Connect with us

Government

Roth IRA Conversion Calculator for Investors Highlighted

Roth IRA conversion calculator for investors is a proprietary creation of retirement expert Bob Carlson, who designed the product to help achieve three…

Published

on

Roth IRA conversion calculator for investors is a proprietary creation of retirement expert Bob Carlson, who designed the product to help achieve three key goals.

Carlson’s Roth IRA (individual retirement account) conversion calculator is intended to lock in today’s income tax rates, to reduce required minimum distributions (RMDs) and to remove assets from traditional IRAs that are taxed at the highest rates as ordinary income. His proprietary Roth IRA conversion calculator aims to accomplish those three goals.

For stock investors, the Roth IRA calculator could be instrumental in addressing those common challenges. Click the following link for details about Carlson’s Roth IRA conversion calculator.

Bob Carlson, head of Retirement Watch, created a Roth IRA Conversion Calculator.

Carlson’s Roth IRA Conversation Calculator Serves Stock Investors

Stock investors can use Carlson’s Roth IRA conversion calculator to decide whether now is a good time to shift funds out of traditional IRAs and into Roth IRAs. Carlson’s Roth IRA conversion calculator prompts its users with questions that investors should ask to determine their next steps in possibly making that move.

Frankly, the one-size-fits-all approach for certain investment questions is not the best approach with anything as individualized as IRAs. Plus, some online Roth IRA conversion calculators are not accurate, with roughly two out of every three giving the wrong answer, according to the CPA Journal.

Another risk is that certain online Roth IRA conversion calculators require investors to enter their private financial information. Doing so leaves investors vulnerable to potential security breaches.

How to Use Carlson’s Roth IRA Conversion Calculator

With Carlson’s Roth IRA conversion calculator, the assumptions and variables can be adapted for each individual and adjusted as needed when life’s circumstances change. For example, one investment rate of return can be set for pre-retirement and another for post-retirement.

In the event of potential tax rate changes, the spreadsheet can be revised accordingly. Different tax rates also can be applied for taxable investment accounts and for ordinary income, as needed. Carlson designed the spreadsheet to be user-friendly.

It also is possible to view the other worksheets to see the calculations and processes underlying an investor’s past estimates. Seasoned users can delve into the worksheets to check the calculations or modify them. There are no protected cells in the spreadsheet, so users can modify the file as needed.

Of course, exercise caution. Since there are no protected cells, be careful not to change the formulas in any of the cells accidentally.

To avoid that risk, users can stay in the opening worksheet, change assumptions as needed and view the results. Each separate scenario can be preserved one set of calculations at a time by saving the spreadsheet under a different name. That case-by-case process allows comparisons of different scenarios.

Carlson’s Roth IRA Conversation Calculator Caters to Tax-Conscious Income Investors

Current income tax rates may be as low as many investors will see in their lifetimes, with the Tax Cut and Jobs Act expiring after 2025 or simply because the federal budget deficits and debt are so high and climbing.

In traditional IRAs, capital gains and qualified dividends become ordinary income. All distributions of investment income and gains from traditional IRAs thereby are taxed at one’s highest tax rate.

Long-term capital gains and qualified dividends have favorable tax treatment when earned in a taxable account and are tax-free when distributed from a Roth IRA. Earning income in a traditional IRA converts them into the least favorable type of income, warned Carlson, a pension fund chairman who also leads of the Retirement Watch investment newsletter.

“You create tax problems for your beneficiaries by leaving them a traditional IRA to inherit,” Carlson counseled. “They must distribute the entire IRA within 10 years after inheriting it, and they will be taxed on the distributions just as you have. They really only inherit the after-tax value of a traditional IRA, and the inheritance could push them into a higher tax bracket and increase their overall taxes.”

Want to Reduce Required Minimum Distributions? Try Carlson’s Conversion Calculator

One of the big headaches of reaching retirement age is the federal law about taking required minimum distributions (RMDs). Carlson’s Roth IRA conversion calculator can help.

Ideally, a taxpayer can reduce future required minimum distributions, if circumstances allow. The owner of a Roth IRA doesn’t have lifetime RMDs, but owners of traditional IRAs do.

“RMDs create a lot of problems for some IRA owners,” Carlson told me.

Who Wants to Remove Assets from Traditional IRAs that are Taxed at the Highest Rates

To remove assets from traditional IRAs that tax ordinary income at the highest rates, Carlson’s Roth IRA conversion calculator can determine if it is good idea for each individual. Relying on general rules of thumb could get an investor into trouble, because each person’s situation is different.

