Author: Minich MacGregor Wealth Management

Tax season is upon us and a new year means new tax changes.  While Congress didn’t pass any major tax reform last year, there are still updated tax provisions that could affect how much money you keep and how much goes to Uncle Sam.  That’s because Congress did pass the Inflation Reduction Act and SECURE 2.0 Act.  Both bills contain tax implications, even if that wasn’t their primary focus.  

In this post, we’ve included some of the most significant changes for investors and retirees. Our suggestion: Look over the material below and highlight anything you have questions about.  Then, feel free to share this post with your tax professional!  He or she should be able to answer any questions you have.  

As always, if there’s anything our team can do to be of assistance, please let us know.  Have a great day!          

Tax-Related Updates for 2023

CHANGES TO THE FILING DEADLINE

One thing to note before we get into the nitty-gritty: This year’s filing date is April 18 instead of the usual April 15.¹ Technically, this isn’t an actual change, as we saw the same date in 2022. But since April 15 is on a Saturday – and because April 17 is a holiday in Washington, D.C. – taxpayers will again get a few extra days to file. (Remember, though, that filing as early as you can is almost always better than filing last minute. That’s because it eliminates the stress of procrastination. Plus, you may get any tax refund back sooner!). Keep in mind it takes time to gather in all the tax information from your various holdings. We will have your tax documents to you as soon as possible. If you have any questions about that, please let us know.

CHANGES TO FEDERAL TAX BRACKETS²

As it often does, the IRS has adjusted the 2022 tax brackets based on inflation. These adjustments are even greater than usual this year thanks to the historic inflation we’ve seen lately. That’s good news for those whose wages have gone up to keep pace with the rise in prices, because it means you can earn more before getting bumped to a higher bracket. And some people may even find themselves dropping down a level, even if their pay stayed the same.

The new brackets are as follows:

Tax Rate	Single	Single Married, filing jointly	Head of Household
10%	0 to $10,275	0 to $20,550	0 to $14,650
12%	$10,276 to $41,775	$20,551 to $83,550	$14,651 to $55,900
22%	$41,776 to $89,075	$83,551 to $178,150	$55,901 to $89,050
24%	$89,076 to $170,050	$178,151 to $340,100	$89,051 to $170,050
32%	$170,051 to $215,950	$340,100 to $431,900	$170,051 to $215,950
35%	$215,951 to $539,900	$431,900 to $647,850	$215,951 to $539,900
37%	$539,901 and up	$647,850 and up	$539,901 and up

CHANGES TO CAPITAL GAINS³

The income threshold for long-term capital gains rates has also gone up due to inflation.

Tax Rate	Single	Married, filing jointly	Head of Household
0%	0 to $41,675	0 to $83,350	0 to $55,800
15%	$41,676 to $459,750	$83,351 to $517,200	$55,801 to $488,500
20%	$459,751 and up	$517,201 and up	$488,501 and up

CHANGES TO DEDUCTIONS²

As you know, when you file your taxes, you can either claim a standard deduction or dive into the details and itemize your deductions. (Since the passing of the Tax Cuts and Jobs Act back in 2017, most people choose the former.) Per the IRS, the standard deduction is “a specific dollar amount that reduces the amount of income on which you’ve been taxed.”⁴

The IRS has increased the standard deduction for your 2022 taxes. For singles, the standard deduction is now $12,950, up from $12,550. For married couples filing jointly, it is $25,900 up from $25,100. For heads of households, the standard deduction is $19,400, up from $19,000.²

Remember, you can’t take the standard deduction if you also itemize deductions. And for married couples filing separately, both spouses must take the same type of deduction. So, if one spouse chooses to itemize, the other spouse must as well.

CHILD TAX CREDIT²

The Child Tax Credit (CTC) is returning to pre-pandemic levels this year. That means taxpayers who claim this type of credit will receive a smaller refund. Parents who received $3,600 per dependent for 2021 will now get $2,000 for 2022. That’s a reduction of $1,600.

