Our weekly roundup of tax-related investment strategies and news your clients may be thinking about.
Strategies that can avoid a 50% hit to your client's retirement savings
RMDs can be a drag for the unprepared client and can cost them as much as a 50% penalty if they fail to take them. Advisers can point out several options that can provide clients some tax advantages, offer a lifetime stream of income or help them leave a legacy to future generations, according to CNBC. Here's how longevity insurance, munis, 529 contributions and charitable giving can help
How a Roth IRA conversion can help you pass on more wealth
A recent study shows that Roth IRA conversions can help clients leave a larger legacy to their heirs, according to Money. But determining how beneficiaries come out ahead, when they inherit money in tax-deferred or tax-free accounts, depends on a number of factors. This includes the client's marginal tax rate when converting savings to a Roth, their heirs' marginal tax rate when they withdraw the funds, how taxes are paid on the conversion and how long the money remains in the Roth. -- Money
Find the right investments for your client's retirement portfolio
Here's a checklist from Morningstar that advisers can use to help clients keep their retirement plans on track. A client's knowledge level, desire to be hands-on, tax status, and tolerance for short-term volatility can help identify the right investments. -- Morningstar
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