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"Vanguard economist Joe Davis kicked off the conference with his view of the future of work. In the next five to 10 years, studies suggest, 50% of jobs in the U.S. are projected to be lost to automation. India could lose 69% of its jobs, and more than 75% of China’s jobs could be wiped out. But Davis is optimistic: “We need to change our mind-set about technological change. Jobs do not get automated away, tasks do.”
Based on Vanguard’s analysis, tasks have changed for every occupation since 2000. Chefs, astronomers, and photographers saw the most change. (Economists the least, Davis joked.) He sees this as a positive, because automation means that workers can farm out repetitive tasks and devote more time to uniquely human ones, such as information analysis, communication, relationship management, and creative thinking.
Active shops have responded to this technological threat by putting those “uniquely human” tasks into an automated form—strategic-beta ETFs "
He sees this as positive because workers can farm out repetitive tasks. That's assuming the worker owns the technology and has a choice which tasks are farmed out. It is the business and technology's owners that make that decision and they will choose to fire many workers and replace them with tech. In the money management industry that means only those workers with skills that are uniquely human, that are so specialized that a computer algorithm which picks stocks can't replace them will survive. The terrible irony is many financial analysts and money managers who boast of "capitalist creative destruction" are about to see their jobs creatively destroyed by the technology they once invested in and celebrated. The question for every worker becomes what can you do a computer program, algorithm or robot can't?
I was lamenting aloud :-). Thanks for making me feel better. I owned another fund of theirs that closed because no one would invest in it. So wondered if a big investor pulled out assets out of CIPMX and is why the fund closed.VintageFreak
You mention the possibility of the fund liquidating, however the fund webpage is indicating about $1.5 billion in assets, do you see any indication that liquidation is being considered.
Thanks
I'm guessing you're doing this to keep RMDs manageable, i.e. not growing so large that they kick you into a higher tax bracket.
I have a few personal strategy for dealing with RMDs. Consider strategically spending down these taxable IRA dollars first rather than raiding taxable accounts, Roth accounts or Health Savings Accounts, especially between the years of 59.5 and 70.5.
You're get an income reduction for the HSA contribution regardless of what's generating the income. That taxable income could be coming from taxable investments or from IRA distributions, or even from a Roth conversion. What matters is that you've got a fixed size "deduction" (the HSA contribution). So the IRA distribution is tax-free (due to the HSA) only to the extent that you have no other ordinary (taxable) income.Fund an H.S.A:
-Between the age of 59.5 and 65 (when you become medicare eligible) distribute a portion of your tax deferred IRA yearly equal to your maximum H.S.A contribution. This will provide a funding source for my H.S.A as well as make these IRA distributions tax free since there tax liability will be offset by the H.S.A contribution (income tax credit) for that same year.
You can use medical expenses as itemized deductions (subject to a floor of 7.5% or 10% of AGI). To do that, you're right, you can't pay them out of an HSA. This works for some people, but only if they've got really high expenses (relative to their AGI), and if they've got enough other itemized deductions to get them above the standardized deduction. At least I think that's what you're writing about here.Fund Itemize Medical Expenses:
- Between ages (65 -70.5) track medical expenses that are eligible as an itemized tax deduction. Do not use your H.S.A dollars during this time frame to pay for these medical costs. Instead, pay all of these medical expenses with yearly IRA distributions. Using IRA distributions as the funding source for medical related expenses may potentially lowering your taxes on these taxable distributions.
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