Index Funds vs Professional Money Managers… and Required Minimum Distributions the year you turn 70 1/2.


The Wall Street game is rigged against the everyday person. That’s what these experts say over and over again.

People like Warren Buffett, John Bogle, and many of the best of the best money managers.

Most also say that index funds are the way to go.

  •   Much lower fees

( The average actively managed fund has total fees of 3.1% per year on average when you include the hidden fees VS. index funds which have fees well below 1% usually. According to Forbes.)

  •   96% of “professionally managed funds” don’t beat the simple stock market

So you pay all these fees for under performance. Why?

Because Wall Street is a great marketing machine, seem to be the answer.

So, for that portion of your nest egg that you want keep at risk for the higher growth potential, these really smart guys make a good case for low fee index funds.

Read Article: Passive money management strategy actively crushing stock pickers

Next up, I thank a long term client Mike, for sending me this article from Fidelity.

If you come across any interesting articles yourself, please forward them to me.

Article: Think twice about delaying your first RMD.

  • “Think twice about delaying your first MRD. It could boost the taxes you’ll pay on the money you take out”
  •  “If you delay taking your 2014 distribution until 2015, you will end up with two MRD’s in that year…potential pushing you into a higher tax bracket in 2015.”
  •  “It could also affect the rate you pay for Medicare Part B…”

That’s because if your income goes up to a certain level your Medicare Part B payments increase.

If you make $85,000 or less your Medicare Part B is $104.90 per month.

If you make between $85,000 and $107,000 you pay $146.90 per month.

Hope you found these helpful. If you have any questions just let me know.

DISCLAIMER: I am not securities licensed, or a tax professional, or a lawyer. This is not to be construed in any way to be investment advice, tax advice, or legal advice. Please consult the appropriate professionals before you do anything. This is for educational purposes only.


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