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May 23, 2022

If you’re 72 or older, the government makes you take Required Minimum Distributions every year.  RMDs consume a percentage of your retirement assets.  But thanks to new data that shows Americans living longer, the IRS has revised the RMD tables so that they’re at a lesser percentage.  That means fewer taxes to pay.  That seems like good news, right?  Does this change your thinking about the IRA to Roth conversion? 

An annuity is simply a contract between you and an insurance company.  In exchange for a lump sum, it promises periodic payments for a certain period.  Annuities and 401(k)s both can provide long-term savings, tax-deferred growth and probate-free way of passing assets to beneficiaries.  But an article on the NASDAQ market site makes the argument that an annuity is better than a 401(k), especially later in life.  With all the negative press on annuities, is there a change of heart happening here … even on Wall Street?