Stocks Decline Slightly as New Year Dawns

As we kick off 2025, it’s important to know about the latest changes to tax rates, standard deductions, and contribution limits. These updates can help you plan your finances and make the most of your tax-saving opportunities. Highlights include adjustments to income tax brackets, new limits for retirement plans and health savings accounts (HSAs), and updated thresholds for capital gains taxes.

Want to dive into the details?Click here to learn more.

Join us for an informative Medicare educational event at MMC Westlawn on Thursday, February 6th, from 5:30 PM to 6:30 PM. Hosted by Medicare Solutions Specialist Hillary Broome, this session is designed to simplify Medicare for you. You'll learn about Medicare's parts, the enrollment process, and key details to help you make informed decisions. Plus, you'll have the opportunity to ask your own questions during a dedicated Q&A session. Whether you're approaching Medicare eligibility, currently enrolled, or assisting a loved one, this event is a perfect way to gain clarity and confidence. Space is limited, so RSVP today!

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Stocks edged lower last week despite a powerful end-of-week rally.

The Standard & Poor’s 500 Index lost 0.48 percent, while the Nasdaq Composite Index slid 0.51 percent. The Dow Jones Industrial Average fell 0.60 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, dropped 0.90 percent.^1,2

Selling Then Buying

Stocks were under pressure right out of the gate on Monday for no apparent reason other than worries over the loss of year-end momentum. By the end of trading on Monday, markets recovered some losses, but the selling picked up again on Tuesday.^3,4

After being closed for the New Year’s holiday, stocks opened higher for the first trading day of 2025. But sellers gained the upper hand by the end of trading. On Friday, Investors perked up with tech stocks leading a recovery rally that erased most of the week’s losses.^5,6

^{Article from gsam.com: 2024 In Review}

Megacap’s Mega Influence

Megacap tech stocks have captured many headlines over the last two years as the S&P 500 posted double-digit returns (24 percent for 2023 and 23 percent for 2024).

And for a good reason—megacap tech stocks were doing most of the work. For example, during the past 12 months of trading, more than half (53 percent) of the S&P 500’s return can be attributed to the Magnificent Seven–the seven megacap tech companies that most investors would consider household names.⁷

This Week: Key Economic Data

Monday:Fed Official Lisa Cook speaks. Factory Orders.

Tuesday:Fed Official Thomas Barkin speaks. International Trade in Goods and Services.

Wednesday:FOMC Minutes released. ADP Employment Report. Fed Official Christopher Waller speaks.

Thursday:Stock market closed for President Carter’s state funeral.

Friday:Employment Situation. Consumer Sentiment.

^{Source: Investors Business Daily - Econoday economic calendar; January 3, 2025
The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision.}

This Week: Companies Reporting Earnings

Wednesday:Jefferies Financial Group Inc. (JEF)

Thursday:Infosys (INFY), Constellation Brands Inc. (STZ)

Friday:Bank of America Corporation (BAC), Wells Fargo & Company (WFC), BlackRock, Inc. (BLK), Delta Air Lines, Inc. (DAL)

^{Source: Zacks,January 3, 2025. Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice.}

“The biggest disease today is not leprosy or tuberculosis, but rather the feeling of being unwanted.”

– Mother Teresa

Have you ever looked up on a cold, clear night and spotted a glowing ring encircling the moon? In Appalachian folklore, this stunning phenomenon isn’t just a pretty sight—it’s a warning. Known as the “ring around the moon,” this halo forms when moonlight passes through ice crystals in cirrostratus clouds, which often herald incoming rain or snow. For generations, Appalachian families trusted the moon’s mystical glow as a celestial heads-up, using it to prepare for bad weather before modern forecasting existed. This simple yet effective wisdom reflects a deep connection to nature, where even the night sky became a trusted guide. Next time you see the moon wearing its icy crown, you might want to grab your umbrella—or shovel!

Easy Winter Chili

Ingredients:

• 1 lb ground beef, turkey, or plant-based alternative
• 1 small onion, diced
• 2 garlic cloves, minced
• 1 can (14 oz) diced tomatoes
• 1 can (14 oz) kidney beans, drained and rinsed
• 1 can (14 oz) black beans, drained and rinsed
• 1 cup frozen or canned corn
• 1 cup beef, chicken, or vegetable broth
• 1 tbsp chili powder
• 1 tsp ground cumin
• 1/2 tsp smoked paprika
• 1/4 tsp cayenne pepper (optional, for heat)
• Salt and pepper to taste
• Shredded cheese, sour cream, and chopped green onions (optional, for topping)

Instructions:

1. Cook the Protein: In a large pot or skillet, brown the ground beef (or alternative) over medium heat until fully cooked. Drain any excess fat.
2. Sauté Aromatics: Add the diced onion and garlic to the pot. Sauté for 2-3 minutes until softened.
3. Combine Ingredients: Stir in the diced tomatoes, beans, corn, and broth. Add the chili powder, cumin, smoked paprika, cayenne (if using), salt, and pepper.
4. Simmer: Bring to a simmer over medium heat. Cook for 15-20 minutes, stirring occasionally, to let the flavors meld.
5. Adjust Seasoning: Taste and adjust seasoning with additional salt, pepper, or spices if needed.

Serving Suggestions:

• Serve the chili in bowls with your favorite toppings: shredded cheese, a dollop of sour cream, chopped green onions, or crushed tortilla chips.
• Pair with store-bought cornbread or crusty bread for an even heartier meal.

Tips for Good Recordkeeping

When you file your tax return, the first step is to prepare your records. Good recordkeeping throughout the year can make filing your taxes easier. 

Here are some recordkeeping tips:

• Identify all sources of income.
• Keep track of expenses.
• Add tax records to your files as you receive them to make filing easier. 
• Organize support items that you may need to clarify your tax return. 

This information is not a substitute for individualized tax advice. Please discuss your specific tax issues with a qualified tax professional.

Tip adapted fromIRS⁸

How to Drink More Water Throughout the Day

Drinking enough water is essential to keep you feeling your best. While there aren’t any strict rules on exactly how much water you should drink, you should listen to your body to ensure you’re getting enough. 

Here are some tips on how to drink more water throughout the day:

• Keep a reusable water bottle with you, saving plastic and making drinking water more convenient (and fun). 
• Set reminders on your phone to drink water, or “anchor” drinking water to other habits throughout your day (for example, drink some water at the end of every meeting).
• Replace other drinks, such as coffee and soda, with water.
• Drink a glass of water before every meal.
• Flavor your water with fruit or healthy water enhancers.

Tip adapted from Healthline⁹

David put on a white shirt with three large holes in it and went to the grocery store. No one gave him a funny look; no one objected to it. What kind of shirt was David wearing?

Last week’s riddle: Throughout Friday, Hanna asks her mother the same four-word question. On each occasion, her mother gives her a different answer. What is the question?
Answer: "What time is it?"

Surfing Pulau Panaitan

Jakarta, Banten, Indonesia

Footnotes and Sources

^{1.The Wall Street Journal, January 3, 2025}

^{2.Investing.com, January 3, 2025}

^{3.CNBC.com, December 30, 2024}

^{4.The Wall Street Journal, December 31, 2024}

^{5.CNBC.com, January 2, 2025}

^{6.CNBC.com, January 3, 2025}

^{7.  The Wall Street Journal, December 31, 2024}

^{8.IRS.gov, October 2, 2024}

^{9. Healthline, October 3, 2024}