If you go to cocktail parties or meet regularly with colleagues for a few years, then you almost certainly witness people speaking without knowing what they’re talking about. Humans are generally overconfident about their knowledge of everything, including personal finance. To help assess your personal financial IQ, here’s a 30-second quiz. 1. The Standard & Poor’s 500 index: A. is up about 77% since March 23, 2020 B. is down about 17% since January 1, 2022 C. is up more than 50% over the past five years D. all the above 2. The U.S. Index of Leading Economic Indicators A. recently began surging B. has declined for 12 straight months C. signals a recession is likely D. signals a recovery is likely 3. In February 2022, rules implementing the SECURE Act, which was signed into law December 2019, changed distribution rules on federally qualified retirement plans, including IRAs, and it will change retirement funding and estate planning decisions for millions of Americans. True
False 4. It’s too late to fully fund your IRA or 401(k) for 2022 to save for retirement and lower your tax bill? True
False 5. The $12 million individual estate tax exclusion will be slashed to $6.2 million ($12.4 million for married couples) True
False If you incorrectly answered 3 or more questions, congratulations on discovering that you’re not a financial wizard. Most people are not financial whizzes but they never know it. Knowing personal finance is not your thing can be a strength. Let us know if you want to delegate financial and tax planning to our firm. If you answered four or five questions correctly, let us know if you need help implementing a strategic plan. Answers: 1 D, 2 C, 3 T, 4 F, 5 T Nothing contained herein is to be considered a solicitation, research material, an investment recommendation, or advice of any kind, and it is subject to change without notice. Any investments or strategies referenced herein do not take into account the investment objectives, financial situation or particular needs of any specific person. Product suitability must be independently determined for each individual investor. Tax advice always depends on your particular personal situation and preferences. You should consult the appropriate financial professional regarding your specific circumstances.
The material represents an assessment of financial, economic and tax law at a specific point in time and is not intended to be a forecast of future events or a guarantee of future results. Forward-looking statements are subject to certain risks and uncertainties. Actual results, performance, or achievements may differ materially from those expressed or implied. Information is based on data gathered from what we believe are reliable sources. It is not guaranteed as to accuracy, does not purport to be complete, and is not intended to be used as a primary basis for investment decisions.
This article was written by a professional financial journalist for Advisor Products and is not intended as legal or investment advice. |