Bristlecone Blog

As fiduciaries, we continually question whether our investment process is sound and likely to deliver the returns that our clients need to reach their goals. We draw from history, academic studies, common sense, and apply the lessons to today’s environment. We are generally skeptical of the oft-repeated phrase: “This time it’s different.” It is often abused to justify poor assumptions and flawed decisions. Yet, the current pandemic triggered some unprecedented policy responses from governments around the world.

On March 27, Congress passed the Coronavirus Aid, Recovery, and Economic Security (CARES) Act, the third piece of relief legislation tied to the Coronavirus outbreak. With an estimated $2.2 trillion cost, it is the largest fiscal stimulus in the history of the U.S.—more than twice as large as the 2009 American Recovery and Reinvestment Act. (...) Below are some of the highlights applying specifically to workers, investors, retirees, and small business owners.

(...) Beyond that time-tested advice, retirees with large IRA balances have a couple more tools at their disposal to mitigate the pain of a market decline by sharing some of it with Uncle Sam.

With anxiety comes an urge to do something. We agree, and here is what we are doing at Bristlecone, as well as some more recommendations for you to implement.

If you’re a named beneficiary of an IRA account whose owner recently passed away, you may feel overwhelmed and unsure how to proceed. Inherited IRA assets are subject to myriad IRS and federal regulations, several of which were revised under the recently-passed SECURE Act, creating even more confusion. As a beneficiary, understanding your options, obligations, and potential tax consequences is critical to maximizing the value of your inheritance.

This sweeping bill offers several adjustments to our current laws surrounding saving and preparing for retirement. The SECURE Act is poised to: provide more part-time workers with the opportunity to participate in an employer-sponsored 401(k) plan, adjust the age caps on traditional IRAs and increase access to tax-advantaged retirement savings accounts. Below we’re outlining the most prominent changes of this new act and how they may affect your own retirement.