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401(k) Financial Planning Retirement Income Retirement Planning Tax Planning

Understanding the Two Roth IRA 5-year Rules

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 […]

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401(k) Retirement Income Retirement Planning Uncategorized

Retiring During Rising Interest Rates

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 […]

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401(k) Retirement Planning

Risk Tolerance Vs Risk Capacity

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 […]

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401(k) Financial Planning PT5 Planning Philosophy Retirement Income Retirement Planning

When is a good time to convert from an IRA to a Roth?

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 […]

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401(k) PT5 Planning Philosophy Retirement Income Retirement Planning Social Security Taxes in Retirement

Will You Need Less or More Income in Retirement?

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 […]

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401(k) Estate Planning Retirement Income Retirement Planning Social Security Tax Planning Taxes in Retirement Trusts Wills

The Plight of a Retired Widow–Part 2

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 […]

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401(k) Estate Planning Retirement Income Retirement Planning Social Security Taxes in Retirement Trusts Wills

The Plight of a Retired Widow–Part 1

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.” […]

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401(k) Financial Planning Retirement Income Retirement Planning

3 Common Social Security Misconceptions

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 […]

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401(k)

Fantasy Football 401(k)

Many American enjoy fantasy sports leagues like Fantasy Football. Hey, maybe you’re one of them! However, I’m am not. In fact, I derive zero enjoyment from them, and the thought of managing a fantasy team of athletes who I know nothing about is the opposite of a fantasy for me. It actually makes me anxious […]

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401(k) Economic Outlook

SECURE Act Opportunities

On December 20, 2019, President Donald Trump signed into law a spending bill containing the SECURE act (Setting Every Community Up for Retirement Enhancement Act). The new legislation took effect on January 1st of 2020, giving only 11 days (minus holidays and weekends) for everyone to adjust. This has left many financial institutions and financial […]