Retirement Watch Weekly
Building a Retirement Income Stream
Maintaining Retirement income is the top priority of more and more retirees. As retirement nears their investment focus shifts from increasing the value of a portfolio to replacing their income stream. With baby boomers entering their retirement years, interest in managing retirement income is, well, booming. The potential for significant capital gains doesn’t interest investors […]
Choosing a Trustee for a Winning Estate Planning Strategy
Trusts are an important component of many estate planning strategies. Once used only by the wealthy to reduce taxes, trusts now meet a variety of needs for estates of all sizes. A trust can be used to avoid probate, hold life insurance, preserve assets for beneficiaries, and meet a range of other goals. The unfortunate […]
Buying Only One Fund for Long Term Estate Planning for Grandchildren
Setting money aside for a grandchild, or helping a grand-child who is starting to save without proper Estate Planning, presents a problem. Usually the initial savings are relatively small. Few grandchildren begin with portfolios of $100,000 or more. A portfolio of a few thousand dollars or less presents a problem when you are trying to […]
Navigating the New Broker Reporting Rules
Brokers and mutual fund companies soon will be reporting to the IRS and to you the cost basis of assets sold during the year. You soon will have to make a decision that will affect these reports. In 2008 Congress passed the requirement, and phased it in. The first reports occur on Form 1099-B in […]
Taking RMDs for 2010 and Later
Required minimum distributions are back for 2010 and later years. Congress waived RMDs for 2009 only. You have to take yours by the end of 2010 if you haven’t already and continue taking them in the future. RMDs are required after age 70½. You must take your first RMD by April 1 of the year […]
IRA Conversions and the Five-Year Waiting Period
I continue to receive a lot of questions about the five-year waiting period for taking distributions after Roth IRA contributions and conversions. There’s a lot of confusion about the rules. It is slightly different for conversions and for contributions. It also is different for income taxation of distributions and the 10% early distribution penalty on […]
Requiring Annuities for IRAs, 401(k)s?
A rumor I regularly am asked about is that the government is going to require all IRAs and 401(k)s to be invested annuities. Some versions of the rumor go further and say the proposal is to confiscate all these accounts and invest them in annuities or even Social Security. Here’s the real proposal. The Labor […]
November 2010
November 26, 2010 04:00 p.m. China and the Fed I apologize for some data errors in the December 2010 issue of Retirement Watch. The allocations in the recommended portfolios are incorrect. Also the buy above and sell below prices of Harbor High Yield are inverted. A corrected PDF of the data is posted to the […]
