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New House bill may change how you plan for retirement
MSN 'News' ^ | June 14, 2019 | ABC 'News' Staff

Posted on 06/14/2019 6:28:50 AM PDT by Diana in Wisconsin

The House of Representatives recently passed a bill that may complicate retirement planning options for Americans.

The House passed the Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019 on May 23. If enacted into law, it could be tricky for Americans who are not financially savvy investors.

Some of the changes could benefit consumers: The law encourages more small employers to offer 401(k) plans and raises the age for required minimum distributions (RMDs) from retirement accounts to 72 from 70.5, a nod to longer life expectancies and later retirements.

However, there are some changes that consumers should be wary of, experts say.

For example, one change in the law would shorten the amount of time that someone who inherits an Individual Retirement Account (IRA) can hold onto the funds, potentially causing them to lose money.

"If you inherited my IRA — before I'd be able to stretch the distribution over your lifetime, which is more time for dollars to grow tax deferred. Now you have to drain that inherited IRA over 10 years, which gives you less time to grow the money on a tax-deferred basis," Dave O’Brien, chair elect of the National Association of Personal Financial Advisors (NAPFA), told ABC News.

Another change that American workers should be wary of, according to consumer advocates, is adding annuities — complex financial tools offered by insurance companies — to 401(k) plans.

*SNIP*

(Excerpt) Read more at msn.com ...


TOPICS: Business/Economy; Government; Politics/Elections; US: District of Columbia
KEYWORDS: ira; iras; retirement
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To: Red Badger

“to 72 from 70.5” is indeed an awkward construction (I used to get “awk” on my papers all the time), but the math is correct. They are proposing to raise the RMD age from 70.5 to 72. Right?


21 posted on 06/14/2019 6:40:49 AM PDT by ProtectOurFreedom
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To: Diana in Wisconsin

Teresa Ghilarducci rears her ugly head yet again.

https://en.m.wikipedia.org/wiki/Teresa_Ghilarducci

You didn’t really think they were going to let all that money just sit there, did you?

L


22 posted on 06/14/2019 6:40:58 AM PDT by Lurker (Peaceful coexistence with the Left is not possible. Stop pretending that it is.)
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To: Diana in Wisconsin

Bookmark


23 posted on 06/14/2019 6:41:17 AM PDT by Raycpa
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To: Diana in Wisconsin

New retirement plan. Work until you die. Simple plan.


24 posted on 06/14/2019 6:42:54 AM PDT by central_va (I won't be reconstructed and I do not give a damn.)
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To: cuban leaf

They can change the capital gains tax which will affect you or your heirs taxes on real estate. Just last week the bastards in the house voted to eliminate the basis step up on assets when you die. That would royally screw your heirs if you have gains when you croak.


25 posted on 06/14/2019 6:43:56 AM PDT by ProtectOurFreedom
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To: july4thfreedomfoundation

Agreed.


26 posted on 06/14/2019 6:44:18 AM PDT by Bloody Sam Roberts (Elitist Liberals have no idea the hunger and strength of the beast they have uncaged.)
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To: ProtectOurFreedom

Yes, I screwed up. Just woke up and read it backwards..............


27 posted on 06/14/2019 6:44:52 AM PDT by Red Badger (We are headed for a Civil War. It won't be nice like the last one....................)
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To: central_va

No. It’s “Work until you die. Give all your money to the government.”


28 posted on 06/14/2019 6:45:31 AM PDT by ProtectOurFreedom
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To: Lurkina.n.Learnin

You got that right. Yet I don’t recall anybody in my lifetime pointing that out.


29 posted on 06/14/2019 6:46:36 AM PDT by ProtectOurFreedom
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To: Red Badger

Understandable given that weird inverted sentence construction.


30 posted on 06/14/2019 6:47:25 AM PDT by ProtectOurFreedom
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To: Diana in Wisconsin
"Do any FReepers HAVE Annuities? Experiences?"

