Kaizen Capsules

The differences in tax policy between Presidential candidates Donald Trump and Joe Biden are pretty significant.  Current polls show the Democratic candidate with a substantial lead, which suggests we should prepare for the possibility of a different tax regime in 2021.  But what, specifically, should we evaluate as the elections approach?

Q3 QUARTERLY RECAP

• Stocks post further 2020 gains in Q3, despite a modest pull back in September
• Economy claws back adding 1.3m jobs in Aug and single digit unemployment rate
• Federal Reserve announces a shift in approach to inflation while keeping rates at historic lows

This is a friendly reminder that for those 65 and older and certain younger people with disabilities, the Medicare annual open enrollment period for Medicare Advantage and Medicare Prescription Drug coverage is almost upon us. The enrollment takes place from October 15 to December 7.

The Dow Jones Industrial Average (DJIA), one of the most widely followed stock market indices, has made some key changes to its starting lineup.

This Month’s Recap:

• Stock prices surged in August
• Investors cheered positive news of potential COVID-19 treatment
• A month-long succession of upbeat economic data is welcomed

U.S. Markets In this Month’s Recap:

U.S. Markets

Stock prices rallied in July as further development of a COVID-19 vaccine and better-than-expected corporate financial reports encouraged investors.

In an effort to minimize the economic fallout of the COVID-19 pandemic, the government is not requiring you to take an RMD from your IRA or inherited IRA accounts this year. For those who took RMD earlier in the year, the IRS is now allowing you to repay that RMD back into your IRA. This allows additional time for investments to grow tax deferred.