While the breakeven year was no real surprise (late 80s), how little the breakeven age moved with big changes in the tax rate or investment returns on the post-converted funds assumptions was. There is a possibility this strategy will end if that provision remains in and the Build Back Better bill passes. My most-read article, Cutting Taxes By Converting To A Roth: An Analysis, explained why I am converting my After-Tax assets in my 401k plan to the Roth option. RMD reduction strategiesįor high-income individuals and couples who the Democrats are promising higher tax rates and the rest of us who are highly likely to see them considering the 2017 cuts disappear in 2026 unless extended, looking at strategies to minimize one's future Required Minimum Distributions, or RMDs, is worth exploring. If we had qualified for "File & Suspend", the number crunching might have produced a different decision. With her health issues, starting now made even more sense. Two big influences for us were I have another "annuity" in the form of my pension, though it doesn't have a COLA, and the fact my wife's check would increase 40+% by switching over to her spousal benefit. When to start has so many variables that the decision is very individualized, with any article on the subject drawing lots of comments and counter-opinions, as my Why I Started Collecting Social Security Now Instead Of Waiting Until 70 did. I guess they wanted to make sure we knew the rules! Both my sister-in-law and myself were asked if we really wanted to start on our FRA, not several months later. Account-level review for each of our many accountsĪpparently SSA reps are told to ask multiple times when you request to start getting checks closely after your Full Retirement Age, or FRA.Another year of conversions and what is ahead in that area.A big change in income and its investing effect.This article will cover what 2021 meant for our investing and other strategies, and will cover the following: That should continue with inflation and continued government outlays having most forecasts indicating 2021 will be the bottom in this interest rate cycle. All three bond indices showed negative Total Returns. Worse case is for another "lost decade" of investment returns!įor 2021, US equities was definitely the place to be overweight in one's allocation. Of course, these have resulted in concerns about bubbles bursting and asset prices suffering in the new year. By year-end, the Fed was starting to taper off and expectations were for a possible three rate hikes in 2022. More pressure was added when it became apparent that inflation wasn't "transitory", but a problem that the Fed needed to tackle. Changing expectations, especially when a new variant was discovered, rocked the markets, in particular stocks of companies heavily dependent on an unrestricted economy. (This article was co-produced with Hoya Capital Real Estate) IntroductionĬOVID-19, like other viruses, could be with us for a long time.
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