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The SECURE 2.0 Act and Your Retirement Savings:
Expect to See These Big Changes

Congress passed the long-awaited SECURE 2.0 Act of 2022 that promises to restructure most Americans' 401(k) plans and change retirement contribution and withdrawal rules to help Americans grow and preserve their nest eggs.

The SECURE 2.0 Act came as part of the $1.7 trillion omnibus spending bill Congress passed before closing for the Christmas holiday, and President Biden

intends to sign it into law.

So what's included in this retirement legislation? And how will it affect your money? We'll talk you through the details of the SECURE 2.0 Act below. Keep in mind that new laws can be complex. A financial advisor can explain the intricacies of the SECURE 2.0 Act and how it directly affects you and your financial situation.

What is the SECURE 2.0 Act?

The SECURE 2.0 Act (aka, the Securing a Strong Retirement Act 2.0) puts in motion provisions to make retirement savings more straightforward and accessible to a wider range of people.

Beginning in December 2019, the original SECURE Act was created to re-introduce the topic of retirement probing onto the congressional agenda. There has been an evident and growing concern about retirement savings being cast aside that was in much need of attention.

From then to now, new provisions have been added to accomplish several tasks in the final bill being

executed:

Implement mandatory auto-enrollment into company-sponsored retirement plans
Increase annual catch-up limits for contributors age 50+
Include Roth matching as a contribution option
Increasing the minimum age for compulsory minimum distribution elections
Increase part-time employee participation in retirement savings plans
Allow student-loan matching

Keep in mind this is not an exhaustive list. For the full scope here is the government release of the SECURE 2.0 Act provisions¹.

Mandatory Retirement Auto-Enrollment

Auto-enrollment has been shown to drastically increase participation in retirement savings (19% to 75%), especially among groups that historically don't contribute. This includes lower-paid workers, younger demographics, and minorities.

Automatic enrollment into 401(k) plans won't require people to contribute, it will simply provide initiative. So instead of employees having to opt into contributing, they will have to take an extra step to opt out.

Increase Annual Catch-up Limits

Currently, if you are age 50+ you can apply catch-up contributions of $7,500 annually to a retirement plan and $1,000 for an IRA.

Section 106 of the SECURE Act maintains the $1,000 for an IRA but adds indexing.

Note: Indexing is basically a yearly review that will

allow for adjustments based on market conditions such as inflation.

Section 107 includes a distinct increase in annual catch-up limits that apply to only three age categories: 62, 63, and 64 (but not 65). If you fall into one of those three ages for 2023 you are eligible to make contributions of up to $10,000 to a retirement plan. This will also allow for indexing.

Roth Matching

Contributors participating in a company match can now opt to receive a match on a Roth account. Prior to the SECURE Act matching contributions could only be made on a pre-tax basis.

Minimum Mandatory Distribution Age Increase

Mandatory distributions are the required withdrawals that a retirement account holder must take when you reach 72 years of age. All of the following accounts apply:

Traditional IRAs
SEP IRAs
SIMPLE IRAs
Rollover IRAs
Most 401(k) and 403(b) plans
Most small business accounts

With the SECURE 2.0 Act, the age has been upped from 72 to 73 in 2023. And the plan is for it to continue to increase – to 74 in 2029 and 75 beginning in 2032.

Part-time Employee Participation

As of now, part-time employees are only eligible for an employer-sponsored 401(k) after three years of service. With the new act in place, that is lowered to two years. This provision applies to all part-time workers but was mentioned to cater to women specifically since due to common practice (and the motherhood penalty), women are more likely to work part-time.

Student-loan Matching

With student loans being a significant factor in a person's ability to contribute to their retirement savings, there's a provision to account for this situation. Under the SECURE 2.0 Act, employers are now allowed to make matching contributions to a 401(k) plan, 403(b) plan, or SIMPLE IRA for qualified student loan payments.

The term "qualified" was only broadly included as any payment to debt made for higher education purposes.

