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Tax treatment of retirement account scenarios.
I’m a frequent reader of the XYPN Network’s Facebook page, and the questions posited by the independent advisors can get soooo into the weeds sometimes. I shudder to think how I’d react and what I’d do if I were the advisor.
While rolling over a 401(k) to an IRA is easy peasy and transferring one HSA to another is simple, things quickly get really complex when there are different account types.
Also, the contribution limits can be confusing when someone has a 401(k), 457(b), 403(b), 401(a), Solo 401(k) when having a few jobs. I had this situation last year. Being a super-saver, I had to be very careful I didn’t go over the various contribution limits!
Decumulation in general; and within that, minimizing taxation.
Second place goes to various portfolio strategies, both asset allocation and asset location. KISS works ok – BH 3 funds. But backtesting tells me my robo is beating the 3 fund portfolio and doing TLH along the way, too. So as we move into decumulation and reading up on various safe/variable withdrawal strategies, I find the whole AA theory a bit challenging. Maybe I’m overthinking it (likely).
I was going to mention decumulation as well. Thorniest financial problem in existence to my knowledge.
If your portfolio has between 30 and 70% equities, balanced mostly by bonds, maybe a few percent in misc, I think your AA will likely serve you well as long as you stick to your plan. I had all sorts of crazy combinations of equity funds in my younger days, but it turned out fine. 7 years ago or so I finally got a clue on AA, built a portfolio approach I like, and the result has been fine. I can stay with it because I understand it’s strengths and weaknesses vs BH 3 fund (which is fine too.) I expect I’ll use it the rest of my life (with possible adjustments when I transition to decumulation.)
Money – money supply, international exchange rates, fiat currency, … The math isn’t hard, but it’s not always intuitive.
Insurance products. When clients come to me with complex annuities and other type of insurance products, it can take hours to try and unravel helpful information and even more time/strategy to try and get them out of the product, if at all.
The Net Unrealized Appreciation strategy is a contender. But the DW and I should have some time to figure it out.