Choosing Between a Traditional and a Roth IRA

I spent yesterday at Schwab’s IMPACT Conference. The annual conference is oriented toward independent financial advisers. Nearly 5,000 people attended this year’s conference. I’ll share some of my notes at the end of this week’s commentary, but first I want to focus on a specific session that addressed the topic of choosing between a traditional…

 

AAII Survey: How Readers Would Change the U.S. Tax Code

After weeks of speculation, Congressional Republicans unveiled their tax reform legislation late last week. Among the items it didn’t include was a cut to contribution limits to 401(k) retirement plans, a move lawmakers were reportedly considering to help balance the tax cuts planned for high-income earners and businesses. According to the language in the tax reform proposal, it…

 

Quest for Supplemental Income, Love of Job Main Reasons for Working in “Retirement”

Over the last couple of decades, the definition of “retirement” has changed significantly. Gone are the days that 30 years of service to a company meant a gold watch and company-funded pension upon retirement. Today, the burden of funding retirement, for the most part, has shifted to the individual in the form of defined-contribution plans…

 

AAII Journal October 2016 Issue

The October 2016 AAII Journal is Now Available Online. Feature Article: What the Evolving Robo Advisory Industry Offers Acquisitions and new, large entrants have altered the competitive landscape, but robo-advisors continue to focus on providing low-cost portfolio management services.   Also in This Issue: Portfolio Strategies: Active Management Stinks, But It Doesn’t Have To Active approaches…

 

Making Use of IRAs as Part of an Estate Plan

This article originally appeared in the June 2014 issue of the AAII Journal. There are effective uses of an IRA as part of the estate planning process that most retirees have prepared for. These steps include: Taking taxable withdrawals from your IRA when your tax bracket is lowest, often right after retirement, Completing your beneficiary designation forms in…

 

9 Guidelines for Retirement Success

This article originally appeared in the May 2014 issue of the AAII Journal. Now that your once-distant dream of retirement is at hand, it can be an unsettling switch from being a saver to being a spender. It means having an entirely new approach to your money. It can be tough regardless of your financial expertise…

 

Potential Hidden Tax Burden for MLP Holders

A recent WSJ.com article by Laura Saunders contains a cautionary tale for investors holding master limited partnerships in their IRAs. Many are receiving surprise tax bills for units of master limited partnerships they hold. The article highlights the fact that IRAs and Roth IRAs, while offering tax-free investment growth, do carry some hidden tax traps….

 

Treasury Introduces New Retirement Saving Plan: “myRA”

Last week the Treasury Department formally launched new retirement-savings accounts geared towards workers who don’t have access to traditional retirement accounts, such as 401(k)s or 403(b)s. The retirement-savings vehicle is called “myRA” and officials said the goal of the program is to teach more workers the importance and the ease of saving for retirement. “When…