Get to Zero Tax – Part 3, Pensions

Mark returns with an exciting new Weekly Webinar that includes Slott Group and market updates, a summary of the latest economic news, and a dedicated segment on financial planning designed to enhance your retirement readiness. This session of the weekly webinar builds on a four-part series dedicated to achieving tax-free status during retirement. In this edition, we delve into the realm of Pensions.

 For the Slott Updates, Mark covers the intricacies of inherited IRAs, addressing questions about beneficiaries and distribution rules. Spouses inheriting IRAs can choose to treat them as their own or perform a rollover, but timing and adherence to deadlines are crucial. Successor beneficiaries follow the original beneficiary’s RMD schedule and face a 10-year rule for emptying inherited IRAs. The Secure Act altered rules for minors as beneficiaries, allowing minor children of the IRA owner to take RMDs based on life expectancy until 21, after which the 10-year rule applies. Market updates indicate a U.S. credit rating downgrade, rising energy prices, and a mixed economic landscape. Upcoming reports, including the Consumer Price Index and Producer Price Index, are anticipated to impact inflation trends and market conditions.

In the market review for July, the Dow Jones Industrial Average increased by 3.44% for the month and 8.55% year-to-date, while the S&P 500 rose by 3.21% for the month and 20.64% year-to-date. The NASDAQ showed a monthly gain of 4.08% and a year-to-date increase of 37.72%. Bond returns were down by about 0.07% for the month but up 2.02% year-to-date. The FED funds target rate is at 5.5%, and the six-month treasury rate is at 5.45%. The Consumer Price Index (CPI) is expected to rise by 3.3% year-over-year in July, and core CPI is projected to increase by 4.8% year-over-year. Mark discusses the potential impact of inflation and the importance of maintaining a balanced investment approach. The recent Fitch credit rating downgrade for the US government is seen as a reflection of long-term fiscal challenges, but it is not expected to significantly affect market dynamics or Federal Reserve policies. The downgrade reinforces concerns about rising inflation and debt burdens, leading to a potential steepening of bond yield curves over time. BlackRock maintains a tactically underweight position on broadly developed market stocks but is overweight on a long-term horizon.

Achieving Zero Tax with Pensions

This financial fifteen segment discusses strategies for achieving zero or minimal taxes in retirement. Mark provides insights on converting pensions to Roth IRAs to create a tax-free guaranteed lifetime income source. By transferring a pension lump sum into an IRA and strategically converting it to a Roth IRA, individuals can secure tax-free retirement income while avoiding the forever-taxed nature of pensions. The key is to manage conversions, distributions, and investments efficiently to minimize taxation and enhance retirement security.

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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.

Part 1 – Roth IRAs: https://youtu.be/PJ1Ae8x-pN0
Part 2 – Taxable Accounts: https://youtu.be/9IAfjU8eQhk
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0:00 – Introduction & Upcoming
07:10 – Slott Updates
24:08 – Market Update
35:55 – The Financial 15: Get to Zero Tax – Pensions