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| Hello Daily Money readers! It's Elisabeth Buchwald here with your last newsletter of the year! |
| To close out the year, I have some good news and bad news. When presented with the option of choosing which news to get first I always pick bad before good... So that being said here's the bad news: |
| Santa Claus essentially gave Wall Street coal this year. That's because at the end of the year stocks tend to rise in what's become known as the "Santa Claus rally." In fact, it's occurred 79% of the time since 1950, according to LPL Financial. |
| With just hours to go until the final trading day of 2022, it's not looking like Santa will work his magic on the stock market. That's not a good sign for the year ahead. If Santa's a no-show, the S&P 500 historically underperforms in January and over the following year. The S&P 500 on average drops 0.3% and returns only 4.1% for the new year 66.7% of the time, LPL said. |
Save money, live better |
| Walmart's slogan really sums it up best when it comes to retirement. The more you save, the better you'll be able to live once you retire. Of course, that's much easier said than done, especially as everyday expenses have increased thanks to the historic level of inflation. |
| But here's the good news: new rules that go into effect in 2023 will allow you to stash away more money in tax-advantaged retirement savings accounts. Employees participating in company retirement plans can contribute $22,500 to their 401(k), up $2,000 from this year. Those who don't participate in an employer-sponsored plan will be able to contribute $6,500, up from $6,000, to an individual retirement account (IRA). |
| Additionally, the catch-up contribution limit for employees ages 50 and older is increasing to $7,500 in 2023, up from $6,500 in 2022. That means those participants will be able to contribute up to $30,000. The IRA catch‑up contribution limit, though, will remain at $1,000, the IRS said. |
| For tips on how to start saving for retirement and grow those savings, be sure to check out USA TODAY Money reporter Medora Lee's story. |
📰 More stories you shouldn't miss 📰 |
| Southwest stock: Southwest may be hated by stranded consumers, but Wall Street still likes it |
| Sun Sprouts: Alfalfa sprouts sold in 4-ounce packaging recalled after Nebraska salmonella outbreak |
| Navigating the travel mess: How Southwest's mass flight cancellations have forced its passengers to improvise |
About The Daily Money |
| Each weekday, The Daily Money delivers the best consumer news from USA TODAY. We break down financial news and provide the TLDR version: how decisions by the Federal Reserve, government and companies impact you. |
| Elisabeth Buchwald is a personal finance and markets correspondent for USA TODAY. You can follow her on Twitter @BuchElisabeth and sign up for our Daily Money newsletter here |
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