Artificial Intelligence (AI) refers to the simulation of human intelligence in machines. The advancements in AI in the last few years have been astronomical and have changed the way we do almost everything. These programs are designed to perform tasks that typically require human intelligence, such as recognizing speech, making decisions, solving problems, and learning from experience. In most cases, sophisticated systems are powered by algorithms and models that process data and make predictions or...
Charitable gifting not only enables you to fulfill your philanthropic inclinations but can also support your broader estate planning objectives. Beyond its social significance, the charitable deduction can potentially mitigate federal gift and estate taxes. People contribute to charitable endeavors for all kinds of reasons. Some are driven by a deep-seated devotion to a cause, while others feel a moral obligation to support the less fortunate. Altruism, generosity, and a sense of societal responsibility also...
By now, it's old news. More seniors are getting divorced. An analysis of divorce data from 1990 to 2021 was released in July 2024 by Bowling Green State University’s National Center for Family and Marriage Research. It revealed that divorce rates for 45+ rose, while rates dropped for those younger than 45. The most significant increase in divorce rates was among people 65 and older: The rate tripled from 1990 to 2021. 1 Some people...
Investing internationally provides growth opportunities that may be different from those in the United States, which could help boost returns and/or enhance portfolio diversification. It may help to consider the risks, economic forces, and government policies that might continue to impact stock prices in these two news-making Asian markets and elsewhere in the world. The MSCI EAFE Index, which tracks developed markets outside of the United States, advanced 15% in 2023, while U.S. stocks in...
The United States Congress created the 529 plan in 1996 and has been modifying it ever since. Like many government tax-advantaged products and programs, this plan gets its name from its placement within the Internal Revenue Service code (Section 529). 529s are also called "qualified tuition programs" or QTPs. Save for Your Children's Education and Save on Taxes 529 savings plans have many features and benefits, but the most appealing is the federal tax advantage...
Are you leaving your job and considering whether to take a distribution from your 401(k), 403(b), or governmental 457(b) plan? If so, make sure you've considered all your options. In general, you have the following four options when you're eligible to receive a distribution from your employer retirement savings plan. 1 Option 1: Leave the Money in the Plan This is the easiest option — you don't do anything at all Continued tax-deferred growth (or...
As a business owner, you should carefully consider the advantages of establishing an employer-sponsored retirement plan. Generally, you're allowed certain tax benefits for establishing an employer-sponsored retirement plan, including a tax credit for establishing the plan and a deduction for contributions you make. In return, however, you're required to include certain employees in the plan and to give a portion of the contributions you make to those participating employees. Nevertheless, a retirement plan can provide...
If you have not started working on a will, trust, or estate plan, you're not alone. A recent survey revealed that 66 percent of American adults don't have an estate plan. Of the 34 percent who do have a plan, one in five have not updated it in the last five years. 1 We know estate planning can be intimidating, so we're sharing some basic approaches here. Estate planning is a strategic financial process crafted...
2023 is now just another year in the history books, but it was interesting for a variety of reasons. Some of you subscribe to my " By The Numbers" weekly email, so you may be used to looking at the year through the lens of relevant numbers. But some numbers are worth reviewing one more time. Here are a few more of my favorites from 2023. 19% In 2023, roughly 19% of Americans ages 65...
A donor-advised fund (DAF) is a tool created to allow people to deliver significant charitable gifts over a long period. In some ways, it's similar to a private foundation but simplified. A DAF requires less money, time, legal assistance, and administration to establish and maintain. Best of all, a donor-advised fund can offer more significant tax advantages than a private foundation. A simple definition of a DAF is "an agreement between a donor and a...
Life insurance can be an excellent tool for charitable giving. Not only does life insurance allow you to make a substantial gift to charity at relatively little cost to you, but you may also benefit from tax rules that apply to gifts of life insurance. Life Insurance Allows You to Make Bigger Gifts Life insurance allows you to make a much larger gift to charity than you might otherwise be able to afford. Although the...
Whether you're seeking to manage your own assets, control how your assets are distributed after your death, or plan for incapacity, trusts can help you accomplish your estate planning goals. Their power is in their versatility — many types of trusts exist, each designed for a specific purpose. Although trust law is complex and establishing a trust requires the services of an experienced attorney, mastering the basics isn't hard. What Is a Trust? A trust...
