The 401(k) revolution has turned millions of American workers into their own pension plan managers. Now, as a growing number of these workers retire, they must convert their investment portfolios into regular income.
We know that Coronavirus has impacted all of us in various ways, whether it be loss of work, new ways to work, wearing masks, spending more time at home, less travel, and for some of us getting sick. States are beginning to "re-open" and we hope that all of this will be behind us, and soon. One of the long-term impacts is that it is more and more likely that taxes will have to rise and rise significantly and soon. What are you doing to protect your wealth from future taxes?
If you own a home, you’ve probably been sold on the benefits of a shorter mortgage or heard it’s wise to pay more than the minimum so you can pay it off sooner. But is this strategy all it's really cracked up to be?
If most of your retirement assets are in pre-tax investments like 401(k) and traditional IRA accounts, you will be paying taxes on that money in the future at some unknown rate. Taxes right now are on sale. Maybe you should pay tax on some of that money now so you can have tax-free income later on.