Retirement Watch Weekly
How Will Tax Reform Change Roth IRAs?
We haven’t seen details of a tax reform bill, but there are some persistent rumors. One proposal is to reduce the Stretch Roth IRA. The Stretch Roth IRA is a great estate planning tool. You convert a traditional IRA to a Roth IRA, paying income taxes now and leaving your beneficiaries a tax-free source of income. […]
Roth Conversions When Tax Reform Is in the Works
The potential for major tax reform or tax cuts makes it harder to decide this year whether to convert a traditional IRA to a Roth IRA. Congressional leaders and President Trump say they are determined to push through tax reform this year. We don’t know details yet, but it’s clear that individual income tax rates […]
Avoiding Big Mistakes with Gifts
Many people make mistakes in their gift giving. It’s not their fault. The rules on estate planning gifts are tricky. By learning the tricks, you can increase the after-tax wealth available to you and your loved ones. Reducing federal estate taxes no longer is the main motivation most of us have for making gifts, because […]
The Stock Market Rotation
There have been sharp changes in the stock markets. Those who focus only on the headlines and indexes missed those moves. September unquestionably has been full of surprises for investors. First, September is supposed to be the worst month of the year for stocks. Yet, we have a gain of more than 1% in the […]
How to Build a Firewall Against Financial Scams & Abuse: 5 Action Steps
Everyone knows it’s older Americans who are the most likely targets and victims of financial abuse and scams. But it’s not just older people who fall victim. The crooks look for vulnerable people. By the time you’re vulnerable, it’s often too late to create real protection. Take action now, so that in the future you […]
The Investment Benefits of Compounding
You’ve heard that compounded returns are the eighth wonder of the world. But many people don’t realize just how important it is to let returns compound. It might be too late for you to achieve the really big numbers, but there probably are younger people in your life who would benefit from the knowledge. They […]
High Inflation and Interest Rates on the Way? The Impact of an Aging Population
This paper argues that the low global inflation since the early 1980s is partly due to demographic changes. In particular, a growing global labor market kept a ceiling on wages, which kept a ceiling on prices. It also increased productivity. Those trend of a growing global labor market is reversing. Therefore, over the next few […]
How to Navigate the “Kiddie Tax”
Shifting assets and income to your children and grandchildren can provide many benefits, including tax benefits. That’s why Congress set up hurdles to keep you from enjoying all the potential tax benefits. When planning gifts of investments to your loved ones, be aware of the kiddie tax. This tax was created in 1986 to reduce […]
