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Understanding This Critical Roth Rule

Darryl Rosen • Jan 15, 2024

Here’s a rule that messes with people’s heads. It’s about Roth accounts and it’s called the 5 year rule.

When it comes to planning for a secure and comfortable retirement, understanding the intricacies of retirement accounts and investment rules is crucial. One such nuance that often confuses individuals is the five-year rule associated with Roth contributions. Essentially, this rule determines the tax and penalty implications of withdrawing earnings from a Roth account within a certain time frame.

It's important to note that this rule specifically applies to the earnings portion of the account, not the initial contributions. The clock for the five-year rule starts ticking from the moment the first contribution is made to the Roth account, and it is essential to keep track of this timeline if you anticipate needing to access the earnings in the future.

So, Roth accounts are great but this tidbit can be confusing. While the rule may initially seem complex, understanding its implications can help you make informed decisions about your retirement savings.

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When a Spouse Dies

By Darryl Rosen • 19 Mar, 2024

When your spouse dies. 63% of the time when a spouse dies, it’s the man. According to the NIH, when this happens, on average the widow (or the wife) lives another 12 years. 3 things happen in short order when someone dies. Income decreases by as much as 50% with the possible loss of social security and pension. Taxes increase the following year because single tax rates are more punishing than married rates. If the deceased had an IRA or 401K, the widow still has to take Required min distributions but now at higher tax rates. Expenses go down but not by as much as you think. Only 20% on average per the Government Accountability Office. Think about it this way. Variable costs like medical and food, etc. will decrease but what about fixed expenses. My FIL passed in December. Jill’s Mom still has the house to contend with. All of this is to say please build these types of scenarios into your plans. If you have questions, feel free schedule some time to speak with me.

Annuities Simplified: What you need to know before buying!

By Darryl Rosen • 07 Mar, 2024

Are you looking for a reliable source of income in retirement? Annuities may be the answer! Watch this video to learn how annuities can provide guaranteed income and simplify your retirement plan. Say goodbye to financial worry and hello to a comfortable retirement!

Overcoming Financial Blunders

By Darryl Rosen • 02 Mar, 2024

Are past financial slip-ups haunting your investment decisions? You're not alone. In this insightful video, @erinkennedytv and Darryl delve into expert advice on navigating investment and financial choices after making mistakes. From acknowledging past blunders to crafting a brighter financial future, discover actionable strategies to thrive in your retirement journey.

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Investment advisory services offered through Brookstone Capital Management, LLC (BCM), a registered investment advisor. BCM and Rose Advisory Group are independent of each other. Insurance products and services are not offered through BCM but are offered and sold through individually licensed and appointed agents. The content of this website is provided for informational purposes only and is not a solicitation or recommendation of any investment strategy. Investments and/or investment strategies involve risk including the possible loss of principal. There is no assurance that any investment strategy will achieve its objectives. Fiduciary duty extends solely to investment advisory advice and does not extend to other activities such as insurance or broker dealer services. Advisory clients are charged a monthly fee for assets under management while insurance products pay a commission, which may result in a conflict of interest regarding compensation. Any comments regarding safe and secure investments, and guaranteed income streams refer only to fixed insurance products. They do not refer, in any way to securities or investment advisory products. Fixed Insurance and Annuity product guarantees are subject to the claims‐paying ability of the issuing company and are not offered by BCM. Index or fixed annuities are not designed for short term investments and may be subject to caps, restrictions, fees and surrender charges as described in the annuity contract.