Retirement Watch Weekly
How to Avoid Inherited IRA Disasters
IRAs are more complicated than most people realize. It can be especially tricky to inherit an IRA. It is not unusual for IRA heirs to misunderstand these complicated vehicles. A wrong move or two triggers high taxes, often causing most of the IRA to end up with the IRS. Income taxes can take 35% or […]
New Risks In Health Care Insurance
Rising insurance premiums and medical expense are well-known risks in today’s health care market. Premiums for all types of insurance have been rising at double-digit rates for a few years. The latest data estimate premiums will increase by about 14% this year. In addition, individuals pay a higher share of medical expenses than they did […]
Real Estate and Your Portfolio
More and more investors are realizing why a long-time anchor in our portfolios is real estate. These investors and their advisors have learned to follow our example. A big advantage of including real estate in a balanced, diversified portfolio is that real estate tends to be non-correlated with stocks. That means real estate usually appreciates […]
Your Firewall Against Investment Scams
Scam artists are developing more cunning cons, and you are among their prime targets. Fortunately, new help is available to protect your wealth. Older Americans always have been the targets of scam artists. Seasoned Americans tend to have more money than younger citizens do and also seem to be more trusting. Now, those in retirement […]
How to Maximize After-Tax Returns
A few years ago, near the stock market top, I was talking with a frustrated financial advisor. He had a wealthy client who would not let the advisor sell the client’s large position in a major stock. The investor bought the position many years ago, held it through thick and thin, and had a large […]
Should You Empty Your IRA Early?
Every general rule has its exceptions. IRAs are no different. The general rule for IRAs is to leave investments in them as long as possible. Your wealth will increase if income and gains are allowed to compound tax deferred as long as possible. We demonstrated that in the September 2003 discussion of which retirement accounts […]
How to Beat Inflation
A few economists continue to worry about deflation. Yet, the cost of the key goods and services most people buy keeps rising. Beating rising costs remains an important goal for those saving for retirement or striving to maintain their standard of living in retirement. Fortunately, you can reduce the cost of some important living expenses. […]
7 Estate Planning Tax Strategies & The 2003 Law
The 2003 tax law requires a re-assessment of family investing and saving strategies. New strategies might result in bigger family tax savings under the new law. Under the 2003 law, the top tax rate on ordinary income is reduced immediately from 39.6% to 35% as of Jan. 1, 2003. In addition, the rate on long-term […]