CHANGES TO ALTERNATIVE MINIMUM TAX (AMT) EXEMPTION LEVELS²

Due to the Tax Cuts and Jobs Act, the number of Americans who owe the AMT has been drastically reduced. But in case you fall under this category, the exemption levels for 2022 are as follows:

Single	Married, filing jointly
0 to $75,900	0 to $118,100

These exemption levels begin to phase out at $539,900 for single individuals, and $1,079,800 for married couples filing jointly.

***

We hope you found this information helpful. Obviously, it’s not an exhaustive list of every tax change for the year. But it is an overview of some of the most important ones. If you have any questions or concerns, please let us know. Our door is always open!

Sources

1 “IRS sets January 23 as official start to 2023 tax filing season,” Internal Revenue Service, https://www.irs.gov/newsroom/irs-sets-january-23-as-official-start-to-2023-tax-filing-season-more-help-available-for-taxpayers-this-year

2 “IRS provides tax inflation adjustments for tax year 2022,” Internal Revenue Service, https://www.irs.gov/pub/irs-drop/rp-21-45.pdf

3 “5 tax and investment changes that could boost your finances in 2023,” CNBC, https://www.cnbc.com/2022/12/31/5-tax-investment-changes-that-could-boost-your-finances-in-2023.html

4 “Standard Deduction,” Internal Revenue Service, https://www.irs.gov/taxtopics/tc551

On December 23, Congress passed the Consolidated Appropriations Act of 2023.  This is what’s known as an “omnibus spending bill”.  (The word omnibus means that multiple measures were packaged into a single document.)  The bill authorizes $1.7 trillion in government spending on everything from disaster relief to supporting Ukraine to workplace protections for pregnant mothers.¹  On December 29, President Biden signed the bill into law.¹

As you can imagine, this was a massive bill.  In fact, it contained over four thousand pages.  That’s because, as an omnibus, it’s multiple bills combined into one.  Among those many bills is one that will have a profound impact on retirement called SECURE Act 2.0.    

Back in 2019, Congress passed a law known as the Setting Every Community Up for Retirement Act.  This was the original SECURE Act.  The law made important changes to IRAs and 401(k)s, among other things, and was designed to help more Americans save for retirement. 

SECURE Act 2.0 widens the scope of several provisions from the original law.  It also comes with a variety of new ones.  To help you understand this law and how it may affect your finances, we’ve written this special letter.  Now, as you’ve probably guessed, we’ve sent the following information to all our clients.  So, while some of the information you’re about to read may not apply to you right now, it could apply to members of your family.  If so, feel free to share this letter with them!

There’s a lot to unpack here, so please take a few minutes to read about these new provisions.  Most are simple, and we’ve done our best to explain them all in plain English.  But if you have any questions or concerns, please let us know.   

---

Important Provisions of the SECURE Act

Before we dive in, understand that SECURE Act 2.0 is over 20,000 words long.  That means there isn’t room to cover every aspect of the law, and many won’t apply to you anyway.  So, what follows is a brief overview of the provisions that could affect your finances.

Are you ready?  Then take a deep breath as we go over…    

Changes to RMDs²

One of the most notable changes from the original SECURE Act was raising the age at which retirees need to take required minimum distributions or RMDs.  SECURE Act 2.0 raises the age again.  Beginning on January 1 of this year, retirees may now wait until age 73 (up from age 72).  This is important because it gives retirees an additional year to benefit from the tax advantages that come with IRAs before making mandatory withdrawals.  (Note that anyone who turned 72 last year will still need to continue taking RMDs as previously scheduled.)

Finally, the law eliminates the need to take RMDs for Roth IRAs that are inside qualified employer plans.  What does that mean in English?  It means that if a retiree owns a Roth IRA through their old employer, they need never make mandatory withdrawals during their lifetime.  This change begins in 2024. 

Note, of course, that regular Roth IRAs that are not part of an employer plan were never subject to RMDs to begin with, so this change does not apply.)   

Changes to Catch-Up Contributions²

Under current law, employees aged fifty or older can make extra “catch-up” contributions of up to $7,500 per year to their 401(k) or 403(b).  Beginning in 2025, individuals aged 60 through 63 will be able to contribute up to $10,000 annually.  Furthermore, that amount will be indexed to inflation, meaning it will go up as inflation does. 

For people who are 50 or older – but not between the ages of 60-63 – the catch-up limit will remain $7,500 per year. 