My parents and my wife's parents had annuities. They were NOT a very good investment. The up-front costs (commissions for the sellers) were very high. The interest paid by the annuities once they were paid up (no more commissions) were marginally OK, but certainly not great. Once they were inherited, the interest paid became negligible. This necessitated them to be cashed out. Since the parents all lived to a ripe old age :>) , the payout counted significantly as income, thus subject to our income tax rate, not theirs.

31 posted on 06/14/2019 6:47:47 AM PDT by norwaypinesavage (Calm down and enjoy the ride, great things are happening for our country)
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To: Diana in Wisconsin

Save carefully. When that government gun is in your face, you will need a nice big bribe to preserve your life.


32 posted on 06/14/2019 6:47:49 AM PDT by Mr. Jeeves ([CTRL]-[GALT]-[DELETE])
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To: Red Badger

It was phrased a bit oddly … sorta but not quite backwards. I had to read it twice.


33 posted on 06/14/2019 6:47:55 AM PDT by NorthMountain (... the right of the peopIe to keep and bear arms shall not be infringed)
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To: ProtectOurFreedom

My kids are all richer than me. My goal is to have little left when I die.

You can only mitigate risk. You can’t eliminate it.


34 posted on 06/14/2019 6:48:23 AM PDT by cuban leaf
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To: Diana in Wisconsin
Do any FReepers HAVE Annuities? Experiences?

Annuities are legalized theft.

NEVER get annuity.

35 posted on 06/14/2019 6:48:32 AM PDT by Mogger
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To: Diana in Wisconsin

If Pelosi’s house is fer it, I’m agin it.
Beware of ANY Dim bill, particularly those with a cute and clever acronym.


36 posted on 06/14/2019 6:48:45 AM PDT by bk1000 (I stand with Trump)
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To: ProtectOurFreedom

.....and lack of coffee..............


37 posted on 06/14/2019 6:51:13 AM PDT by Red Badger (We are headed for a Civil War. It won't be nice like the last one....................)
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To: Diana in Wisconsin

The republicans pushed thru the IRA in 1985-86 over the Democrat objections. There is a lot of historical data on the hearings, committee meetings and the press reporting. Basically, the democrats wanted to keep people from investing in themselves and in America stocks/any stocks. By keeping people from experiencing stocks they could continue to demonize big business and the markets because no one would understand how companies investing, nor would people be invested and a stake in the markets. Once people start to invest, they become independent and no longer only look to social security and medicaid/medicare to live on in their older retirement years.

Anything that destroys stock ownership or serves to make people stockholders and acquire an understanding of the markets keeps them serfs.

People who own stocks and have IRAs usually do not obsess like the “Occupy Wall Street” types who have an irrational basis to argue against companies and the markets.

Even Hillary’s “pork bellys” $2 turned into 170K or whatever the absurd amount really only served to undermine the truthful basis of the markets.


38 posted on 06/14/2019 6:51:21 AM PDT by Jumper
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To: ProtectOurFreedom
It’s “Work until you die.

I will. Don't have to, but I will. I have retired friends looking for jobs, any jobs. They don't need the money. They got bored. There's only so much 'recreation' you can do before it gets old. Fishing, golf, travel, hobbies, they all get old after a while. You gotta have a reason to wake up every morning......................

39 posted on 06/14/2019 6:54:43 AM PDT by Red Badger (We are headed for a Civil War. It won't be nice like the last one....................)
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To: Diana in Wisconsin

I looked at them in past years and found them to be really good....for the company selling them.

For a guarantee of payments for as long as you live they offer a terrible return (i.e. small monthly pmt) and once you give them the lump sum to fund annuity you cannot get it back. Also most are not transferrable so if you hand them a million to buy an annuity on Monday and drop dead on Friday the pmts stop and the money is gone.

Things may have changed in the past few yrs but one thing has not. Annuities are complex investments and need to be studied very carefully.

My experience as a forty plus yr investor is I have never seen an annuity plan I could not beat by a simple investment plan.


40 posted on 06/14/2019 6:54:46 AM PDT by billyboy15
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