Recent columns have generated follow up questions from readers: Readers Question: In last Sunday’s column, you stated that Roth IRA withdrawals are taxable if withdrawn within 5 years of the date of the first contribution. I believe it is only the earnings that are taxable if withdrawn in this timeframe – the contributions […]
More Questions on Roth IRAs
Avoid Death Taxes with a Transfer on Death Agreement?
Reader Question: My father added a ‘transfer on death’ (TOD) agreement to his investment accounts which are valued at about $2.5 million. My two siblings and I are the beneficiaries of the TOD account. His total estate is approximately $3.25 million. He did this with the intention of keeping that part of his wealth out of his […]
Improving Your Credit Score
Reader’s Question: I recently requested and received a copy of my credit report from Transunion. They gave me four reasons why my credit needed addressing. I have a Home Equity Line of Credit that is set up for ‘interest-only’ payments until it balloons in 2018. Transunion stated, "The amount paid on this loan is too low." When […]
Roth IRA Conversion- Tax Consequences?
Reader Question: This question may help a lot of people deciding on Roth IRA conversions. With a traditional non-deductible IRA what, if any, taxes are due if you convert it to a Roth IRA? Can you give an example? My understanding is that you don’t have to pay taxes on the amount contributed…only on the ‘growth’ or profit […]
The Great Recession- Act II?
As we pass the halfway mark for this year the global economy appears to be decelerating. Let’s look at the data and then discuss how investors should position their investments to prepare for the possibility of a double-dip recession. China, the world’s second largest economy is showing signs of inflation easing along with outright deflation […]
Day Trading Your 401k Account
Reader Question: I read an article recently about people day trading their 401k accounts in an effort to get higher returns as they approach retirement. Their reason was that the buy and hold strategy has not worked. What are your thoughts about this? R.J. Answer: I’ve been in the day trading management business for over thirty years and in […]
ObamaCare: What Does It Mean for Me?
Reader Question: The Supreme Court upheld the validity of the Obama healthcare plan. What does this mean for the average consumer? J.C. Answer: ObamaCare, as it has been dubbed, provides universal healthcare for all Americans and mandates that everyone participate. Lower income American’s will either be added to the state Medicaid insurance plans at no cost or […]
This Is Your Life…
On July 4, 1776, a small band of colonial leaders declared independence from the Kingdom of Great Britain. The American Revolution changed the course of world history forever and launched a nation that no other has since rivaled. In the spirit of the heroes of the American Revolution, would you be willing to consider declaring […]
$750,000 Fee to Settle an Estate?
Reader question: Several weeks ago you wrote an article about estate planning. What is the cost of preparation of a return for an estate of a million dollars (just a ball park)? F.W. Answer: This is a very important question and the correct answer is ‘it depends’. Before you accuse me of using a ‘Bill […]
The Hidden Costs in Your 401-k
How many of you would guess that over the lifetime of your 401k plan hidden fees could cost you more than $150,000? That’s the conclusion Demos, a non-partisan policy research and advocacy organization, came to in a recent research paper. The vast majority of employees participating in 401k plans across America have no idea about the […]