Important factors to weigh are the difference between one’s current income tax rate and future income tax rate, the level of an individual’s investment return, how long the income and gains compound in a Roth IRA after a conversion, whether the IRA is needed to maintain a standard of living, etc.

“An IRA conversion calculator lets you change each of these variables and see what the long-term results would be under different scenarios,” Carlson said.

Beware of Leaving Assets in an IRA or 401(k) as Long as Allowed

In the March 2023 issue of Retirement Watch, Carlson wrote to his subscribers about the many dangers of leaving assets in an IRA or 401(k) as long as allowed.

“There are several potential dangers to leaving assets in a traditional IRA or 401(k) for as long as allowed,” cautioned Carlson. “Distributions from a traditional retirement account are taxed as ordinary income subject to your top income tax rate. The IRA might be earning long-term capital gains, qualified dividends and other tax-advantaged income. But it’s all taxed as ordinary income when distributed. It might be better to take the money out of the account early, pay the taxes and invest the after-tax amount to earn tax-advantaged gains and income.”

Another danger is that one’s income tax rate might increase. People generally believe their income tax rate declines once they retire, Carlson commented.

“That was the case when we had a lot of tax brackets, Carlson wrote. “But since the Tax Reform Act of 1986, we’ve had relatively few tax brackets. Many people stay in the same bracket after retiring. In addition, tax rates for each of the brackets might increase. The Tax Cut and Jobs Act of 2017 is set to expire after 2025. If Congress doesn’t act, tax rates will jump back to their pre-2018 levels. Or at some point, Congress might raise taxes to close the budget deficits and pay for the outstanding debt. The big risks for retirees are the Stealth Taxes, which either directly target retirees or affect retirees more than other taxpayers.”

The Stealth Taxes include the inclusion of Social Security benefits in gross income, the Medicare premium surtax (also known as IRMAA), the 3.8% surtax on net investment income and others.

The use of Carlson’s Roth IRA conversion calculator as cost-effective tool gained praise from Todd Phillips, president of Estate Planning Specialists in Gilbert, Arizona.

“I have clients who’ve paid north of $1,000 for IRA conversion calculators and found them very confusing and difficult,” Phillips said. “What I’ve found is that Bob Carlson’s IRA conversion calculator is simple to use, and quite powerful.”

Todd Phillips.

Conversation of Traditional IRAs into Roth IRAs Gains Popularity

Conversion of all or part of a traditional IRA to a Roth IRA is gaining popularity. Investors pay a tax to convert the IRA by including the converted amount in gross income. But a conversion eliminates future RMDs for the owner and, after a five-year waiting period, distributions of income and gains are tax free.

“Distributions to beneficiaries also are tax free, but most beneficiaries will have to distribute the entire Roth IRA within 10 years after inheriting it,” Carlson wrote in the April 2023 issue of Retirement Watch. “I’ve discussed the pros and cons of IRA conversions and the best times to do conversions in my books and past issues, most recently in the December 2022 and September 2022 issues. You can convert any amount you want, and there’s no limit on the number of conversions you can do. Some people convert just enough each year to avoid jumping into the next higher tax bracket.”

For investors who like the thought of locking in today’s income tax rates, reducing required minimum distributions (RMDs) and removing assets from traditional IRAs that are taxed as ordinary income at the highest rates, Carlson’s conversion calculator could be well worth using.

Paul Dykewicz, www.pauldykewicz.com, is an award-winning journalist who has written for Dow Jones, the Wall Street JournalInvestor’s Business DailyUSA Today, the Journal of Commerce, Crain Communications, Seeking Alpha, Guru Focus and other publications and websites. Follow Paul on Twitter @PaulDykewicz. He is the editor and a columnist at StockInvestor.com and DividendInvestor.com. He also serves as editorial director of Eagle Financial Publications in Washington, D.C. In that role, he edits monthly investment newsletters, time-sensitive trading alerts, free weekly e-letters and other reports. Previously, Paul served as business editor and a columnist at Baltimore’s Daily Record newspaper and as a reporter at the Baltimore Business Journal. Plus, Paul is the author of an inspirational book, Holy Smokes! Golden Guidance from Notre Dame’s Championship Chaplain,” with a foreword by former national championship-winning football coach Lou Holtz. The uplifting book is endorsed by Joe Montana, Joe Theismann, Ara Parseghian, “Rocket” Ismail, Reggie Brooks, Dick Vitale and many other sports figures. To buy signed and specially dedicated copies, call 202-677-4457.

