Retirement Watch Weekly
Bob’s Journal for 3/10/22
Most People Want the Guaranteed Paycheck in Retirement We’re in the first generation of retirees who rely primarily on 401(k)s and other savings instead of pensions for retirement income. But the change wasn’t the idea of employees, and it looks like workers prefer the old system. The change was instituted by employers and government policies, […]
The Fed Continues to Deflate the Bubbles
Will we experience another 2018? Markets are betting that we will, but they ignore important differences between then and now. The Federal Reserve gradually began reversing its extraordinary monetary policies from the financial crisis in 2015. In 2018, the Fed raised interest rates and withdrew liquidity from the economy. The effects were sudden and significant. […]
The 5 Big Retirement Tax Ambushes and How to Avoid Them
Taxes are the biggest obstacle to maximizing retirement income and wealth. Most retirees take taxes as a given or don’t give them much thought until near the end of the year or when they prepare their tax returns. Tax management all year long, however, can reduce out-of-pocket expenses, reduce the financial risks of retirement and […]
3 Shrewd Ways Reverse Mortgages Can Enhance Retirement Security
Forget the negative media reporting on reverse mortgages and forget the television commercials promoting reverse mortgages. A reverse mortgage can be a way to use home equity safely and strategically. Home equity is perhaps the least-used asset in most retirement plans. With the right strategy, a reverse mortgage can use the home equity to reduce […]
The Best Way to Handle Employer Stock in a 401(k) Plan
Employees who own company stock or other securities in their retirement plans should review their options before taking any distributions or doing rollovers. There’s a substantial tax break available to many of these workers. The tax break is known as net unrealized appreciation, or NUA. It’s very valuable when you know the tricks and follow […]
How to Reduce the Taxes on an IRA Conversion
One factor that keeps many people from converting all or part of a traditional IRA or 401(k) to a Roth IRA is the cost. A few simple strategies, and staying alert for opportunities, can dramatically reduce the cost of converting an IRA. Income taxes are the cost of converting an IRA. The amount converted is […]
Surprising Fact About Wills You Must Know
There’s a lot more to know about wills than many people realize. The additional knowledge can result in a better estate plan and make it easier to talk with your estate planner. Let’s first review some basic terms and concepts. A will is a written statement of your instructions and intentions regarding your estate. The […]
All the Ways You Can Avoid Probate (Part 2)
In our last edition of Retirement Watch Weekly, I shared some estate planning tips on how to avoid probate. Let’s look at some more ways today… A transfer on death provision (TOD) is another approach to avoid probate. Most financial institutions now have transfer on death provisions in their new account applications and allow the […]
