Blog Archives - PFwise.com

May I Take RMD From One of My Retirement Accounts?

11/30/2021

Q. I have multiple retirement accounts, can I take RMD from just one of my accounts?

A. Yes, if you have multiple retirement accounts it's possible to take your RMD from one, but it depends on the type of retirement account:

For Traditional IRAs, Rollover IRAs, SEP IRAs, SARSEP IRAs, and SIMPLE IRAs: You must calculate the RMD for each of these accounts separately, but you can withdraw the total RMD amount from one or any combination of accounts.
For 403(b)s: RMDs must be calculated separately for each account, but the total amount of the RMD can be withdrawn from any one or a combination of your 403(b) accounts.
For 401(k)s: RMDs must be calculated separately for each account and taken individually from those accounts.

Any distribution from an account that requires an RMD will count toward that year's RMD. Amounts withdrawn in excess of that RMD amount do NOT reduce RMD amounts in future years.

You are not required to take RMDs from your own Roth IRA, and cannot satisfy an RMD requirement with a withdrawal from a Roth IRA.

4 Ways to Use Your RMD Fund

11/29/2021

1. Living expenses
If you plan to use RMDs to pay for current expenses, it often makes sense to have a budget in retirement. Going through the budgeting process can help you estimate living expenses, manage your cash flow, and determine if you'll need to use your RMDs to fund your retirement lifestyle.

2. New investments
For some retirees, Social Security benefits and other income may cover your expected expenses. Remember, even though you may not need RMD monies to fund your retirement spending, you're still required to take them out of your applicable retirement accounts. Although your RMD can't be reinvested back into an IRA, you can put money into taxable brokerage accounts and then reinvest your RMD proceeds according to a strategy that fits your needs.

3. Wealth transfer to a loved one
There are several tax-smart ways to pass money to your loved ones. If you'd like to help give someone's education a head start, consider using the money you take for your RMD to fund a 529 college savings account. Another option is to convert some of your traditional IRA assets to a Roth IRA, which can be inherited without as many income tax implications. With this "Roth conversion" strategy, you'll pay income tax on the amount you convert, but you'll no longer have to worry about RMDs on that amount, because RMDs are not required during the lifetime of the original account owner in a Roth IRA.

Remember, if you're already over 72, you will have to take an RMD for the current tax year before you can convert to a Roth IRA—that is, Roth conversions do not satisfy the RMD requirement, although you can use all or part of the RMD to pay the taxes due from the conversion. On the other hand, if you anticipate that your heirs will be in a much lower tax bracket than your own, or if you plan to leave IRA assets to charity, it may not make sense to convert. Also note that Roth conversion rules may change in the future, so you'll want to keep up on the latest tax reform legislation.

While distributions from Roth IRAs are generally not subject to federal or state income taxes during the lifetime of the original owner, the balances are still subject to estate tax, so it is important to plan accordingly. Since there are other ways to transfer money to heirs, such as trusts and gifting, consult an estate planning advisor before making any decisions.

4. Charitable donations
If you have to satisfy an RMD and you would also like to make a gift to charity, then consider a qualified charitable distribution (QCD).

A QCD is a direct transfer of funds from your IRA custodian, payable to a qualified charity. Once you've reached age 72, the QCD amount counts toward your RMD for the year, up to an annual maximum of $100,000. It's not included in your gross income and does not count against the limits on deductions for charitable contributions. These can be significant advantages for certain high-income earners.

Due to changes enacted by the Tax Cuts and Jobs Act, a number of retirees may now choose to take the standard deduction when filing taxes ($12,550 for singles; $25,100 for couples in 2021) rather than itemize. For those people, QCDs may be a useful alternative because they do not rely on itemization as might be the case for other large charitable contributions.

How to Calculate and Withdraw My RMD

11/28/2021

Fidelity has a great online tool to help you calculate your RMD. Below is an example to illustrate the calculation:

Once you've determined the appropriate amount for each year, you can opt to take the distributions for your RMDs yourself. However, some providers allow you to instead set up automatic withdrawals, based on the same criteria of age and year-end account balances, with the appropriate amounts computed and then withdrawn and sent to you by check or direct deposit on a schedule of your choosing.

