Retirement Watch Weekly
The Qualified Personal Residence Trust: A Classic Estate Planning Tool
One of the most difficult problems in an estate plan often is the family home or vacation home. It is an especially significant problem for estates that are likely to be taxable. A principal residence or vacation home is likely to have significant value. The key to reducing estate taxes is to remove property from […]
Some Notable Events That Grabbed My Attention This Week
The steady rise of the market indexes is hiding some interesting developments in the markets. The largest stocks are dominating the indexes more than usual. In a capitalization-weighted index such as the S&P 500, the 10 largest stocks usually account for a high percentage of the index and its performance. Now, the five largest stocks […]
The Big Surprises of 2020
Many investors entered 2020 thinking they can sit back and enjoy low-risk returns. The thought is understandable but wrong. A major cause for optimism is that the Federal Reserve and other central banks made clear they won’t tighten the money supply for a long time. The central bankers are willing to err on the side […]
Love Your Grandchildren But Don’t Let Them Ruin Your Retirement
You’re probably spending more on your grandchildren then you realize, and it could hurt your retirement. Grandparents are spending a lot of money on their grandchildren, according to an AARP study. On average, grandparents spend $2,572 annually on the grandchildren, the study found. But that’s only an average. Many spend much more. Also, it’s a […]
How Inflation Still Increases Your Taxes
Inflation hits most of us with one or more tax increases every year, and that will continue for the rest of our lives. Years ago, Congress began inflation-indexing many parts of the tax code to eliminate some unfairness and stealth tax increases. Inflation erodes the purchasing power of the dollar. A person can receive a […]
Here’s How You Can Deduct the Medical Expenses of Others
Before explaining how you can deduct medical expenses incurred by others, let’s review a related new tax break that was snuck into one of the year-end spending bills Congress passed before its recess in December. You know medical expenses are deductible only when they exceed 10% of adjusted gross income (AGI). In the December legislation […]
SECURE Act Upends Retirement, Estate Planning
The SECURE Act rolled through Congress in late December and was signed into law on Dec. 20. It is time to adjust your retirement and estate plans to both the good and bad sections of the law. The Setting Every Community Up for Retirement Enhancement (SECURE) Act makes major changes in retirement plans, especially 401(k)s […]
What You Need to Know About Safe Deposit Boxes
Everyone’s heard about safe deposit boxes, but important facts about the boxes are a mystery to most people. It is a rare person who doesn’t know what a safe deposit box is. It’s an equally rare person who knows key details about the boxes. Many items that are kept in safe deposit boxes wouldn’t be […]
