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Two Articles that Make You Go... "Hmmm"...

Writer: David H. Kinder, RFC®, ChFC®, CLU®David H. Kinder, RFC®, ChFC®, CLU®

Updated: Jan 18, 2023


I don't know if you have ever heard of the "Retirement Red Zone" (this is the 5 years before and 5 years after you retire and taking withdrawals from a down portfolio)... but Dawn Wells of 'Gilligan's Island' has had recent financial troubles.

Here's some quotes from the article:

"In the last nine days, the GoFundMe campaign has raised more than $50,000 in donations from more than 1,400 people. “After 2008, like many of us, Dawn suffered through the banking crash and lost everything including her life savings,” Kirkpatrick said."

"The actress, 79, confirmed the authenticity of the GoFundMe campaign on her official Facebook FB page on Wednesday."

 

If Dawn Wells is 79 today, she was 69 back in 2008. Assuming that she retired in 65, she's finally "running out of money"... and from what I can gather, THROUGH NO FAULT OF HER OWN (based on the article citing the 2008 crash). (Although I don't know about the IRS penalties cited in the article.)

If you haven't seen my 45 minute video on Risk Tolerance and Recapturing Investment Losses, I invite you to do so. Taking action on this could save YOU from being in a similar situation.


 

This article is on President Trump's proposals on various Retirement and College Savings plans. Here's a few points on this article:

Noteworthy proposals affecting savings include:

  • Removing the age limit on IRA contributions. Currently, account owners cannot make additional contributions beginning in the year they turn 70½. Roth IRAs, by contrast, do not have a contribution age limit.

  • Allowing families to access their retirement accounts, penalty-free, for costs related to a new child, whether by birth or adoption.

  • Creating a new Universal Savings Account that would allow savers to set aside tax-advantaged money for basically anything. These accounts, which Congress has explored in the past, would come without restrictions on when (or why) the owners can make use of it.

  • Allowing 529 education accounts to be used to cover the cost of home-schooling, for fees related to a trade apprenticeship and to help pay off student debt.

Now I'm not 'against' these proposals... but "Isn't it interesting how the Government regulates all of these plans to tell you how you can spend your money?"

After all, YOU saved it, right? Do you WANT the Government and the Internal Revenue Service to tell you how much you're allowed to save, what you can use your money for, and asking them for permission?? How much regulation do YOU want on your life and your financial affairs?

Note: Point #3 sounds an awful lot like a properly funded life insurance policy! (Although I know that not everyone can qualify for life insurance, but it's still awfully similar - just like how Roth IRA accounts are also quite similar - other than annual contribution limits). Just some articles that make you go "hmmm"...


 
 

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