Regardless of the withdrawal schedule, the deadline is important. The IRS penalty for not taking an RMD, or for taking less than the required amount, is steep: 50% of the amount not taken on time. The deadline to take your first RMD is normally April 1 of the year after you turn 72, and December 31 each following year. Note, however, that if you choose to wait until April 1 of the year after you've turned 72 for your first RMD, it will mean taking 2 RMDs that year, and the additional income could have other tax consequences.
Many people choose to have taxes withheld from their RMDs, as it is counted as ordinary income. If you choose not to do this, make sure you set aside money to pay the taxes. And be careful—sometimes underwithholding can result in a tax penalty.

Below is Uniform Lifetime Table that you can use to figure out life expectancy factor:

Intra-family Loan 101

11/27/2021

An intra-family loan is a nuanced strategy with many moving parts and a number of potential tax consequences, including implications for estate, gift, and income taxes, all of which should be considered in deciding whether an intra-family loan is right for you and your family.

If structured properly, an intra-family loan may be beneficial to both parties. Even if the child does not have a specific need for the money, this strategy may help families transfer a portion of the earnings on wealth to the next generation without reducing the lender’s lifetime estate tax exemption (currently $11.7 million per person for 2021) or paying gift taxes. If structured improperly, however, this arrangement may cause adverse and unintended tax consequences.

In this article from Fidelity.com, it discusses various benefits of and considerations for intra-family loans.

Review Retirement Realities

11/26/2021

Risks can take a toll on retirement resources. Learn how to spot them and understand how to address them.

Retirement Income Game Plan

11/26/2021

Rollover Contributions From an IRA to a Tax-sheltered Annuity?

11/25/2021

Q. When may rollover contributions be made from an IRA to a tax-sheltered annuity?

A. An individual may receive a distribution from his or her traditional IRA and within 60 days roll it over into a tax-sheltered annuity to the extent that the distribution would be includable in income if not rolled over. After-tax contributions, including nondeductible contributions to a traditional IRA, may not be rolled over from a traditional IRA into a Section 403(b) tax-sheltered annuity.

May an individual who has turned 70½ make a rollover?

11/24/2021

Q. May an individual who has turned 70½ make a rollover?

A. Yes.

The Secure Act now permits taxpayers to make contributions to traditional IRAs at any age.

Although there was considerable confusion on this issue at one time, it now seems clear that rollovers may be made to traditional IRAs as long as the minimum distribution requirements are met. Rollovers, as well as contributions, may be made to Roth IRAs by individuals at any age. It appears that the same rationale also permits rollovers to qualified plans and Section 403(b) tax-sheltered annuities after age 72 if minimum distribution requirements are met.

Retirement Monthly Income Needs - A Table For Planning Purpose

11/23/2021

Sizing up your retirement readiness can be simplified. Just use the following list to evaluate your expected expense -

Current Tax Provisions NOT Included in the House HR 5376 Bill

11/22/2021

HR 5376 is very different than some of the proposals that were being discussed earlier this year. But, here is the most important consideration concerning the current legislative process going on in the House and soon to be under consideration in the Senate.

The most important considerations are the current tax income , estate, gift, and corporate tax provisions that are NOT in the House bill and will probably not be included in the subsequent Senate bill (but no guarantees on this):

The 21% top corporate tax rate remains the law
Stepped up basis at death for capital assets included in the gross estate remains the law
The 12/31/2025 “sunset” of the current estate and gift tax exemptions remains the law (2022 exemption of $12.06 million single and $24.12 million married)
Valuation discounts for transfers (lifetime exemption gifts) of minority ownership interests and lack of marketability remains in place under the guidelines of Rev. Rul. 93-12
The “grantor trust” income and estate tax rules remain in place including “grantor ILITs”. Death benefits for “grantor ILITs” with future premiums due and death benefits for newly created “grantor ILITs” would remain estate tax free.
The $15,000 per donee gift tax annual exclusion remains the law ($16,000 gift tax annual exclusion in 2022)
The 40% top estate tax rate remains in place.
The 20% top capital gains tax rate remains the law (plus the 3.8% NIIT surtax on capital gains and dividends for certain high earners)
- This was 25% last time. Rep. won the battle
The 37% top income tax rate remains in place (plus the 3.8% NIIT surtax on capital gains and dividends for certain high earners)
The 20% deduction for K-1 “pass-through” profits of certain S Corp and LLC owners remains in place. This 20% deduction can reduce the top marginal tax rate on K-1 profits from 37% to 29.6% for high income S Corp and LLC owners.
Tax deferral of cash value growth, tax free withdrawals to basis (FIFO) and loans for non-MECs, and tax free death benefits for life insurance remains the law
Tax deferred growth and LIFO taxation of withdrawals for annuities remains in place
The indexed tax deductibility limits for IRAs and Qualified Retirement Plans (QRPs) remain in place.
Tax free benefits for standalone LTC products and LTC riders remains the law.

