Because Congress has an insatiable appetite to spend (even when they have to borrow to do it), it seems it’s always looking for new ways to take more of your money. The latest example is the Setting Up Every Community for Retirement Enhancement (SECURE) Act. Don’t let the title fool you—your retirement is not likely to be “enhanced.” In fact, the SECURE Act is nothing more than Congress’s attempt to get its hands on more of your IRA or 401(k) coupled with a few minor positive changes. If this Act becomes law (it passed the House 417-3), ultimately more of your retirement accounts will be paid to the IRS. Here is the major change that will hit your wallet: Elimination of the stretch IRA.
A durable power of attorney - where an agent is appointed to handle the financial affairs for a principal - has been used for decades. Until recently, it was unusual for these documents to ever be challenged or exploited. Unfortunately, with the rise of elder abuse, banks and other financial institutions have started rejecting valid durable powers of attorney for fear of potential liability. Without the ability to transact business for the principal, a durable power of attorney is effectively worthless. While there is no guarantee that a financial institution will honor a durable power of attorney, here are some steps to take to help avoid such an issue: 1. Keep it current. The most common r
