Retirement Watch Weekly
Inflation Pressures Increase; Fed Says It Is Not Worried
Inflation continues to accelerate. How far and fast it rises will be critical to the economy and to stock and bond prices. Federal Reserve officials say that the recent rise in inflation is primarily due to short-term factors, such as recovering energy prices and supply chain problems. But inflation might not be temporary. Prices of […]
Avoid the Tax Breaks That Cost You Money
People frequently tell me that they took a financial action at least partly “because it would save a few tax dollars.” Too often, a careful analysis of the situation reveals the action leaves them with fewer after-tax dollars.A classic case is the mortgage interest deduction. People often believe that owning a home with a mortgage […]
This Could be the Best Time to Make Low-Interest Family Loans
The low- or no-interest family loan is one of the best strategies to hedge against the numerous changes proposed in income and estate taxes and take advantage of today’s low interest rates. A family loan reduces income and estate taxes under the current law but also has flexibility so it can be adapted to almost […]
Ignore This IRS Mistake on Inherited IRAs
The IRS recently issued an interpretation of the SECURE Act that surprised most, if not all, professionals who have reviewed the law. The Setting Every Community Up for Retirement Enhancement (SECURE) Act, enacted in December 2019, contained a number of provisions related to retirement and estate planning. One of those provisions eliminated the Stretch IRA […]
The New Post-Pandemic IRA Strategies
A lot has changed about IRAs in the last couple of years, and more changes are coming if the president and majority in Congress have their way. It is important to reassess your strategies. Required minimum distributions (RMDs) don’t have to begin until age 72 for anyone who turns 72 after December 31, 2019. Contributions […]
The Inheritor’s Trust
The Inheritor’s Trust is dramatically under-used, which is remark-able considering its significant benefits. Estate planning usually is done by one generation at a time. The oldest members, for example, decide how they want to disburse their assets among their children and perhaps their grandchildren. Their adult children do their own estate plans, and those plans […]
This is the Year to Ensure Your Estate Plan Has Maximum Flexibility
Fellow Investor, If you have an estate valued at $3 million or higher… You’ll want to have more flexibility in your estate plan this year. That’s because the estate and gift tax law is likely to change soon. You should act now to avoid the worst effects of the new law. But your plan needs […]
Are There Required Minimum Distributions For Annuities?
The required minimum distribution (RMD) rules limit the extent to which an individual can use the tax deferral of an IRA or other qualified retirement plan. The RMD rules dictate when distributions must be made from the retirement plans of certain taxpayers. The required minimum distribution rules apply to qualified annuities. A qualified annuity is […]
