Retirement Watch Weekly
Examining More Angles to IRA Conversions
Several key factors determine whether it is a good idea to convert a traditional IRA to a Roth IRA. We discussed these in recent visits, and they include the difference between your tax rates now and in the future, how you pay the taxes on the conversion, and the rate of return on your IRA. […]
Deducting All Your Medical Expenses
Many taxpayers leave money on the table because they don’t deduct all the medical expenses they are allowed. Medical expense deductions were tightened over the years, leading many people to believe they can’t deduct their expenses. But you can deduct medical payments as itemized expenses, and many people qualify for higher deductions than they realize, […]
Writing Off Long-Term Care
At least some of the expenses of a nursing home or assisted living facility usually are deductible. The amount of the deductions depends on the circumstances. You have to know the rules to maximize your deduction. When the primary reason for residing in a nursing home is one’s physical condition and the availability of medical […]
How to Find the Highest Paying Annuity
The easiest, surest way to increase your retirement income is to shop for annuities just as you would for anything else. Few retirees or prospective retirees do this, but I’ve shown over the years shopping will increase income. Insurers and other annuity payers use different assumptions to determine their payouts. They consider estimated investment returns […]
February 2010
February 18, 2010 11:15 a.m. The Debate About Greece, and more The debt problems in Greece continue to be the focus of much attention and also moves the markets. Stocks have done all right the last couple of days because the EU has ordered Greece to come up with a plan, and investors have decided […]
Reviewing the Safe Spending Formula
You can spend a maximum of 4% of your retirement fund the first year and increase the distribution for inflation each year after. That’s standard spending advice for retirees and has been since the mid-1990s, when studies of past investment returns indicated 4% plus inflation was the maximum “safe spending rate.” Yet, surveys still show […]
Understanding Changes in Inflation Data
How inflation data are compiled usually interests only economists and statisticians, and only a few of them at that. Yet, retirees and those planning for retirement have more than a passing interest in the debate. The reported inflation rate determines increases in Social Security benefits and adjustments to Treasury Inflation-Protected Securities (TIPS). It also determines […]
Avoiding a Major Estate Planning Pitfall
Estate Planning mistakes fall into two major categories. Retaining too much control for too long is the first category of major mistakes. Detailed “incentive trusts” are a sign this mistake may be in the offing. These trusts parcel money over the years only as beneficiaries achieve detailed milestones. Incentive trusts sometimes try to control a […]
