December 2023

With the holiday season upon us, I'm reminded of the many reasons we have to be thankful, not only in the present but also as we look forward to the new year. I want to express my genuine appreciation for your trust and the opportunity to assist you in achieving your financial goals.

In this month's newsletter, I’d like to share our most recent insights into the economic landscape for Q4 and important items to note heading into 2024. If you have any questions about your specific financial situation and unique goals, please don’t hesitate to reach out.

Wishing you and your loved ones a joyous holiday season and a happy new year. Thank you for being a part of our Certus Wealth Management family.

Yours truly,

Economic Landscape: Q4 Insights

• From an economic perspective, we are conscious of geopolitical risks, particularly the ongoing conflict in the Middle East. 
• Many experts believe that interest rates might remain elevated for longer than initially anticipated. 
• With those risks, the economy appears to be on solid footing. Notably, the initial reading for Q3 GDP growth was 5.2%. This is meaningfully higher than the approximate 2% average over the last two decades. 
  (Sources: Bureau of Economic Analysis; Macrotrends)
• Though the labor market is slowing, there are still 1.34 job openings for every available worker. This bodes well for job seekers, as there appear to be sufficient openings for employment. (Source: Yahoo Finance) This could be an additional indication that the Fed has reached or is nearing peak interest rates.
• Earnings estimates for the stock market are on the rise. (Source: Yahoo Finance)
• Unemployment remains low, standing at 3.9% as of October. (Source: U.S. Bureau of Labor Statistics)

Get Ready for 2024: Retirement Plans, Social Security & Medicare

As we approach 2024, it’s important to note several key changes. In our upcoming client meetings, we’ll discuss these adjustments to help you make the most of the opportunities available to you. Here’s a summary of what’s changing:

• Contributions to Retirement Plans: The 401(k) and 403(b) employee contribution limit for those under 50 has increased to $23,000 (up from $22,500). The catch-up contribution limit for those over age 50 remains unchanged at $7,500. (Source: U.S. News)
• Annual Compensation Limit for Most Workplace Retirement Plans: The maximum amount used for calculating contributions has increased to $345,000 (up from $330,000). (Source: U.S. News)
• Total Contribution Limit: The maximum amount an employee and their employer can contribute to the employee’s retirement accounts is now $69,000, plus catch-up contributions (up from $66,000). For workers who are 50 and older, the overall contribution limit is $76,500, which includes catch-up contributions. (Source: U.S. News)
• Higher Defined Benefit Payout: For those with a defined benefit plan, the limit for annual payout has increased to $275,000 (up from $265,000). (Source: U.S. News)
• Income Thresholds: The income levels for key employees, highly compensated employees, and top-heavy plans have been adjusted. (Source: Forbes)
• Medicare: The regular monthly premium for Medicare Part B participants in 2024 will be $174.70, a $9.80 rise from $164.90 in 2023. The yearly deductible for all Medicare Part B beneficiaries will be $240, up $14 from the 2023 annual deductible of $226. (Source: Centers for Medicare & Medicaid Services)
• Social Security: The 2024 cost-of-living adjustment (COLA) is 3.2%, meaning the average monthly benefit will rise by more than $50/month. (Source: Social Security Matters)

Navigating retirement planning is a personal journey. Want to explore age-specific insights to help guide your approach to retirement savings, investments, and life milestones?

Certus Wealth Management