LifeLivedForward_SLICES_09

 

A compilation of insightful financial tips

relating to an active senior lifestyle.

 

  • Is Your Portfolio Positioned for a Rising Interest Rate Environment? The Federal Reserve raised interest rates in March. Their key short-term rate increased from 0.75% 1.0%. It doesn’t sound like much, and you would hardly think it would even need to be reported. However, this is the highest their key short-term rate has been since 2008. Most analysts think the Fed will raise rates at least ...
  • This Is Why You Got a Form 5498 After Filing Your Taxes Just when you think tax season is finally behind you another tax form arrives from your IRA custodian – Form 5498. The good news is this doesn’t mean you missed something when you filed your taxes. However, it is important information that has been reported to the IRS. Form 5498 reports information about IRA contributions, rollovers, Roth IRA ...
  • How the Death of a Spouse Affects Taxes and Retirement Income Many people mistakenly believe their expenses will be half as much as a single person than as a couple. This is true of some expenses, like food and clothing. However, larger expenses related to housing probably won’t decline at all unless you move. Retirement planners generally project expenses will drop by only 20% at the ...
  • 5 Ways to Close the Retirement Gap and Increase Savings Last fall The Washington Post reported that 71% of American’s aren’t saving enough for retirement. The article was based on a national survey commissioned by Experian in collaboration with Get Rich Slowly.org. Rather than rehash the reasons American’s aren’t saving enough, I’d like to focus on ways to address the problem.  Let’s make 2017 the year Americans get ...
  • RMD Decision Time: What Baby Boomers Need To Know Now Avoid paying more in tax by knowing a few basic rules for RMDs. July 1st, 2016 was an important milestone for the baby boomer generation – the first boomers began turning age 70 ½. Those boomers with IRA and employer retirement accounts will need to make a decision about whether to begin taking minimum distributions this ...
  • Ignore After-Tax Savings at Your Own Peril Make sure you max out your 401(k). Fund your Roth IRA before the April 15th deadline. Remember that contributions to Health Savings Accounts (HSAs) are deductible. Withdrawals from 529 plans are tax-free when used for qualified expenses. With all the emphasis on tax advantaged accounts, you may have overlooked the importance of Leg Two of ...
  • Clearing the Confusion About RMDs A lot of people get confused when it comes time to taking minimum distributions from an IRA or other qualified account. The rule states required minimum distributions (RMDs) must begin by April 1st of the year following the year in which the IRA owner reaches age 70 ½. This applies to traditional IRAs, SEPs, and SIMPLE ...
  • Maximizing the Value of Your Charitable Giving The end of the year is the time when many people begin to think of family and charitable giving. The Center on Philanthropy (COP) at Indiana University found about 24% of survey respondents said most of their annual giving is done between Thanksgiving and New Year’s Day. This may be because the Christmas season is thought of ...
  • How are Social Security Benefits Calculated? One of the most common misconceptions I come across as a retirement planner is how Social Security benefits are calculated. The confusion appears to result from thinking pension benefits and Social Security are determined the same way. Many employers use some variation of the average annual earnings over five years. They often pick the highest five ...
  • How You’re Saving For Retirement Is More Important Than Ever – Here’s Why. The IRS Statistics of Income (SOI) program recently released data on taxpayers who hold IRAs for the tax year of 2013. The SOI program was mandated by the Revenue Act of 1916 to collect and process data. The data is made public and is used by a variety of Federal agencies, academics, and researchers. It’s ...