Financial Considerations for 2013
We are now in plain view of the “fiscal cliff”. After the election, Congress may or may not end up keeping income and estate tax rates at their recent levels. Next year may bring some notable financial developments, and it isn’t too soon for households to think about them.
The Fed Launches QE3
With the fiscal cliff roughly 100 days away and the first Tuesday in November still too far off, institutional and retail investors were counting on the Federal Reserve to combat market anxiety with a new stimulus. In its latest policy announcement, the Fed came through – on September 14, the central bank launched its third round of easing in the past four years.1
How are high gas prices affecting you?
Rob Olson of Fox 9 News asked me about the high gas prices yesterday; and it's no surprise - gas prices have spiked and are averaging more than $4/gallon in many places. Do you, or have you had to, make changes as prices rise? How are these prices affecting you?
Major Retirement Planning Mistakes
Much has been written about the classic financial mistakes that plague start-ups, family businesses, corporations and charities. Aside from these blunders, there are also some classic financial missteps that plague retirees.
Reverse Mortgages Reconsidered
Is a reverse mortgage worth it? Before this last recession, couples who asked their retirement advisors if they should get a reverse mortgage were often given a quick answer: “No.”
Today, the answer to that question might be “yes”. In an environment with minimal interest rates, these loans can offer retired homeowners a source of tax-free cash, either in periodic payments or a lump sum.
Why is the Market Advancing?
On August 21, the S&P 500 hit a 4-year high. It climbed 3% in the first three weeks of the month following a 1.26% July gain. Across the past four weeks, the index’s total return has been just under 4%.1,2,3
Unexpected? You might say so. You can’t predict how the market will behave. This summer, stocks are managing to advance despite lingering threats.
Managing the Ups & Downs of Irregular Income
When your income stream is uneven, you must deal with some distinct financial issues. Besides cash flow, what do you do about your tax strategy? How should you try to save? If you are self-employed, what about health coverage?
Reasons to Recertify a Power of Attorney
Estate planning has many “fine points”, and there is one detail too often overlooked. It is a good idea to recertify a Durable Power of Attorney that is more than 60 days old.
Financial Questions for the Retiring Homeowner
Do you see yourself retiring in the near future? In planning for that transition, you might want to consider the state of your mortgage, the state of your property taxes, and the state of your living quarters.
Identity Theft Warning Signs
According to data compiled by Norton, cybercrime hits over 74 million Americans annually. You know you have been victimized when you get that courtesy call or email from a bank or credit card issuer - but is there a way you can tell prior to that moment?1
There are warning signs of cybercrime. Watching out for them just might save you money and headaches. If you notice any of the following conditions, pay attention.
Retiring Solo
Most retirement planning literature portrays a retirement transition in the context of a couple or a family – but what about those who retire alone? What particular challenges do they face, and how must their preparation for retirement differ? Retiring alone presents unique challenges...
In-Service 401k Withdrawals & Retirement Income Planning
Can you withdraw money from your 401(k) while you are still employed? Not everyone should; not everyone can. However, if you can, it may mean that you can effectively implement part of your retirement income plan before you retire. If your 401(k) plan permits it, you can take an in-service withdrawal and redirect some of your 401(k) funds into another investment vehicle that offers you income guarantees.
Looking at the New Estate Tax Laws
With 2013 approaching, many families and their financial, tax and legal consultants are weighing major estate planning decisions. A short-term window of opportunity may be closing. The relatively low estate tax rates we have now may soon disappear, along with one of the largest federal tax breaks available in decades.
What is a Reasonable Retirement Savings Rate?
How much salary should you defer into a retirement plan? Ultimately, the answer is “however much your budget allows you to contribute”. The big-picture question, however, is whether you need to contribute more to your retirement savings in order to maintain your lifestyle after your career is done.
The 2 Biggest Retirement Misconceptions
We’ve all heard about the “new retirement”, the mix of work and play that many of us assume we will have in our lives one day. We do not expect “retirement” to be all leisure. While this is becoming a cultural assumption among baby boomers, it is interesting to see that certain financial assumptions haven’t really changed with the times.
Can We Avert the "Fiscal Cliff"?
Recently, you may have heard about the “looming fiscal cliff”, the “coming fiscal cliff” and so forth. What exactly is it? Briefly stated, the “fiscal cliff” is a potential $7 trillion dilemma facing Congress this fall – a Congress not known for ready cooperation. If America goes over it, our economy could stumble.
The Retirement Reality Check
Decades ago, there was a popular book entitled What They Don’t Teach You at Harvard Business School. Perhaps someday, another book will appear to discuss certain aspects of the retirement experience that go unrecognized - the “fine print”, if you will. Here are some little things that can be frequently overlooked.
20 Tips for Minimizing Your Taxes in 2012 & Beyond
If your goal is tax minimization, here are 20 “to-dos” you might want to accomplish before 2013 arrives; alone or in combination, they could save you some money. Just one note beforehand: consult the tax or financial professional you trust before you make these moves, so you can see how they fit within your overall financial picture.
We're Living Longer! (...but it's Costing More)
First the good news -- Our average life expectancy has gone up from 47.3 years in 1900 to 78.3 years today. But for those of us in the latter part of our lives… it gets even better! Since 1940, Americans have gained a little over a year of life expectancy during every 5-year period. The bad news is that it costs money to live longer. In the March 2012 issue of Smart Money Magazine they actually broke down the cost of living longer. The numbers are staggering!
The Pros & Cons of Roth IRA Conversions
The Bush-era tax cuts could sunset in 2013, and that possibility has prompted some traditional IRA owners to think about Roth conversions. If tax rates go up, going Roth may be smart. The key word in that last sentence is “may,” as going Roth may not be for everyone.