As any financial adviser will tell you, retirement savers face a dizzying array of uncertainty. Future interest rates are unknown. We don’t know how medical costs will change over time. No one knows exactly how long they’ll live, or what their future health needs will be. And it’s anyone’s guess how well their 401(k) portfolio will perform.
These risks can generally be mitigated by the combination of a sound investment strategy and private insurance products—like Medigap policies, deferred annuities or long-term-care insurance.
But there is one source of risk that is generally underappreciated and without an obvious antidote: a constantly changing tax code.
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