Mutual Funds

Changing Winds of Tax Legislation Congress was considering tax changes that would have triggered capital gains tax on death, when gifts were made, and every so many years for assets in trusts. Congress was considering reducing the exemption, severely restricting the use of grantor trusts which had been the foundation of estate planning for decades,

The United States is not the only nation facing a retirement savings crisis. Many advanced, post-industrial democracies are struggling with similar challenges presented by an aging population. And just like in the U.S., these countries may have a variety of different retirement savings plans offered to workers. Canada, a nation with which the U.S. shares

The economy grew at an annualized inflation-adjusted rate of 2.0% in the third quarter of 2021, a sharp drop from the second quarter’s 6.7%. This slowdown reflects the broad reach of the ongoing global pandemic. Surging cases in the summer made people more leery about going out. Overseas customers of U.S. businesses struggled with widespread

Today’s Social Security column addresses questions about taking early reduced retirement benefits and then being able to take unreduced spousal benefits, how much survivor benefits taken at 65 would be reduced and a possible strategy for a higher earner who’s the younger spouse. Larry Kotlikoff is a Professor of Economics at Boston University and the

The nation’s infrastructure is in the news. Few of us needed politicians or pundits to tell us that our infrastructure is crumbling. As Yogi Berra noted, “you can see a lot by looking.” Have you dared to look under some of the nation’s highway overpasses and bridges? You have to wonder just how long rough-cut

By Chris Farrell, Next Avenue Will the poisonous combination of ageism and age discrimination deny experienced workers job opportunities as the economy rebounds from the pandemic downturn? That’s the haunting question troubling many older workers and their advocates. To be sure, there are so many crosscurrents in the labor market for experienced workers — from the

By Kerry Hannon, Next Avenue In April 2021, when Jenny Yaeger, 55, launched her Denver-based accounting and financial consulting firm for small -and medium-sized businesses, ClariFI Business Solutions, she tapped her personal savings. “Downsizing was what made it possible for me to go out on my own,” says Yaeger, the former chief compliance and finance officer at

Though the rollover is the most frequent IRA transaction, most people do only a few rollovers during their lifetimes. Because of this inexperience, mistakes are made and people pay unnecessary taxes and penalties on their retirement nest eggs. There are more than 30 types of rollovers, though taxpayers often know them by different names. A

By Kevyn Burger, Next Avenue Since the arrival of the coronavirus, the load that veteran home health aide Zulma Torres carried grew heavier. “This job got more intense. A lot of people who do what I do stopped coming in,” said Torres, 49, who works overnights in The Bronx, N.Y. “I stayed healthy and kept going

How well do you understand required minimum distributions (RMDs), which the IRS describes as “the minimum amount you must withdraw from your [retirement] account each year”? RMDs can be complicated, and there are changes coming for 2022 related to how they are calculated: In short, the divisors are increasing, which means the amount required to

Yesterday, the Biden administration unveiled its new iteration of the “Build Back Better Bill,” proclaiming that it is “fully paid for.” But this is far from true. While it has indeed reduced the overall scope of spending, eliminating such programs as paid leave and Medicare dental benefits, and trimming the scope of other benefits, the administration’s

The landscape of the financial planning industry is changing rapidly with the growth of technology, and everything these days seems to be moving towards automation. So can a computer algorithm or a mobile app replace the need for financial advisors, or is there still value in a traditional financial advisory relationship? An influx of robo-advisors.

The past few years have been quite busy in the financial and wealth planning world. With the federal transfer tax exemptions currently at $11.7 million1, many clients have considered making gifts for future generations utilizing a variety of structures. The primary focus is on trusts and the options available in that arena. Trusts can be

With climate change, extremes in weather and increasing disasters, most of us are aware that we need to be disaster-ready in some way. But are our aging parents ready for a disaster or even an extended power outage? We recently had a taste of what is needed with rapid and extensive flooding in our area.

