Market fluctuations likely to continue; stay focused on your goals
Stock prices and the market have always been impacted by news and events – and 2020 has
proved to be a year overflowing with both. The upcoming election, COVID-19, stimulus packages,
unemployment and more have all had an impact on and are contributing to the fluctuations in
the stock market that we saw earlier this year and again these past few weeks.
While this may be disconcerting, it's important to remember that stock market ups and downs
are a natural part of the stock market cycle, and while volatility is always a factor when
investing in the markets, these swings have the potential to continue until these significant
events are concluded or resolved.
The Internal Revenue Service announced cost-of-living adjustments affecting dollar
limitations for pension plans and other retirement-related items for the 2021 tax
year. Most of the key retirement plan limits remained unchanged for 2021 from
2020 levels, including deferral and catch-up contributions. For 2021, you can
contribute up to $19,500 in qualified retirement plans. The catch-up contribution
limit, impacting those over age 50, remained at $6,500.