If you’re in your early 60s retirement may be approaching fast You’re not alone if you feel compelled to save more during this critical period , The SECURE 20 Act which was signed into law in late 2022 introduced several new retirement plan provisions One of these included the “Super Catch-Up” contribution If you’re eligible this may be the opportunity to boost your retirement savings and add thousands to your nest egg  Here’s what you need to know , New rules make saving easier, If there is one advantage to getting older it’s the ability to save more to your qualified retirement plans The annual contribution limit for employees who take part in 401(k 403(b governmental 457(b plans and the federal government’s Thrift Savings Plan increased to $23500 in 2025 up a whopping $500 from the previous year Except for non-governmental 457(b plans the IRS allows those age 50 or…, Clarifying the nuances regarding the new “super catch-up” contributions for 2025, What plans are being affected, Governmental 457(b 401(k and 403(b and SIMPLE plans Not all plans offer catch-up contributions Check with your plan administrator to see if yours does IRAs are not eligible, Does this apply to Individual 401(k plans, Yes the super catch-up contribution is available for solo plans but not all solo plans offer it so check the details, If I am 59 and turn 60 during 2025 can I take advantage of this, Yes anyone that turns 60 to age 63 in 2025 is eligible, Does the company match impact the super catch-up limit, No Employer contributions including company match and profit-sharing contributions are considered separate , Does this apply to non-governmental 457(b plans , No only governmental 457(b plans which are generally offered by certain state and local governments and tax-exempt organizations , What happens if I turn 64 during the calendar year,  , You will revert to the age 50 catch-up contribution limit in effect for that year ($7500 for 2025 assuming your plan offers catch-up contributions , If I’m eligible can I add $7500 for the over age 50 catch up plus the $11250 super catch up, No you don’t get to do both, Can I take advantage if I add to my Roth 401(k, Yes you can Whether you should or not is another topic, What are the annual contribution limits in 2025 , See below Important note the limits are different for the less-common SIMPLE plans Defined contribution plans (excluding simple plans, Age, 2025 annual participant deferral limit, (assuming no change from 2024 49 and under $23000 50 to 59 $30500 ($23000 plus $7500 catch-up 60 to 63 $34250 ($23000 plus $11250 catch-up 64 and older $30500 ($23000 plus $7500 catch-up   simple plans, Age, 2025 annual participant deferral limit, (assuming no change from 2024 49 and under $16000 50 to 59 $19500 ($16000 plus $3500 catch-up 60 to 63 $21250 ($16000 plus $5250 catch-up 64 and older $19500 ($16000 plus $3500 catch-up,  , Is there anything I need to do, Yes you may need to increase your contributions to hit the maximum Check to make sure   Since this opportunity only lasts up to four years (until you reach age 64 we recommend you talk to your Mesirow Wealth Advisor to see how you can take advantage of super-catch up contributions as soon as you can  Published March 2025

Created in 1965 Medicare is a federal health insurance program designed for people ages 65 and over Regardless of income medical history or health status these individuals are covered, In the programs history its expanded in various ways such as the inclusion of coverage for prescription drug plans and private Medicare Advantage plans that offers a variety of needs depending on budget The cost can change every year — in 2025 most people with Medicare saw a 25%cost-of-living-adjustment (COLA in their Social Security benefits¹, What does Medicare provide, Most Americans aged 65 or older rely upon Medicare for a large portion of their medical care Coverage is composed of four parts Part A Hospital Insurance Part B Medical Insurance Part C Medicare Supplement (Medicare Advantage Plans Part D Prescription Drug Coverage   Medicare Part A Medicare Part A covers the costs associated with a stay in a hospital or skilled nursing facility as well as care…, How much does Medicare cost, Most seniors have their Part B premiums deducted automatically from their monthly Social Security retirement income (Medicare premiums are billed directly to beneficiaries that do not receive Social Security retirement benefits For most of Medicare enrollees the 2025 monthly premium will be $185 However taxpayers with adjusted gross income greater than $106000 (single filers or $212000 (married…, Beneficiaries who file individual tax returns with income, Beneficiaries who file joint tax returns with income, Total monthly premium amount, Less than or equal to $106000 Less than or equal to $212000, $18500, Greater than $106000 and less than or equal to $133000 Greater than $212000 and less than or equal to $266000, $25900 , Greater than $133000 and less than or equal to $167000 Greater than $266000 and less than or equal to $334000, $37000 , Greater than $167000 and less than or equal to $200000 Greater than $334000 and less than or equal to $400000, $48090 , Greater than $200000 and less than $500000 Greater than $400000 and less than $750000, $59190 , Greater than or equal to $500000 Greater than or equal to $750000, $62890, In addition to earned income up to 85% of Social Security retirement income pension payments and most investment income (including tax-exempt bond interest is included in adjusted gross income This also includes IRA withdrawals and Roth IRA conversions Medicare premiums are based upon the most recent tax return on file with the IRS — therefore there is a one-year lag to determine the Part B…, What can you do if your income has changed, Social Security lists five factors that could result in a new decision about the required Medicare Part B premium You married divorced or became widowed You or your spouse stopped working or reduced your work hours You or your spouse lost income-producing property because of a disaster or other event beyond your control You or your spouse experienced a scheduled cessation termination or…, Still working at age 65, If you are still working when you turn 65 you should discuss your Medicare enrollment options with your Mesirow wealth advisor Generally workers do enroll in Medicare Part A because it is free but it is important to understand whether your current employer coverage will change in any way if you enroll in Medicare Part A However if you are enrolled in your employer’s High Deductible Plan with a…, Summary, Medicare can be a complex program to navigate with a multitude of considerations depending on your nuanced situation This is merely an overview We invite you to reach out to your Mesirow Wealth Advisor so that we can help you understand your options and connect you with professionals with additional expertise, Published January 2025, 1  https//wwwaarporg/retirement/social-security/info-2023/cola-benefits-and-medicare-premiums-risehtml   https//wwwmesirowcom/sites/default/files/PDFs/Wealth/2024-Contribution-Limitspdf Source wwwmedicaregov

