Weekley Economic Index Shows Slow Growth But No Recession

In this episode of the Planned Solutions Incorporated Podcast, The Weekly Economic Index (WEI) is a high-frequency (updated weekly rather than monthly or quarterly) economic indicator that has a strong track record of predicting the pace of US economic growth. Currently, the WEI is forecasting slow economic growth but is not yet predicting a recession in 2023. However, the path of this index should be watched closely given the mixed economic signals from other data. Also, One of the new changes under the Secure Act 2.0 will require that high-income earners (those who earned $145,000 or more from their employer in the previous year) have their catch-up contributions allocated to the Roth option. This will make the additional contribution taxable to the employee even though the money will be allocated to their retirement plan rather than their paycheck. And, The electric vehicle tax credit has been expanded to include more makes and models. However, the new rules also come with some significant restrictions that may make many taxpayers ineligible. First, there is now an income limit that will cause some taxpayers to be ineligible for the tax credit due to their income level. Second, there are some new convoluted rules about where the vehicle was manufactured and the composition and sourcing of minerals in the vehicle’s battery. These new rules may make it difficult to determine if the credit will apply to a given vehicle. Plus a look at the Planned Solutions Incorporated Office Bulletin Board- Chase was the presenter at the most recent Financial Planning Association of Northern California meeting where he gave a presentation on economic data and trends. Many investment companies have issued tax forms for retirement account distributions but have not yet posted the tax forms for non-retirement accounts. Chase Armer's book- Financial Planning Insights is now available at: www.amazon.com/Financial-Planning…1586894022&sr=8-1 To subscribe to the Personal Finance Review (the written form of all the content we discuss on the podcast) please e-mail [email protected] The Personal Finance Review is published and distributed on a biweekly basis by Planned Solutions, Inc. for informational purposes only. Please seek the advice of a qualified financial planner before taking any action. Planned Solutions, Inc.