Wrought Insights - December 23, 2021

What caught my attention over the past weeks in the world of finance covering everything from financial planning and investments to global events

In this edition: Tax Planning Whiplash, Nuclear Power is Greener Than Renewables, and Have a Merry Christmas and a Happy New Year!

Tax Planning Whiplash as the

Build Back Better Act Stalls in Congress

Consensus was that the Democrats would use the 2021 budget reconciliation process to pass the Build Back Better Act in December (which would require only 50 votes in the Senate). Every once in a while a low probability event comes to pass and this past Sunday Sen. Joe Manchin, D-W.Va., said he won’t vote for the bill effectively halting the current version of President Joe Biden’s $1.75 trillion social and climate package.

I’ve spoken with a number of clients over the past months about completing backdoor Roth IRA contributions (which is converting after-tax contributions in IRAs and 401(k)s to a Roth IRA) as that strategy would be disallowed in 2022 under the Act. Since the legislation didn’t come to pass, the back-door IRA strategy is still allowed for now.

UN Crowns Nuclear Power as the

Lowest Carbon Electricity Source

Certainly climate change is happening and the debate over what should be done is in full swing in our society. Along these lines a new report out of the United Nations Economic Commission for Europe caught my attention. The report found that nuclear power produces less CO2 emissions over its lifecycle than any other electricity source including wind, solar, gas and coal.

Embracing nuclear power may be an important part of the future energy mix as our country and world tries to reduce global carbon emissions. For those of us in my home state of New Jersey, it makes you feel even better about the fact that nearly half of New Jersey’s electricity is produced by PSEG’s nuclear power plants in Salem. This article by Nicholas Earl for City AM has more.

Best Wishes for a Merry Christmas and a Happy New Year!

2021 has been a year of change for so many of us; work from office to work from home, virtual schooling to back in-person, some of us starting new businesses and some of us retiring from successful careers, new children and grandchildren and loved ones lost.

I am looking forward to 2022 with a sense of optimism and hope. I believe that with fortitude and the can-do spirit we can overcome our challenges and prosper both personally and professionally! Best wishes to you and your family for a Merry Christmas and a Happy New Year!