Front Page|Our Services|Our Team|Client Center|Financial News|Events|Contact Us

Financial Briefs

More Articles  Printer Friendly Version


Retirement Planning Alert For Current Financial Economic Circumstances

4943 1

Here’s a retirement planning alert built for current financial economic circumstances—an explanation of the current situation followed by a timely and high-value retirement investing tip.

The manufacturing purchasing managers index ticked lower in July but it’s not too far off from its all-time record-high, while the service sector purchasing manager index shot higher, breaking a new record high. The service sector accounts for 89% of U.S. economic growth.

Meanwhile, business owner optimism ticked lower in July and the S&P 500 hit a new record high for the 48th time in 2021.

The Optimism Index, a monthly survey of business owners, decreased by 2.8 points in July to 99.7, reversing nearly the entire 2.9-point gain in June’s report. Notably, 49% of business owners reported job openings that could not be filled, an increase of 3 points from June and a 48-year record high.

4943 5

Since the March 23rd, 2020, Covid bear market low, the Standard & Poor’s 500 stock index is up more than 60%! Inflation uncertainty and the Covid variant could cause a sharp drop in stock prices anytime, but a recession is not threatening and the economy is growing fast.

Financial conditions, as they are currently, make it wise to consider whether the next sharp drop in stock prices would present a strategic tax opportunity to convert traditional IRA or 401(k) assets invested in stocks into tax-free Roth IRAs.

4943 7

With tax rates expected to be going up, and the stock market breaking records for 11 months, retirement savers should proactively investigate converting to a Roth IRA in 2021.

A Roth IRA conversion gives you a tax-free income stream for life and, when you die, your spouse gets tax free income for life, too. Your children or other non-spouse beneficiaries get tax free income for 10 years and then a tax-free lump sum inheritance after 10 years. – .

This is an important tip that we cannot emphasize enough but it requires action by the end of 2021.

Nothing contained herein is to be considered a solicitation, research material, an investment recommendation, or advice of any kind, and it is subject to change without notice. Any investments or strategies referenced herein do not take into account the investment objectives, financial situation or particular needs of any specific person. Product suitability must be independently determined for each individual investor. Tax advice always depends on your particular personal situation and preferences. You should consult the appropriate financial professional regarding your specific circumstances. The material represents an assessment of financial, economic and tax law at a specific point in time and is not intended to be a forecast of future events or a guarantee of future results. Forward-looking statements are subject to certain risks and uncertainties. Actual results, performance, or achievements may differ materially from those expressed or implied. Information is based on data gathered from what we believe are reliable sources. It is not guaranteed as to accuracy, does not purport to be complete, and is not intended to be used as a primary basis for investment decisions. This article was written by a professional financial journalist for Advisor Products and is not intended as legal or investment advice.

Email this article to a friend

A Crucial Investment Lesson From A Difficult 20 Years
Is The Expected Income Tax Hike Going To Affect You?
2021 Year End Tax Planning: Higher Stakes And More Confusing Than Ever
Making A Life-Changing Financial Difference To A Spouse And Needy Loved Ones
In An Era Of Financial Windfalls, Avoid This Mistake
As S&P 500 Closes At All-Time High Again, It’s A Great Time For A Crisis Plan
Dealing With Financial Fear
Confounding Valuations Of The Largest Five Companies In S&P 500
Stocks Averaged A 7.35% Premium Annually Over T-Bills For Past Two Decades
The Persistent Leadership Of U.S. Stocks
A Financial Planning Accident Waiting To Happen
Tax Alert For High-Income And High Net Worth Individuals
Five Years Ago In Financial Economic History
Here's What's Happening Now In Wealth Management
Making A Financial Transition? Answer These Five Questions

This article was written by a professional financial journalist for Vantage Point Financial Services, LLC and is not intended as legal or investment advice.

©2021 Advisor Products Inc. All Rights Reserved.
© 2021 Vantage Point Financial Services, LLC | 329 Regency Ridge Drive, , Centerville, OH 45459 | All rights reserved
P: 937-432-1111 | F: 937-432-1110 |
Contact Us

Securities offered through First Allied Securities, Inc., A Registered Broker/Dealer, Member: FINRA / SIPC.
Advisory services are offered through First Allied Advisory Services, Inc., A Registered Investment Adviser.

This site is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any security which may be referenced herein. We suggest that you consult with your financial or tax advisor with regard to your individual situation. This site has been published in the United States for resident of the United States. Persons mentioned in this site may only transact business in states in which they have been properly registered or are exempt from registration.

Privacy Policy | ADV