Apparently, Christmas was not over on December 25th. Two days later, our feckless Federal Government promised Americans piles of Christmas “goodies.” Oh, and incidentally, also to the Sudanese, Jordanians, Cambodians, Burmese, Egyptians, Pakistanis, Costa Ricans, Salvadorians, Guatemalans, Nicaraguans, Panamanians, Belizeans, and (indirectly) the Russians. We could go on.

As an optimist, I was hoping that the 2020 RMD “sabbatical” might be repeated in 2021, due to ongoing COVID-19 economic difficulties. Our incredible market rebound since March of this year has virtually eliminated any chance of a second year of reprieve, and RMDs remain slated to resume their mandate in January 2021.

The downside is that Roth IRA Conversions are 100% taxable as ordinary income in the year of the Conversion, so the costs and benefits have to be carefully weighed before making a good financial decision. For several years, Congress continued to make changes in the Tax Code favoring Roth conversions. Elimination of income limits for making Roth Conversions increased their availability. Reducing income tax rates in 2018 provided further financial incentives. Lately, however, Congressional changes are clouding the benefits of Roth IRA Conversions.

Lately, the topic of Roth Conversions has come up quite often, due to past changes in the tax structure that more or less encouraged making Roth Conversions. This week’s search of the topic brought up my original magazine article called Roth IRA Conversion Considerations, which was published in 2009. Reading my “old” analysis, I was surprised how negative I was on the process at that time. Until I remembered why.

According to statisticians, the huge Baby Boomer generation is enrolling in Medicare at the rate of about 10,000 per day. Those who are not yet collecting Social Security benefits receive a monthly premium bill for Medicare Part “B.” Some are also charged for voluntary Medicare Part “D” (Prescription Drugs). These people know exactly what they are being charged for their Medicare participation.

As 2020 winds down, Congress is considering revisions to the SECURE Act. The revisions have been dubbed SECURE Act 2.0. A summary of the original SECURE Act (we call it 1.0) and the proposed changes (2.0) include:

Far too many headlines espouse wild claims that defy established economics, crossing over to the murky area of economic theory, practice, and real-world experience. My term for these dubious claims is Bizarro Economics.

What annuities are is easily understood; they are transfer of risk products that supply income streams for people who need them. The income can last for life, or for a guaranteed period of time. For that purpose, they are invaluable to those who need them. Nothing else works like an annuity.

Today, we move ahead to “adulting” your money. This step begins once the groundwork has been laid and accomplished in your investment portfolio.