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Associated Press
3 days ago
- Business
- Associated Press
BlackRock's Custom Glidepath to Power Great Gray Trust Company's New Target Date Retirement Solution with Access to Private Markets
NEW YORK--(BUSINESS WIRE)--Jun 26, 2025-- BlackRock has been selected by Great Gray Trust Company, LLC ('Great Gray') to provide a custom glidepath that strategically allocates across public and private markets for Great Gray's first target date retirement solution featuring private equity and private credit exposures. BlackRock's index equity, index fixed income, and private equity offerings have also been selected to underpin the solution. BlackRock believes solutions that incorporate private market allocations in a target date glidepath provide opportunities to generate value while managing risk. Great Gray is a leading provider of trustee and administrative services to Collective Investment Trusts, managing over $210 billion (as of March 31, 2025). BlackRock is the largest defined contribution (DC) investment-only firm with approximately $1.7 trillion in DC assets under management (as of March 31, 2025), including the LifePath ® franchise which manages more than $500 billion on behalf of clients across active, index, and income implementations. BlackRock and Great Gray have had a commercial relationship since 2013 and are at the forefront of expanding access to innovative solutions for retirement professionals and their clients. As part of the solution, Wilshire Advisors LLC, a leading provider of investment and advisory services, will oversee implementation of the strategy, including liquidity management. 'Blending public and private markets exposures requires a thoughtful approach to asset allocation and the ability to actively manage risk across the whole portfolio. That's especially true for defined contribution plans,' said Nick Nefouse, BlackRock Global Head of Retirement Solutions and Head of LifePath. 'Great Gray has a clear vision of what it wants to bring to the retirement industry and has been great to collaborate with to develop this innovative approach. Together, we are going to help more working Americans meet their retirement goals.' Private assets are becoming an increasingly important driver of economic growth and source of return for many institutional and high-net worth investors. BlackRock is already seeing demand for exposure to private assets in DC plans. In a recent survey 1, 21% of retirement plan advisors said they plan to include private markets investments in the defined contribution plans that they manage. 'For too long, access to private markets has been limited to institutions, leaving many retirement savers behind as capital markets have evolved. Great Gray's mission is to drive innovation in the U.S. retirement market, and for us to be true to that mission, we needed to create something that allows Americans to capitalize on private markets growth,' said Rob Barnett, CEO of Great Gray Trust Company. 'By strategically allocating across public and private markets, BlackRock's glidepath, systems and people are helping modernize the traditional target date solution.' There are multiple ways plan sponsors and their advisors can incorporate private markets into DC plans. BlackRock's retirement clients have a variety of needs and preferences, and the firm is creating solutions that deliver specific private market allocations as well as fully integrated, whole portfolio solutions. In a new research paper, entitled 'The power of private markets: Unlocking the benefits of private assets in defined contribution plans,' BlackRock outlines how incorporating purpose-built private market solutions into a target date solution can add 50 basis points in portfolio returns annually over the lifecycle of a target date solution. The outperformance associated with having private markets exposures compounded over 40 years can translate into approximately 15% more money for a retiree. 'BlackRock has been working with institutional investors and financial advisors to help them access private markets for years and we continue to evolve our platform in response to our clients' changing needs. Innovating ways to thoughtfully incorporate private markets exposures into defined contribution plans underscores our commitment to providing them with the choices necessary to meet their investment objectives,' said Jaime Magyera, Co-Head of BlackRock's U.S. Wealth Advisory business and BlackRock's Senior Retirement Sponsor. 