More money than ever is moving from 401(k)s to IRAs, and regulators don’t like some of the choices people make with their money. More than $600 billion was rolled over from 401(k)s to IRAS in 2020, according to the Secure Retirement Institute, and the SRI estimates that within five years the annual rollover amount will

It’s surprisingly easy to get some international equity exposure via ADRs. You want income? Look abroad. A rich array of high-yielding blue chips are on offer overseas, especially in Europe: Companies like Credit Suisse Group, Sanofi SNY and HSBC Holdings are making handsome payouts to their shareholders. Most of these big-company stocks are very accessible

This delta variant would kill covered calls and risk reduction moves. Do you ever write calls against your stocks in order to generate premium income? Do you buy puts to protect your gains? Enjoy options while you can. These time-honored strategies may be doomed. Trouble comes via U.S. Senator Ron Wyden, a liberal Democrat from

Today’s Social Security column addresses questions about how benefits for multiple children are calculated, when divorced spousal benefits can be available and how years with covered earnings can reduce the effect of the Windfall Elimination Provision (WEP). Larry Kotlikoff is a Professor of Economics at Boston University and the founder and president of Economic Security

Many people spend substantial time and effort putting together an estate plan with their attorney and then throw a wrench in it with last minute changes. Often, they do not even realize that what they are doing will impact their will or trust. Other times, they are taking advice from someone else and not checking

As you approach retirement – as if you don’t already have enough to worry about – a concern should be diminished capacity. Common sense, and a lot of statistics, tell us that as you age, the chance of losing some of your mental faculties is a risk. This risk becomes very real in retirement because you’re

Rezo Kanovich likes companies that have zero analyst coverage. He explains why. Small-stock aficionados: Are you limiting your attention to the U.S. market? Then you are missing out, says Rezo Kanovich, manager of an immensely successful portfolio of smaller foreign companies. “The universe of small stocks [abroad] is vast, bigger than the U.S. market by

Many retirees spend more of their money than they should for medical care. One Medicare insurance advisor concluded that about 90% of Medicare beneficiaries pay more out of pocket than they need to. It’s not surprising. Medicare is a complicated program. Since Medicare Open Enrollment is here (October 15-December 7), here’s my review of the

For a variety of reasons, we often run across clients who decide to retire “early”. In the eyes of the IRS, early retirement is defined as any time before the age of 59 ½. Taking a withdrawal from an IRA account prior to reaching 59 ½ will typically trigger a 10% penalty on top of

Should pensions and retirement savings plans divest from fossil fuel companies? That practice is becoming increasingly prevalent globally. Over the past several years, pension funds in Scandinavia have announced divestment from oil and gas companies, and the NEST retirement savings fund in the UK, that is, the government-managed IRA-like fund into which workers are defaulted

Today’s Social Security column addresses questions about taking early retirement benefits before survivor’s benefits, switching from disability benefits to retirement benefits at 62 and ideas for writing a letter appealing a benefit reduction. Larry Kotlikoff is a Professor of Economics at Boston University and the founder and president of Economic Security Planning, Inc. See more

Retiring without a mortgage may sound like a dream, but is it really a smart financial move? With record-low interest rates, could your money be put to better use elsewhere? While lowering your cost of living in retirement is often a smart move, ask these five questions before you rush to pay off your mortgage

The death of a spouse is devastating. There is the obvious sadness experienced due to the loss of a loved one. However, there is also the challenge of losing a life partner who helped you make various important decisions. For years, or perhaps decades, a couple likely worked together to tackle important decisions about their

A forensic investigation commissioned by 19,000 retirees participating in the State Teachers Retirement System of Ohio spurs a special audit by State Auditor. “The information obtained to date supports a reasonable basis for conducting a special audit,” says Auditor. As absurd as it seems, participants in pensions historically have had virtually no say in how

By Richard Eisenberg, Next Avenue Editor It’s probably the biggest retirement question you have (after Do I have enough money to retire?): Where should I live in retirement? The question really needs to be split in half: Which community and neighborhood should I live in? And what kind of home should I live in? Right Place,

By Michael MacDonald, Next Avenue How can you feel younger in your retirement years? This is a big question and one I am just starting to get a handle on, I think. I am almost 67, quite healthy and am fortunate enough to not have serious financial worries. Both my wife and I are psychologists and