Discussing Why The Markets Rallied Last Week and Covering Unique Roth 401K Options
August 3, 2022
Welcome to Wealth Enhancement & Preservation’s Market Minute, where we get to update you on everything that happened in the financial markets this week. My name is Cody Moore, and I am a Wealth Advisor at Wealth E&P’s Alpharetta, Georgia office.
Last week we saw positive returns in all three of the major indices. This is coming as a result of the Fed raising interest rates by 75 basis points, which markets had priced in and were expecting, so they saw that as good news for the week. Corporate earnings also came back positive, so markets continued positively in reaction to that as well.
I want to talk about Roth 401k options today. Most people are familiar with your 401k through your employer and then your Traditional and Roth IRA, with the most significant difference being the contribution amounts that you can give to your 401k are larger than what you can give to an IRA. The Roth IRA actually has an income limit as well, so if you make over a certain threshold, you can't contribute to the Roth IRA. More commonly we're seeing employers offer a Roth 401k option these days; with that comes no income limit and being able to contribute a significant amount more than you can with the IRA.
If you have questions about this topic or want to know which one makes more sense for your personal situation please feel free to connect with us so we can discuss it. Otherwise, if you have any other questions, if you want a risk profile, or if you would like a retirement projection, please feel free to reach out or visit www.wealthep.com. Stay tuned for our Market Minute next week!
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.
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