New rules liquidating retirement

The dividend strategy was popular until eventually retirees realized that owning stocks and focusing on the dividends, while ignoring the capital gains, just leads to large retirement account balances that could have been spent along the way.

As a result, by the 1990s, retirement portfolio strategies shifted again, to consider a more holistic “total return” approach that incorporates interest, dividends, capital gains as well.

But it also strikes me that when you are someone, like they are, who interprets everything in the world from a single, unshakeable, ideological standpoint, you make the erroneous assumption that everyone else does too. Journalists, unlike people who rant at clouds for a living, are constantly required to look into things that perhaps challenge our world view.

The research on the optimal strategy to generate retirement income from a portfolio has been evolving for decades.

There are other limited situations when the 10% early withdrawal penalty may be waived, including but not limited to, permanent disability and medical expenses greater than 7.5% of your adjusted gross income.

The financial calculator results shown represent analysis and estimates based on the assumptions you have provided, but they do not reflect all relevant elements of your personal situation.

During the same period, the Dow Jones Industrial Average returned an average of 5.02% annually. Past performance is no guarantee of future results. *Withdrawals from your qualified plan are taxed as ordinary income and may be subject to a 10% Federal tax penalty if taken prior to age 59 1/2.

If you left your employer in or after the year in which you turned 55, you may not be subject to the 10% early withdrawal penalty.

For purposes of the Section 752 rules, nonrecourse liabilities are those liabilities of the partnership for which no partner bears the economic risk of loss.Recourse liabilities are those that any partner bears the economic risk of loss with respect to the liability.This economic risk of loss is present only if any partner or any person related to a partner would be obligated to make a payment to the creditor or a partnership contribution upon a constructive liquidation of the partnership under certain hypothetical circumstances.The harsh consequences of inflation on bond portfolios led to a dramatic shift by the 1980s, as retirees increasingly purchased high-quality dividend-paying stocks instead, counting on the ability of businesses to raise prices and keep pace with inflation…which also helps their dividends to rise and keep pace with inflation as well.