On December 20, 2019, the Setting Every Community Up for Retirement Enhancement (SECURE) Act was signed into law. The SECURE Act contains 29 provisions, encompassing many aspects of financial planning and retirement saving. Once treasury regulations are released, nuances in interpreting this new law will become clearer. Until then, individuals are left to interpret the law’s effects based on the language of the law itself. This article will address what the SECURE Act entails and who it affects, as well as provide suggestions on how to plan for the changes that have been instituted.
For individuals who are sitting on large gains in investment or business property, a 1031 exchange may be a viable option for deferring those gains. While these transactions tend to be complex, working with an expert who knows the rules surrounding the exchanges and the options available for replacement property can help you decide if this would be an appropriate step to take.
When it comes to their retirement accounts, many investors often fail to think about required minimum distributions (RMDs). That oversight can lead to unnecessary tax burdens and other financial issues. In order to handle RMDs effectively, an understanding of the rules—and common errors people make—can be beneficial.
As a Wealth Management Consultant, I'm often asked two questions "What is a financial plan?" and "Is a financial plan different from investment management?" In short, yes—financial planning and investment management are two distinct wealth management tools that work together to help you achieve your short- and long-term financial goals.
Most working Americans have only one source of steady income before they retire: their jobs. When you retire, however, your income will likely come from a number of sources, such as retirement accounts, social security benefits, pensions, and part-time work.
When deciding how to manage your various assets to ensure a steady retirement income stream, there are two main strategies to consider: the total return approach, or the investment pool—or bucket—approach.