Mark is back with a new Weekly Webinar, featuring fresh market insights, a recap of recent economic developments, and a targeted financial planning segment aimed at helping you better navigate your finances in retirement. This week builds off of previous discussions with the start of a 4-part series where Mark shares more common retirement mistakes, focusing this week on the true cost of retirement.
Mark begins with updates from the Slott Group where Mark discusses RMD (Required Minimum Distribution) rules for inherited IRAs and 401(k)s. He clarifies that new inherited IRAs are subject to both the 10-year rule and annual RMDs. Mark explains the rules for a 73-year-old client with a 401(k) who rolled a portion into a traditional IRA while still working, emphasizing the differences in RMD rules between 401(k)s and IRAs.
Mark also addresses the topic of investing in NFTs within IRAs. He highlights IRS Notice 2023-27, which classifies NFTs associated with collectibles as prohibited IRA investments, potentially leading to taxes and penalties. Mark defines “collectibles” per the tax code and warns younger investors about the tax implications and penalties they may face when investing in NFTs tied to collectibles within their IRAs. He notes the distinct tax treatment for Roth IRAs and raises the question of retroactive IRS actions, recommending consultation with a CPA or tax attorney for those affected. This information serves as a crucial warning for individuals considering NFT investments in their IRAs.
Moving on, Mark reviews the recent market performance, noting declines in major indices like the Dow Jones, S&P 500, and NASDAQ. He highlights the lesson learned in 2022, where both stocks and bonds saw simultaneous declines, emphasizing the importance of diversification. The Federal Reserve’s decision to maintain rates is discussed, with a focus on slowing economic growth to combat inflation. Insights from BlackRock suggest pockets of value in certain market areas and stress diversification. Leading indicators hint at a potential recession amid robust growth, raising concerns about consumer softening and credit tightening. Mark advises investors to stick to their allocations, align decisions with financial plans, and prioritize asset allocation, principal protection, and account segmentation.
The True Cost of Retirement
For the Financial 15 segment, Mark begins a four-part series on (more) common retirement mistakes, building on a series he did earlier in the year. For this first week, Mark focuses on the true cost of retirement. He begins by critiquing the “four percent rule” in retirement planning, advocating for a personalized approach. Mark stresses the need to calculate a tailored withdrawal rate considering individual factors. Withdrawal rates should evolve over time, adapting to changing financial needs. Essential expenses like housing, food, and healthcare are highlighted, but these can vary per person. Aspirational expenses, such as travel and gifts, should not be underestimated. Caution is advised when prioritizing charity contributions over personal financial needs. Shock expenses, often overlooked, should be considered, encompassing medical costs, housing repairs, family issues, and inflation. Higher taxes should also be factored in, emphasizing the importance of annual plan reviews for a well-rounded and adaptable retirement strategy.
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The opinions expressed in this program are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security. It is only intended to provide education about the financial industry. To determine which investments may be appropriate for you, consult your financial advisor prior to investing. Any past performance discussed during this program is no guarantee of future results. Any indices referenced for comparison are unmanaged and cannot be invested into directly. As always please remember investing involves risk and possible loss of principal capital; please seek advice from a licensed professional.
Attleboro Wealth Management, LLC is a Registered Investment Adviser. This program is solely for informational purposes. Advisory services are only offered to clients or prospective clients where Attleboro Wealth Management, LLC and its representatives are properly licensed or exempt from licensure. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Attleboro Wealth Management, LLC unless a client service agreement is in place.
0:00 – Introduction & Upcoming
06:08 – Slott Updates
22:30 – Market Update
32:58 – The Financial 15: True Cost of Retirement