As the new year unfolds, we find ourselves again under new tax laws that create a need for many people to review and amend different areas of their financial and wealth planning. The SECURE Act, officially named the “Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019,” is seen as the first major retirement savings law in many years. It passed into law during December 2019 and became effective January 1, 2020. From a policy perspective, the goal of the SECURE Act is to encourage savings. Many of its provisions are aimed at making retirement accounts and plans available to a wider range of individuals. For those who already have retirement accounts, the most relevant changes center around the new rules related to contributions and eventual distributions, including what is required to happen, and when, with retirement accounts as they are inherited by beneficiaries.
Some of the key issues we will be tackling with our clients are the Act’s new rules related to the following (and likely other) planning issues:
Over the next couple of months, we’ll be diving deeper into a number of the major impacts of the SECURE Act in a series of Insight blogs. But if you find yourself in any of these situations, then this will be an important time for us to review the status of your retirement account and estate plan. Your Litman Gregory advisor can guide you through this process and work with your tax and estate professionals to help determine how this impacts you, and what the best solutions are for your goals. We encourage you to contact us with any questions about your specific situation.
Our Perspective and Strategy During Turbulent Times
It’s been a difficult year, to say the least. As September comes to a close, we’ve weathered a disappointing month in the financial markets after a relatively benign August and a strong July. As is the case in any bear market, investors are braced for more to come. In this post we provide a summary on the forces that brought us here, how we’re responding, and what to expect going forward.
With Inflation Rising, Why Have Inflation-Protected Bonds Declined?
As the outlook for inflation turned less “transitory,” treasury inflation-protected securities became interesting to many investors. But these bonds have shown they aren’t immune to broader bond market declines, leaving investors to wonder, “How can my inflation-protected bonds be down when inflation is on the rise?” In this post we explain how these bonds are impacted by different market variables, including inflation, and why we believe they still deserve a place in our client portfolios.
I Savings Bonds Currently Offer a Generous Yield
With current yields over 9%, Series I Savings Bonds seem to offer a "free lunch". These bonds are issued by the U.S. Government and pay interest linked to current inflation rates, making them an attractive option for most savers and investors.