The post Roth IRA Conversion Calculator for Investors Highlighted appeared first on Stock Investor.

Read More

Continue Reading

Government

Are Voters Recoiling Against Disorder?

Are Voters Recoiling Against Disorder?

Authored by Michael Barone via The Epoch Times (emphasis ours),

The headlines coming out of the Super…

Published

on

Are Voters Recoiling Against Disorder?

Authored by Michael Barone via The Epoch Times (emphasis ours),

The headlines coming out of the Super Tuesday primaries have got it right. Barring cataclysmic changes, Donald Trump and Joe Biden will be the Republican and Democratic nominees for president in 2024.

(Left) President Joe Biden delivers remarks on canceling student debt at Culver City Julian Dixon Library in Culver City, Calif., on Feb. 21, 2024. (Right) Republican presidential candidate and former U.S. President Donald Trump stands on stage during a campaign event at Big League Dreams Las Vegas in Las Vegas, Nev., on Jan. 27, 2024. (Mario Tama/Getty Images; David Becker/Getty Images)

With Nikki Haley’s withdrawal, there will be no more significantly contested primaries or caucuses—the earliest both parties’ races have been over since something like the current primary-dominated system was put in place in 1972.

The primary results have spotlighted some of both nominees’ weaknesses.

Donald Trump lost high-income, high-educated constituencies, including the entire metro area—aka the Swamp. Many but by no means all Haley votes there were cast by Biden Democrats. Mr. Trump can’t afford to lose too many of the others in target states like Pennsylvania and Michigan.

Majorities and large minorities of voters in overwhelmingly Latino counties in Texas’s Rio Grande Valley and some in Houston voted against Joe Biden, and even more against Senate nominee Rep. Colin Allred (D-Texas).

Returns from Hispanic precincts in New Hampshire and Massachusetts show the same thing. Mr. Biden can’t afford to lose too many Latino votes in target states like Arizona and Georgia.

When Mr. Trump rode down that escalator in 2015, commentators assumed he’d repel Latinos. Instead, Latino voters nationally, and especially the closest eyewitnesses of Biden’s open-border policy, have been trending heavily Republican.

High-income liberal Democrats may sport lawn signs proclaiming, “In this house, we believe ... no human is illegal.” The logical consequence of that belief is an open border. But modest-income folks in border counties know that flows of illegal immigrants result in disorder, disease, and crime.

There is plenty of impatience with increased disorder in election returns below the presidential level. Consider Los Angeles County, America’s largest county, with nearly 10 million people, more people than 40 of the 50 states. It voted 71 percent for Mr. Biden in 2020.

Current returns show county District Attorney George Gascon winning only 21 percent of the vote in the nonpartisan primary. He’ll apparently face Republican Nathan Hochman, a critic of his liberal policies, in November.

Gascon, elected after the May 2020 death of counterfeit-passing suspect George Floyd in Minneapolis, is one of many county prosecutors supported by billionaire George Soros. His policies include not charging juveniles as adults, not seeking higher penalties for gang membership or use of firearms, and bringing fewer misdemeanor cases.

The predictable result has been increased car thefts, burglaries, and personal robberies. Some 120 assistant district attorneys have left the office, and there’s a backlog of 10,000 unprosecuted cases.

More than a dozen other Soros-backed and similarly liberal prosecutors have faced strong opposition or have left office.

St. Louis prosecutor Kim Gardner resigned last May amid lawsuits seeking her removal, Milwaukee’s John Chisholm retired in January, and Baltimore’s Marilyn Mosby was defeated in July 2022 and convicted of perjury in September 2023. Last November, Loudoun County, Virginia, voters (62 percent Biden) ousted liberal Buta Biberaj, who declined to prosecute a transgender student for assault, and in June 2022 voters in San Francisco (85 percent Biden) recalled famed radical Chesa Boudin.

Similarly, this Tuesday, voters in San Francisco passed ballot measures strengthening police powers and requiring treatment of drug-addicted welfare recipients.

In retrospect, it appears the Floyd video, appearing after three months of COVID-19 confinement, sparked a frenzied, even crazed reaction, especially among the highly educated and articulate. One fatal incident was seen as proof that America’s “systemic racism” was worse than ever and that police forces should be defunded and perhaps abolished.

