The House of Representatives in the United States recently passed the Setting Every Community Up for Retirement Enhancement Act. It’s also known as the Secure Act, and it passed this May. It was a landslide victory vote.
The yes votes outvoted the no votes by 417 to 3. Even better, it was expected to pass through the Senate with flying colors but certain political roadblocks are in place currently holding it up.
Although certain people believe in this bill, others feel that it is quite dangerous. Some of the provisions of the Secure Act include the following:
- The RMD age (required minimum distribution) drops from 72 years old to 70.5 years old.
- This act will enable small business owners to provide their employees with 401(k)s and additional incentives.
- One major incentive is penalty free withdrawals from the 529 education savings plan.
Many in Congress wonder whether or not this bill will actually help American families become more secure. Others are concerned about how the Secure Act will affect IRAs, and in particular gold IRAs.
We asked three experts about their opinions on the Secure Act. We asked them if the concerns are legitimate. And we also asked them their feelings about IRAs and how they’ll be affected by this bill.
The Secure Act is Dangerous Legislation
According to David Reischer, CEO of Legaladvice.com and an Estate Attorney, he feels that Washington is attempting to pass this bill in an effort to gain political control over privatized investments and savings. In fact, he feels this piece of legislation is incredibly dangerous. He also believes it will not achieve its objective of making families feel more secure.
As a matter of fact, when you break down the specifics of the Secure Act, you’ll realize that it’s actually designed to penalize those making long-term withdrawals from their savings accounts. It changes provisions of the tax code that protect us against income taxation from our personal savings accounts.
How scary is that? According to Reischer, if the Secure Act goes through it will take away promises made to the American people. Secure will affect promises regarding investment vehicles designed to act as taxation shields like IRAs and gold IRAs in particular.
Reischer states that, “The secure act will obliterate any remaining trust that Americans may still have that Washington is sincerely looking out for their best interest.” He feels that if this act ever comes to fruition, it will steal additional wealth from middle America. He also feels that the American people should look at this with extreme outrage.
Gold IRA investing is still an incredibly powerful investment vehicle whether the Secure Act passes in the Senate or not. It’s an excellent way to use alternative investments to save for retirement. You’ll make excellent financial gains for retirement in the process.
Secure Act Concerns Are Overblown
Tony Matheson is the founder of Matheson Financial Partners LLC, a Certified Financial Planner and a Wealth Advisor. He feels that concerns regarding the Secure Act are completely overblown. In fact, he feels the provision regarding RMD delays is such a nonissue that nobody should be worried about it.
But he also cautions retirement investors nonetheless. He feels that if this legislation ever does pass, retirement investors should meet with a certified financial planner or tax planner to look over their options. He believes this is important because they must make sure their beneficiary elections are up-to-date.
But he feels it’s still an excellent option for average people. Although he does mention the wealthy might suffer temporarily. They’ll need to find a new way to pass their estate to their heirs in a tax efficient way. But he also knows that a number of options to achieve this objective still exist. So the wealthy shouldn’t balk at the Secure Act in his opinion.
In fact, everyone should focus on investing in a precious metals IRA for retirement. This investment vehicle provides future retirees with a number of excellent advantages. They include:
- Diversified investments – you’re no longer stuck investing in traditional stocks and bonds. You can invest in precious metals, real estate, and other alternative options.
- Insurance – owning physical gold is like owning an insurance policy against the ups and downs of the US dollar. If the dollar ever fails, your physical gold investments will keep you and your family secured until things stabilize.
- Control – opening a gold IRA means you’re opening a self-directed IRA. This puts you in the driver’s seat and fully in control of your investments.
- Growth potential – gold investments have seen positive returns for the last 25 years on average. Gold investment returns will only get better in today’s difficult economic climate.
Generational Transfer Planning With IRAs Will Change With the Secure Act
Professor and Financial Planner Brandon Renfro believes the biggest concern regarding IRAs and gold IRAs is the stretch IRA elimination. How is this affected by the Secure Act? In this provision, young beneficiaries of IRAs will not be allowed to withdraw from the IRA throughout their lifetime.
He feels we must rethink generational transfer planning with IRAs. But the overall impact this provision creates on retirees with IRAs is minimal in his opinion.
In fact, Renfro believes this bill and its provisions provide major improvements for retirees. The provisions in question include:
- The removal of age restrictions on the front end.
- The removal of age restrictions on the back end.
