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On November 21, the Co-Chairs of the Joint Select Committee on Deficit Reduction released a statement that said, in part, “After months of hard work and intense deliberations, we have come to the conclusion today that it will not be possible to make any bipartisan agreement available to the public before the committee’s deadline.” This
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
What financial advisors can learn from behavioral finance The surge in volatility in the third quarter affected a wide range of assets and made a mockery of portfolio diversification — unless “diversification” meant a portfolio composed entirely of U.S. Treasury bonds. Spooked by ominous headlines from Europe, investors got a taste for the dark side
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,
The signing of the Budget Control Act of 2011 into law on August 2, 2011, simultaneously raised the federal debt ceiling by $900 billion while enacting $917 billion in federal discretionary spending cuts over the next ten years. Additionally, the new law created a bipartisan Congressional committee (“Joint Select Committee on Deficit Reduction” or “Select
Generally, owners of certain government savings bonds have to pay taxes on interest — either in the year the interest was earned or when the bond is redeemed. Certain bond owners may be able to avoid taxes on all or a portion of the bond interest payments if the proceeds are designated for qualified education