People aged 50 and older who own IRAs can also make catch-up contributions, albeit at a smaller amount.  Currently, the catch-up contribution limit for IRAs is $1,000 per year.  In 2024, that number will be indexed to inflation, too.  Again, that means the limit could increase each year as cost-of-living expenses rise. 

Changes for Businesses²

Beginning in 2025, the law requires businesses to automatically enroll employees in any new 401(k) or 403(b).  Furthermore, unless the employee opts out or elects to contribute a different amount, they would automatically contribute 3% of their pay. 

Another change: Starting in 2024, employers can help workers with their student loan payments!  Because it can be so difficult to both save for retirement and pay off college debt at the same time, employers can “match” an employee’s loan payment with an equal contribution to their retirement account.  This is a great option for younger investors, so if this provision applies to you or a loved one, make sure to inquire whether your employer plans to take advantage of it! And business owners around the country will be looking to use this provision to compete and retain top talent.

Other Provisions to Note²

Here’s an interesting provision: Starting in 2024, individuals may transfer money from a 529 plan into a Roth IRA.  This could be useful if you own a 529 plan that has more funds than you or your loved one needs to pay for an education.  Think of it as a way to add more flexibility to your long-term finances. 

It’s important to note, however, that this provision comes with a lot of terms and conditions.  For example, the Roth IRA must be in the same name as the beneficiary of the 529 plan.  Furthermore, no transfers can be made until the 529 plan has been maintained for at least fifteen years.  There are also very specific limits on how much money can be rolled over.  So, if you ever intend to make use of this provision, my advice is to talk to me first so my team can help you through the process.  

Let’s move on to another interesting provision.  As financial advisors, we’ve long recommended that all investors have a Rainy-Day Fund.  But sometimes, even this isn’t enough to handle unexpected expenses, like a health crisis or loss of income.  Under SECURE Act 2.0, it’s now easier to make use of your retirement savings in an emergency.  Previously, there was a 10% penalty for withdrawing money from a retirement account prior to reaching age 59½.  (This was to prevent people from using their retirement savings for something other than retirement.)  However, there are some exceptions, such as when you need the money to pay for certain medical expenses.  The new law has expanded the list of exceptions.  Here are some examples where the 10% penalty no longer applies:

• Recovering from a natural disaster, like an earthquake or hurricane
• Dealing with a terminal illness
• Being the victim of domestic abuse

The law also allows for emergency withdrawals for any taxpayer who needs to meet “unforeseeable or immediate financial needs relating to necessary personal or family emergency expenses.”²  Now, what the law does not do is specify what situations qualify as an emergency.  Instead, the law states that “the administrator of an…eligible retirement plan may rely on an employee’s written certification that the employee satisfies the conditions of the preceding sentence in determining whether any distribution is an emergency personal expense distribution.”² 

We know – that sentence is Washington legalese at its finest.  Basically, this means people just need to be reasonable at determining for themselves what qualifies as an emergency.  For example, if a loved one has been injured in an accident?  That’s an emergency.  Desperately want to buy the newest PlayStation before it goes out of stock?  Not an emergency. 

Hopefully, you will never have to make use of this provision.  But it’s nice to know that it’s there in case you ever do!

The final provision we want to address in this letter involves qualified charitable distributions or QCDs.  A QCD is a direct transfer of funds from your IRA to a qualified charity.  They are a popular tool for retirees who want to contribute to a worthy cause because QCDs also double as RMDs in most situations. 

Under SECURE Act 2.0, people age 70½ and older may use a QCD to gift up to $50,000 to a beneficiary.  This is a one-time deal, and several conditions must be met.  So, again, if you want to take advantage of this provision, talk to me and my team first so we can help you navigate the rules and restrictions. 

Lastly, the law also links the maximum annual QCD amount to inflation rather than capping it at $100,000 like before.

Conclusion

As you can see, SECURE Act 2.0 is loaded with provisions for those saving for retirement.  So, again, if you have any questions or concerns, please don’t hesitate to contact us! 

Of course, our team will continue pouring over these changes.  If there is anything else we feel you need to know, we’ll reach out to you, or go over them with you during our next review. 

