Retirement Watch Weekly
Understanding 2013’s New Taxes
It’s time to clear away the confusion about some new taxes for 2013: the 3.8% tax on investment income and changes that affect the alternative mini-mum tax. Act now, or you’ll have an unpleasant surprise when completing your 2013 tax returns in 2014. The 3.8% investment income tax is separate from all other taxes and […]
Your Home and the 3.8% Investment Income Tax
When the 3.8% net investment income tax was enacted, there was a lot of talk about whether it applies to taxes on home sales. Here’s how that really works. When you sell a home that isn’t your principal residence, such as a vacation home, second home, or rental property, all of the gain potentially is […]
Estimating Retirement Medical Spending
Medical expenses are the wild card in all retirement plans. They are very difficult to estimate and control. Fidelity Investments has been putting out an annual estimate of retirement medical spending for several years. The good news in this year’s estimate is that the total retirement cost estimate is reduced, because medical spending increased at […]
Miscalculating Retirement Needs
Most people report that they are financially prepared for retirement, yet most economists and financial advisors say they aren’t. Why the discrepancy? A recent poll from Charles Schwab & Co. has a clue. Schwab polled wealthy workers and found that 80% of those making $115,000 annually believe that in retirement they’ll spend only $66,000 annually. […]
The Perils of Grandparenting
Grandparents are frequent targets of scams and cons. The scams leverage their status as grandparents to extract money from the seniors. The scams are so widespread and growing that the FTC has issued a warning about them. The general approach is the same. An individual claiming to be a grandchild contacts the grandparent and claims […]
Evaluating Indexed Annuities
They used to be called equity indexed annuities, as this article still calls them, before the sales people decided to change the generic name. I’ve written about these before in Retirement Watch, and this article is a good read. It might be a bit too negative. These annuities can be good for someone who would […]
Clear Thinking on Bubbles
The investment world is full of those who say one or more assets are in bubbles or bubble territory. It’s exciting talk, but not very useful to investors. Bubbles are extremely rare, and overvalued assets can remain overvalued for a long time. Tyler Cowen of Marginal Revolution provides some clear thoughts on all the bubble […]
Some Guaranteed Income Insurance and Annuity Strategies
Many people are looking for steady, guaranteed income in their retirement years. There are several different vehicles providing guaranteed income. There are many differences between them. Don’t make the mistake most people make. Don’t consider only one vehicle because that’s what your advisor offers. If you’re interested in guaranteed income, consider the several options out […]
