ECONOMY

What we know: The unemployment rate has increased in 4 of the past 5 months, climbing from 3.5% in July to the current 4.2%.

What we think: The unemployment rate's rise indicates a significant economic slow down and increases the likelihood of a recession. Fed rate cuts may be behind the curb.

INFLATION

What we know: The Fed funds rate of 4.75% remains more than 2.0% above the past year's consumer price index (CPI) of 2.6%.

What we think: With short term interest rates significantly above inflation, we expect inflation to decelerate. But, we remain concerned that inflation may slow the economy more than expected.

Over 70 1/2? Don't give money to charity.

The Qualified Charitable Distribution (QCD) Rule allows traditional IRA owners to deduct their required minimum distributions (RMDs) on their tax returns if they give the money to an approved charity. This rule can effectively reduce your income taxes by lowering your adjusted gross income, however, the amount one can give is capped at $100,000 annually per person. To learn more, click here.

Getting close to the next tax bracket?

If there’s room for additional earned income before triggering the next tax bracket, consider converting a traditional IRA to a Roth, and paying taxes on the earnings at the time of conversion. To learn more, click here.

Here's how we help you

​​These strategies may require careful, professional help to calculate, set up, and convert. More importantly, Legacy works with you to provide clarity on issues that impact your broader financial plan, including marginal tax brackets, income and contribution limits, pro-rate and pre-tax versus after-tax contributions, and upcoming tax changes in 2025.

Part of how we provide peace of mind for your financial future is advising you and working with your tax professional to set up a sustainable strategy. Contact Allison Walker at (502) 873-0521 to get an appointment with your Financial Advisor.