'Private assets play an increasingly important role in the global economy and today's announcement builds on our ongoing efforts to give investors more ways to access the capital markets so that they can retire better and live better.' BlackRock believes the portfolio of the future will comprise 50% public equities, 30% public fixed income, and 20% private markets. BlackRock has taken a number of steps to help clients navigate this evolving landscape, with an established track record of bringing public-private offerings to the wealth channel, including this year's launch of a first-of-its-kind public-private model portfolio. About BlackRock (NYSE: BLK) BlackRock's purpose is to help more and more people experience financial well-being. As a fiduciary to our clients and a provider of financial technology, we help millions of people build savings that serve them throughout their lives by making investing easier and more affordable. For additional information on BlackRock, please visit Great Gray Trust Company, LLC serves as Trustee for its bank collective investment trusts ('CITs' or 'Funds') and maintains ultimate fiduciary authority over the management of, and investments made in, the Funds. The Trustee has hired Wilshire Advisors, LLC as sub-advisor to assist it in managing the Funds, and has hired BlackRock Financial Management, Inc. as Glidepath Manager to provide strategic asset allocation guidance for the Funds. The Funds are not mutual funds as the Funds and their units are exempt from registration under the Investment Company Act of 1940 and the Securities Act of 1933, respectively. Investments in the Funds are not bank deposits or obligations of and are not insured or guaranteed by Great Gray Trust Company, LLC, any bank, the FDIC, the Federal Reserve, or any other governmental agency. The Funds are commingled investment vehicles, and as such, the values of the underlying investments will rise and fall according to market activity; it is possible to lose money by investing in the Funds. The Funds are not guaranteed at any time including at and after the target date; they do not guarantee sufficient income in retirement. Asset allocation and diversification do not promise performance or guarantee against loss of principal. Great Gray ® and Great Gray Trust Company are service marks used in connection with various fiduciary and non-fiduciary services offered by Great Gray Trust Company, LLC. More information about Great Gray can be found at Additional Risk Disclosure: Private investments may not trade or be subject to the same regulations or reporting requirements as public investments, which may lead to less timely or accurate information about them, thereby impacting valuation, volatility and liquidity. View source version on CONTACT: Media Contact Ed Sweeney [email protected] +1 (646) 856-4968Christa Zipf [email protected] +1-347-814-3447 KEYWORD: UNITED STATES NORTH AMERICA NEW YORK INDUSTRY KEYWORD: FINANCE CONSULTING ACCOUNTING PROFESSIONAL SERVICES ASSET MANAGEMENT SOURCE: BlackRock Copyright Business Wire 2025. PUB: 06/26/2025 06:00 AM/DISC: 06/26/2025 05:59 AM
Business Wire
3 days ago
- Business
- Business Wire
BlackRock's Custom Glidepath to Power Great Gray Trust Company's New Target Date Retirement Solution with Access to Private Markets
NEW YORK--(BUSINESS WIRE)--BlackRock has been selected by Great Gray Trust Company, LLC ('Great Gray') to provide a custom glidepath that strategically allocates across public and private markets for Great Gray's first target date retirement solution featuring private equity and private credit exposures. BlackRock's index equity, index fixed income, and private equity offerings have also been selected to underpin the solution. BlackRock believes solutions that incorporate private market allocations in a target date glidepath provide opportunities to generate value while managing risk. Great Gray is a leading provider of trustee and administrative services to Collective Investment Trusts, managing over $210 billion (as of March 31, 2025). BlackRock is the largest defined contribution (DC) investment-only firm with approximately $1.7 trillion in DC assets under management (as of March 31, 2025), including the LifePath ® franchise which manages more than $500 billion on behalf of clients across active, index, and income implementations. BlackRock and Great Gray have had a commercial relationship since 2013 and are at the forefront of expanding access to innovative solutions for retirement professionals and their clients. As part of the solution, Wilshire Advisors LLC, a leading provider of investment and advisory services, will oversee implementation of the strategy, including liquidity management. 'Blending public and private markets exposures requires a thoughtful approach to asset allocation and the ability to actively manage risk across the whole portfolio. That's especially true for defined contribution plans,' said Nick Nefouse, BlackRock Global Head of Retirement Solutions and Head of LifePath. 'Great Gray has a clear vision of what it wants to bring to the retirement industry and has been great to collaborate with to develop this innovative approach. Together, we are going to help more working Americans meet their retirement goals.' Private assets are becoming an increasingly important driver of economic growth and source of return for many institutional and high-net worth investors. BlackRock is already seeing demand for exposure to private assets in DC plans. In a recent survey 1, 21% of retirement plan advisors said they plan to include private markets investments in the defined contribution plans that they manage. 'For too long, access to private markets has been limited to institutions, leaving many retirement savers behind as capital markets have evolved. Great Gray's mission is to drive innovation in the U.S. retirement market, and for us to be true to that mission, we needed to create something that allows Americans to capitalize on private markets growth,' said Rob Barnett, CEO of Great Gray Trust Company. 