When developing your estate plan, you can do well by doing good. Leaving money to charity gives you a sense of personal satisfaction, but it can save on estate taxes. Here are a options to consider if you're considering making a charitable donation a part of your last will and testament. Outright Bequest in Your Will The easiest and most direct way to make a charitable gift is by an outright bequest of cash in...
In early 2022, the IRS issued proposed regulations regarding required minimum distributions (RMDs) to reflect changes made by the Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019. The IRS has held off on releasing final regulations so that it can address additional changes to RMDs made by the SECURE 2.0 Act of 2022, which was passed in late 2022. In the meantime, the IRS has issued interim RMD relief and guidance for...
This past June, the Supreme Court struck down President Biden's plan to cancel up to $20,000 in federal student loan debt for qualified borrowers. As a result, millions of student loan borrowers are scheduled to start paying back their loans in October after a three-and-a-half-year reprieve. Scam artists have already begun to prey on vulnerable borrowers by posing as legitimate debt relief companies, promising to help them repay their loans. Many of them use aggressive...
When people think about a personal financial plan, they often think of 401(k)s and IRA, but fewer people remember to include life insurance. While this type of insurance is primarily designed to provide financial support to your loved ones in the event of an untimely death, it can also be a part of a well-rounded financial planning strategy. Indexed Universal Life insurance (IUL) is one way to create a balance between potential market-linked returns and...
Tax-loss harvesting has been around for a while, but it isn’t well known. This financial strategy involves selling off certain investment assets at a loss to minimize capital gains taxes on your investment portfolio. This tactic can be employed to offset capital gains that result from selling securities at a profit. Tax-loss harvesting can also be used to offset up to $3,000 in non-investment income. However, this strategy only makes sense for investors with taxable...
Many of us dream of the day we will be able to put the stress of a working life behind us and retire. We want to pursue our hobbies, volunteer for causes we care about, or just be able to spend more time with the ones we love. Early retirement is a term that feels ripe with promise. Many of my clients are intent on finding ways to retire 1, 5, or even 10 years...
Some people say the rule of thumb to use when planning for retirement is to continue to realize seventy percent of the income you had while you were working. But recent research from Goldman Sachs Asset Management shows that only about 25% of retirees actually generate that kind of income, and more than 50% make due with less than half their pre-retirement income. Inflation, overspending, unexpected investment performance, and lack of savings can all contribute...
Wondering if you're on track to meet your financial goals? A mid-year financial checkup may help you evaluate if your financial situation is in good shape. Here's how to get started. Reassess Your Financial Goals At the beginning of the year, you may have set financial goals geared toward improving your financial situation. Perhaps you wanted to save more, spend less, or reduce your debt. How much progress have you made? If your income, expenses...
We hear about big lottery winners all the time. And many of us have friends who found themselves suddenly wealthy after a business gets big, a company went public, a home was sold, or they received an inheritance. While lottery wins are not a reality for most people, it’s not all that uncommon to suddenly have a lot of extra cash on hand from a large inheritance, a sale, a settlement, or perhaps a stroke...
Many investors are unsure of the benefits and drawbacks of fixed annuities and variable annuities, but it is worth learning the differences. All annuities are contracts with an insurance company in which you make one or more payments in exchange for a future income stream in retirement. The funds in an annuity accumulate tax deferred, regardless of which type you select. Because you do not have to pay taxes on any growth in your annuity...
Many forget to include life insurance when developing a financial plan. But life insurance effectively protects your family and loved ones from a catastrophic loss at any age. When considering life insurance, it's wise to look at various factors, including the number of people you support, debt, ongoing financial obligations, your life stage, and even tax considerations. Term vs. Permanent Life Insurance Life insurance is a financial protection policy. It helps you protect the people...
It used to be complicated and time-intensive to maintain a 401(k) for employees. However, according to a recent report from Capital One, 94% of small business owners who offer a 401(k) plan to employees report that this employee benefit is a factor in recruiting and employee loyalty. Maybe that's why 401(k)s have become a standard offering for many businesses today. If your company hasn’t started offering a 401(k), now might be a great time to...
