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Tax Moves to Consider in Summer
Now is a Good Time to Think About a Few Financial Matters Consider making tax moves earlier rather than later. If you own a business, earn significant investment income, are recently married or divorced, or have a Flexible Savings Account (FSA), you may want to work on your income tax strategy now rather than in December or April. Do you need to pay estimated income tax? If you... -
Helping Your Parents Manage Financial Tasks
How can you make things easier on them later in life? Worldwide, the number of people aged 60 and older is growing. By 2050, this demographic will be more than twice as large as it was in 2015.¹ Some of these seniors could face a financial test. Will they be able to look after their investments or financial matters at age 80 or 90 with the same level... -
Long-Term Investing Truths
Key lessons for retirement savers. You learn lessons as you invest in pursuit of long-run goals. Some of these lessons are conveyed and reinforced when you begin saving for retirement, and others, you glean along the way. First and foremost, you learn to shut out much of the “noise.” News outlets take the temperature of global markets five days a week (and on the weekends), and economic indicators change... -
Why Medicare Should Be Part of Your Retirement Planning
The premiums and coverage vary, and you must realize the differences. Medicare takes a little time to understand. As you approach age 65, familiarize yourself with its coverage options and their costs and limitations. Certain features of Medicare can affect health care costs and coverage. Some retirees may do okay with original Medicare (Parts A and B), others might find it lacking and decide to supplement original Medicare... -
IRA Withdrawals That Escape the 10% Penalty
The list of these options has grown. An IRA, or Individual Retirement Account, is a tax-advantaged savings account that is subject to special rules regarding contributions and withdrawals. One of the central rules of IRAs is that withdrawals prior to age 59½ are generally subject to a tax penalty because policymakers sought to create a disincentive to use these savings for anything other than retirement.1 Yet, policymakers acknowledged... -
Your Emergency Fund: How Much is Enough?
An emergency fund may help alleviate the stress associated with a financial crisis. Have you ever had one of those months? The water heater stops heating, the dishwasher stops washing, and your family ends up on a first-name basis with the nurse at urgent care. Then, as you’re driving to work, giving yourself your best, “You can make it!” pep talk, you see smoke seeping out from under... -
1099 Forms
Explaining these ubiquitous forms and their uses. What is a 1099 form? This is a record of payment from an individual or entity, showing a payment, generated for your records. The individual/entity sends a copy to both the payee as well as the I.R.S.1 Who might be sending 1099s? Clients send their freelancers 1099s, recording work performed. Banks send 1099s to reflect interest from a savings account. A... -
Tolerate the Turbulence
Look beyond this moment and stay focused on your long-term objectives Volatility will always be around on Wall Street, and as you invest for the long term, you must learn to tolerate it. Rocky moments, fortunately, are not the norm. Since the end of World War II, there have been dozens of Wall Street shocks. Wall Street has seen 56 pullbacks (retreats of 5-9.99%) in the past 73... -
Tax Considerations for Retirees
Are You Aware of Them? The federal government offers some major tax breaks for older Americans. Some of these perks deserve more publicity than they receive. If you are 65 or older, your standard deduction is $1,300 larger. Make that $1,600 if you are unmarried. Thanks to the passage of the Tax Cuts & Jobs Act, the 2018 standard deduction for an individual taxpayer at least 65... -
No, That Is Not the I.R.S. Calling
Watch out for crooks impersonating I.R.S. agents (and financial industry professionals). Do you know how the Internal Revenue Service contacts taxpayers to resolve a problem? The first step is almost always to send a letter through the U.S. Postal Service to the taxpayer.1 It is very rare for the I.R.S. to make the first contact through a call or a personal visit. This happens in two circumstances: when...
