Is the economy tilting toward recession? There’s reason to wonder as the Fed tightens monetary policy to lessen inflation and markets react to the war in Ukraine. Chief Strategist Liz Ann Sonders of Schwab discusses the predictive numbers. You may be able to reduce your taxes with reverse estate planning. Bob Carlson of Forbes writes that it’s especially helpful to adult children who have more income than their parents. The 2020 Secure Act has taken many stretch IRA tax advantages away. But you still have options, as ThinkAdvisor explains.
Recession Blues: Unfounded Fear? — It’s tempting to find comfort in the fact that the economic data look strong/good, but the reality is that deterioration in trends often lurks in the background and can spread rather quickly. So far, so good, but investors should probably swap their “level” lenses for their “trend” lenses right now. Read more…
Reverse Estate Planning? There’s Such A Thing, And It’s A Good Strategy For Some Families — It’s not unusual for adult children to help care for their parents or have more wealth or higher incomes than their parents. In those situations, reverse estate planning should be considered, especially when the parents won’t use all their lifetime estate and gift tax exemptions or are in a lower tax bracket than their adult children. Read more…
3 Stretch IRA Alternatives After IRS’ Secure Act Surprise — The Secure Act fundamentally changed the required minimum distribution rules for inherited IRAs and 401(k)s for tax years beginning in 2020 and thereafter. For most people, a surprise twist in the regulations further reduces any remaining tax deferral benefits associated with the post-Secure Act stretch IRA. But tax-efficient estate planning options do exist. Read more…
John R. Day, Bill Ennis, Stephanie Hall, and Matt Heller