Retirement Watch Weekly
Retiree Tax Havens: Which States Really Are the Best
Lower state and local taxes are major motivations for many Americans who move to different states. But some of them will be surprised because they didn’t fully analyze the state taxes. Taxes are one of the largest retirement expenses, especially when all types of federal, state and local taxes are added. Before moving, consider all […]
2022: A Brief Review It seems that every year is filled with numerous twists, turns and surprises. This year is no exception, as 2022 is just days from giving way to 2023. The biggest surprise of 2022 to many was inflation, and it influenced many things during the year. Investors and policymakers started 2022 with […]
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 […]
