Retirement Watch Weekly
How to Estimate Your Life Insurance Needs
Most people have the wrong amount of life insurance. Some have too much; others have too little. Life insurance coverage often is wrong because most people enter the process believing that they need one life insurance policy. They might consider term and whole life, and perhaps a few of the other types of policies. They […]
Tax Cuts and Tax Increases
A new tax law passed Congress just before Memorial Day. It contains important tax breaks and tax increases for investors and others. We gave the highlights last month. In this month’s visit we will delve into more details of the newly-enacted law, known as Tax Increase Prevention and Reconciliation Act of 2006. The major provision […]
How to Beat the Alternative Minimum Tax (AMT)
The Alternative Minimum Tax (AMT) is trapping more taxpayers than ever. Created to ensure that the wealthiest taxpayers pay some income tax regardless of the tax breaks they use, the AMT now ensnares many middle class taxpayers. A taxpayer first computes regular taxable income, then adds back a number of tax breaks. After subtracting an […]
How Planned Disclaimers Can Improve an Estate Plan
A key to successful Estate Planning these days is flexibility. Scheduled changes in the federal estate tax, and the possibility of additional changes, make flexibility essential. In past visits we have discussed language that can be included in wills to increase flexibility. Another tool to make available to your heirs is the disclaimer. Normally, disclaimers […]
Estate Planning for Pets
Often a pet is a cherished member of the household. If that is the case, you might want to include the pet in the estate plan. This is particularly true of single people or owners of unusual or exotic pets that the heirs of the property estate are unable or do not wish to care […]
Get Set for the New Medicare Surtax
Medicare beneficiaries are used to annual premium increases to go along with the rising cost of medical care. But in 2007 many will be surprised by the new means-tested premiums. Higher income beneficiaries will pay higher premiums. The amount of the increase in premiums will depend on the beneficiary’s income. The higher premium is called […]
New Tax Law Enacted
As we went to press, Congress was wrapping up a new tax law. The law has important provisions for investors. The key provision is that the 15% tax rate on dividends and long-term capital gains is extended through 2009. Congress still could not make the rates permanent, but at least got them past the next […]
TopReasons for Buying Real Estate for College
The room at college doesn’t have to be an expense. It can be a tax break, with the potential for income and capital gains. It also might be a way for parents or grandparents to acquire a retirement home or second home. You can get these benefits by purchasing a place for your grandchild or […]
