When people stayed in one place or in one job for most of their careers and could rely on a pension plan for income, retirement planning was relatively simple. Today, that level of stability is hard to come by.
In the U.S., legislation passed in 2013 that raised long-term capital gains taxes on higher-income taxpayers by 59%, which affected many sources of investment income, including interest, dividends and capital gains.
Rates have been at historic lows for the last few years and uncertainty over U.S. Federal Reserve policy has had a dramatic impact on the total returns for these investments.
Turmoil in the Middle East and elsewhere has resulted in increased volatility, making it difficult to stay focused on retirement planning and long-term goals.
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Pursuant to IRS Circular 230, we inform you that any tax information contained in this communication is not intended as tax advice and is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein. ©2016 The Bank of New York Mellon Corporation. All rights reserved.