In a recent column, I mentioned the importance of tax planning for your retirement assets. We are living in a time of relatively low historic income tax rates, and as our national debt grows and political considerations change, it’s not unlikely that tax rates will rise in the future. It’s always been the conventional wisdom […]
“Chicken money” is money you can’t afford to lose. It’s that simple. The amount of chicken money you need depends on your overall financial situation, stage in life, and risk tolerance. Just about everyone needs some money that is not intended for ordinary spending and not part of your investment program. Chicken money should be […]
Investors beware! An appellate court just ruled that the Fiduciary Rule is dead – before it was even fully implemented in an attempt to protect your retirement savings. A lot of people are after your money – especially if you are one of the millions of Americans who will be retiring and rolling over your […]
After nine years of a bull market, your 40l(k) retirement plan is likely your largest financial asset, perhaps even dwarfing the value of your home. Yet, while you pay attention to home repairs, you many not spend much time inspecting your retirement plan. For sure, you should be contributing the maximum to get your employer’s […]
Hi, Terry. I have a Roth IRA with Vanguard worth around 19k, a rollover IRA with TR Price – $89k. I’m 68, retired with a CPS pension and I want to safeguard my funds and am thinking of moving some or all to possible CDs. Can I do that and keep them in an IRA? […]
Obamacare survived the political process. The big question is whether middle income Americans can afford to buy a policy. And millions are saying they can’t. Here are some suggestions.
I’m considering borrowing $25000 from my 401k to purchase a home. I plan on selling my condo and paying off the loan with the proceeds. I’m 50 and have a balance of 550k in my account. I also have a Roth & rollover IRA that total 45k. I have 30k in savings. I’m trying to […]
On Feb. 3 Trump also signed a presidential memorandum instructing the Labor secretary to evaluate a specific regulation placed on financial advisers. Known as the fiduciary rule, it requires brokers in charge of retirement plans to act in their clients best interest. The rule is set to take effect on April 10, but that may […]
Could you please elaborate a little more on your paragraph “take a portion of your rollover money”, specifically regarding rmds? Thank you Sam
I have a small(100k) 401k and will be 70 1/2 in a few years.Is there a way to give this money to my kids or either donate it before ir becomes taxable? txs, BB Terry Says: When you are 70-1/2 you will be required to start taking Required Minimum Withdrawals. Right now, you can withdraw […]
Recently an advisor was indicating that we should invest in an FIA. I am a few years away from retirement and my wife a bit more. Between us we have 3 different pensions, social security and about $950k in 401k, 403b, rollovers, annuities and some mutual funds. I have read and talked to other people […]
Hi Terry, When my mother turns 90 next year her variable annuity IRA will annuitize. We would like to perform an IRA rollover prior to this occurring. She depends on her IRA distributions and social security for her monthly income and other than her house and a savings account (~$50K) she doesn’t have other substantial […]
HI Terry, I am planning to retire at the end of this year when I will be 68 yrs. old and, if needed, would start Social Security. I am VERY concerned about loosing my money like what happened in 2008. We have attended MANY investment/retirement seminars over the past years and I am still very […]
Hello Terry, Read your book several years ago and followed your column back in Chicago when i was living there. Saw you on Etrade video conference which really was outstanding. What are your thoughts on taking money out of your 401k to start an annuity and why is this subject not offered or talked about […]
My wife and I, both in our late 60’s, have built a retirement nest egg, not huge, but comfortable. I am confident that, barring a health-care catastrophe, our funds will not run out before we do. My question relates to how we pass on what is left of our nest egg at our passing. The […]
I withdrew my money from my 403B account and my financial person turned it over to LPL to invest, but it continues to lose money. I don’t need it right now, but I’m concerned that it is slowly disappearing! Where should the money be? Terry Says: What? You “withdrew”?? First, you can’t “withdraw” unless you […]
We recently converted our universal whole life policies (which we had for 35 years) to whole life insurance. However, for the first time ever, we received forms to complete for tax withholding purposes. Apparently, the dividends earned (which we want reinvested in the policies) are taxable? Either our insurance representative is using the incorrect vehicle […]
How can I cut taxes on my IRA withdrawals ? How can I transfer money from a spouse’s federal thrift savings into an IRA? Terry Says: Oops, you can’t “cut taxes” on IRA withdrawals; they are always considered ordinary income! Are you asking how you can stay in a lower income tax bracket once you […]
We have a college savings account through Hartford for my son. It is a custodial account with my husband as the owner. Today my son turns 18 so we can no longer contribute to this account. We are going to open a 529 with my husband as the owner and my son as the beneficiary […]
I need to invest retirement funds safely. I have to live off the interest. Invested with one firm and lost a lot of it. They now have it in international I shares , and I am not comfortable with this. I think this company is motivated by commissions at my expense. I talked about no […]
