Retirement Watch Weekly
Who’s Winning the Tug of War?
Policymakers started losing the tug of war during the summer.In the June issue, I said the fate of the economy and markets depended on the outcome of a tug of war. On one side is the coronavirus. Its effects are cur-tailing economic growth.On the other side is fiscal and monetary stimulus from the central bank […]
There Has Never Been a Better Time to Donate Part of a Home or Farm
Historically low interest rates can generate historic tax benefits. At least one of these tax benefits can be reaped without giving up any cash or property: a charitable contribution of a remainder interest in a home, vacation home, or farm. Ownership of property can be divided into two portions. A lifetime interest, or life estate, […]
Retirement Medical Expenses Drop, but You’ll Pay Plenty Without the Right Plan
There is a bit of good news for those who are worried that retirement medical expenses will eat away their nest eggs, but you still need to plan carefully to minimize your out-of-pocket medical spending.Each year, the Employer Benefits Research Institute (EBRI) estimates the total out-of-pocket medical expenses that hypothetical 65-year-olds are likely to spend […]
Social Security Continues to Underpay Surviving Spouses
You simply can’t rely on the Social Security Administration (SSA) to help determine the right benefits for you, especially if you’re a widow or widower.What is even worse is that the SSA has been told about the problem for years and apparently has not been able to correct it. Here is the background. When a […]
Beware: The IRS Might Not Like These CARES Act IRA Strategies
The Coronavirus Aid, Relief and Economic Stimulus (CARES) Act, enacted in March, contained tax breaks related to retirees and retirement plans, including reduced penalties for taking early IRA distributions, waiver of required minimum distributions (RMDs) and the option to spread taxes on retirement plan distributions over three years. You can read the previous article for […]
IRS Expands New Tax Breaks On Retirement Distributions, Loans
IRA and 401(k) owners recently received expand-ed tax breaks, thanks to some new IRS guidance on the Coronavirus Aid, Relief, and Economic Security (CARES) Act.The CARES Act already provided valuable tax breaks. Required minimum distributions (RMDs) are suspended for 2020. Plus, the law relaxed restrictions on taking loans and distributions from retirement plans. In recent […]
Here’s What You Need to Know About the 7 Most-Popular Trusts
Trusts are an essential part of most estate plans, even the plans of people with moderate wealth.Not too many years ago, trusts were reserved largely for the very wealthy. Times have changed, how-ever, and most estate plans have at least one trust. Trust terms and concepts are unique, and many lawyers don’t do a good […]
Will vs. Trust: Which is Better?
“By failing to prepare, you are preparing to fail,” said inventor, diplomat and founding father Benjamin Franklin in describing the importance of planning for the future. It is only natural for people to want to maintain some level of control over the assets that they worked so hard to accumulate throughout their life. Creating a […]
