Tax-Efficient Wealth Management with IRAs

The Yield

In today’s episode of The Yield host Joe DiDomenico, the Director of Retirement Services at YieldStreet is joined by Private Wealth Investor Jim Bennett from Ameriprise Financial Services to discuss the many considerations of tax-efficiency wealth management. Their topics include how to best engage your retirement plan funds and consider your investments with tax efficiency in mind. Jim explains the three buckets of investing that every savvy investor needs to diversify into, the main considerations of short- and long-term investing in stocks or a 401k, IRA, or Roth IRA, and shares other considerations for tax-efficient investing that will maximize your portfolio and put your money to work.

Key Takeaways:

[:50] Introducing Jim Bennett and the topic of tax-efficient wealth management.

[3:37] Beginning principles to consider when looking at overall wealth management, from today’s investments to tomorrow’s retirement.

[5:45] How important is tax efficiency in wealth management?

[7:00] You can achieve the perfect financial portfolio if it includes investments in these three buckets.

[10:07] The benefits of diversifying your wealth into taxable, tax-deferred and tax-free investments.

[12:48] A look at capital appreciation and the main differences between long- and short-term capital gains and other income-producing assets.

[15:34] Understanding the impact of the CARES act and how it can affect your approach to borrowing from your retirement funds and deferring taxes.

[17:16] How to approach your investments and taxes if you are in the top income bracket.

[18:27] The benefits of rolling your 401k plan into an IRA versus leaving it with your previous employer.

[20:36] Other considerations for tax-efficient investing including Roth conversions, after-tax contributions to your 401k, and in-service distributions.

[23:10] Factors that will impact traditional IRA funds and Roth conversions, including your age and tax bracket.

[25:44] Under what circumstances are cash value life insurance policies a good idea?

[27:49] What are the best alternative options to putting money into tax-deferred accounts? Ideas for balancing your entire financial portfolio, including a healthy cash reserve and retirement savings.

[30:35] How to encourage your employer to adopt a 401k plan or 401k Roth option.

[31:25] Guidelines and warnings for contributing to an IRA after maxing out your 401k contributions.

[34:10] What are the first and main questions that a financial planner will ask their clients?

[36:05] How to transfer existing alternative fund investments from a brokerage account into a Roth IRA or 401k.

[36:42] Considerations for self-directed IRAs and advice for every type of investor.

Mentioned in This Episode:

Yieldstreet

Ameriprise