Info in 2005 book “Parlay Your IRA Into a Family Fortune”
I was recently given this book from a family member whom has a substantial IRA. She is seeking advice and wants me to read it.
My question is – is this book’s advice still up to date and fully relevant due to changes in laws since ’05?
Thanks in advance!
Permalink Submitted by Alan Spross on Mon, 2011-04-25 21:45
I have not read this book, but the title strongly suggests that taking advantage of IRA stretching opportunities is the key issue. As such, there has been no major changes in RMDs since 2001 and therefore the book should be current on those related issues.
If Roth conversions are not covered, this topic has recieved considerable attention due to the 2010 rules and the prospect of rising tax rates. Therefore, the consideration of Roth conversion opportunities should be incorporated into the concept of stretching the IRA over multiple generations. Stretching the IRA is basically a function of naming the correct beneficiaries and not taking any more out of the IRA than is required by RMD rules.
With respect to how the IRA is invested, advice that applies to taxable brokerage accounts applies in general to IRA accounts with a bias toward keeping securities that are taxed as ordinary income in the IRA and securities subject to lower cap gain rates outside the IRA where possible within an overall asset allocation scenario.