In the meantime, remember that we’re here to help you work toward your financial goals.  Please let us know if there’s ever anything we can do – in 2023 and beyond.

Sources

¹ “Here’s what’s in the $1.7 trillion spending law,” CNN, December 29, 2022.
² Text of “Consolidated Appropriations Act of 2023,” (beginning page 817), Congress.gov.  https://www.congress.gov/117/bills/hr2617/BILLS-117hr2617enr.pdf

Finances get tight, especially now as prices seem to continue to go up.

Increased costs out of pocket mean less money to invest in saving for your goals.

So, how do you handle saving for long-term goals, let alone short-term goals, plus maintaining retirement savings without going broke?

Follow these simple steps:

• Start with a budget. Make sure you are covering the cost of living, i.e. mortgage/rent, food, utilities, and any other essentials such as transportation.
• Next, you have to make sure you set money aside for emergency funds, rainy day funds, and of course, retirement.
• Once you have those bases covered, you need to prioritize your goals: First by long-term, midterm, and short-term. Then by importance. Saving for college may outweigh that cross-country European adventure.
• With priorities set and savings goals determined, you need to figure out how to divide up the money you have left over. The key here is to make sure the things that are necessities are funded consistently, without exception. Decide what amount of money you can afford each paycheck and have it automatically put into a high-yield savings account.

Speaking with a financial professional can help you work through the math of longer-term, higher-ticket items. They can help you budget and map out a plan that works for you and your family.

If you need help, please reach out, we love being able to assist people with reaching their financial dreams.

As the New Year approaches…

Every year millions of people set new year’s resolutions.  However, very few can stick to their resolutions long-term.  A study done by the University of Scranton found that 23% of people quit their resolution after 1 week.  Only 19% stick to their resolution for at least 2 years.

As advisors, we want to help you succeed, not just financially, but with everything in life.  So here are some tips for sticking to your resolutions.

Know Your “Why”.  Many people set a goal but their why is “just because”.  If you don’t know why you are doing something, and that why is not a driving force, you are less likely to do it.  An example of a resolution with a good why is: I want to lose weight and be in shape so that I can play with my kids/grandkids without being out of breath quickly.  Your kids/grandkids are now motivating factors in your goal, and you are more likely to do it for them.

Setup Accountability.  In our experience, you are more likely to succeed at anything if someone, or something, is there to hold your feet to the fire.  Partner with a family member or friend that can help nudge and push you to your goal.

Plan, Plan, Plan.  We can all agree that one of the biggest reasons for not reaching a goal is that we don’t plan how to get the goal.  We want to lose weight, but don’t have a diet and exercise plan.  We want to go on a big vacation, but don’t plan how to save up for it.  Take the time to plan out the details of how to reach your goal.

We wish you all a Happy New Year and may we all be in the 19% to accomplish our resolutions.

Have you ever gotten a present you didn’t really want but knew that you kinda sorta needed?  (For example, socks.)  Just before Christmas, that’s exactly what the Federal Reserve decided to give the country.  Except the present wasn’t socks, but another interest rate hike meant to combat inflation. 

Suddenly, socks don’t seem so bad, do they?   

The markets reacted predictably, with the Dow dropping over 750 points the following day.¹  So, in this message, we want to ensure you know what’s currently going on during the last few weeks of this year and what’s potentially on the table for next.  We also want to assure you that our team has expected this.  That way, armed with both understanding and assurance, you can focus on enjoying the holidays and spending time with your family. 

In short, all the things that matter. 

Understanding the Fed’s Most Recent Move

On December 14, the Federal Reserve announced their seventh and final interest rate hike of 2022, bringing the Federal Funds Rate to a range of 4.25% to 4.50%.¹ 

Now, what’s interesting about this move isn’t that it happened.  Everyone knew another rate increase was coming.  What’s interesting is the number the Fed chose: 0.50%.¹ 

It’s easy to forget, but interest rates were barely above zero less than twelve months ago.  Back then, the Fed was still trying to stimulate the post-COVID economy by keeping rates low and buying billions of dollars in bonds every month.  Unfortunately, while this was going on, inflation was starting to ramp up, too.

Think of it like hitting the accelerator on your car…right before you hit that patch of ice.

