The Federal Reserve decided to keep interest rates unchanged, citing a strong economy and low unemployment rates. However, they did hint at a possible rate cut later this year due to concerns about slowing global growth and trade tensions. The Fed’s decision to hold rates steady and predict only one reduction shows their cautious approach to managing monetary policy in the current economic climate.
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Taking Your Required Minimum Distribution (RMD) Right Now Could be a Brilliant Move for Retirees
Investing in retirement accounts like IRAs and 401(k)s offers tax advantages, as contributions are tax-deductible and earnings are tax-deferred until withdrawal. However, starting at age 73, individuals must take required minimum distributions (RMDs), which can create a tax burden if reinvested improperly. Taking RMDs during market downturns can be beneficial, as it allows investors to withdraw more shares, reinvest them in taxable accounts for potentially lower capital gains taxes, and reduce future RMDs. Full Article
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