In the waning hours of 2022, Congress passed a $1.7 trillion omnibus spending bill. The Consolidated Appropriations Act of 2023 was introduced December 20th and just before Christmas this legislation was rushed through the senate and house of representatives, and finally signed into law by President Biden. Inserted into the legislation was a host of […]
After a rather sleepy 2022 regarding tax and retirement plan changes, many rules impacting retirement planning will take effect in 2023. In this month’s article we’re going to highlight some of what we consider to be changes of specific importance, and how these changes might impact folks like you. Many of these changes may impact […]
Many would agree that Roth IRAs are special retirement accounts. They are funded with after tax dollars, grow tax deferred, and all distributions including accumulated gains are tax free. …Or are they? There are two five-year rules that govern whether your Roth IRA distributions are both tax and penalty free. The rules can be quite […]
Year over year inflation was 10.32%. The Federal Reserve hiked interest rates to over 19%. A 3-month CD was yielding 18.3%, and mortgage rates topped 16%. The year was 1981. Fast forward 42 years. Year over year inflation in the US has topped 8% as of March 2022. Will it reach 1981 levels? Who knows […]
If you’ve ever worked for an employer who offered a workplace retirement plan, like a 401(k), you have probably completed a risk tolerance questionnaire at some point in your life. While most working adults are maybe at least somewhat familiar with a risk tolerance questionnaire very few folks have every been introduced to the concept […]
When is a good time to convert from an IRA to a Roth? An attendee at one of our recent workshops asked us a question about Roth Conversions. Specifically, she asked “when is a good time to convert to a Roth IRA?” In short, the final two months of the year are typically when we […]
Our firm holds regular educational classes at the community college campus near our Ankeny, IA office. We invite folks in surrounding communities to these classes through direct-mail postcard invitations and digital invitations through Facebook. The invitations highlight several specific topics that we commonly cover during our classes. For example, strategies to optimize entitlement programs such […]
In last month’s publication we explored the complications that can arise when a retirement plan is designed for a married couple (filing taxes jointly) suddenly gets turned on its head at the passing of one of the spouses. This month we will examine the real-life challenges from the view point of fictional couple, William and […]
Death is never fun to talk about. However, it is an inevitable part of life. In 1789 Benjamin Franklin wrote in a letter to Jean-Baptiste Le Roy, “Our new Constitution is now established, and has an appearance that promises permanency; but in this world nothing can be said to be certain, except death and taxes.” […]
When and how you claim Social Security benefits is one of the bigger decisions you will face as you transition from your working years into your post working years. For many folks, Social Security will be one of their largest retirement resources, and its often the most mismanaged. Irrevocable decisions could potentially add or subtract […]