2020 was “the year America went crazy,” I wrote in January 2021, a year in which police funding was actually cut by Democrats in New York, Los Angeles, San Francisco, Seattle, and Denver. A year in which young New York Times (NYT) staffers claimed they were endangered by the publication of Sen. Tom Cotton’s (R-Ark.) opinion article advocating calling in military forces if necessary to stop rioting, as had been done in Detroit in 1967 and Los Angeles in 1992. A craven NYT publisher even fired the editorial page editor for running the article.

Evidence of visible and tangible discontent with increasing violence and its consequences—barren and locked shelves in Manhattan chain drugstores, skyrocketing carjackings in Washington, D.C.—is as unmistakable in polls and election results as it is in daily life in large metropolitan areas. Maybe 2024 will turn out to be the year even liberal America stopped acting crazy.

Chaos and disorder work against incumbents, as they did in 1968 when Democrats saw their party’s popular vote fall from 61 percent to 43 percent.

Views expressed in this article are opinions of the author and do not necessarily reflect the views of The Epoch Times or ZeroHedge.

Tyler Durden Sat, 03/09/2024 - 23:20

Read More

Continue Reading

Government

Veterans Affairs Kept COVID-19 Vaccine Mandate In Place Without Evidence

Veterans Affairs Kept COVID-19 Vaccine Mandate In Place Without Evidence

Authored by Zachary Stieber via The Epoch Times (emphasis ours),

The…

Published

on

Veterans Affairs Kept COVID-19 Vaccine Mandate In Place Without Evidence

Authored by Zachary Stieber via The Epoch Times (emphasis ours),

The U.S. Department of Veterans Affairs (VA) reviewed no data when deciding in 2023 to keep its COVID-19 vaccine mandate in place.

Doses of a COVID-19 vaccine in Washington in a file image. (Jacquelyn Martin/Pool/AFP via Getty Images)

VA Secretary Denis McDonough said on May 1, 2023, that the end of many other federal mandates “will not impact current policies at the Department of Veterans Affairs.”

He said the mandate was remaining for VA health care personnel “to ensure the safety of veterans and our colleagues.”

Mr. McDonough did not cite any studies or other data. A VA spokesperson declined to provide any data that was reviewed when deciding not to rescind the mandate. The Epoch Times submitted a Freedom of Information Act for “all documents outlining which data was relied upon when establishing the mandate when deciding to keep the mandate in place.”

The agency searched for such data and did not find any.

The VA does not even attempt to justify its policies with science, because it can’t,” Leslie Manookian, president and founder of the Health Freedom Defense Fund, told The Epoch Times.

“The VA just trusts that the process and cost of challenging its unfounded policies is so onerous, most people are dissuaded from even trying,” she added.

The VA’s mandate remains in place to this day.

The VA’s website claims that vaccines “help protect you from getting severe illness” and “offer good protection against most COVID-19 variants,” pointing in part to observational data from the U.S. Centers for Disease Control and Prevention (CDC) that estimate the vaccines provide poor protection against symptomatic infection and transient shielding against hospitalization.

There have also been increasing concerns among outside scientists about confirmed side effects like heart inflammation—the VA hid a safety signal it detected for the inflammation—and possible side effects such as tinnitus, which shift the benefit-risk calculus.

President Joe Biden imposed a slate of COVID-19 vaccine mandates in 2021. The VA was the first federal agency to implement a mandate.

President Biden rescinded the mandates in May 2023, citing a drop in COVID-19 cases and hospitalizations. His administration maintains the choice to require vaccines was the right one and saved lives.

“Our administration’s vaccination requirements helped ensure the safety of workers in critical workforces including those in the healthcare and education sectors, protecting themselves and the populations they serve, and strengthening their ability to provide services without disruptions to operations,” the White House said.

Some experts said requiring vaccination meant many younger people were forced to get a vaccine despite the risks potentially outweighing the benefits, leaving fewer doses for older adults.

By mandating the vaccines to younger people and those with natural immunity from having had COVID, older people in the U.S. and other countries did not have access to them, and many people might have died because of that,” Martin Kulldorff, a professor of medicine on leave from Harvard Medical School, told The Epoch Times previously.

The VA was one of just a handful of agencies to keep its mandate in place following the removal of many federal mandates.

“At this time, the vaccine requirement will remain in effect for VA health care personnel, including VA psychologists, pharmacists, social workers, nursing assistants, physical therapists, respiratory therapists, peer specialists, medical support assistants, engineers, housekeepers, and other clinical, administrative, and infrastructure support employees,” Mr. McDonough wrote to VA employees at the time.

