Nobody likes to consider the possibility that they could fall ill or become incapacitated, yet the current health crisis is putting these concerns into sharp relief. One way to mitigate this anxiety is to have a well-considered estate plan in place beforehand, just in case it is needed.
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.