The Fed began reversing course in March, but it wasn’t until June that they began hiking rates in earnest.  What followed was the fastest rise in interest rates since the 1980s, all designed to slow the economy and bring prices down.  Over the next several months, the Fed raised rates by 0.75% at a time.²  That may not sound like much on its own, but the full scope becomes clear when you realize that rates have gone from 0% to over 4% in just nine months.    

The Fed’s latest increase, however, was only 0.50%, which we haven’t seen since back in May.  It’s the first sign the Fed may now be moving to slow the pace of rate hikes – although there are no plans to end the hikes anytime soon.  (More on this in a minute.) 

Interest Rate Changes in 2022²

Date	Rate Change	Federal Funds Rate
3/17/22	+0.25%	0.25% to 0.50%
5/2/22	+0.50%	0.75% to 1.00%
6/16/22	+0.75%	1.5% to 1.75%
7/27/22	+0.75%	2.25% to 2.5%
9/21/22	+0.75%	3% to 3.25%
11/2/22	+0.75%	3.75% to 4%
12/14/22	+0.50%	4.25% to 4.50%

So, why is the Fed exploring a slower pace of increases?  To answer that, imagine heating a mug of hot cocoa.  You put the mug in the microwave for about a minute, only to find your drink is nowhere near warm enough.  So, what do you do?  One approach would be to heat it for another minute – there’s no chance your cocoa won’t be hot after that.  But there is a chance your drink will end up curdling…or maybe even exploding all over the inside of your microwave!    

Instead, you’d probably continue heating your cocoa in ten-second bursts, checking the temperature after each increment.  It’s a bit more work, but it ensures your cocoa ends up exactly how you want it to be. 

That’s what the Fed is doing now by dialing back the pace of their rate hikes.  They’re giving themselves a chance to see what effect each “ten-second burst” has on both prices and the overall economy.  The reason they feel comfortable with doing that now is that the rate of inflation is slowing, too. 

According to the latest data, inflation slid from 7.7% to 7.1% in November.³  That’s a positive sign – especially as it’s a sharper decrease than economists expected.  And it’s why the Fed feels a bit more comfortable with hiking interest rates at a slower pace. 

So, does that mean all these interest rate spikes are working?  The answer is yes – to an extent. 

You see, when the Fed raises rates, what they’re trying to do is decrease economic activity.  By making it costlier to borrow money, the Fed wants to decrease how much consumers spend money.  It seems counterintuitive – after all, we’re used to the idea of economic growth being a good thing!  As spending goes down, companies have no choice but to lower their prices to attract new business.  Lower prices equal lower inflation. 

The issue right now is that while prices are starting to go down, they are not going down evenly.  Furthermore, not all these decreases can be directly tied to interest rates.  For example, there’s an obvious link between interest rates and home prices.  So, it should come as no surprise that the housing market has been falling for months.  Auto loans are pricier too, which is why used-car prices are starting to fall. 

But other areas of the economy aren’t quite so tied to interest rates.  For example, two of the major sources of inflation this year have been food and fuel.  Both have started to level off, but this is largely due to post-pandemic supply chains finally getting sorted out and the world adjusting to geopolitical issues like the war in Ukraine.  As far as inflation is concerned, the effect is the same – but the cause isn’t always tied to interest rates. 

The reason that matters is that in other areas, higher rates are not having the effect you might expect.  For example, take the labor market.  Oftentimes, when rates go up, businesses cut back on hiring or delay giving raises to their employees.  So far, neither is happening.  Unemployment is still near a 50-year low.  Wages continue to grow at an unusually fast rate.  Hiring is beginning to slow, but nowhere near what the Fed likely expected.

The result is that consumer spending continues to motor along.  With most Americans having jobs and extra savings, families continue to spend.  That’s the main reason we haven’t entered a recession yet.  But it’s also one of the reasons that prices – although cooling! – continue to run stubbornly hot.         

It also means that, while the Fed may be slowing the pace of their rate hikes, there are no plans to stop anytime soon. 

Looking Ahead

On December 14, the Fed also unveiled their projections for 2023.  That’s important, because these projections reveal the Fed’s intentions for the coming year, allowing us to plan ahead. 

