(...) Beyond that time-tested advice, retirees with large IRA balances have a couple more tools at their disposal to mitigate the pain of a market decline by sharing some of it with Uncle Sam.
With anxiety comes an urge to do something. We agree, and here is what we are doing at Bristlecone, as well as some more recommendations for you to implement.
I was born and raised in Winston-Salem, NC, a small city in the middle of the state (famous, or infamous, as the home of Camel cigarettes and Krispy Kreme doughnuts!). Both my parents were in academics; I grew up right on the campus of Wake Forest University, so that was my playground and that had a big effect on me.
If you’re a named beneficiary of an IRA account whose owner recently passed away, you may feel overwhelmed and unsure how to proceed. Inherited IRA assets are subject to myriad IRS and federal regulations, several of which were revised under the recently-passed SECURE Act, creating even more confusion. As a beneficiary, understanding your options, obligations, and potential tax consequences is critical to maximizing the value of your inheritance.
Stocks rallied strongly in Q4, and full-year returns for both stocks and bonds reflected a sharply positive reversal from 2018 (when virtually every asset class experienced negative returns). In 2019, many diversified stock and bond indexes recorded their best gains in several years. Domestic growth stocks led the way, with the S&P 500 index advancing 31.5%--the index’s best return since 2013. Small-cap and international benchmarks also delivered double-digit gains.
This sweeping bill offers several adjustments to our current laws surrounding saving and preparing for retirement. The SECURE Act is poised to: provide more part-time workers with the opportunity to participate in an employer-sponsored 401(k) plan, adjust the age caps on traditional IRAs and increase access to tax-advantaged retirement savings accounts. Below we’re outlining the most prominent changes of this new act and how they may affect your own retirement.