Tax Provisions in the Latest Legislative Text of the HR 5376 BBBA

11/21/2021

Here is a thumbnail sketch of what remains of the taxation provisions in the latest Legislative Text of the HR 5376 “Build Back Better Act”.

CORPORATE TAXES

A 15% minimum tax on corporate profits. This would only apply to corporations with more than 1 BILLION in annual profits. Clearly , companies that could fit this tax profile are probably very large publicly traded corporations that have significant tax deductions and tax credits that would potentially reduce their corporate taxes down to zero under current tax law.

IRS ENFORCEMENT

A huge increase in hiring of thousands of new IRS agents to audit high earners, especially successful owners of S Corps and LLCs “pass-through” entities that have high incomes

PERSONAL INCOME TAXES

A 5% surtax on personal incomes above $10 million per year and an additional 3% surtax on personal incomes above $25 million per year
Close a current loophole that allow certain “pass-through” business owner taxpayers (i.e. S Corp and LLC owners) to avoid paying the extra 3.8% Net Investment Income Tax (NIIT) on their K-1 “pass-through” profits. Under current law, the 3.8% NIIT surtax only applies to capital gains and dividends of certain high earning taxpayers and not to K-1 “pass-through” profits.
Increases the State and Local Tax (SALT) deduction limit from current $10,000 per year up to $ 80,000 per year. Hard to figure out why this provision is in the bill (politics?) since it would decrease the tax bills of certain high income taxpayers. This would especially benefit those taxpayers in states with high state income tax rates and high local property tax rates.

RETIREMENT PLANNING

Would impose an IRA contribution limit on high income taxpayers ($400,000 single and $450,000 married) who also have IRA account balances of $10 million and up.
Would impose extra Required Minimum Distributions (RMDs) on high income taxpayers who have IRA account balances of $10 million and up. This would force out as taxable income 50% of the excess above $10 million in the first year and the other 50% excess above $10 million in the following year.

Benefits of Long Term Care Policy vs Medicare and Medicaid

11/20/2021

What Do Medicare and Medicaid Cover?

Both programs generally help people with improving or correcting specific medical or health problems, but not with day-to-day custodial care, or what are known as Activities of Daily Living (ADLs). Medicare will only cover rehabilitative care following a hospital stay which limits the availability of benefits. On the other hand, Medicaid is a program for individuals with limited resources and income which means most people won’t qualify for these benefits.

So, if you eventually need help with ADLs like eating, bathing, getting dressed, getting around or personal hygiene, those services wouldn’t be covered by Medicare or Medicaid. You would need private long-term care insurance to help pay for that.

Advantages of a private LTCi policy over Medicare and Medicaid

Long-Term Care Insurance provides peace of mind. Owning a long-term care insurance policy gives policyholders a sense of security by empowering them to have control over where, when and how they receive care.
Long-Term Care Insurance protects a lifestyle. Owning a private long-term care insurance policy protects the lifestyle of spouses and family members. Having an LTCi policy allows funds earmarked for retirement income, investments and assets to remain untouched, lessening the burden of a triggering health event.
Long-Term Care Insurance is comprehensive. Most policies will pay for all levels and types of long-term care, including adult day care, assisted living, nursing home and home health care.
Long-Term Care Insurance is flexible. Benefits like built-in cash options and care coordination help balance the care provided by family with professional services. These options also offer flexibility throughout the progression of care.
Long-Term Care Insurance has tax advantages. Individuals and business owners may be able to take advantage of tax savings by deducting their eligible premium annually.

2022 IRS Contribution Limits

11/19/2021

Starting Jan. 1, 2022, you may be able to invest more thanks to an increase in the dollar limitations for some retirement-related items for the 2022 tax year.

The defined contribution plan annual additions limit will increase from $58,000 to $61,000.

Federal tax law places limits on the dollar amount of contributions to retirement plans and the amount of benefits under a pension plan. IRC Section 415 requires the limits to be adjusted annually for cost-of-living increases.

