Home|Who We Are|Our Services|Resources|News Center|Contact Us|Client Access
More Articles  Printer Friendly Version

 

Repeated Tax Reforms Raise The Risk Of Doing Nothing

The U.S. Tax Code has been reformed more and more over the past few decades. From 1940 to 1979, 24 major tax laws were enacted, compared with the 40 years from 1980 to 2019, when 63 major tax revisions were enacted.

The Tax Cuts And Jobs Act was signed into law in December 2017, and now the SECURE Act, which was signed into law in December 2019, has significantly changed 2020 rules affecting IRAs and estate planning. With the $1 trillion current budget deficit and soaring U.S. Treasury long-term debt, another new tax law in 2021 is very possible.

The SECURE Act has made tax planning more important to retirement income decisions, IRA beneficiary choices, lifetime annuity income, lifetime wealth transfers, and estate planning as well as investment opportunities open to affluent and ultra-high net-worth individuals.

Strategic tax planning is boring and detailed, and the vast majority of people are too busy with other priorities, creating inertia that stops most people from learning what to do. Consequently, most people often do nothing.

Despite the effort to simplify tax laws since the 1980s, the repeated revisions have made the tax code more idiosyncratic. Tax planning is much more important in wealth management now and the cost to individuals of doing nothing about tax planning has risen, upping the value of strategic tax advice about retirement income planning from a professional.


This article was written by a veteran financial journalist. While these are sources we believe to be reliable, the information is not intended to be used as financial or tax advice without consulting a professional about your personal situation. Tax laws are subject to change. Indices are unmanaged and not available for direct investment. Investments with higher return potential carry greater risk for loss. No one can predict the future of the stock market or any investment, and past performance is never a guarantee of your future results.


Email this article to a friend


Index
Coronavirus Tax-Breaks For Individuals; Details Emerge From IRS
Coronavirus Tax Planning Alert
Amid The Awful News, Some Good Signs
How Negative Interest Rates In Germany Limit Pandemic Economic Damage To U.S.
The Current Economy And Outlook For May And June
To Fight The Financial Crisis Spawned By The Coronavirus, The Fed Is Utilizing Powerful New Tools
Financial Planning For The Long Run Amid The COVID-19 Epidemic
Business Owners: Paycheck Protection Program Update
Business Owner Alert: Paycheck Protection Program
Amid The Coronavirus Crisis, Nine Tax And Investment Tips
How Much Lower Can Stocks Go?
Coronavirus Fear And Investing For The Long Run
Harsh Truth: Covid-19 Correction Is A Tax Planning Opportunity
Financial Fears Over Coronavirus
Don't Be Deceived By New Tax Law's Name
China Poses A Hidden Risk For Many 401(k)s

This article was written by a professional financial journalist for Responsive Financial Group, Inc and is not intended as legal or investment advice.

©2020 Advisor Products Inc. All Rights Reserved.
© 2020 Responsive Financial Group, Inc | 204 W Wing St, Arlington Heights, IL 60005 | All rights reserved
P: 847-670-8000 | F: 847-590-9806 ben@rfgweb.com |
Disclosure | Contact Us
Responsive Financial Group, Inc. is a fee-only registered investment advisory firm in the State of Illinois. Information on this site is compiled from multiple locations and is believed to be accurate. Incorrect information may come from these outside sources. Should you notice anything please notify us immediately. Thank you!