As the calendar turned to 2022, those that are requited to take RMD’s (Required Minimum Distributions) from their IRA and or other qualified taxable accounts, became a few years younger in the eyes of the IRS! YAY !
New Uniform Table Makes You Younger
If you did not feel younger after the turn of the calendar to 2022, don’t feel bad, the IRS sees you as younger … maybe living 10% longer….
What Happened?
The IRS updated their mortality tables as can be seen HERE in this terribly formatted release:
III. Updated Life Expectancy and Distribution Period Tables
The life expectancy and distribution period tables in these regulations have been developed based on mortality rates for 2022. These mortality rates were derived by applying mortality improvement through 2022 to the mortality rates from the experience tables used to develop the 2012 Individual Annuity Mortality Basic Tables (which are the most recent individual annuity mortality tables). As was the case in the proposed regulations, the separate mortality rates for males and females in these experience tables, which were based on the 2000-2004 Payout Annuity Mortality Experience Study,[11] have been projected from the central year of 2002 using the respective mortality improvement rates from the Mortality Improvement Scale MP-2018 for males and females.[12] The mortality table in these regulations was developed by blending the resulting separate mortality rates for males and females using a fixed 50 percent male/50 percent female blend.
What does it mean?
All other things being relatively equal, you will not have to take as much out/(pay taxes on) the distributions of our qualified account, because the amount may be less … YAY … thereby making you younger in the eyes of the IRS, because we are all living longer!
So we are younger, don’t have to take as much of and RMD, which means less taxes? Yep… sign me up!
Have a Great ‘Living Longer, Less Taxes” Day!
John A. Kvale CFA, CFP
Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
$treet-¢ents 
December 2021 Financial Planning and Capital Market Review – By John Kvale CFA, CFP
Hello and Welcome to our December 2021 Financial Planning and Capital Market Update!
If you are too busy to read, feel free to listen as we describe our post and thoughts in friendly podcast audio format as well as Video!
Newbies –
We like to articulate our thoughts and review on a Monthly basis our Financial Planning Tips, Capital Markets thoughts and current events!
Hope you enjoy!
December 2021 Video
YouTube
Financial Planning Tip(s)
First In Back to Basics Series – “The Emergency Fund”
In the inaugural post of a neat (well we think so) new idea, here in our Back to Basics series we discuss the all important Emergency fund.
This series is a review of the basics, and will serve as somewhat of a semester study of the Financial Planning foundations all the way to more advanced topics later in the series…. We plan on a mid month release of each part and somewhere south of double digit parts…. possibly with a video added to each for additional insights…. thanks in advance for sharing with those who may find this series helpful….
With the FOMC holding rates low currently, we remind that the Emergency fund is NOT investment funds, and as such may earn little if any interest in the current environment…. but that is ok, it needs to be safe, safe safe and very liquid!
We also discuss the size of the Emergency fund, depending on your situation!
FHFA Raises Conforming Mortgage Loan Amount
This post came to us due to the much larger than normal increase in the confirming (non-jumbo) loan increase amount. We have spoken at length on inflationary increases in a variety of assets, this includes homes and this much larger than normal increase in the non-jumbo Mortgage amount to $647,200 will be helpful in allowing more entry to many into the Residential Housing market, here is the actual article. and here is the link to the FHFA announcement…..
Capital Market Comments
Interest Rates and the FOMC – On Two Different Pages at Time of Post
With such importance on interest rates, the possible raising of the rates and the FOMC’s (Federal Open Market Committee) adjustment of rates…..
This post on FOMC’s rate increases, versus what the Markets are pricing in, was at the time very different. With Markets pricing in an increase in mid year of about 20% and AT THE TIME FOMC members saying a late 2022 if at all increase.
Fast forward to today and both the markets and the FOMC are saying a 60% increases in the Fed funds rate around March may be in the cards…. hmmmm
Have a Great Day, Talk to You at the End of January!
John A. Kvale CFA, CFP
Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
jkfinancialinc
street-cents
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Posted in Audio, Back to Basics, Clients/Clients Only, Education, General Financial Planning, Investing/Financial Planning, Market Comments, Monthly Review, Podcast, Retirement Planning, Video
Tagged CME Fed Watch tool, FHFA, FOMC, Interest Rates, Jumbo Morgtgage, Retirement Planning