Retirement Watch Weekly
Reaping the Multiple Benefits of the IRA, Charitable Giving Combo
Many people believe the Tax Cuts and Jobs Act will reduce charitable giving, because it reduces the tax incentives for giving […]
It’s Dangerous Not to Review Your Estate Plan after Tax Reform
Tax reform affects estate plans more than most people realize. In the Tax Cuts and Jobs Act, the only direct change in estate and gift taxes was the doubling of the lifetime exemption amount. Though the IRS has yet to issue the official inflation-indexed levels for 2018, the individual lifetime exemption could be as high […]
Trouble in Corporate Bonds
When interest rates rise, government bonds are the first investments to suffer. Since they’re considered to have little or no credit risk, their prices adjust quickly to changes in rates. Corporate bonds, both investment-grade and high-yield, make small adjustments to interest rates. But investors in them are more focused on credit quality and liquidity. That’s […]
Estate Planning Strategies: Pros & Cons of Power of Attorney vs. Living Trust
Which is the best way to protect your assets, smooth the transition of your estate, and make life easier for you and your heirs… Power of Attorney or revocable Living Trust? Truth is, most estate plans need both a power of attorney and a revocable living trust. So the better question is: Which one should cover the bulk of your assets? Over the […]
The Roth 401(k) Surprise
Unlike Roth IRAs, not all distributions from Roth 401(k)s are tax free. When an employer makes contributions to a Roth 401(k), those aren’t included in the employee’s gross income. Instead, they are taxed when they eventually are withdrawn from the account. This article has the details. The next logical question is, how do you know […]
It Looks Like a Typical Correction
The recent correction shook up investors, and that will be good for the markets in the coming months. Before the correction, stock indexes had been on an extended upward climb. The climb became very steep in January. Importantly, technical measures indicated stocks not only were overbought, but extremely overbought. That means the index was more […]
Why So Many Men Die at 62
This interesting article discusses a new study that found in the U.S. the death rate spikes at age 62. It spikes for both men and women, but there’s a higher spike for men. (Subscription probably is required.) Male mortality increases 2% at age 62. The researchers looked into the data and concluded that the spike […]
Back Door Roth IRAs Allowed
Upper income taxpayers aren’t allowed to make contributions to Roth IRAs. But they can do conversions to Roth IRAs. For years, tax advisors have said upper income taxpayers should consider the back door Roth IRA. Make a nondeductible contribution to a traditional IRA, and then convert that to a Roth IRA. Some argued that the […]