Due to all the factors, we’ve just gone over, the Fed projects they will continue to raise rates throughout the New Year.  Most Fed officials predict rates will rise to 5.1% by the end of 2023 (up from 4.25% now), but that’s just the median.⁴  Five officials thought 5.25% was more likely, and two went as high as 5.6%.  That’s significantly higher than what the Fed predicted just a few months ago when they projected rates rising to around 4.6% for 2023.     

The last time interest rates were over 5% was all the way back in 2006.²  As you can imagine, this would have a profound effect on the economy, and the Fed knows it.  In fact, the Fed forecasts that unemployment will rise to 4.6% next year – up from 3.7% right now – and remain near that level through 2024.⁴  As a result, they also project a meager 0.5% in economic growth for 2023.⁴  That’s not technically a recession, but it will probably still feel like one. 

Now, it’s important to remember that this is a forecast.  Anyone who watches the weather knows how often forecasts change.  Inflation could cool faster than anticipated, nixing the need for such high interest rates. Alternatively, inflation could continue being stubborn.  Or, the Fed might raise rates exactly how they predict, only to find the economy remaining surprisingly resilient. 

What it means for the markets – and for us

In 2022, there has been a spike in market volatility before and after every hike.  Don’t be surprised if that continues in 2023.  At the same time, investors have been playing a game of chicken with the Fed all year long, seeming to bet that the central bank won’t keep raising interest rates as high as they say, or for as long as they say.  This balancing act of inflation slowly cooling off, and the economy only gradually slowing down, may be the best thing that could happen to the markets.  Either way, however, we need to be mentally, emotionally, and financially prepared for more volatility in 2023. 

The good news is that we already are!  While dealing with volatility is never fun, it’s important to remember that our investment strategy already accounts for this.  We expect there to be times when we need to hit “Pause” on our journey and have factored those times into our plans accordingly.  The most important thing now is that we keep focusing on our mug of cocoa – tasting, and testing as we go, looking for opportunities when we can, and holding course when we need to. 

Our advice is to focus on the season.  Our team will take care of the rest!  So, from all of us here at Minich MacGregor Wealth Management, we wish you Happy Holidays!  Please let us know if there is ever anything we can do for you.  May your cocoa always be the right temperature, and your gifts never be socks. 

_{1 “Dow closes out its worst day in three months,” CNBC, December 15, 2022.  https://www.cnbc.com/2022/12/14/stock-market-futures-open-to-close-news.html}

_{2 “Federal Funds Rate History 1990 to 2022,” Forbes Advisor, December 14, 2022.  https://www.forbes.com/advisor/investing/fed-funds-rate-history/}

_{3 “Inflation Cooled Notably in November,” The NY Times, December 14, 2022.  https://www.nytimes.com/2022/12/13/business/economy/inflation-cpi-november.html}

_{4 “Summary of Economic Projections,” Federal Open Market Committee, December 14, 2022.  https://www.federalreserve.gov/monetarypolicy/fomcprojtabl20221214.htm}

On a scale of 1 to 10, how hopeful are you feeling about 2023?

We’ve seen A TON of headlines talking about recessions, layoffs, and market fears over the past few weeks. And what we should be doing to stave off the worst.

It’s prudent to plan ahead and reef the sails before the storm strikes.

But are we going overboard? Are we being TOO negative?

It’s a normal human reaction to try to foresee and prepare for the worst.

But we think that can sometimes lead us to act as though the worst-case scenario is a foregone conclusion.

What if we’re not making enough room for good things to happen?

While the risk of a recession next year is real, it’s not a given — it’s a prediction.

The Wall Street Journal survey of economists puts the risk of a recession within 12 months at 63%.¹

On the other hand, Goldman Sachs puts the probability of a 2023 recession at just 35%.²

No one knows what will happen for certain but it doesn’t look like a recession is just around the corner.

Recent layoffs are getting big headlines, but they aren’t widespread.³

In fact, there’s still a chance that we could avoid a recession or experience only a mild downturn.

Especially if inflation has truly peaked. (Fingers crossed!)

There are likely to be stormy waters ahead, especially for employees affected by layoffs, but as we enter the final weeks of the year, I want to highlight some signs of hope:

Hopeful sign #1: The latest data shows that the U.S. economy grew nearly 2.9% in the third quarter.⁴

Hopeful sign #2: Economists think the economy will grow again in the fourth quarter as well.