5 Independent Rating Services for Insurance Companies

11/18/2021

The financial strength of an insurance company is based on prior claims experience, investment earnings, level of reserves, and management, to name a few. Guides to insurance companies' financial integrity are published by the following various independent rating services:

AM Best
Fitch
Standard and Poor's
Moody's
Weiss

Key Factors to Consider Before Deciding on Medicare Advantage

11/17/2021

If you are healthy at age 65, Medicare Advantage (MA) may look like the better deal with lower upfront monthly costs than Original Medicare. However, you need to consider two important factors before making your final decision:

1. Original Medicare offers access to all of the doctors anywhere in the country who accept Medicare (most do), while most MA plans have only limited regional network of doctors and facilities (much like an HMO).

2. If you enroll in MA then become ill, in the majority of states you likely won't be able to switch back to Original Medicare, that's because it's imperative to add a supplemental private insurance policy to Original Medicare (Medigap) to cover expenses that Medicare does not pick up, and there is only one window - when you first sign up for Medicare - for getting a Medigap policy that covers any preexisting conditions and doesn't charge you extra for the coverage.

Key Tax Provisions in the Build Back Better bill

11/16/2021

Here are the key tax provisions in the developing version of the Build Back Better bill:

A 5% surcharge for taxpayers exceeding modified adjusted gross income (MAGI)* of $10 million, $5 million for married individuals filing separately, and $200,000 for a trust
An additional 3% surcharge for taxpayers exceeding $25 million in modified adjusted gross income, $12.5 million for married individuals filing separately, or $500,000 for a trust
A 15% minimum tax on the corporate profits that large corporations—those with over $1 billion in profits—report to shareholders
A 1% surcharge on stock buybacks completed by publicly traded corporations
Elimination of the ability to convert after-tax savings in a 401(k) or a Traditional IRA to a Roth IRA, starting in 2022
A prohibition on converting pre-tax IRA and 401(k) plan funds to Roth savings for wealthy taxpayers starting in 2032
Restriction of contributions to any type of IRA for those with taxable income over $400,000 (single) or $450,000 (joint) and who have a total value of IRA and defined contribution balances over $10 million, starting in 2029
A modification of the cap on the deduction for state and local taxes known as SALT, the details of which are fluid

Direct Indexing - Part D: Is Direct Indexing Right For You

11/15/2021

In last blogpost, we discussed the advantages of direct indexing.

Is direct indexing right for you?

Of course, direct indexing strategy isn't right for everyone. It still requires a sufficient amount of capital to implement effectively, even with fractional shares trading capabilities.

Moreover, because direct indexing involves active management to track the index as desired, it is significantly more complex compared with simply buying a fund that attempts to track a benchmark. This means having to keep tabs on the index, for example, to know when it rebalances or changes individual constituents. If you are unable to track the index changes, your investment performance could deviate from the performance of the benchmark (i.e., tracking error). You can also be exposed to tracking error if you choose to customize the position or tax-loss harvest.

As with any investing decision you make, you should ensure that it aligns with your specific goals, risk tolerance, liquidity needs, tax considerations, and any other factors that might be relevant to your situation.

With that said, if you want to mimic the performance of an index and you want the ability to customize that position, with the possibility of enhanced tax management capabilities, direct indexing might be something you want to consider.

Direct Indexing - Part C: Advantages of Direct Indexing

11/14/2021

In last blogpost, we discussed what are new to direct indexing.

Advantages of Direct Indexing

A primary difference between this strategy and buying a fund that attempts to track the index is that, with direct indexing, you can customize this position. In contrast, the manager of an ETF and mutual fund decides the components of the fund and how closely to track the index—assuming that is the fund's objectives.

Additionally, direct indexing can enable tax management. Given that you are purchasing individual stocks, it can be possible to tax-loss harvest each position to help manage your tax bill. By contrast, an ETF or mutual fund does not offer the ability to harvest individual positions. Typically, direct indexing is done in a taxable brokerage account for this reason, and not tax-advantaged accounts.

In next blogpost, we will discuss if direct indexing is right for you or not.

Direct Indexing - Part B: What is New to Direct Indexing

11/13/2021

In last blogpost, we discussed what is direct indexing .

What's changed lately?

