THE WEEK ON WALL STREET
Stocks moved lower last week as fiscal fears and fresh tariff threats loomed over market sentiment. The S&P 500 Index fell 2.61 percent, while the Nasdaq Composite Index dropped 2.47 percent. The Dow Jones Industrial Average slid 2.47 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, advanced 1.14 percent.
FACT OF THE WEEK
According to the Daily News of London, the first copies of the classic vampire novel Dracula by Irish writer Bram Stoker went on sale on May 27, 1897.
A childhood invalid, Stoker grew up to become a football (soccer) star at Trinity College, Dublin. After graduation, he got a job in civil service at Dublin Castle, where he worked for the next 10 years while writing drama reviews for the Dublin Mail on the side. In this way, Stoker met the well-respected actor Sir Henry Irving, who hired him as his manager. Stoker stayed in the post for most of the next three decades, writing Irving’s voluminous correspondence for him and accompanying him on tours in the United States. Over the years, Stoker began writing a number of horror stories for magazines, and in 1890 he published his first novel, The Snake’s Pass.
Stoker would go on to publish 17 novels in all, but it was his 1897 novel Dracula that eventually earned him literary fame and became known as a masterpiece of Victorian-era Gothic literature. Written in the form of diaries and journals of its main characters, Dracula is the story of a vampire who makes his way from Transylvania—a region of Eastern Europe now in Romania—to Yorkshire, England, and preys on innocents there to get the blood he needs to live. Stoker had originally named the vampire “Count Wampyr.” He found the name Dracula in a book on Wallachia and Moldavia written by retired diplomat William Wilkinson, which he borrowed from a Yorkshire public library during his family’s vacations there.
MARKET MINUTE
Stocks Slip
On Monday, stocks were under a bit of pressure after credit rating agency Moody's downgraded the U.S. as an issuer of government bonds. Stocks remained under pressure midweek as Treasury yields moved higher with the 30-year bond hit a 19-month high. Investors fretted about the budget deficit; some feared the deficit would be made worse by the spending bill winding its way through Congress. After the House of Representatives approved the bill, bond yields backed off their highs and stocks went sideways. On Friday, stocks dropped after President Trump warned of a 50 percent tariff on European Union goods following an apparent stall in trade negotiations. At the same time, the administration also threatened a 25 percent tariff on any iPhones manufactured outside of the U.S.
Unexpected Tariff News
The president’s fresh tariff talk ended a week or so of relative tranquility on the trade front. While the EU tariff threat may end with a deal similar to deals with other countries and regions, the iPhone issue may prove stickier. Some analysts estimate that making iPhones in the U.S. would increase manufacturing costs by as much as 50 percent, which might increase the price of an iPhone.
FINANCIAL STRATEGY OF THE WEEK
Important Birthdays Over 50
Most children stop being “and-a-half” somewhere around age 12. Kids add “and-a-half“ to make sure everyone knows they’re closer to the next age than the last.
When you are older, “and-a-half” birthdays start making a comeback. In fact, starting at age 50, several birthdays and “half-birthdays” are critical to understand because they have implications regarding your retirement income.
Important Birthdays
Age 50
At age 50, workers in certain qualified retirement plans are able to begin making annual catch-up contributions in addition to their normal contributions. Those who participate in 401(k), 403(b), and 457 plans can contribute an additional $7,500 per year in 2025. Those who participate in Simple Individual Retirement Account (IRA) or Simple 401(k) plans can make a catch-up contribution of up to $3,500 in 2025. And those who participate in traditional or Roth IRAs can set aside an additional $1,000 a year.1,2
Age 59½
At age 59½, workers are able to start making withdrawals from qualified retirement plans without incurring a 10% federal income tax penalty. This applies to workers who have contributed to IRAs and employer-sponsored plans, such as 401(k) and 403(b) plans (457 plans are never subject to the 10% penalty). Keep in mind that distributions from traditional IRAs, 401(k) plans, and other employer-sponsored retirement plans are taxed as ordinary income.
Age 62
At age 62 workers are first able to draw Social Security retirement benefits. However, if a person continues to work, those benefits will be reduced. The Social Security Administration will deduct $1 in benefits for each $2 an individual earns above an annual limit. In 2025, the income limit is $23,400.3
Age 65
At age 65, individuals can qualify for Medicare. The Social Security Administration recommends applying three months before reaching age 65. It's important to note that if you are already receiving Social Security benefits, you will automatically be enrolled in Medicare Part A (hospitalization) and Part B (medical insurance) without an additional application.4
Age 65 to 67
Between ages 65 and 67, individuals become eligible to receive 100% of their Social Security benefit. The age varies, depending on birth year. Individuals born in 1955, for example, become eligible to receive 100% of their benefits when they reach age 66 years and 2 months. Those born in 1960 or later need to reach age 67 before they'll become eligible to receive full benefits.5
Age 73
In most circumstances, once you reach age 73, you must begin taking required minimum distributions from a traditional Individual Retirement Account and other defined contribution plans. You may continue to contribute to a traditional IRA past age 70½ as long as you meet the earned-income requirement.
Understanding key birthdays may help you better prepare for certain retirement income and benefits. But perhaps more importantly, knowing key birthdays can help you avoid penalties that may be imposed if you miss the date.