Hopeful sign #3: The Fed might slow down the pace of interest rate hikes soon.⁵

It’s true, we’re still in challenging conditions as we approach 2023.

More volatility is very likely in store for us.

But let’s make room for optimism and positivity.

Good things are in store as well.

Before we go, we wanted to highlight a few more bits of good news from 2022:

• We learned that U.S. child poverty plummeted 80% between 1993 and 2021.⁶
• Scientists discovered a way to help identify babies at risk for sudden infant death syndrome.⁷
• Voters elected the first Gen Z member of Congress.⁸
• A record number of sea turtles laid nests on the Georgia coast.⁹

What other wonderful things happened this year? What good news do you have to share with us?

P.S. Check out these fascinating insights on life from the world’s longest study on happiness. What do you think the key is?

Sources

1. https://www.wsj.com/articles/economists-now-expect-a-recession-job-losses-by-next-year-11665859869

2. https://www.cnn.com/2022/10/24/economy/goldman-sachs-accidental-recession-warning/index.html/a>

3. https://www.cnbc.com/2022/11/30/after-great-resignation-and-quiet-quitting-loud-layoffs-are-here.html

4. https://www.morningstar.com/news/marketwatch/20221130437/us-grew-29-in-third-quarter-gdp-shows-and-theres-little-sign-of-recession-for-now

5. https://www.cnn.com/2022/11/30/economy/jerome-powell-speech-economy

6. https://www.porh.psu.edu/child-poverty-drops/

7. https://www.reuters.com/business/healthcare-pharmaceuticals/blood-marker-identified-babies-risk-sids-hailed-breakthrough-2022-05-13/

8. https://www.cnbc.com/2022/11/09/maxwell-frost-will-be-the-first-gen-z-member-of-congress.html

9. https://www.wjcl.com/article/georgia-loggerhead-sea-turtle-nests/40833391

A lot of turkeys and trimmings are eaten to celebrate Thanksgiving, with sports and shopping galore. But what is Thanksgiving all about?

Originally, this day was rooted in want. It fostered an attitude of genuine gratitude for life’s simpler blessings of adequate food, clothing, and shelter. The day also involved sharing those blessings with others less fortunate. Thanksgiving was more than a day.

From these humble beginnings, Thanksgiving has evolved into a frenetic free-for-all whose genesis starts months before the turkeys and pumpkins are carved. We hear and feel the marketing blitz leading up to Halloween—then three more weeks of marketing. There is a short pause—we hear about “Turkey Day.”

We also survive the all-day barrage of ads pounding us into submission, preparing for the assault. That night, memories of Thanksgiving are slowly obliterated as armies of shoppers mobilize, braving the elements, armed with credit cards, coupons, and attitude.

The next morning before dawn, Black Friday officially kicks off the Christmas shopping season. Cartoonists and commentators have astutely suggested that Thanksgiving has become little more than a blip in the holiday season beginning with Halloween and lasting through New Year’s. Is this what Thanksgiving is all about: human beings reduced to the average dollar amount spent? No—a thousand times, No!! 

Thanksgiving is more than the Pilgrims; more than an American autumn festival; more than an annual paid holiday from work, more than sports and shopping and feasting; it is far more than a holiday narrowly framed by a specific country. Rather, Thanksgiving is a mindset and a way of life!

Regardless of culture or season, as fellow citizens of planet Earth, we can all make the world a little better by embracing and living the principle of Thanksgiving. Thanksgiving is good for all of us! 

This year, as you enjoy a fine meal with family or friends, we hope you have a wonderful holiday. Hug your family; value your friends; enjoy fine food; and cheer on your favorite team.

But remember, it is not Turkey Day. Please pause to be grateful for the abundance we all enjoy in this great land and practice Thanksgiving!

Thanksgiving is more than a day. It is a noble way of life we can aspire to.

