Considering the many ways that an IRA can be used to help reduce taxable income, tax season is a good time for an IRA checkup — especially since investors have until April 15 to fund contributions for last year. Additionally, with many people holding numerous jobs throughout their career, your clients may have several IRAs
Small business owners, including 17 million sole proprietors, represent the vast majority of firms in the U.S. (Small Businss Admin, May 2009) and provide an opportunity for advisors looking to grow their retirement business. In fact, according to the Small Business Administration (Saving for Retirement: A Look at Small Business Owners, March 2010), 9 million
While some clients cannot avoid taking required minimum distributions (RMD) from certain retirement accounts, there are some options you can present to minimize the tax burden. As the end of the year approaches, it is a good time to discuss these ideas and ask your clients to consider alternatives. For clients who do not rely
Citing the need for additional time to gather input and review, the U.S. Department of Labor (DOL) recently withdrew a proposal to re-write the definition of a fiduciary and will instead introduce a new proposal in early 2012. The rule, first proposed in October 2010, would have expanded the definition and may have adversely affected
IRAs now represent the largest share of retirement assets in the United States, outpacing both Defined Contribution (DC) and private Defined Benefit (DB) plans. Now reaching nearly $5 trillion in total assets according to the Investment Company Institute (ICI), roughly 25% of total IRA assets are owned by individuals age 65 and older.* As more
With a struggling economy and unemployment at over 9%, more families may need to rely on their IRA to meet current income needs prior to reaching age 59½. While clients may not be able to avoid paying taxes when tapping into their IRA, they can avoid the 10% early withdrawal penalty with a properly structured
With all the recent market volatility, you may have clients who own variable annuities whose current value is significantly lower than the original purchase price. One option is to surrender the annuity contract, in which case the remaining principal is returned to the investor, minus any surrender charges. The loss on the contract (which excludes
With persistent market volatility, it’s a good time to review long-term investments to make sure your clients’ portfolios are well positioned to pursue their long-term goals. Rebalancing can be particularly challenging within a client’s 401(k) assets, if the plan does not offer diverse investment options. Clients may want to reallocate funds to better manage risk,
With income restrictions on conversions lifted beginning in 2010, Roth IRAs became accessible to affluent investors (specifically those with incomes greater than $100,000) for the first time. It’s reasonable to suggest that many of these investors are not well-versed in some of the intricacies of Roth IRAs, including the option of recharacterization. Now is an
Government projections for the solvency of Social Security and Medicare are worsening, which may increase the likelihood of your clients’ becoming more reliant on other income-generating investments in retirement. With federal budget deficit challenges more prominent in the news media, it may be a good time to review retirement strategies with clients. In recent weeks,