Taking an RMD from a tax-deferred IRA when retirees reach 70 1/2 could reduce their taxable income and lower the taxable portion of their Social Security benefits, according to USA Today. Plus it also may lower Medicare premiums over time. It starts with taking a large withdrawal, much larger than the RMD. USA Today
With all four major U.S. stock index averages hitting record highs in recent weeks, momentum is back in the stock market and clients may be tempted to try momentum investing, according to MarketWatch. Advisers should point out the pitfalls, however, including capital gains taxes that can hurt portfolio performance. -- MarketWatch
Taxes are one of life’s sure things, but clients can still make changes after the filing deadline. Here’s how.
Clients wanting more from their investments these days may be overlooking preferred stocks, according to Kiplinger. Yields from these tax-efficient investments average 6.1%, well above the 2.3% payout of the Barclays Aggregate U.S. Bond Index and also beat the 2.1% dividend yield of the S&P and higher-yielding areas of the market, such as utility stocks and real estate investment trusts. But preferred stocks also pose risks because they are still bond-like in nature, which means they are sensitive to interest rate swings. -- Kiplinger
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How a couple wrote off cat food and other breaks that boosted refunds. Plus, how charity counts toward an IRA withdrawal.
February 14 -
There are ways around having to pay as much as a 50% penalty. Plus, inheriting Roth IRAs and designing more efficient retirement portfolios.
January 31 -
Moving investments into these accounts may optimize returns and boost savings. Plus, know your IRAs and the impact of Trump's proposals on income brackets.
January 25 -
Why it's a good time to invest even small amounts into 401(k) and Roth IRA accounts. Plus, avoiding the capital gains hit.
January 17
