Let me tell you about Alvan Bobrow. His tale—and specifically his lawsuit—are important for every investor to understand. That’s because the legal loophole he sought to exploit is now a pothole for everyone else. The first thing to know about Bobrow is that he is a tax attorney, and back in 2008, [...]
Four overlooked benefits of Roth conversions
Congress is back at it, aiming to change the tax laws again. Just since 2017, there has been the Tax Cuts and Jobs Act (TCJA), the SECURE Act and the CARES Act, each of which contained tax provisions, some very significant. And as we speak, Congress and the White House are horse trading on another [...]
Extreme Portfolio Makeover, Part IV
A few weeks back, I described how to conduct an “extreme portfolio makeover”—to scour your investments for holdings which no longer fit your financial plan. There are at least seven ways in which an investment might end up in the “doesn’t fit” category. But at a high level, they fall into one of two [...]
Extreme Portfolio Makeover, Part II
By now, it’s no secret that the costs charged by investment funds are critically important. In fact, when choosing among funds in the same category, they’re the single most important differentiator. In the words of Morningstar, the investment research firm, “If there's anything in the whole world of [...]
Five steps to sidestep the SECURE Act
Recently—as if on cue—Ebenezer Scrooge showed up in Washington. The result wasn’t pretty: A bill known as the SECURE Act, a favorite of the insurance industry, had been stuck in Congress all year. But suddenly, on December 20th, it got tacked onto another bill and signed into law. As far as I can [...]