This also includes VA volunteers and contractors. Effectively, this means that any Veterans Health Administration (VHA) employee, volunteer, or contractor who works in VHA facilities, visits VHA facilities, or provides direct care to those we serve will still be subject to the vaccine requirement at this time,” he said. “We continue to monitor and discuss this requirement, and we will provide more information about the vaccination requirements for VA health care employees soon. As always, we will process requests for vaccination exceptions in accordance with applicable laws, regulations, and policies.”

The version of the shots cleared in the fall of 2022, and available through the fall of 2023, did not have any clinical trial data supporting them.

A new version was approved in the fall of 2023 because there were indications that the shots not only offered temporary protection but also that the level of protection was lower than what was observed during earlier stages of the pandemic.

Ms. Manookian, whose group has challenged several of the federal mandates, said that the mandate “illustrates the dangers of the administrative state and how these federal agencies have become a law unto themselves.”

Tyler Durden Sat, 03/09/2024 - 22:10

Read More

Continue Reading

Government

Low Iron Levels In Blood Could Trigger Long COVID: Study

Low Iron Levels In Blood Could Trigger Long COVID: Study

Authored by Amie Dahnke via The Epoch Times (emphasis ours),

People with inadequate…

Published

on

Low Iron Levels In Blood Could Trigger Long COVID: Study

Authored by Amie Dahnke via The Epoch Times (emphasis ours),

People with inadequate iron levels in their blood due to a COVID-19 infection could be at greater risk of long COVID.

(Shutterstock)

A new study indicates that problems with iron levels in the bloodstream likely trigger chronic inflammation and other conditions associated with the post-COVID phenomenon. The findings, published on March 1 in Nature Immunology, could offer new ways to treat or prevent the condition.

Long COVID Patients Have Low Iron Levels

Researchers at the University of Cambridge pinpointed low iron as a potential link to long-COVID symptoms thanks to a study they initiated shortly after the start of the pandemic. They recruited people who tested positive for the virus to provide blood samples for analysis over a year, which allowed the researchers to look for post-infection changes in the blood. The researchers looked at 214 samples and found that 45 percent of patients reported symptoms of long COVID that lasted between three and 10 months.

In analyzing the blood samples, the research team noticed that people experiencing long COVID had low iron levels, contributing to anemia and low red blood cell production, just two weeks after they were diagnosed with COVID-19. This was true for patients regardless of age, sex, or the initial severity of their infection.

According to one of the study co-authors, the removal of iron from the bloodstream is a natural process and defense mechanism of the body.

But it can jeopardize a person’s recovery.

When the body has an infection, it responds by removing iron from the bloodstream. This protects us from potentially lethal bacteria that capture the iron in the bloodstream and grow rapidly. It’s an evolutionary response that redistributes iron in the body, and the blood plasma becomes an iron desert,” University of Oxford professor Hal Drakesmith said in a press release. “However, if this goes on for a long time, there is less iron for red blood cells, so oxygen is transported less efficiently affecting metabolism and energy production, and for white blood cells, which need iron to work properly. The protective mechanism ends up becoming a problem.”

The research team believes that consistently low iron levels could explain why individuals with long COVID continue to experience fatigue and difficulty exercising. As such, the researchers suggested iron supplementation to help regulate and prevent the often debilitating symptoms associated with long COVID.

It isn’t necessarily the case that individuals don’t have enough iron in their body, it’s just that it’s trapped in the wrong place,” Aimee Hanson, a postdoctoral researcher at the University of Cambridge who worked on the study, said in the press release. “What we need is a way to remobilize the iron and pull it back into the bloodstream, where it becomes more useful to the red blood cells.”

The research team pointed out that iron supplementation isn’t always straightforward. Achieving the right level of iron varies from person to person. Too much iron can cause stomach issues, ranging from constipation, nausea, and abdominal pain to gastritis and gastric lesions.

1 in 5 Still Affected by Long COVID

COVID-19 has affected nearly 40 percent of Americans, with one in five of those still suffering from symptoms of long COVID, according to the U.S. Centers for Disease Control and Prevention (CDC). Long COVID is marked by health issues that continue at least four weeks after an individual was initially diagnosed with COVID-19. Symptoms can last for days, weeks, months, or years and may include fatigue, cough or chest pain, headache, brain fog, depression or anxiety, digestive issues, and joint or muscle pain.

Tyler Durden Sat, 03/09/2024 - 12:50

Read More

Continue Reading

Trending