Ultimately, these two provisions mean that retirees can make contributions after 70 ½ years old. It also means they can take RMDs at 70 ½ as well. This provides much greater flexibility with amounts and timing, according to Renfro.
Bottom Line
The House of Representatives drafted the Secure Act in an effort to help Americans save for retirement. A study from Northwestern Mutual in 2018 shined a light on a dismal financial picture. One out of three Americans has less than $5000 worth of retirement savings. Twenty-one percent of the people surveyed stated they do not have retirement savings at all.
This needs to change and it needs to change quickly. Opening a precious metals IRA is a great way to get started. It’s still one of the best investment vehicles for retirement on the planet today even with the impending Secure Act.
It’s time to get serious about retirement. Contact our #1 recommended gold IRA custodian at your earliest convenience. They’ll teach you how you can begin saving and investing for retirement today.
Do you have any questions about the Secure Act and the Gold IRA? Ask below!
Funny I came across this, I’ve been telling a few people that they should think about Gold IRA accounts. They talked about traditional ones, and that’s when I put the idea in their head. As for this Act, I’m not sure how I feel about it. I’m sure it has good intentions, but still. Either way, I still think putting money into a Gold IRA is worth it.
Hello Nate! Most people know traditional and Roth IRAs but are not aware of gold IRAs. They just need to be aware that in order to invest in physical gold they need to have a gold IRA and they would have to rollover their traditional or Roth IRA into one. And thank you for your opinion on the Secure Act as well. I really appreciate your comment and feedback, Nate! Thank you!
Retirement has become a very daunting and scary adventure for most workers in the states as most people fear life after it rather than being hopeful if the bliss that was supposed to accompany life after retirement. This is evident as a result of limited savings culture and habit. I personally enjoyed the fact that the Secure act was well passed at a landmark victory and investment into the gold IRA is booming well. Its my desire that I will see more people retiring well and doing great too. Thanks
Hello RoDarrick! As always, I appreciate your comment and feedback on the article as well as your own opinion of the Secure Act. Thank you for pointing out the limited savings culture and habits in our society. And thank you for the comment!
Thank you very much for your post. I am at the age closing to retirement. It is tough for me. I have a 9 to 5 job and have so many bills to pay. It is hard to save for retirement.
I have two kids at college and their tuition fees are beyond my capacity to pay, but I try my best to help. In the end, I am barely end meet and live from paycheck to paycheck.
I just started my own online business, which turn out to be much more difficult than I initially imaged. Right now this is only way for me to catch up my retirement saving. Do you know is there any advantage for small business for retirement saving?
It is kind of you sharing this useful information with us.
Hello Anthony! Wow, that is a tough situation that you have but in the end I only know that God is the Ultimate Provider and it is best to rely on Him and pray to Him for your situation. Only Jesus saves. As for retirement saving, I always propose investing in a gold IRA if you have ANY retirement savings over $5,000 in cash or $10,000 in a retirement plan such as a traditional IRA or a 401(k) so you can rollover that amount (those are the minimum investment amounts) into a gold IRA. Either way, you can surely invest in a gold IRA if you are a small business owner. Thank you very much for sharing your own experience with us! I hope and pray all will go well with your financial situation and blessings upon your family in Jesus name. Thank you again for the comment, Anthony!
Thanks for this informative post. The House bill increases the starting age for required minimum distributions (RMDs) from retirement accounts to 72, from 70½. That’s a win for older workers and retirees, who don’t need to tap their retirement accounts to cover expenses. I heard the change would be effective after December 31, 2019, and that people who turn 70½ in 2020 would be the first to benefit.
Awesome writeup.
Regards!
Hello Jordan! Thank you for the comment and also for the information that the change would be effective starting the first of next year! Thank you for the encouraging comment! Regards to you as well!
Ooh, it’s tough to think of all of the Americans that do not have much of anything saved for retirement. It’s a challenging environment these days, as many of us would like to put more towards those golden years, but healthcare costs (even for healthy people) have risen and lowered the amount that is available to stash away for the future. Flexibility with regards to IRA’s is a good start, but it’s clear that there is still a long way to go to secure financial security for an aging population.
Hello Aly! Thank you for pointing out those important facts about how rising healthcare costs are devaluing the retirement accounts of many people. I personally only recommend people to invest in a gold IRA, since precious metals tend to rise in value in tough economic times especially because of the increasing US debt. Thank you for dropping by with the informative comment!