by Keith Gustafson CFA and Christopher M ONeill PhD CFA CFP ® FRM ® ChFC ®, Abstract, In this paper we review evidence of retirement under-saving and potential solutions as well as empirical evidence regarding investor reaction to negative market returns  We present new corroborating evidence from fund flows around the recent volatile market events in 2020 that indicates a rising loss aversion just as asset levels become significant with investors approaching retirement We surmise…

by Keith Gustafson CFA and Christopher M ONeill PhD CFA CFP ® FRM ® ChFC ®, Proactive plan design elements such as auto-enrollment and auto-escalation represent industry best practice and have become the norm among plan sponsors Their presence results in better participant outcomes particularly when used in an opt-out fashion The practice of re-enrollment is a simple extension of this general framework that similarly represents consensus industry best practice,   Introduction Target Date Funds (TDFs have been utilized since the Pension Protection Act (PPA of 2006 in a QDIA setting as a means of providing retirement savers with a one-stop solution suited to their age and in some cases risk tolerance level According to a recent survey 91% of plans offer a TDF option 1 This framework with TDFs is meant to provide a comprehensive but generalized asset mix…

October 19 2023 | By, Mesirow Currency Management, Security settlements will happen faster in the United States, next year, The exchange of securities and cash will shorten from two days after trading to one day That shorter cycle complicates the process for many investors and foreign investors using hedged share classes face additional hurdles, Beginning May 28 2024 the US Securities and Exchange Commission will require settlement of US security transactions one day after trading Reducing the settlement time from the current two days to one day will be challenging for US investors and foreign investors may find the shorter settlement to be even more demanding For purchases of US securities foreign investors will need to coordinate the…, S&P 500 Open Price, S&P 500 Close Price, S&P 500 Average Price,   EUR GBP CHF EUR GBP CHF EUR GBP CHF Maximum 21 25 19 113 103 120 65 59 69 Minimum -33 -30 -29 -134 -102 -96 -87 -66 -48 Average -01 -01 -01 -03 -02 -03 -02 -01 -01 Risk 19 20 17 58 55 64 38 38 39 Source Bloomberg and Mesirow Currency Management | Notes 1 EUR = Euro   GBP = British pound   CHF = Swiss franc | 2 Risk is annualized standard deviation The largest gains and losses occurred when the…, Questions about the upcoming T+1 settlement change or managing hedged share classes currency hedging or futures overlays, Contact Joe Hoffman CEO Currency Management at 3125957019 or josephhoffman@mesirowcom , Explore more currency insights, An armed war and a currency battle,                Russia confronts the US dollar with so-so results LEARN MORE >, USD and the BRICS threat,                Sanctions on Russia lead to a call for a new currency to compete with the USD Is a common currency likely LEARN MORE >

