On an AgingOptions Radio Show, Vi from Olympia asked what the tax implications were for the beneficiaries if the trustee of a family trust that contains an annuity dies. Here’s a basic summary of tax considerations, however, you should consult your tax professional, lawyer or a financial professional.
By Money Manager Tom Cock “I know that you believe you understand what you think I said, but I’m not sure you realize that what you heard is not what I meant.” -Robert McCloskey You’ve probably never heard of Robert McCloskey, neither had I. When I first saw this quote, I guessed that the words … Read more
IRC 408A(e)(1)(B)(i), referring back to IRC 408(d)(3). This was a listener posed question and one that has a storm of confusion around it. However, a plain reading of the relevant regulatory provision, Internal Revenue Code 408(d) makes it quite clear that minimum required distributions are not eligible for a Roth IRA rollover. The problem may … Read more
by Tom Cock President, Aging Options Financial Services Clear as Mud With almost any product, transparency benefits consumers. Clarity means better understanding and fewer surprises. This is particularly true in the investment business. The more you know about an investment vehicle, the more informed your decision. For some in the financial services industry, transparency not … Read more
When choosing a beneficiary for a retirement plan, it is important to understand how your spouse will be treated under the plan. Surviving spouses are treated differently under 401(k)s and individual retirement accounts (IRAs). While a 401(k) provides protections for a surviving spouse, an IRA does not. Because the 401(k) is an employee-based retirement system, … Read more
By Money Manager Tom Cock Global diversification gives investors a valuable tool for managing risk and volatility in a portfolio. But smart diversification has an important side effect. It requires maintenance. In a given period, asset classes experience divergent performance. This is inevitable and, in fact, desirable. A portfolio that holds assets that do not … Read more
Kurt Vonnegut related this story about fellow author Joseph Heller. The two were at a billionaire’s party on Shelter Island. Vonnegut asked Heller how it made him feel that the host may have made more money in one day than Catch-22 (Heller’s most famous work) did in its entire run. Heller replied that he had … Read more
By Money Manager – Tom Cock Don’t allow anyone to sell you investments, period! Good investments don’t need to be sold. Some of the worst investments on the market are those offered by professional salespeople, such as stockbrokers and insurance representatives. Even in those rare cases when they might be selling you a decent investment … Read more