'By strategically allocating across public and private markets, BlackRock's glidepath, systems and people are helping modernize the traditional target date solution.' There are multiple ways plan sponsors and their advisors can incorporate private markets into DC plans. BlackRock's retirement clients have a variety of needs and preferences, and the firm is creating solutions that deliver specific private market allocations as well as fully integrated, whole portfolio solutions. In a new research paper, entitled 'The power of private markets: Unlocking the benefits of private assets in defined contribution plans,' BlackRock outlines how incorporating purpose-built private market solutions into a target date solution can add 50 basis points in portfolio returns annually over the lifecycle of a target date solution. The outperformance associated with having private markets exposures compounded over 40 years can translate into approximately 15% more money for a retiree. 'BlackRock has been working with institutional investors and financial advisors to help them access private markets for years and we continue to evolve our platform in response to our clients' changing needs. Innovating ways to thoughtfully incorporate private markets exposures into defined contribution plans underscores our commitment to providing them with the choices necessary to meet their investment objectives,' said Jaime Magyera, Co-Head of BlackRock's U.S. Wealth Advisory business and BlackRock's Senior Retirement Sponsor. 'Private assets play an increasingly important role in the global economy and today's announcement builds on our ongoing efforts to give investors more ways to access the capital markets so that they can retire better and live better.' BlackRock believes the portfolio of the future will comprise 50% public equities, 30% public fixed income, and 20% private markets. BlackRock has taken a number of steps to help clients navigate this evolving landscape, with an established track record of bringing public-private offerings to the wealth channel, including this year's launch of a first-of-its-kind public-private model portfolio. About BlackRock (NYSE: BLK) BlackRock's purpose is to help more and more people experience financial well-being. As a fiduciary to our clients and a provider of financial technology, we help millions of people build savings that serve them throughout their lives by making investing easier and more affordable. For additional information on BlackRock, please visit About Great Gray Trust Company Gray Trust Company, LLC, a leading provider of trustee and administrative services to Collective Investment Trusts (CITs), managing over $210 billion across more than 770 funds. Great Gray is committed to innovation and growth in the retirement planning sector, delivering solutions that offer efficiency, value, and growth opportunities to retirement professionals and their clients. Disclosures This material is intended for information purposes only, and does not constitute investment advice, a recommendation or an offer or solicitation to purchase or sell any securities, funds or strategies to any person in any jurisdiction in which an offer, solicitation, purchase or sale would be unlawful under the securities laws of such jurisdiction. The opinions expressed are subject to change without notice. Reliance upon information in this material is at the sole discretion of the reader. Investing involves risks, including loss of principal. Great Gray Trust Company, LLC serves as Trustee for its bank collective investment trusts ('CITs' or 'Funds') and maintains ultimate fiduciary authority over the management of, and investments made in, the Funds. The Trustee has hired Wilshire Advisors, LLC as sub-advisor to assist it in managing the Funds, and has hired BlackRock Financial Management, Inc. as Glidepath Manager to provide strategic asset allocation guidance for the Funds. The Funds are not mutual funds as the Funds and their units are exempt from registration under the Investment Company Act of 1940 and the Securities Act of 1933, respectively. Investments in the Funds are not bank deposits or obligations of and are not insured or guaranteed by Great Gray Trust Company, LLC, any bank, the FDIC, the Federal Reserve, or any other governmental agency. The Funds are commingled investment vehicles, and as such, the values of the underlying investments will rise and fall according to market activity; it is possible to lose money by investing in the Funds. The Funds are not guaranteed at any time including at and after the target date; they do not guarantee sufficient income in retirement. Asset allocation and diversification do not promise performance or guarantee against loss of principal. Great Gray ® and Great Gray Trust Company are service marks used in connection with various fiduciary and non-fiduciary services offered by Great Gray Trust Company, LLC. More information about Great Gray can be found at Additional Risk Disclosure: Private investments may not trade or be subject to the same regulations or reporting requirements as public investments, which may lead to less timely or accurate information about them, thereby impacting valuation, volatility and liquidity.
