Retirement Watch Weekly
How to Change Social Security Benefits
Deciding when to take Social Security retirement benefits is one of the more difficult retirement decisions. The decision affects lifetime monthly income of not only the recipient but also the recipient’s spouse. The choice of starting date can mean the difference of thousands of dollars over the course of retirement. Though few people realize it, […]
Social Security and Spouses – Part 3
In recent visits we explored how spousal benefits can affect the decision of when to begin Social Security benefits. In this visit we will take a look at one more scenario. First, we’ll review the key points from past visits. A spouse is entitled to receive the higher of either his or her earned retirement […]
What is Your Estate Plan Missing? The Importance of the Proper Forms and Documents
Many people believe that a will and a trust or two is an estate plan. Others think that a living trust or joint title with a spouse is all they need. That is why most estate plans are woefully incomplete. There is much more to an estate plan. Heirs and loved ones often suffer from […]
Estate Planning to Avoid Rags to Riches to Rags: Inheritance Planning for Heirs and Beneficiaries
The pattern for family wealth seems fixed. Different times and different cultures display the same pattern. The first generation builds wealth, and the second generation shepherds or preserves it. The third and succeeding generations spend until it is dissipated. There are a few examples of families in which wealth lasted many generations but many more […]
The Upcoming Medicare Changes
One of the biggest mistakes people make in their retirement plans is underestimating their medical expense burdens. Traditionally, early retirees overlook this major expense, but it is likely that in the next few years this expense will spike higher than many retirees anticipate. It is important that people recognize the trends behind changes in medical […]
When Should You Reverse an IRA Conversion
IRA owners who convert their traditional IRAs to Roth IRAs during the year need to continue monitoring their accounts. It might be advantageous to reverse an IRA conversion. Reversing an IRA conversion, known as a recharacterization, can be done any time before the due date for the tax return for the year of the conversion, […]
Are Charitable Trusts Better Than Stretch IRAs
Owners of large IRAs search for ways to maximize the after-tax amount of the IRAs that will benefit their loved ones. In the past we have demonstrated that unconventional strategies often increase the after-tax amount heirs receive. Sometimes it makes sense for an IRA owner to empty the IRA early, pay the taxes, invest the […]
Social Security Benefits and Spouses
Last month’s discussion on coordinating Social Security benefits among married couples generated a lot of interest. Let’s take a few minutes to review the basic rules of this complicated issue, and I will add some references to some key sources. To keep things simple, we’ll assume the wife is the lower wage earner. That will […]