In the past, direct indexing would require a relatively significant amount of money to buy all of the stocks in a particular index needed to replicate its performance. Additionally, the need to periodically rebalance (i.e., adjust your holdings so that the percentages of stocks you own align with that of the index) and reconstitute (i.e., sell stocks that drop out of the index and buy stocks that are added) to continue to track the index's performance was relatively costly due to commissions and other trading costs. Having to buy a relatively large number of individual stocks that make up an index, in the percentage needed to replicate its performance, has traditionally been an impediment for most investors to use this strategy. Consequently, direct indexing was effectively limited to wealthier investors.

Several factors have changed this dynamic somewhat, including the adoption of fractional shares trading.

According to Bloomberg, the average stock price of the S&P 500 is $209, as of October 25, 2021 (with many stocks priced significantly more per share). The availability of dollar-based fractional shares trading makes it a little easier to buy the holdings of an index in the percentages needed to closely replicate the performance of that benchmark with a relatively lower amount of money.

The increasing prevalence of zero-commission trades has been another important factor. Rebalancing and reconstituting a portfolio to track an index can be costly for investors that do not have access to commission-free stock trades. More brokerage companies offering zero-commission stock trades has contributed to more investors considering direct indexing.

In next blogpost, we will discuss advantage of direct indexing.

Direct Indexing - Part A: What is Direct Indexing

11/12/2021

What is Direct Indexing?

Investing by attempting to replicate the performance of an index—like the S&P 500 or the S&P SmallCap 600—is a common strategy many investors use. To do this, most investors typically buy mutual funds and ETFs to track an index (because you can't invest directly in an index).

Another way to do this is direct indexing, where you buy the individual stocks of an index so that your investments have similar characteristics to that index. Essentially, direct indexing involves choosing the index you want to replicate the performance of and then buying a representative amount of all of those index's components individually.

For example, if you wanted to replicate the performance of the S&P 500, which tracks the largest companies in the US, you would buy a representative amount of all of the stocks within the S&P 500. You would then rebalance those positions as needed to continue to closely replicate the S&P 500 Index's performance.

In next blogpost, we will discuss what are new to direct indexing.

Why Most Group Life Insurance Covers $50K?

11/11/2021

The most common employer provided group life insurance benefit is coverage up to $50,000 per employee of group term life insurance with additional coverage for the employee's spouse and dependents of up to $2,000 each.

The reason this is the most common employer provided group life benefit is because this is the amount and type of life insurance coverage that an employer can offer to their employees without the premiums paid being considered as income to the employee. Section 79 of the Internal Revenue Code sets these limits. With this type of arrangement the employer pays the policy premiums, deducts them as a business expense, does not add the premium to the employee's W2, and the death benefit is still income tax free to the beneficiary.

What are the Differences Between Option A and Option B Death Benefits?

11/10/2021

Universal life offers two death benefit options to the policyowner. Option A is the level death benefit option, and Option B is the increasing death benefit option.

Under Option A, the death benefit remains level while the cash value gradually increases, therefore lowering the pure insurance with the insurer in later years. The reason the above Option A illustration shows an increase in the death benefit at a later point in time is so that the policy will comply with the "statutory definition of life insurance" that was established by the IRS. According to the definition, there must be a specified "corridor" or gap maintained between the cash value and the death benefit in a life insurance policy. The percentage that applies to the corrido is established in a table by the IRS and varies as to the age of the insured and the amount of coverage. If the corridor is not maintained, the policy is no longer defined as life insurance for tax purposes and consequently loses most of the tax advantages that have been associated with life insurance.

Under Option B, the death benefit includes the annual increases in cash value so that the death benefit gradually increases each year by the amount that the cash value increases. At any point in time, the total death benefit will always be equal to the face amount of the policy plus the current amount of cash value. Since the pure insurance with the insurer remains level for life, the expense of this option is much higher than that for Option A, therefore causing the cash value to be lower in the older years (all else being equal).

How to Determine Effective Date of Life Insurance Policy

11/9/2021

The chart below describes the effective date of a life insurance policy.

Analyzing the Inflation Fighters

11/8/2021

Below is an article from Walls Street Journal that analyzes each of the popular inflation fighters in the face of potentially high inflation:

Everywhere you turn nowadays, someone is peddling protection: Gold! Bitcoin! Value stocks! Energy stocks! Commodities!

And no wonder: After years of quiescence, inflation has surged, hitting 5.4% year-over-year in September. With interest rates near zero and governments spending trillions, more of the same seems as unavoidable as nightfall.