The Bottom Line

As of December 23, 2023, Congress passed the SECURE 2.0 Act as part of the $1.7 trillion omnibus spending bill that President Biden will soon sign into law. This retirement legislation will help Americans contribute to retirement accounts and preserve their nest eggs. In addition to retirement account auto-enrollment and Roth matching, the bill also includes additional provisions on annuities, the saver's credit and lost retirement accounts. For specialized help pertaining to your individual situation, consider speaking with a financial advisor.

Title: The SECURE 2.0 Act and Your Retirement Savings: Expect to See These Big Changes
Source: https://www.yahoo.com/now/secure-2-0-act-retirement-150042550.html
Author: Ashlyn Brooks
Copyright © 2022 Yahoo. All rights reserved.
1https://waysandmeans.house.gov/sites/democrats.waysandmeans.house.gov/files/documents/SECURE%202.0%20Section%20by%20section%205.3.21.pdf

New Year's resolutions you should make based on
science — and how to keep them

Every new year, people make far-reaching New Year's resolutions that they struggle or fail to keep.

Next year, focus on goals that will help you improve your health while being measurable and attainable. Here's how you can go into 2023 with clear resolutions that are backed by science and will help you live better.

The most common New Year's resolutions tend to be vague goals about losing weight, eating healthier, or accomplishing more.

But most people don't successfully follow through on their resolutions — largely because they're so general and non-specific. Nearly 80% of people who make a New Year's resolution drop it by January 19, according to 2019 research by the fitness app Strava, Inc. magazine reported.

However, using specific, measurable goals and science-backed resolutions, can boost your chances of successfully transforming your life in 2023. Here are some of the best health and productivity resolution ideas that can help you get closer to your goals this new year.

Fixing your sleeping habits will help you think and feel better.

Getting quality, deep sleep can help your brain process memories and information as well as help it flush out toxins. Getting the proper amount of rest can also help regulate your metabolism, which can reduce cravings, according to Today.

In the long run, sleep could be even more important as research suggests inadequate sleep in your 50s and 60s could increase your risk of dementia, according to the National Institutes of Health.

Sleep expert Matthew Walker, author of the book "Why We Sleep," previously told Insider, you really can't get by on six or seven hours of sleep — the vast majority of people need an average of eight hours a night. To improve your sleep, experts recommend avoiding alcohol, maintaining regular exercise, and avoiding screens immediately before bed, according to CNBC.

Resolve to get moving.

Exercise resolutions are common and for good reason. Along with fixing your sleep, little else will have as transformative an effect on your life as getting moving. The trick is figuring out the targeted exercise routine that's going to work for you — resolving that you'll just "go to the gym more" probably won't cut it.

Regular, moderate exercise can improve your physical health by preventing cardiovascular disease, according to The New York Times. Heart disease is the leading cause of death for American men and women, according to the Centers for Disease Control and Prevention.

Exercise can also improve your mental health, lowering the likelihood of developing depression and anxiety, The New York Times reported.

But the best exercise resolution is one you're likely to keep.

Don't make a workout resolution you know you won't keep. If you're a late sleeper or simply don't have time in the mornings, resolve to develop an evening routine. Likewise, if you know you're not a gym person, don't waste your money by signing up for a membership. According to Bloomberg, the January spike in gym attendance drops after just a few weeks, so don't fall for it if you're not committed.

Experts recommend finding an activity that you're likely to do regularly. That could be rock climbing, swimming, running, yoga, or just daily walks with a friend or a pet. You can also find ways to work exercise into your normal errands, according to KHOU-TV.

If you're going to try a diet in the new year, pick a way to eat healthy that's backed by science.

Just like exercise, if you want to develop better eating habits, try to pick foods that you actually like and be open to trying something new.

Focus on the quality of the foods you're eating, like healthy vegetables, proteins, and whole grains, and cut down on processed foods and sugars where possible, Harvard Health Publishing recommends. One easy resolution to eat healthier could involve cooking one meal per week using no pre-prepared ingredients.

That said, be conscious that your weight is not the sole marker of your health, and keep an eye out for behaviors that could lead to an eating disorder. Behaviors like meticulously counting calories aren't a healthy or dependable way to manage your diet, according to Harvard.

