Thank you for joining me today for two minutes. This is quick news on the economy, an interesting story, and a financial planning tip.
Economy
Good news! Consumer confidence is up for the first time in four months. According to the Conference Board, US consumer sentiment jumped from 97.5 in April to 102 in May. While this is a positive sign, concerns about inflation and interest rates remain.
Interesting Story
Toyota is taking a unique approach to reducing carbon emissions with new compact internal combustion engines that run on cleaner biofuels and are compatible with hybrids. Despite initial criticism, Toyota's strategy has paid off, selling 3.59 million hybrids in the fiscal year ending March 2024, a 32% increase from the previous year.
Financial Planning Tip
Roth 401(k)s are becoming more popular, with 89% of retirement plan sponsors offering them in 2022, up from 54% in 2012. Roth contributions are beneficial for early-career workers in lower tax brackets or high earners who expect tax brackets to rise. However, traditional 401(k) contributions do opportunities like Roth conversions after retirement and tax-free Qualified Charitable Distributions at age 70.5.
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About the Author
Noah Schwab CFP® is a financial advisor in Spokane, Washington, specializing in helping couples with 401k five years from retirement.
- Fiduciary. No commission, no products
- Investment management and financial planning