Yahoo
23-03-2025
- Business
- Yahoo
Retirement expert explains how to avoid common planning mistakes
Listen and subscribe to Decoding Retirement on Apple Podcasts, Spotify, or wherever you find your favorite podcasts. When planning for the future, people often get caught up in short-term news rather than focusing on the long-term strategy, even though retirement planning can stretch across decades. And that's just one of several mistakes those saving for or living in retirement are making, according to Nick Nefouse, global head of retirement solutions and head of LifePath at BlackRock. 'If I think about retirement planning, it is almost always a long horizon,' Nefouse said in a recent episode of Decoding Retirement (see video above or listen below). 'And what we do is we get inundated with short-term news. And if you think about short-term news versus planning for retirement, they're two very different things.' This embedded content is not available in your region. Consider that a person in their 20s will spend about 45 years saving for retirement. Then, upon reaching 65, they can expect to live another 20 to 30 years on average. Combined, this represents a significant time frame for financial planning. Even someone who is 55 still has about a decade before retiring. 'The reason why time horizon is so important is the longer that you're in the markets, the better the probability you're going to be successful,' he said. 'But if we have this short horizon view of what's going to happen next year or next quarter, it tends not to bode very well for long-term investing.' Nefouse also suggested that individuals often make mistakes regarding risk. 'We tend to think of risk myopically just as market risk,' he said. Instead, risk should be viewed as a lifecycle concept, encompassing market risk, inflation risk, longevity risk, human capital risk (job loss), and sequencing risk (bad market returns). What's more, individuals need to consider that risk evolves over one's lifetime. At BlackRock, a model they espouse is something called GPS — grow, protect, spend. 'When you're young, it's just about maximizing growth,' he said. 'And this is where you want to have the highest equity waiting in your portfolios. Really lean into growth equities. This is in your 20s, 30s, even into your 40s. From about mid-40s up until you're in retirement we really want to start adding in more protection. This is when you want to start thinking about diversifying a portfolio into things like inflation protection or into fixed income.' Read more: Retirement planning: A step-by-step guide When you retire with a lump sum at 62, 65, or 67, there's little guidance on how to systematically draw down assets, and many avoid even thinking about "decumulation," Nefouse said. As a result, retirees tend to fixate on their account balance, reluctant to spend it. They'll use capital gains and income but resist dipping into the principal itself. 'This is another big misconception,' Nefouse said. 'A lot of people don't want to spend down principal in retirement.' To be fair, the fear of spending down principal is partly due to uncertainty about longevity. 'When you look at the behavioral research, it's not illogical that people don't want to spend their principal,' Nefouse said. However, the point of saving is to spend the money in retirement so you can live like you spent during your working years. 'You need to spend your principal,' he said. To help individuals estimate how much they can spend in retirement, BlackRock offers a publicly available LifePath spending tool on its website, which calculates one's spending potential based on their age and savings. One way to address the principal misconception and others is to consider small decisions with major impact. Using auto-enrollment, qualified defaults (like target-date funds), and auto-escalation features in 401(k) plans can significantly improve retirement savings, Nefouse said. Qualified default investments, like target date funds, provide a structured approach to investing. These funds are designed to be more growth-oriented when an investor is younger and gradually becomes more conservative as retirement nears. 'Importantly though, it's not sitting in cash,' Nefouse said. 'You're actually in a growth asset for a much longer period of time.' This, he said, helps maximize long-term returns while managing risk appropriately over time. Many workers face a dizzying array of retirement savings options, from health savings accounts (HSAs) to traditional and Roth 401(k) plans. With so many choices, how do you decide where to contribute — and how much? 'This gets tricky,' Nefouse said, noting that the decision depends on personal preferences, income level, and tax considerations. But the most important step? 'Just start saving somewhere.' When choosing between a Roth 401(k) and a traditional 401(k), it comes down to taxes. 'We can debate [over] the Roth, which ... grows tax-free and comes out tax-free, versus the traditional, which comes out of your earnings pre-tax, then grows tax-free, and then you're taxed,' he said. But the right choice depends on factors like 'current income and expected future tax rates.' One option to consider is an HSA. 'I would tell people not to overlook the HSAs,' Nefouse said. Read more: 4 ways to save on taxes in retirement What makes HSAs so powerful is their triple tax advantage: contributions are pre-tax, the money grows tax-free, and provided it's used for qualified medical expenses, it can be withdrawn tax-free — even in retirement. 