Retirement Watch Weekly
Lower Growth Suddenly Worries the Fed
The Federal Reserve, now worried about slow economic growth, shifted its focus from inflation to the labor market. The unique feature of the current economic cycle is growth wasn’t fueled by private sector borrowing. Instead, government borrowing and spending powered the economy. That’s why the rapid increase in interest rates beginning in 2022 didn’t trigger […]
An Answer to Today’s Long-Term Care Crisis
The cost of long-term care insurance (LTCI) is moving relentlessly higher. But the good news is the cost has declined for some LTCI policies with attractive features. LTCI has been on a wild ride for almost 20 years. After the financial crisis, many issuers of traditional LTCI left the market. Others stopped issuing new policies […]
Exit Taxes and Other State Efforts to Tax Former or Departing Residents
Before moving from a state or establishing a second home, know how the state you currently reside in will react. States with net losses of residents are becoming more innovative and aggressive to capture tax revenue from their expatriates. The most recent innovation is the “exit tax” imposed on departing residents. A proposed wealth tax […]
IRS Regulations Clarify More of SECURE Act, SECURE Act 2.0
The IRS is filling gaps, fixing glitches and answering questions about the SECURE Act and SECURE Act 2.0, and about required minimum distributions (RMDs) in general. Last month, I discussed details in the final regulations regarding the end of the Stretch IRA, the 10-year rule and related issues. The final regulations contain more details about […]
The Little-Known Benefits of Upstream or Reverse Estate Planning
Families holding stocks or other assets with a lot of appreciation often overlook an easy way to reduce or eliminate capital gains taxes. The strategy is for multi-generation families in which the generations are fairly close and trust each other. Known as upstream or reverse estate planning, the strategy works best when the middle generation […]
How to Avoid Probate Without a Lawyer
About 70% of U.S. adults don’t have a will or trust, according to various surveys. That doesn’t mean those individuals are neglecting their estates. Most people are exempt from estate and gift taxes under current law, so they don’t need a tax avoidance plan. The main goals of estate planning these days are to transfer […]
Bob’s Journal for 9/26
An Irrevocable Trust Isn’t Always Irrevocable In another celebrity estate plan gone wrong, Rupert Murdoch and his children are in court this week arguing over whether a key family trust can be changed. Currently, an irrevocable family trust controls 40% of the voting power of Fox Corp. and News Corp., and Murdoch personally controls the […]
Bob’s Journal
Medicare Advantage Plans Will Shrink in 2025 In the last few months, I passed along warnings that big changes in Medicare Advantage plans were likely in 2025. The first details of the changes have emerged. Insurers who sponsor Advantage plans reported earlier this year that costs exceeded expectations in 2024, primarily because members needed more […]
