By Edward Leone Jr. CFP RFC DMD MBA
Contact Information:
edleonedds@gmail.com 303-478-6793
Now that 2014 has concluded, we can examine the major equity market indices and their performance.
Dow Jones Industrial Average 7.50%
S&P 500 11.39%
NASDAQ 10.89%
I would suspect that the extreme volatility in equity markets for 2014 along with investors’ concerns over global economic and political issues have caused many portfolios to under perform these indices for 2014. The price changes for oil are another factor which may have many investors concerned about equity investment performance into the future. I do not have a crystal ball or the forces available to predict the near future. I urge everyone to be disciplined and plan long-term. According to a survey performed by the Journal of Financial Planning, 40% of Americans are not currently investing. 47% of small business owners identify the U.S. tax structure as the top issue impacting their business. Have you made any financial resolutions for 2015 and what are they?
It is important for those who chose to draw Social Security benefits before full retirement age to know that the annual earnings test for 2015 is $15,720. $2 of earnings over this amount yields $1 in benefit reduction. If the Social Security beneficiary will reach full retirement age in 2015, he or she may earn $41,880 from January through the end of the month before full retirement age is attained before any penalty is imposed. The penalty is $1 in benefit reduction for every $3 earned over $41,880. Earnings consist of gross wages earned and net earnings resulting from self employment. Another issue for many in this age group is the necessary understanding of Medicare enrollment periods. The initial enrollment period begins 3 months before the 65th birthday and ends 3 months after the 65th birthday. For those who do not meet this enrollment window, a special enrollment period which extends for 8 months after coverage resulting as a benefit of active employment ends for those who work and have coverage after the age of 65. There is also a general enrollment period for those who miss the above opportunities which extends from January 1st to March 31st each year. Beneficiaries may also adjust coverage in their Medicare programs during the open enrollment period which takes place from October 15th to December 7th each year. As you can see, there are many opportunities to take advantage of coverage under the Medicare program, but this can be complicated. Those who are under the age of 65 and disabled can also qualify for Medicare. It is my intent that the sharing of this information will help you and family members in dealing with these issues during this year.
I wish all readers a safe, healthy, happy and prosperous 2015. It will be very interesting to see what impact the changes in the complexion of the U.S. Congress may have on the country’s economy regarding influence of regulations and fiscal policy matters along with the dynamics of pending global issues.
For The Record:
DJIA 17,737.37
S&P500 2,044.81
NASDAQ 4,704.07
Suggested Reading “Tools and Techniques of Employee Benefit and Retirement Planning” by Leimberg
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