With the current makeup of Congress, we feel confident we will not see another major catalyst for tax policy change until the 2024 general elections. Accordingly, this year-end planning note focuses on current law and provides a framework of considerations and opportunities to explore as part of traditional year-end planning. It is also not too early to start planning for the sunsetting of several provisions of the 2017 Tax Cuts and Jobs Act (TCJA) in 2026.

In our Highlights section below we summarize the key points. To see a fuller explanation for those who want to dive into the details, click download PDF.

As always, please engage your Pathstone advisory team to help assess opportunities and their potential application and appropriateness to your family’s unique planning situation.

Following three months of weak performance, both equity and fixed income markets saw a sharp uptick in November after the Treasury declared that bond issuance would be less than previously projected. The rally persisted when inflation fell below economist forecasts. Throughout the month, Treasury yields decreased due to a combination of factors, leading to the best month of performance for bonds so far this year with only a month to go. Developed ex-US equities were among top performers for the month, while commodities were the worst-performing asset class for the month.

The “good news is bad news” trend continued in October. Real GDP increased significantly and payrolls were higher than anticipated, yet the S&P 500 recorded its third consecutive down month, the Equal Weighted S&P 500 fared even worse, and the Russell 2000 had its worst month since September 2022.