Posted on 06/14/2019 6:28:50 AM PDT by Diana in Wisconsin
The House of Representatives recently passed a bill that may complicate retirement planning options for Americans.
The House passed the Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019 on May 23. If enacted into law, it could be tricky for Americans who are not financially savvy investors.
Some of the changes could benefit consumers: The law encourages more small employers to offer 401(k) plans and raises the age for required minimum distributions (RMDs) from retirement accounts to 72 from 70.5, a nod to longer life expectancies and later retirements.
However, there are some changes that consumers should be wary of, experts say.
For example, one change in the law would shorten the amount of time that someone who inherits an Individual Retirement Account (IRA) can hold onto the funds, potentially causing them to lose money.
"If you inherited my IRA — before I'd be able to stretch the distribution over your lifetime, which is more time for dollars to grow tax deferred. Now you have to drain that inherited IRA over 10 years, which gives you less time to grow the money on a tax-deferred basis," Dave O’Brien, chair elect of the National Association of Personal Financial Advisors (NAPFA), told ABC News.
Another change that American workers should be wary of, according to consumer advocates, is adding annuities — complex financial tools offered by insurance companies — to 401(k) plans.
*SNIP*
(Excerpt) Read more at msn.com ...
> By that logic, then the inheritance tax should be 100%.
False dichotomy. One of the aims of the “inheritance tax” is to prevent the rise of landed aristocracies. Have the kids work for their living and not be trust fund babies.
The GD government simply will NOT stop focking around with citizens’ money!!!!!!!
You can think that if you want, but Elvis is still earning money and paying taxes on it even after all these years.
I thought the House had 435 members? (not 475).
THIS THEY CAN DO! SCUMBAGS! Ive had enough of these pr###s. The want us dependent on them, go f yourself
Most retirement experts I’ve listened to advise to stay away from annuities - you’re locked into a fixed rate of return, don’t know how long the company might stay in business, might not get all your money back by the time you due - that sort of thing - never been very convincing to me.....
Raising the age from 70 to 72... yikes.
Responsible people required to wait longer to collect. Work til you drop.
Increasing, or even doubling, the required number of working quarters for primary AND spousal benefits would make more fiscal sense.
As it is, you only need to pay into SS for 40 quarters (10 years) to collect for 20-30-40 years.
Many people work 1 quarter & collect unemployment for a year; work under the table for years, paying in nithing: marry multiple times, & all those ex-spouses & children then collect benefits off the same payee.
.
Factor in millions claiming disability, too.
No wonder the system is going broke.
Where are the actuaries?
“If you hand them a million to buy an annuity on Monday and you drop dead on Friday the pmts stop and the money is gone.”
+1 billyboy. That’s absolutely possible.
More likely, though, people deposit their million but do collect a few thousand over a few years.
Then they die, & the survivors are told tough luck re: the rest of the money they’d been misled to believe was “invested” & they’d get it back + interest.
Add to your post the fact that the salespeople are working on straight commission— no salary at all!
At the same time, the commission on annuities can be as high as 30% up front.
Thus the temptation is great to “accidentally” forget to inform buyers of all the facts.
I very briefly worked for a company selling annuities, & quit after only a few weeks, when I began to fully understand what was involved.
The high commissions were stressed during training & licensing period; we were encouraged to emulate the hard-sell tactics of the successful, utterly amoral salespeople who were making those commissions.
Those of us with any moral qualms or sympathy for customers were called timid losers who needed to overcome our lack of confidence in ourselves.
“I agree, but we still need to keep our eye on these thieves!”
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Absolutely! I agree with you 100%.
Of course. Not sure how I garbled the numbers.
It was 417-3 with 12 no votes.
Everything we have is paid for. There are 8 yrs difference in our ages, I’m the sicker of the 2. Even sick women in my family live to near 90 or higher.
His older bro was 91 when he passed, that is 1 financial mess I’d not like to deal with, lg farm, antiques, rental properties. But both his kids are savy business people, and k now to much about NY Law on inheritance they would have had everything set up for him. He was no dummy where that came in way.
For us the Trust made sure I had income. Any thing left over goes to the Grands as college trusts with stipulations for what and if they don’t go to at least a trade school they can’t touch until 35.
Everything else is Pre-Paid, arranged right down to the music. I put a CD of that in each folder. Plus I’ve got a LONG RANT ON DOCTORS/PAIN TORTURING AND KILLING ME. I WON’T GO SILENTLY. CDC/FDA IS ON MY S. LIST.
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