The rules governing inherited retirement account rollovers into inherited Roth IRAs are complicated, Robert Bloink and William Byrnes note. But the issue may be cropping up more frequently, as more people inherit retirement accounts.
About one-third of investors believe there is little difference in risk among investments, and almost half have bought a mutual fund based the preceding year's performance instead of a longer time period, a survey by TIAA-CREF says.
Bigger company matches, higher default contributions and "back-sweeping" more employees into plans are some of the steps employers are taking to help workers save for retirement, an Aon Hewitt survey says.
Conventional wisdom calls for Americans to delay claiming Social Security retirement benefits as long as possible to get the highest payout, but Jason Hall writes that collecting as early as possible may be the best option for some.
Early preparation is key for middle-aged Americans to be able to help elderly parents, Chris Taylor writes. That includes finding ways to pay for their care and expenses, locating helpers, and simply discussing plans with them, Taylor writes.
If the owner of an annuity that has appreciated in value wants to purchase a hybrid long-term contract, a Section 1035 tax-free exchange can be used to facilitate the purchase.
The Department of Labor is expected to finalize its fiduciary rule in the coming months. Legislative attempts to block the rule are likely to be vetoed, paving the way for changes to the Employee Retirement Income Security Act. "The ERISA fiduciary definition goes back to 1974, when there were no 401(k) plans and IRAs were still small," said Kevin Keller, CEO of the Certified Financial Planner Board of Standards. "The world has changed dramatically since then. It's time to update the rules."
Christine Damico went straight from college to an advisory firm. Later on, however, she spent several months volunteering in South Africa. She was unsure of how the break would affect her career, but she was encouraged by a mentor she had met at an FPA retreat. "Had she not gone on that sabbatical and done some of the things she's done, I'm not sure she would have as much clarity about what was important in her life and what she wanted to continue to bring into her life," said Lisa Kirchenbauer, Damico's mentor.
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