Cut down on alcoholic beverages. While many may ring in the New Year with glasses of champagne, millions will also resolve to participate in Dry January. At the beginning of 2022, a third of American adults in one survey said they abstained for the full month of January, according to CNN.

Cutting down on your drinks can relieve your liver and lower your risk of heart disease, according to Healthline. It can also support weight loss and reduce the risk of some cancers, the outlet reported.

But experts recommend moderation, as a sudden stop for those that drink regularly could cause sleep and anxiety issues, Insider previously reported. Some studies have also found the occasional drink beneficial for the heart.

If you want to be more productive, resolve to take more breaks and work less.

Learn to listen to yourself when you need breaks, and take them more often. This advice can apply on the day-to-day and over the long term.

While we may think we can power through an eight or ten-hour day, the brain can only engage in heavy mental work for four or five hours a day, according to The Washington Post. One expert told the Post that you should take a 20- to 30-minute break for every two hours of focused work.

Remember to take breaks on a larger scale, too. Commit to yourself that you will listen to your body if you show signs of burnout in 2023, and make sure you use all your vacation days.

You could also resolve to start reading regularly. Studies have found that reading can make it easier to empathize with others, reduce stress and promote memory retention, according to The New York Times.

Luminaries of the tech and finance worlds like Bill Gates, Mark Zuckerberg, and Warren Buffett agree about the many benefits of books. They often attribute much of their success to regular reading habits.

Plus, reading is simply a fun, easy way to pass the time and take a break from the internet-connected world. The Times recommends leaning into the style of reading that you like (like novels, short stories, memoirs, or poetry) and focusing on reading for your pleasure.

Pick a goal — one book each month or even one per week, depending on how much you already read. Join a book club if the prospect of chatting with friends (likely over snacks and drinks) will encourage you to turn the pages.

Spend your free time doing exactly what you like.

Sometimes, it feels like life is moving a mile a minute, leaving little time for relaxation or just doing what you love. Make 2023 the year you follow your happiness and do more of what you genuinely enjoy.

Harvard professor and author Arthur Brooks told Harvard Magazine that happiness is a function of enjoyment, satisfaction, and purpose. Brooks recommended people focus on strengthening their "four pillars" of family, faith, friends, and work – instead of chasing money, power, pleasure, and admiration or approval from others.

Decide 2023 will be the year you spend your time and money on experiences that you'll glean happiness from.

Title: New Year's resolutions you should make based on science — and how to keep them
Source: https://www.yahoo.com/now/years-resolutions-based-science-keep-164931484.html
Author: Katie Balevic
Copyright © 2022 Yahoo. All rights reserved.

The Path of Inflation – It’s All About That Base

Key Takeaway

Whether it's the price of bread, gasoline, or rent, we all feel inflation. As consumers, we often feel inflation differently than the Fed measures inflation. In this month's On The Mark, we explore three aspects of inflation – price change versus price level, current inflation hot spots, and the base effect. The key takeaway is inflation finally appears to be falling.

Change, Not Level

This is a great example of how economists think differently than most people. Economists typically measure inflation by taking the price of a good (or service) on one date and comparing that to the price of the same good (or service) on another date. This price comparison is typically expressed as a percent change. For example, if the price of gasoline on January 1 was $3.00 per gallon, and it increased to $4.00 per gallon by January 31, the price inflation of gasoline during January would be +33.3%. Importantly, if the price of gasoline stays at $4.00 per gallon for the rest of the year, the price inflation of gasoline from February to December would be 0%. This may not be intuitive to most people, but the price of a good does not have to decrease for inflation to fall; it just needs to stop rising as quickly as it has risen in the past.

Inflation Hot Spots

Given that method of measuring inflation, where do we see rapid price increases? The chart on the next page shows the monthly percent changes in the goods and services comprising the "Core" Consumer Price Index (CPI) from January 2021 to October 2022. The Core CPI is one of the Fed's main measures of inflation in determining monetary policy. Areas of above-average inflation are highlighted in red, and areas of below-average inflation are highlighted in green.

