When is contributing to an IRA not what your financial advisor (or CPA) advises? I’m so glad you asked! It’s very simple: Most of you reading this should NOT be making tax-deferred IRA contributions. Why? Not all IRA contributions are deductible. If neither you nor your spouse is covered by a workplace plan, your traditional…
Just when you think you’ve got your retirement savings on autopilot, wham, a new tax bill comes along to change your plans. Today, I’m focusing on the changes in catch-up contributions to employer retirement plans brought on by OBBRA (the 2025 tax bill). The following does not apply to Individual Retirement Accounts (Traditional, SEP, Roth,…
An element of retirement income planning that never ceases to confuse is taxes. Accounting for your tax bill as a retirement expense is important. Over-or-under estimating the cost can lead to errors in a retiree’s monthly spending targets. The biggest misconception is that your marginal tax bracket is the amount you pay on all of…
I am a fan of (at least considering using) reverse mortgages. Although there is some controversy from the old days where the product lacked current consumer protection, the new world of reverse mortgage is worth looking at. Nationwide data indicates that home equity can account for 50% or more of total net worth for many households…
I’m trying to think of an expression, like “counting your chickens before the eggs hatch” that applies to considering inheritance as part of your financial plan. Or maybe, with egg prices what they are, we are just hoping to inherit a healthy chicken coop. Anyway, a topic of conversation that often comes up in planning…
Well, maybe not in love (see Romeo, Juliet, etc.) but according to – gasp! – both parties in Congress and former President Joe Biden, Social Security is getting a little fairer this year. The Social Security Fairness Act, signed into law by President Biden on January 5, 2025, ends the Windfall Elimination Provision (WEP) and…
Do you have fears that keep you from moving forward with your life goals? I do! I have a fear of asking businesses for donations and sponsorships for fundraisers. This stresses me out since I find myself serving on many non-profit boards where that is the principal activity. What to do to get over my…
We are into the misery of winter now. Short, cold days, runny noses, and lumpy sweaters make you long for a beach vacation. But what if you could put that vacation money to use in your investments? What kinds of companies profit from cold weather? Remember, this newsletter is not investment advice, but some general…
So, I say it every four years, and I’ll say it again. The US President is one person whose job cannot last more than 8 total years. This person does not in the long term affect the worldwide economy. Therefore, and ergo, for the sake of your own sanity and that of your financial advisor,…
What is a secret blunder lurking in many people’s investment accounts? Uninvested cash left sitting for months, years, even decades. How does this happen? A simple misunderstanding upon transferring or adding new money to brokerage accounts. Here is how money gets invested in a brokerage account: Here is what often happens: …
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