'If you can stand to not spend from your HSA, this is triple tax-free,' he said. A particularly smart strategy is to 'prioritize accounts that offer employer matches,' Nefouse added. 'What I tell people to do is hit the 401(k), the traditional 401(k), because that tends to be where the match comes in.' The same goes for HSAs if an employer contributes. 'If your company is going to give you money for being involved in those, go into those.' Then, once those bases are covered, where to save next becomes a 'higher-class problem,' he said, meaning a good problem to have as you build wealth. Nefouse also discussed how the traditional idea of retirement as a single moment — one day you're working, the next day you're not — is changing. Many people are opting for 'partial retirements' or 'encore careers' rather than stopping work entirely. They might reduce their hours, shift into a different role, or even explore a new industry altogether. 'We refer to this phase as the retirement window,' Nefouse said. Unlike airline pilots, who typically retire on their 65th birthday, most Americans don't follow a strict retirement date. Instead, between the ages of 55 and 70, they gradually transition out of full-time work, he said. While many people say they want to work longer, the reality is different, and many people don't work past age 65. Health issues — whether their own or a spouse's — can force an earlier exit. Job loss in the late 50s or early 60s is another risk, as 'it's very hard to get reemployed at the same rates,' Nefouse said. So what's the actionable advice? 'Start planning early,' Nefouse said. That means building multiple sources of income, understanding Social Security, and considering retirement income guarantees. Social Security plays a crucial role in this transition. 'The longer you defer, the more money the Social Security Department is going to give you,' he said. While benefits start at 62, waiting until 70 results in significantly larger payments. 'Think about it as a sliding scale — you get the least amount of money from the government at 62, and the most at 70,' Nefouse said. Each Tuesday, retirement expert and financial educator Robert Powell gives you the tools to plan for your future on Decoding Retirement. You can find more episodes on our video hub or watch on your preferred streaming service. Sign in to access your portfolio
Yahoo
02-03-2025
- Business
- Yahoo
2025 retirement playbook: Experts provide tips for saving at any age
There's a looming retirement crisis in America — but it can be averted. A 2024 study from Morningstar found that as many as 45% of seniors who retire at age 65 could run out of money in retirement. The number climbs to 54% for workers who retire at 62. The research concluded that the crisis could be prevented if more workers had access to and used workplace investment plans. The good news is that whether you're just starting your career or have already exited the workforce, there are ways to maximize your savings and build a more secure future. Yahoo Finance spoke with several retirement professionals who shared their top strategies for building a retirement nest egg at every stage. Retirement may be a daunting goal for young professionals in their 20s and 30s, who often face student loans and other forms of debt repayment. According to Fidelity Investments, Gen Z workers have an average of $6,500 saved for retirement, while millennials have saved an average of $24,000. BlackRock's global head of retirement solutions, Nick Nefouse, said that Gen Z "got the memo" after watching their parents struggle with saving for retirement. A BlackRock survey found that more than 7 in 10 Gen Z workers reported feeling on track to retire. While financial advisers and experts agree that there is no "perfect" nest egg number, there are general guidelines for being retirement-ready. Read more: How much money should I have saved by 30? Nefouse recommended those just getting started contribute 5% to 6% of their salary annually. "People often ask how much should they save, and my answer is usually 'more,'" Nefouse told Yahoo Finance. 'But ... start off with something small — 5%, 6%. Make sure you're saving to that 401(k) match, and then every year, try to raise it by about 1 or 2 percentage points to get to higher levels." The first step for many young workers is to enroll in their employer's 401(k) match program if one is offered. "If you have access to a 401(k) plan, you usually have access to a corporate match," Nefouse said. "What a corporate match means is your employer will give you money if you're saving as well. So you always want to start with your 401(k) plan and save up to that match." After you've maxed out your 401(k) match, you can explore other retirement savings accounts. "Once you've done that, that's when you want to start looking at something like a Roth IRA," Nefouse continued. "And then, if you've maxed out the Roth IRA, maybe there's income tax reasons why you might want to consider a traditional [IRA]. But always start with that 401(k)." Read more: Retirement planning: A step-by-step guide By their 40s and 50s, most workers are becoming realistic about the type of lifestyle they can attain in retirement. One expert said it's a great time to go over your priorities by categorizing "needs, wants, and wishes." "Your needs are definitely going to be your typical retirement savings," Andrew Fincher, a financial adviser at VLP, told Yahoo Finance. He also recommended taking into account the cost of medical care through Medicare or private insurance as part of this calculation. Next, Fincher advised factoring in lifestyle goals, such as taking vacations. "People ... maybe want to travel abroad," Fincher said. "Maybe it's just to the lake down the road. Either way, there's some cost associated with that." Lastly, those established in their careers may be thinking about long-term wishes, such as paying for a child's wedding or making charitable contributions. "We categorize it to know you need to start at the needs and then work your way down [to] see what the probability of success is for that," Fincher said. For those who have fallen behind with retirement savings, catch-up contributions can help increase savings. As part of Secure Act 2.0, workers ages 50 and up can contribute an additional $7,500 on top of the 2025 maximum contribution limit of $23,500 for 401(k)s. "If you have cash flow that allows for it, it not only helps you save for retirement but also reduces your current tax liability as well if you're in higher tax brackets," Fincher said. Read more: 4 ways retirees can save on taxes Tapping into your retirement account before turning 59 1/2 comes with a high probability of a 10% tax penalty. But in your 60s, you no longer need to worry about being penalized for taking early distributions. "In your 60s, you're in the sweet spot," Sarah Brenner, Ed Slott & Company director of retirement education, told Yahoo Finance. "You can tap your money without concern about early distribution penalties, and you're not forced to take money out yet. No RMDs [required minimum distributions start] until age 73, so it really is the sweet spot for planning." Catch-up contributions can also be supercharged beginning at age 60 until age 64. "If you're age 50 or over, you can contribute more to your employer plan," Brenner said. "But for those who are ages 60, 61, 62, and 63, there's an even higher catch-up limit. And we call these super catch-up contributions." For 2025, 401(k) participants ages 60-63 can put away an additional $11,250 in catch-up contributions, greater than the $7,500 limit for those in their 50s. However, "once you reach age 64, that goes away," Brenner said. Read more: What is the retirement age for Social Security, 401(k), and IRA withdrawals? A whopping 4.18 million seniors turn 65 this year, notching another record year for baby boomers entering retirement age. "What we know is that by 2030, almost all baby boomers, I think all 71 million, will be over the age of 65," Fidelity Investments vice president of retirement offerings Rita Assaf told Yahoo Finance. "So it is definitely a tsunami. ... It's coming and it's coming very quickly." According to data from Fidelity, baby boomers have an average 401(k) balance of $250,900 and an average IRA balance of $250,966. At this point, those in or nearing retirement should identify where they want to live in retirement and what they want to do. "You want to determine if you have enough money to last throughout your retirement," Assaf said. "Ideally, you want to have essential expenses covered by guaranteed income sources such as Social Security or annuities because these keep up with inflation." It's also important to strike the right balance of risks for your investments. "You'll need a balanced portfolio that keeps in mind some short-term investments that you can use for your day-to-day living, but then some growth potential that can help you," Assaf said. "So for conservative investments, you'll want to really look at anything with a fixed return, such as a CD or annuity, and then anchor that with growth investments that can [be] withheld and grow with inflation if that actually occurs." Read more: Why a CD should be part of your retirement savings plan According to the CDC, the average life expectancy for all Americans is over 77 years old, and women tend to live an average of 80.2 years. Assuming retirement between 60 and 65, that means your savings need to last over a decade. As a rule of thumb, advisers recommend having 10 to 15 times your most recent annual earnings saved or 20 to 25 times your average annual expenses. One expert recommended allocating funds into "time buckets" to help determine when to put money to work in retirement. "You don't want to have all your money designed for long-term investments," Lawrence Sprung, author of "Financial Planning Made Personal," told Yahoo Finance. "Maybe additional risk involved, but you also don't want it super conservative in case inflation starts rearing its head." Sprung suggested diversifying across several time horizons, using a high-yield savings account for short-term needs and conservative investments for mid-term needs. For funds you won't need for six years or longer, he recommended looking toward more high-growth investments. Importantly, at age 75 (or 73 for those born before 1960), retirees are required to take minimum distributions from their retirement accounts, which carries implications for taxes. Charles Schwab noted that drawing down tax-deferred accounts without penalty starting at age 59 1/2 can reduce RMDs and help keep taxes in check. "Based on 2025 federal tax rates, without pre-RMD withdrawals, RMD income pushes the investor into the 32% tax bracket at age 75 and the 35% bracket at about age 81," said Hayden Adams, director of tax and wealth management at Charles Schwab. "When you go into [the] RMD phase, you can end up putting yourself in another bracket, paying higher Medicare premiums as a result," Sprung explained. "So the way to avoid the taxes on the required minimum distribution ... is [to] convert earlier [to a Roth IRA], pay the taxes now, and then ... you'll never pay taxes on it again while it's in the Roth IRA." Sign in to access your portfolio
