The pitch goes something like this: "You are eligible for more insurance than you currently have, giving you "excess capacity" for insurance on your life. Why don't you sell that capacity, since you're not using it anyway, and put the extra money in your pocket to meet your own goals?" And if it wasn't against public policy, the strategy might even work!Read More...
To preserve the ability to stretch IRA distributions for a beneficiary, that individual must start taking withdrawals based on his/her life expectancy in the year after death. If those required withdrawals don't start on time, can you still rectify the situation to preserve the tax deferral?
The good news is that recent private letter ruling 200811028 (and more recently, IRS Information Letter 2016-0071) indicates the answer is "yes."
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As financial planners, we've all heard the old saw "never put a tax shelter inside of a tax shelter" - in other words, don't buy tax-exempt municipal bonds inside of a tax deferred retirement account like an IRA or Roth IRA.
Well, it seems that "never" may have just arrived. Because in an environment where the outright yield on municipal bonds is better than taxable bonds, it really can be appropriate to own a muni bond inside of an IRA!
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The rising price of various commodities, linked in part to the falling dollar, have begun to impact the cost of a broad array of goods in the U.S., from the cost of building construction to gasoline at the pump to food at the grocery store. Now, the decline of the dollar is being felt directly by the U.S. government, with a painful rise in the cost of the penny!
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The Office of Federal Housing Enterprise Oversight (OFHEO) has just released the new maximum conforming loan limits, established pursuant to the Economic Stimulus Act of 2008, which will allow homebuyers in several metropolitan areas to obtain conforming loans as large as $729,750, instead of the former limit of only $417,000.Read More...
An interesting article in the syndicated column of Scott Burns suggests that it may be a wise strategy for those at or around age 70 to withdraw from Social Security and reapply to increase their benefit. Is this a Social Security loophole, a great deal, a trap, or just another good arrow in the financial planner's quiver?Read More...
