Market Memo

July 2024 – By Kyle Rohrwasser

After being up in the air for the last few years the IRS has finally solidified its rules regarding Required Minimum Distributions “RMDs” and the 10-year rule for beneficiaries. Covid created lots of uncertainty, not only economically but also via tax rulings. Common changes came from the CARES Act that was enacted in March of 2020. Major changes of rules came in the form of extending RMD ages and creating a 10-year distribution rule.

Market Memo

June 2024 – By Bob Veres

We’re starting to see private equity firms make short-term investments in companies all across the American business ecosystem.  At best, they’re looking to make a quick buck; at worst, they’re looting the companies they ‘invest’ in and leaving others holding the bag.  One recent example is the Red Lobster bankruptcy, which closed locations around the country and laid off 36,000 workers.  A private equity company firm called Golden Gate Capital basically financed a takeover by selling the real estate under 500 of Red Lobster’s restaurants for $1.5 billion, and the purchasing company then charged premium lease prices from the restaurants.  By 2023, the rents totaled $200 million a year—amounting to 10% of total revenues.

Planning Article

June 2024 – By Tom Rueger CFP^®

Credit card debt has increased to a record level of more than 1.12 trillion dollars. The average credit card balance is around $6,000 and a New York Fed report shows that 1 in 5 cardholders are “maxed out,” using 90% or more of their credit card limit. According to Bankrate, roughly 44% of borrowers carry credit card debt from month to month with the average interest rate topping 20%. This means it can take nearly 2 decades to pay down the debt if only the minimum payments are made.