“The greatest asset of a company is its people.”
– Jorge Paulo Lemann

---

We truly believe it is our people that set us apart from other financial firms.  Since the start of Minich MacGregor Wealth Management in 2009, we have worked hard to develop into the team we are today.  We take great pride in the ways we help our clients plan for the various stages of life.  Over the past 13 years our client base has expanded largely in part because of people like you that have introduced us to friends, colleagues, and family members. 

To keep up with our growth and success, we decided it was time to add more talent to our team.  We are excited to introduce our newest team member, Andrew Pallas.  He joined our firm on October 31, 2022.

Andrew has been working in the financial industry since 2013.  He started his career in western NY with a financial planning firm and in 2016, he decided to return home to the Capital District area.  For the past five years, he has been a financial planner at CAP COM Federal Credit Union.  Andrew has always had the intention of earning his CERTIFIED FINANCIAL PLANNER ^TM certification and is actively working on attaining this very prestigious designation.  Lucky for us, his search for a career change occurred at the same time we decided it was time to add to our team of professionals.  The rest, they say, is history.

Andrew has experience with social security, Medicare, and tax planning.  He takes a holistic approach with clients that includes strategies for wealth accumulation, tax-efficient investing, and charitable giving and assists with estate and retirement income planning. 

Andrew resides in downtown Saratoga Springs.  Outside the office, when he is not preparing for his CERTIFIED FINANCIAL PLANNER ^TM certification, he enjoys playing basketball, coaching youth basketball and hiking.  He is also a volunteer at Therapeutic Horses of Saratoga.

To you, and especially to all who served, happy Veterans Day!

While thinking about the meaning behind the day, we came across an editorial in the Washington Post from a few years back.  It was written by a veteran named J. Mark Jackson, who served in the 82^nd and 101^st Airborne Divisions in Afghanistan in 2009.  In the article, he answers the question, “What does it mean to be a veteran?” 

Obviously, his words on the subject are far more meaningful than ours.  So, in honor of Veterans Day, we thought we’d share a few of Jackson’s thoughts on being a veteran.  They really highlight why the day is so important.  (We highly recommend you take the time to read the entire editorial, which we have linked to at the bottom of the next page.)

What Does It Mean to Be a Veteran?
by J. Mark Jackson, originally published on November 10, 2016 in the Washington Post¹

“What does it mean, on a day-to-day basis, to be a veteran?  To this Army veteran, it means:

• Fourth of July fireworks sound surprisingly like a mortar attack.
• …and a nail gun sounds startlingly like the bark of an AK-47 when heard in the distance.
• Wondering, when I forget how I filed my tax return the previous year, if I am suffering from a case of undiagnosed traumatic brain injury or if I just forgot.
• Wondering, when I miss words in a conversation, whether it is from hearing loss from the close rattle of a machine gun or if I was just not paying attention.
• Finding a lump in my throat and tears welling in my eyes when I see images of a crying mother or wife holding a flag folded into a triangle.
• Waking up desperately searching for my rifle, while my wife softly says, ‘It’s all right, it’s all right; you are home.’
• Buying a red paper poppy whenever I see another veteran selling them and calling him ‘brother’ when the exchange is made.
• Being unable to throw those paper poppies away, ever.
• Perpetual promptness. No event is too unimportant not to arrive early.
• Maintaining a slightly obsessed fetish with how a bed is made, with emphasis on the corners.
• Feeling positive about the next strong and dedicated generation of future veterans to whom we handed the baton of service.
• A surge of engulfing pride, like a warm shiver, when the American flag passes or during the singing of the national anthem.
• Grasping the knowledge that peace is eminently more precious than any state of war, regardless of the justification. Veterans know the cost of peace firsthand, and that cost has a first name, a last name, a middle initial, and parents. 

Reading that makes it just a little clearer to us how much veterans have given, and continue to give, for our community, our nation, and our freedom.  There are no words we can say, no gift we can give, that could ever repay our personal debt to those who served.  But with every word of kindness, every act of service, and every expression of gratitude, we can at least make up that debt a little. 

We can let veterans know that we know, if only a little, what it means to be a veteran.

On behalf of everyone at Minich MacGregor Wealth Management, thank you, from the bottom of out hearts, to all our veterans.  Thank you for going “over there.”  Thank you for your sacrifice.  And thank you, most of all, for coming home. 

And to you, again, we wish a happy Veterans Day.