March 25 2024 | By, Mesirow Currency Management,  , Postwar gold standard “As necessary as a police force and tax collector” Montagu Norman Governor of the Bank of England 1, The death destruction and devastation that followed the Great War (1914 – 1918 could not have been more apocalyptic Eight million dead fifteen million wounded a third of the German male population between 19 and 22 years wiped out Northern France the host of horrific battles was a post-war scene of indescribable wastage No wonder the ordinary person longed for the peace and prosperity of the…, The Great Depression Worshiping at the altar of gold and sacrificing millions to misery, It is inconceivable to us in the 21st century that economists central bankers and treasury officials in the 1920s and 1930s did not recognize that the dire economic situation demanded liquidity and increased government spending But few – most vocally the British economist John Maynard Keynes – did Instead the loudest voices demanded nations maintain gold levels and stay on the gold standard…, Up next, Our third article on gold as money Gold botched the recovery of post-WWI economies and worsened the Great Depression Did it have better luck reviving the global economy after WWII  , Explore more currency insights, Gold gets a good start, Gold has been money or the basis for monetary systems for centuries How did gold become the ultimate backing for nations’ currencies in the nineteenth and twentieth centuries Read article, T+1 security settlement looms, T+1 will affect processing time currency trading and foreign investors Is an FX specialist necessary Read article

The secular shift to value, In June 2020 we published an article titled “The Great Monetary Reflation The Secular Shift to Value” We highlighted the unprecedented magnitude of the fiscal and monetary response to the COVID-19 crisis and examined how the size and impact of the response could affect asset returns particularly through higher inflation and economic growth In August at the Jackson Hole Symposium Federal Reserve…

Changes in the Federal Funds Rate cascade to all corners of finance from credit card rates auto financing mortgages and other rate-sensitive loans to the fixed income (bond markets These changes can also impact many estate planning strategies Changes in interest rates also impact many estate planning strategies First rate increases are directly reflected in the Applicable Federal Rates (AFRs…, *Source https//leimbergcom/Free-Resources/Key-Rates-Valuation/Section-7520-Rate-History While rates are still historically high now they will most likely trend lower With that in mind it is important to know what estate planning strategies work best when rates are high and which ones work best when rates are low , Estate planning strategies that benefit from higher interest rates, Charitable Remainder Annuity Trust, A Charitable Remainder Annuity trust (CRAT is a “split-interest” trust in which the non-charitable beneficiary receives an annuity for a term of years or for life (or two people can have a joint and survivor annuity for life and the remainder goes to a named charity In this case higher 7520 rates will result in a, greater, charitable deduction assuming the same annuity payment to the family Alternatively lower 7520 rates can result in a greater annuity payment to the family assuming the same charitable deduction The only caveat is that Treasury regulations require a minimum of 10% of the initial trust value must go to the charity for a CRAT to be valid The IRS has also ruled that a CRAT is not valid if there is a…, Qualified Personal Residence Trust , The other strategy that benefits from higher interest rates is the Qualified Personal Residence Trust (QPRT The QPRT is a split-interest trust used to transfer a residence or vacation home to children or other family members at a discounted value for gift tax purposes The grantor(s transfer the home to the trust and retain the right to use/occupy the home for a period of years At the end of the…,  , Estate planning strategies that benefit from lower interest rates, Charitable Lead Annuity Trust , A Charitable Lead Annuity Trust (CLAT is split-interest trust that works in the opposite manner of the CRAT described above With this strategy the annuity payments for a term of years are made to a charity and the remainder is usually paid to family members The grantor is entitled to a charitable deduction for the present value of the future annuity payments to charity When the 7520 rate is low…, Intra-family loans, Intra-family loans work best in a lower interest rate environment The AFR rate determines the minimum amount of interest that must be charged on such loans This technique includes loans to family members to finance major purchases to start a business or meet other financial obligations These loans can also be used to shift assets tax-free from a senior family member to a junior family member The…, Installment sales, An installment sale to an Intentionally Defective Grantor Trust (IDGT also works best when interest rates are low This strategy involves an individual (the grantor who “sells” property to a grantor trust created by her in exchange for a promissory note The goal is that the property sold to the trust will have a total return greater than the interest rate on the loan so that the net return after…, Grantor Retained Annuity Trust, Similar to the sale to an IDGT strategy a Grantor Retained Annuity Trust (GRAT will also perform better when interest rates are low The GRAT is another type of split-interest trust in which the trust’s grantor transfers assets to the GRAT and the GRAT pays back to the grantor a fixed annuity for a term of years After that term is up the remainder interest then stays in trust or is paid out to the…,  , Final thoughts, If you have a choice of strategy consider the benefits of a CRAT or a QPRT now while rates are still relatively high (as of the date of this publication When rates eventually trend down you can maximize your tax savings using intra-family loans a sale to an IDGT or a transfer to a GRAT or CLAT That said one should be careful not to let the “interest tail” wag the dog Waiting for rates to change…