Big changes to retirement plans

The new omnibus spending bill, which includes the SECURE 2.0 act, is changing retirement in lots of good ways. This week Jon discusses two investments coming back in fashion and Ben explores every startup’s paradox.

01. If you have a 401(k), this is important for you

From Nate Hoskin, Founder & Lead Advisor

2023 will be a pivotal year for both employers and employees when it comes to their retirement planning. Here are some highlights:

For Employees

There may be a state-led retirement program coming to your city.

Your company can now match your Roth contributions with Roth money.

You can have a $2,500 emergency fund attached to your 401(k).

Your employer can now do a 401(k) match when you pay towards student loans!

For Employers

If you’re in one of these 11 states, you may have to start a company retirement plan by the end of 2023. We broke down Colorado’s version.

New retirement plans will have to auto-enroll all employees starting in 2025.

There are tax credits that cover the full cost of establishing a company retirement plan. We can help you set one up!

02. The consumer will make or break 2023

From Jon Scott, Lead Author

I think the story of 2023 will be the consumer. With the federal funds rate floating between 4.25-4.50, we’ve seen a housing recession in terms of home sales, and we’re likely to see a drop in car sales as interest rates make these purchases out of reach for more consumers.

How much of a slow down will we see? How resilient is the US consumer in 2023? The answer will determine whether the US economy will see a recession in 2023.

On the investing side, we are finally seeing some great options for both bonds and brokered certificates of deposit. This is the first time investors age 40 and under are able to see solid returns in both CDs and bonds as an alternative to riskier stocks.

These options are especially important in a period where more equity drawdowns are possible. Brokered CDs offer higher rates of returns than typical CDs and are offered by several investment institutions. You can find brokered CDs yielding above 4% for terms as short as 3 months, and in the mid to upper 4% range for terms 7-12 months. Don’t forget I-bonds either, which are still yield 6.89%.

Expect an article covering both products in our Knowledge Base the first week of January!

03. New reads

From Kevin Wang, Financial Literacy Lead

Here are several highlighted articles from our Insights Blog and the Knowledge Base:

For everyone

• Colorado Secure Savings Program

• Market Outlooks for 2023 - predictions from 19 major players

For subscribers

• Risk Tolerance & Time Horizon

• Credit Scores

• IRA Withdrawal Exceptions

04. The founder’s paradox

From Ben Silvernale, Strategic Advisor

Growing a company consists of the almost impossible task of doing something right the first time with seriously limited resources. To navigate this paradox at Hoskin, we connected with like-minded people with very different specializations. Our network is our cheat code. I never thought that a friend I made through gaming communities five years ago would be helping me homogenize Hoskin Capital’s branding strategy, but dedicating time to friendships and connections is one of the best investments I have made. I hope all of you have a good New Year, and see you next week!

“Be at war with your vices, at peace with your neighbors, and let every new year find you a better person."

- Benjamin Franklin

View this email in your browser

Copyright (C) Want to change how you receive these emails?You can update your preferences or unsubscribe