The series includes analysis of what the 2016 presidential election means for retirement planning.
"The long-term solvency of
Register says that for her Generation X clients, she runs a simulation that omits
"It's doubtful this election will significantly reduce or even discontinue
Roth IRA Concerns Linger
It's not just
Currently, people holding traditional IRAs and 401(k)s have the option to convert their savings into a Roth. But
In addition, Donovan says many of his clients fear that the tax-free growth in a Roth account will eventually be taxed if the government comes to need the revenue. "Many of my clients don't want to convert into a Roth for that reason," he observes.
The Role of the Economy in Retirement Planning
For business owners, the estate tax looms large in retirement planning. Their companies—often an illiquid asset—are the "800-pound gorillas of their portfolios," Donovan notes. As such, the prospect of a forced sale of their company to meet the estate tax has long been a concern that affects how those business owners approach retirement.
Steady increases to the estate tax exemption, now at
"Most small-business owners who are on the cusp of retirement and trying to find the most advantageous time to make their exit are closely watching the election as a harbinger of the economy and the capital markets," says
"If there's a wholesale shift from a split government with the
Nonetheless, he remains confident that after the election the stock market should continue to provide a positive return, even if it is less than 10 percent, in 2017. And given that most people have a sizable portion of their retirement savings tied up in the markets, that would be good news for both retirees and would-be retirees alike.
For more on the potential impacts of Election 2016,
About Fifth Third
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