The category in which we continue to see high inflation is in the "Shelter" component of CPI, which attempts to measure how much people are paying for shelter in the form of rent or a proxy for rent. Both shelter components tend to move slowly and often lag price changes in the real economy. For example, the average rent for a two-bedroom apartment fell by -0.4% during November2. However, because rental agreements typically last for 6 or 12 months, most renters have not been able to reduce their shelter expense. Similarly, the jump in mortgage rates has led to substantial declines in many real estate markets. We estimate it will take 6 to 12 months before those reductions are reflected in the CPI.

"Core" CPI – Monthly Percent Changes in Price from
January 2021 to October 20221

The Base Effect

Lastly, we want to point out that inflation is most often quoted on a year-over-year percentage change basis. Using a rolling 12-month measurement means what is "dropping off" of the rolling period is just as important as what is getting "added on.” Looking at the historical pattern of CPI in the chart below, we experienced very steep price increases from November 2021 to June 2022, with monthly changes averaging +0.8% (an annualized rate of +10%). Since June 2022 (through October 2022), monthly changes have dropped to +0.2% (annualized rate of +3%). As those unusually high months from November 2021 to June 2022 drop out of the 12-month window, year-over-year CPI measures will start to drop precipitously.

"Headline" CPI – The Base Effect

Clearly, declining year-over-year CPI readings due solely to the base effect does not benefit consumers. But this highlights that measuring inflation can be challenging, imprecise, and sometimes controversial. One thing I think we can all agree on is that 7.1% inflation is far too high. Thankfully, it looks like the worst is behind us.

1US Bureau of Labor Statistics
2Zumper National Rent Report November 2022

IMPORTANT INFORMATION
This is for informational purposes only, is not a solicitation, and should not be considered investment, legal or tax advice. The information in this report has been drawn from sources believed to be reliable, but its accuracy is not guaranteed, and is subject to change. Investors seeking more information should contact their financial advisor. Financial advisors may seek more information by contacting AssetMark at 800-664-5345.

Investing involves risk, including the possible loss of principal. Past performance does not guarantee future results. Asset allocation cannot eliminate the risk of fluctuating prices and uncertain returns. There is no guarantee that a diversified portfolio will outperform a non-diversified portfolio. No investment strategy, such as asset allocation, can guarantee a profit or protect against loss. Actual client results will vary based on investment selection, timing, market conditions, and tax situation. It is not possible to invest directly in an index. Indexes are unmanaged, do not incur management fees, costs and expenses and cannot be invested in directly. Index performance assumes the reinvestment of dividends.

Investments in equities, bonds, options, and other securities, whether held individually or through mutual funds and exchange traded funds, can decline significantly in response to adverse market conditions, company-specific events, changes in exchange rates, and domestic, international, economic, and political developments. Bloomberg® and the referenced Bloomberg Index are service marks of Bloomberg Finance L.P. and its affiliates, (collectively, “Bloomberg”) and are used under license. Bloomberg does not approve or endorse this material, nor guarantees the accuracy or completeness of any information herein. Bloomberg and AssetMark, Inc. are separate and unaffiliated companies.

-Recipe of the Month-

Baked Parmesan Carrot Fries

INGREDIENTS:

2 large carrots - washed
1 egg
2 tbsp water
6 tbsp grated parmesan cheese
¼ tsp salt
¼ tsp pepper
4 tbsp mayonnaise
2 tsp chili sauce - sweet chilli or hot chilli - your preference
Parsley

INSTRUCTIONS:

Preheat the oven to 200c/400f. Line a baking tray with parchment or a non-stick silicone mat. Slice the carrots into long thin pieces – about the size of a French fry (no need to peel).
Mix the egg and water and place in a shallow dish. Place the Parmesan into another shallow dish. Dip the carrot sticks first in the egg wash, allow any excess to drip off, then roll in the parmesan and place on the baking tray. Repeat until you’ve used all the carrots.
Sprinkle with the salt and pepper, and place in the oven for 15-20 minutes, turning once until dark golden brown. Whilst the carrots are cooking, mix together the mayonnaise and chili sauce in a small bowl.
Take the fries out of the oven, place on a plate and sprinkle with parsley. Serve with the chili mayo dip.