Before you overhaul your portfolio, however, you should bear these basic truths in mind: Fear is a good investing philosophy only for the people who sell it. The more Wall Street agrees that a forecast is inevitable, the more likely the future is to repudiate it. And you’re probably already better protected against a decline in purchasing power than you might realize.

Analysts, economists and other forecasters are no better at predicting inflation than at predicting anything else: They stink at it. As then-chairman of the Federal Reserve Alan Greenspannoted in 1999, estimates of future inflation—including those by the Fed itself—“have been generally off,” and even changes in inflation that were “doggedly forecast” never occurred.

The fallibility of forecasts is one reason to think twice about overhauling your portfolio. The other is that the assets often peddled as inflation panaceas don’t have magical powers.

Gold, for instance, has sometimes failed to keep up with rises in the cost of living for decades on end. (It’s down almost 5% this year even as inflation worries have spread.)

Bitcoin. Because the quantity of bitcoin is limited to 21 million, the digital currency has insulated its holders from inflation so far. Yet its price is so explosively volatile that it could plunge just when you most need stability, making it an erratic hedge.

Many asset managers promote value stocks, which trade at low prices relative to their assets or earnings, as inflation fighters.

Such companies can own assets like factories, equipment and real estate whose value should grow as prices rise. They operate in sectors such as energy, financials and utilities that often can raise prices to keep pace with inflation or interest rates.

By contrast, growth stocks—whose earnings investors expect to increase rapidly in the future—are more dependent on what happens years down the road.

That makes value stocks less reliant on tomorrow’s earnings than growth stocks are. The further off profits are in the future, the more inflation chews away at their present value—implying that growth stocks will be hurt.

In periods of rising consumer prices, value stocks have done better than growth—but not always. Value shone in the inflationary decades of the 1940s, 1970s, 1980s and 2000s. Yet value underperformed growth stocks in the 1990s, even though the cost of living rose slightly faster in that decade than in the 2000s.

The difference is driven largely by technology companies, which have long dominated indexes of growth stocks.

Companies trading at sky-high prices relative to their earnings, as the so-called Nifty Fifty stocks did in 1972 and Cisco Systems Inc., Lucent Technologies Inc. and Yahoo! Inc. did in 1999 and early 2000, have no margin for error.

“Once multiples [of stock prices to earnings] expand beyond what might be justified, if you get an inflation shock, then that’s a big headwind for these companies,” says Lawrence Hamtil of Fortune Financial Advisors LLC in Overland Park, Kan.

Today, however, several tech giants, including Apple Inc., Facebook Inc. (soon to be “Meta”) and Google’s parent Alphabet Inc., are priced at roughly the same multiples of their current earnings as the S&P 500 overall.

So, even if the cost of living does spike, it isn’t certain that these growth stocks would underperform or that value stocks would trounce them.

Nor are energy stocks or commodities a foolproof tool.

Consumer prices rose in 1998, 2001, 2008, 2014, 2015, 2018 and 2020—and yet energy stocks and commodities lost money in all those years, according to Dimensional Fund Advisors, an investment firm in Austin, Texas.

In four of those years, both of those purported hedges lost more than 10%.

Because energy stocks and commodities have hammered their investors with a wild mix of gains and losses over time, they “are not effective hedges against inflation,” says Savina Rizova, head of research at Dimensional. “That’s a big myth out there. Given the volatility, people are probably in for some very unpleasant surprises if they take that route to hedge against inflation.”

Fortunately, the stock market overall has outpaced moderate rises in the cost of living. From 1927 through 2020, according to Dimensional, U.S. stocks as a whole outperformed inflation by an average of 4.9 percentage points annually in years when rises in the cost of living were above the median. If your stock portfolio is already well diversified, it should be able to keep pace with modestly rising prices.

You can also add TIPS, or Treasury inflation-protected securities. Even though they aren’t cheap, they still offer protection against unexpected jumps in consumer prices down the road. So do inflation-protected savings bonds, or I bonds.

What you probably don’t need is to inflate your fees and your risk, for real, to protect against inflation that might turn out to be a phantom.

How to Pick the Best Retirement Income Strategy

11/7/2021

There are four retirement strategies: total return, risk wrap, time segmentation and protected income.

In this article from ThinkAdvisor.com, professor Wade Pfau, also director of the Retirement Income Certified Professional program at The American College of Financial Services discusses these strategies and why Annuities deserve an equal seat at the table with any other retirement income strategy.

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