880, “Credit for Qualified Retirement Savings Contributions.”

 

 

 

This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal or investment advice. If you are seeking investment advice specific to your needs, such advice services must be obtained on your own separate from this educational material.

Strategic Retirement Partners, Global Retirement Partners, LPL Financial and their associates do not provide tax advice. Accordingly, any discussions of U.S. tax matters contained herein (including any attachments) is not intended for written to be used, and cannot be used, in connection with the promotion, marketing or recommendation by anyone unaffiliated with Strategic Retirement Partners of any of the matters addressed herein or for the purpose of avoiding U.S. tax-related penalties.

Securities offered through LPL Financial, Member FINRA/SIPC. Investment advisory services are offered through Global Retirement Partners, an SEC Registered Investment Advisor. Global Retirement Partners and Strategic Retirement Partners (SRP) are separate entities from LPL Financial.

Global Retirement Partners employs (or contracts with) individuals who may be (1) registered representatives of LPL Financial and investment advisor representatives of Global Retirement Partners; or (2) solely investment advisor representatives of Global Retirement Partners. Although all personnel operate their business under the name Strategic Retirement Partners (SRP) they are each possibly subject to differing obligations and limitations and may be able to provide differing products or services.

Market Update – January 6, 2021

A new year offers a welcomed turn of the calendar and a fresh start. However, it’s difficult to put 2020 completely behind us just yet because the COVID-19 pandemic still presents a significant threat. Healthcare workers continue to perform heroically, while the rest of us must continue to make sacrifices until vaccines are widely distributed.

Despite the ongoing threat of COVID-19, it’s important to remember the tremendous progress the US economy has made in its recovery so far:

• The US economy has created more than 12 million jobs since April 2020—more than half the number of jobs lost during the spring lockdown—and has brought down the unemployment rate from 14.7% in April to 6.7% in November.

• Holiday shopping was up a better-than-expected 3% year over year according to MasterCard data. And it shouldn’t be a surprise that a 49% increase in online sales was the big driver. This growth is impressive when we remember how different the world looked in late 2019 when businesses were fully open without restrictions, shoppers freely visited brick-and-mortar stores, and unemployment was near record lows.

• The manufacturing sector has staged a strong recovery. The Institute for Supply Management (ISM) manufacturing index in December tied for its second highest reading in 15 years and has registered above 50—the dividing line between expansion and contraction—for seven straight months.

The economy lost some momentum as 2020 ended with more rapid COVID-19 spread and renewed restrictions. Still, the US economy appears poised to grow through the end of the pandemic, bolstered by the new $900 billion fiscal stimulus package passed December 27, 2020, which provides much-needed aid for small businesses, consumers, schools, and the healthcare system. US gross domestic product (GDP) is expected to grow 4.6% annualized in the fourth quarter of 2020, followed by 2.5% in the first quarter of 2021 (source: Bloomberg).

A better economic backdrop may mean better corporate earnings. Analysts’ consensus estimates for S&P 500 Index company profits have been rising steadily in recent months (source: FactSet) amid the improving economic outlook. S&P 500 companies are expected to return to 2019 profit levels in 2021—a remarkable achievement if realized.

Thanks to the remarkable work of medical researchers and doctors, the end of the pandemic is approaching, and the outlook for the economy and stock market appears promising. But the road ahead may not be smooth. The vaccine rollout is still in its early stages and has significant logistical challenges. US-China tensions aren’t going away any time soon. Higher interest rates and a pickup in inflation could put pressure on stock market valuations at some point. Divisiveness in America is at an extreme. And following the Georgia Senate elections, tax increases may be likely—probably in 2022.

One thing 2020 has taught us as investors is the importance of sticking to a long-term investment plan. That may be easier said than done when volatility arrives—and we had our fair share of that in 2020. Investors who stayed with their plans in 2020 benefited as volatility presented opportunities.

Important Information
This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal. Any economic forecasts set forth may not develop as predicted and are subject to change.

References to markets, asset classes, and sectors are generally regarding the corresponding market index. Indexes are unmanaged statistical composites and cannot be invested into directly. Index performance is not indicative of the performance of any investment and do not reflect fees, expenses, or sales charges. All performance referenced is historical and is no guarantee of future results.

All data is provided as of January 6, 2021.

Any company names noted herein are for educational purposes only and not an indication of trading intent or a solicitation of their products or services. LPL Financial doesn’t provide research on individual equities.

All index data from FactSet.

This Research material was prepared by LPL Financial, LLC. All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy.