But Congress Could Provide the Wild Card. Roth accounts can be attractive, especially when viewed through the lens of our national debt and the possibility (probability?) of higher taxes in the future to fund that debt.
When it comes to building a solid financial future, finding the right investment vehicle can be a daunting task. Comparisons are often made between an IUL (Indexed Universal Life Insurance) and a Roth IRA (Individual Retirement Account) as a choice between getting life insurance or investing in the stock market. While an IUL can give the appearance of doing both; however that’s not really the case – and, often, this can lead to unrealistic expectations.
Tax planning through retirement is important; and failing to do it through all four stages of retirement can prove costly because some of the tax traps are permanent. Here’s an example:
The SECURE Act includes roughly 100 new rules for retirement affecting both individuals and businesses – all with tax implications and various effective dates. These are the most expansive changes to retirement rules in 40 years.
The SECURE Act 2.0 may do a lot to help secure Uncle Sam, but I’m not so sure about the rest of us.
How about an asset class that doesn’t have the risks of stocks or bonds? One that can provide stability and peace of mind.
True! Market losses aren’t all yours. The IRS subsidizes part of them.
RMD age hikes may not be the blessing you think. The question just might be who is more secure? Retirees or future government spending?
The annual Social Security trustees’ report is to advise Congress on the financial condition of the Social Security system over the next 75 years. If they project that 100% of benefits will be paid, it’s said to be in balance and no action will be needed. If they project a shortfall, they call on Congress to fix the problem by either raising taxes, cutting benefits, or some combination of the two.
Tax Planning doesn’t stop at retirement. In fact, tax planning is important for optimizing retirement income – and it changes during all four stages of retirement.
You want to begin planning your future life, but aren’t sure how. You want help but don’t know how to get stareted. Sound familiar? It should.
There are a lot of myths surrounding Roth conversions and this one might rank near the top, and you should know why. It’s important to have some historical perspective.
