Determining when to take social security, as well as planning for your future benefit, is such an important part of retirement planning. For each couple or individual, the answer as to when is the best time to take your benefit is different. It may seem like waiting until age 70 is best, as you can [...]
Consider your financial plan like a long journey away at sea. You're sure to encounter rough weather conditions and unfamiliar destinations. But if you're prepared for challenges and meet each decision with your top goals in mind, you have much better odds of getting where you want to go. Distractions are likely to pop up [...]
Most provisions are set to take effect in 2018, but many of those are also set to expire or sunset in 2025. Here's a summary of what it means for tax rates, deductions, mortgages, and more. 1. Reductions in individual tax rates. The bill retains the current structure of seven individual tax brackets, but lowers five of them. [...]
Ask yourself the question, if you passed early in your retirement, would your choices leave your spouse enough income to live comfortably and cover the increasing costs of healthcare? Choosing a spousal benefit that will protect your spouse in case something unexpected happens is extremely important.
Retirees have special concerns when evaluating state tax policies. For instance, the mortgage might be paid off, but how bad are the property taxes--and how generous are the property-tax breaks for seniors? Are Social Security benefits taxed? What about other forms of retirement income--including IRAs and pensions? Does the state impose its own estate tax [...]
What parents need to know about saving for college If you’re saving for your child’s higher education, you probably have a lot of questions besides “When did college get so incredibly expensive?” One popular savings tool that might puzzle you the most is the 529 Plan. Started in the late 1980s and operated by [...]
What will happen to equity returns if interest rates go up or down? Wei Dai, PhD, examined US market returns and a variety of interest rates and found the empirical relation has been weak and noisy.
Americans donate billions to charity annually. If you give to charity, you need to know about one of the best tools to facilitate generosity: Donor-Advised Funds (DAFs). DAFs date from the 1930s but did not become popular until the 1990s. DAFs act as vehicles for receiving gifts, often of appreciated stock, and then [...]
Many families are discovering that a 20-year term for a life insurance policy isn’t enough. In an ideal world, you buy life insurance when your kids are young or you’ve purchased your first home, and you need the coverage only for about 20 years. By the time your policy nears the end of its [...]
A charitable remainder trust (CRT) can be a highly effective financial and estate planning tool. The CRT can allow you to: avoid capital gains taxes on highly appreciated assets, however when income is distributed to the income beneficiaries it is taxable; receive an income stream based on the full, fair market value (FMV) of [...]
