Smart Strategies for Qualifying for Early Distribution Penalty Exceptions. Early—or pre-age 59½—distributions from IRAs and employer plans are subject to a 10% early distribution penalty unless an exception applies. In Part 1, we explain how to avoid losing eligibility for some exceptions by changing from one type of plan to another. In Part 2, we highlight […]
How to Avoid the 10% Early Distribution Penalty: Part 2 of 2 Read More »
Stocks began the month on a steep downward trajectory, experiencing losses reminiscent of the early pandemic lockdowns. However, by the end of the month, shares had managed to erase most of the early losses. What happened? Two primary events dominated the conversation during the month. First, the imposition of ‘reciprocal tariffs on April 2, and
Tariff talk dominates Read More »
A tale of two retirees “Tom” spent more than 35 years in the oil and gas industry and human resources for a large healthcare organization. He retired at the age of 61. Today, he is active in the community, can often be found on the golf course, and volunteers in various ways, including at a
Retirement—A Journey That Involves Transition and Opportunity Read More »
Market declines are an inevitable part of investing—but history shows they’re often followed by powerful rebounds. As this chart illustrates, since 1940, the S&P 500 has experienced 64 pullbacks of 10% or more. Yet the deeper the drop, the stronger the average return one year later: declines of over 40% were followed by a remarkable
When the Market Drops, Does Opportunity Knock? Read More »
According to a 2024 report by the Treasury Inspector General for Tax Administration (TIGTA), Americans made early distributions of $12.9 billion in 2021. Early distributions—those taken before age 59 ½—are subject to a 10% additional tax or early distribution penalty. To that end, the following are some of the strategies that you can utilize to
How to Avoid the 10% Early Distribution Penalty: Part 1 of 2 Read More »
After the market closed on Wednesday, April 2, the President announced new “reciprocal” tariffs on nearly every nation. How were tariffs calculated? Figure 1: The Tariff Formula In plain language, let’s use China as an example (WSJ). Divide the U.S. 2024 goods-trade deficit of $295 billion by the amount the U.S. imported from China—$439 billion. That
What We’ll Cover: Stress, Anxiety, and Crises The Risk of Mistakes Maintaining Perspective in Crises In any crisis, “playing it safe” to avoid losing your money can seem like the only rational strategy. However, in the past 60 years, we’ve seen repeating patterns of crises. Despite these crises, the market has been resilient. The Dow
On January 31, 1940, Ida May Fuller of Ludlow, Vermont, was the first person to receive a Social Security check. That historic payment amounted to $22.54. Before retiring in November 1939, she served as a legal secretary and contributed to Social Security for about 2½ years. Total taxes paid: $24.75. Before passing away in 1975, she had
62, 67, or 70—When Should You Apply for Social Security? Read More »
What is a tariff? The International Trade Administration defines a tariff as “a tariff or duty (the words are used interchangeably) is a tax levied by governments on the value including freight.” This tariff, or tax, is “paid to the U.S. Customs and Border Protection Service at the border by a U.S. broker representing a U.S. importer,