The post-election environment and positive developments toward a COVID-19 vaccine have led to a surge in stock prices. The added clarity on these two fronts has boosted sentiment, which may present a risk in the near term as stock prices are near all-time highs. A November to Remember The reaction from stocks since the US election has been truly impressive. The S&P 500 Index is up 8.8% for the month, on pace to be the best November for the S&P 500 in 40 years. Small caps have also soared, with the Russell 2000 Index up 16%, which would be its second-best month ever. Although we remain longer-term bullish on equities, there are some signs that sentiment could be getting a little frothy at the moment, which could increase the odds of a pullback. Technicals Supportive of Future Strength On November 9, more than 71% of the stocks in the S&P 500 hit a one-month high, the third-highest reading using data back to 1990. Not only does this tell us that participation in the post-election rally has been extremely broad and not limited to only a few heavily weighted names in the index, but historically this has been an extremely positive signal for the next year. Returns can be quite weak in the near term after more than 65% of stocks reach a one-month high, but returns over the next 12 months not only have been far above average, but have been positive in all seven observed instances [Figure 1]. In fact, nearly every measure of breadth and participation we monitor shows a similar trend. Looking at longer-term indicators, 90% of the stocks in the S&P 500 are above their respective 200-day

Retirement is an exciting time for many, and the reward for years of hard work. While there is no set age for retirement, it is important to be prepared before you make the leap, so that you enjoy your retirement and financial stability during it. If you are considering retiring soon, below are some quick considerations to make to know for sure. Have You Secured Healthcare Coverage? One of the largest expenses during retirement could end up being your healthcare expenses, especially if you do not have a healthcare plan in place when you retire. While you will become eligible for Medicare at the age of 65, if you retire before then, you will want to find coverage to bridge the gap between the time your current coverage ends and Medicare coverage begins. You may want to look at the cost of private insurance, see if you are eligible to be on a spouse’s plan, or COBRA your current plan for a period of time after your employment ends. Always be sure to have some kind of medical coverage, even if it has a high deductible, as lack of coverage may lead to significant expenses. Have You Eliminated Most of Your Debt? Going into retirement with major debt may lead to you burning through your savings quicker than you anticipated. If you have stayed on top of your debt and have paid off your mortgage, lines of credit, large loans, and high credit card balances, you are likely in a good position to consider retirement. Do You Have Enough Money Saved? When planning for retirement, you likely had a retirement goal, which would provide you with at least roughly 75%

Individual retirement accounts (IRAs) are one of the most common assets people rely on to save and invest for retirement. In fact, more than a third of households in America own an IRA. If you’re thinking of opening an IRA for the first time, it’s a good idea to review the rules. Even if you have had an IRA for years, note that laws change. The Different Types There are two main types of IRA accounts to choose from: traditional and Roth. The timing of the tax advantages is the main difference between the two. For a traditional IRA, contributions are tax deductible and tax is paid upon withdrawal. Roth IRA contributions are taxed in the year they are made, and qualified withdrawals are tax-free. Both types are almost equally popular: 36% of American households have Roth IRAs 35% of American households have traditional IRAs 26% of American households contribute to both There are also employer-sponsored IRAs. These may fall into either of the two categories. Contribution Limits The IRS set a 2020 annual limit of $6,000 for people under 50 years old. People who are 50 years and older can make a total contribution of $7,000. What some breadwinners do to maximize contributions is to file joint tax returns and open a second account for their spouses. They then make additional contributions to this account. The IRS states that the combined contribution cannot exceed the lesser of the couple’s taxable income or the contributor’s individual limit times two. Eligibility The IRS considers net income from self-employment, gross wages and gross salaries as qualifying income. Too much income, however, and IRA contributions can get reduced or prohibited altogether: Qualifying Widower