Thu, 27 Aug 2015
How you ask questions can have a profound impact on how your clients respond--and therefore how financial plans are implemented.
Inefficient contributions and withdrawals and poorly timed asset purchases are among the many common tax-related blunders, but Morningstar's Christine Benz offers solutions to avoid such pitfalls.
Investors who build tax diversification, get savvy with RMDs, mind state taxes , and avoid the 'tax torpedo' can lighten their tax loads considerably in retirement, says Morningstar's Christine Benz .
Retirement - plan investing patterns have moved closer to what experts say are ideal asset allocations, but pre- retirees remain more inactive than they should be, says Vanguard's John Ameriks.
A flexible withdrawal strategy, diversification across account types, and targeted Roth conversions can limit the tax drag for retirees , says Morningstar's Christine Benz .
Taxable accounts can play a key role for investors, so long as they are careful about what investments they put in and how they sequence withdrawals.
Investors may consider gifting the money or steering it into tax-managed or tax-efficient investments, says Morningstar's Christine Benz .
The mutual fund and ETF industry is awash with new investment types, but there's a shortage of solution-based funds that address real investors' needs, says Morningstar's Christine Benz .
When using the maneuver, mind the pro-rata rule, don't dally with your nondeductible IRA , and remember the do-over option, if you need it, says Morningstar's Christine Benz .
February 25 - March 1: Tips , strategies, and picks for tax-wise investing.
Investors with IRA and 401(k) accounts still may end up paying foreign income taxes .
Limiting the taxation of Social Security benefits is another reason to aim for tax diversification.
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