- Jobless claims edge upward. New claims for unemployment benefits rose slightly last week, although the number still remains close to historical lows. While no seasonal factors were officially reported, employers could be preparing for the holiday shopping season by hanging on to employees.
- Existing home sales rise in September. Sales of existing housing stock spiked to the second-highest level since February 2007. The increase puts existing home sales 8.8% higher than September 2014, likely due to favorable mortgage rates and an improving labor market.
- Housing starts soar in September. Groundbreaking on new U.S. properties rose more than expected last month on rising demand for rental apartments. While the boost in housing market activity is great news, higher rental demand may come at the cost of lower home purchases.
- China’s central bank cuts rates again. The People’s Bank of China cut interest rates for the sixth time since last November in an effort to boost economic activity. The bank also lowered bank reserve requirements, making it easier for banks to finance loans.
“I can’t change the direction of the wind, but I can adjust my sails to always reach my destination.” – Jimmy DeanTax Tip: Early Withdrawal? Here’s What You Should Know Taking money out of your retirement account before age 59½ is not something to be undertaken lightly because it may trigger additional taxes and penalties. Here are some things to keep in mind: You must report all early withdrawals to the IRS, unless the money is treated as a rollover. For more information about rollovers, consult a qualified tax professional. You must generally pay a 10% penalty on top of your income taxes on an early withdrawal, though there are many exceptions to this rule depending on your retirement plan or account. If you make an early withdrawal, you may need to file Form 5329, Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts, along with your federal tax return. The tax treatment of retirement accounts can be complicated, and it’s a very good idea to consult a financial professional who understands your total financial picture before making early withdrawals. Tip courtesy of IRS.gov Click here to view full newsletter including reference articles, golf tips, our recipe of the week and more! Notes on featured image: All index returns exclude reinvested dividends, and the 5-year and 10-year returns are annualized. Sources: Yahoo! Finance and Treasury.gov. International performance is represented by the MSCI EAFE Index. Corporate bond performance is represented by the DJCBP. Past performance is no guarantee of future results. Indices are unmanaged and cannot be invested into directly.