Retirement Watch Weekly
The Fed Has More Work to Do
What will the Federal Reserve do when infla- tion drops to between 4% and 5%? That’s the key question for the first half of 2023. In 2022, the Fed tightened monetary policy faster than any time since at least 1980. It will tighten more in early 2023, but at a little slower pace than in […]
How to Customize Annuities
Higher interest rates are making annuities more popular than ever, but misun- derstandings keep many people from taking advan- tage of annuities. Insurers have been dealing with waves of applications as yields on multi- year guaranteed annuities (MYGAs) leapt to 3%, 4% and then above 5%. Let’s look at the misunderstandings that keep people from […]
7 Strategies to Reduce Taxes, Beat Inflation Through Retirement
For many people, reducing taxes is the easiest, fastest way to increase investment returns, put a retirement plan back on track, beat inflation and enhance retirement security. Retirees and pre-retirees often leave a lot of money on the table for the IRS to scoop up because they don’t execute the key tax reduction strategies that […]
The Back Door Roth IRA Strategies Still Work
A little more than a year ago, there was an aggressive effort in Congress to eliminate back door Roth IRA strategies. The effort failed. The back door Roth IRA strategies remain available to create a future stream of tax-free gains and income. A back door Roth IRA strategy is necessary in two situations, and there […]
Higher Interest Rates Increase Benefits of CRT
Interest rates are much higher than they were a year ago. That increases the tax benefits of certain strategies, such as the charitable remainder trust (CRT). There are many uses of a CRT. It can be used to convert highly appreciated investment property into a stream of income at a low tax cost. Another use […]
Joint vs. Separate Revocable Living Trusts for Spouses
A revocable living trust, also known simply as a living trust, is a valuable and widely used estate planning tool. But married couples often wonder whether they should have one joint living trust or two separate trusts. The assets owned by a living trust avoid probate. The trust structure also can make it easier for […]
The 6 Most Common Ways Retirement Plans Fall Apart
It doesn’t take much to send a solid retirement plan off the rails. Fortunately, the likely causes of retirement failures are well-known and often avoidable. Here are the six most common reasons retirement plans fall short of their goals: 1. Helping too much People often dip too far into their retirement funds to help loved […]
Bob’s Journal for 12/22/22
The Holiday Conundrum Most years from Thanksgiving through New Year’s Day, my wife, Elaine, and I like to watch a lot of the classic holiday movies and shows. We watch something when we want to instead of when someone’s broadcasting it, so I used to record them and now mostly track which streaming services they’re […]
