Among the best stories from Retirement Daily for Feb. 17 - 21: Advantages of cash-balance retirement plans, and tips for succeeding in the workforce, and updates on recent changes to RMD rules.
In a special guest column this week, adviser Matt Statman writes that cash-balance plans have been growing in popularity. This little-known strategy can cut your taxes while paying you at the same time: "The federal government cut taxes in 2017, but chances are, if you are a highly paid entrepreneur or business owner, you still feel like there is a large percentage of your income going to taxes. With combined federal and state income tax rates as high as 45%, many business owners are searching for any way possible to lower their tax burden. Fortunately, there is a little-known strategy to massively reduce your taxes while paying yourself at the same time. A cash balance defined-benefit (DB) plan is a way to create your own retirement pension in a tax-efficient manner." Read more in Business Owners Can Cash in With a Cash-Balance Retirement Plan
And in case you missed them, here are some more great adviser columns in Retirement Daily this week:
No, not that talk. This talk is about finances and health. Adviser Tammy Wener has questions to get the conversation started.
Getting back into the workforce or making a job change can be scary at any age, Jeanette Pavini writes in her consumer column this week. "But for many boomers, there is also an element of intimidation. We worry about not being able to keep up with all the new technology or competing with other applicants who are half our age. The fact of the matter is, boomers bring a whole other element to the job market table. They bring maturity, patience and most importantly experience. So, if you are in the market to explore the current job market, here are a few tips to give you that competitive edge."
Adviser Greg Hammond explains why, if the goals of losing weight and saving money are so simple, we have a really hard time accomplishing them.
Under the new SECURE Act legislation, the rules have changed for RMDs. Here are the retirement accounts that are affected.
Question: I recently read an article that references the new SECURE Act, which was signed into law last year. The article notes that RMDs for "retirement accounts" can be delayed from the previous age 70½ standard. Most articles I have been reading only reference 401(k)s. Do 457 accounts apply as well? I'm confused.
Adviser Danielle Howard writes that the gray inside your head as well as on top of it has value. She writes, "Let's redefine this season of life and retire the idea that it is singularly focused on a life of ease. ... Stay engaged, contribute, show up and share the amazing individual that your unique life experiences have allowed you to become. Make sure your financial resources are best positioned and utilized to sustain you in your quests.