Retirement Watch Weekly
The Next Phase of the Economic Cycle Begins
Important things are happening in the economy and markets. After years of providing massive liquidity, the central banks are shifting gears. The Federal Reserve has been tightening for several years and other major central banks are either tightening or leaning toward it. Also, in the last few months, the economic cycle moved to the late phase after […]
529 Accounts Now Can Be Used for K-12 Tuition
Tax reform provided a tool that’s such a good way to help pay for a grandchild’s education that many states are worried it will break their budgets. You’re probably familiar with 529 college savings plans. These are sort of like Roth IRAs for college savings. They were created in the 1990s. Every state sponsors one […]
IRS Clarifies That a Lot of Home Equity Mortgage Interest Still Is Deductible
The tax code and your bank might disagree on whether or not you have a home equity loan, and the difference could reduce your taxes. The Tax Cuts and Jobs Act eliminated home equity interest deductions on individual tax returns for years after December 31, 2017. It doesn’t matter when the loan was taken out. […]
Changes Are Coming to Medicare
The recent budget deal in Congress included some changes in Medicare that haven’t received enough attention. The two-year budget deal in early February included a bill called the Creating High-Quality Results and Outcomes Necessary to Improve Chronic Care Act, also known as CHRONIC. The bill had passed the Senate in October and was rolled into […]
6 Estate Planning and Trust Strategies Most Affected by Interest Rates Changes
It still comes as a surprise to so many retirees… The outcome of key estate planning strategies often hinges on fluctuations in interest rates. So clearly, changes in rates should sway the choice, or timing, of these strategies. Some estate planning strategies generate more benefits when interest rates are low, while others provide more benefits […]
Tax Diversification for Retirees: Use It to Make Tax Reform Even Better
Tax reform made tax diversification even more valuable and important. Tax diversification allows you to manage your tax bracket by planning and controlling distributions during retirement. When properly done, under the new tax rate tables, many middle-income retirees will be able to stay in the 0% federal income tax bracket for most of retirement. To […]
Social Security Shortchanges Widows, Widowers
Not for the first time, the Social Security Inspector General issued a report concluding that the Social Security Administration systematically shortchanges widows and widowers. Here’s how it works. When a spouse dies, a surviving spouse who is younger than age 70 has a choice to file only for a survivor’s benefit now and to later […]
Overcoming a Major Threat to Your IRA: Your Heirs
To increase the odds your IRA will last for a long time, be sure your beneficiaries know what they need to do. Many people have substantial balances in traditional IRAs. Often, a prime goal is for the IRA to help provide for the next generation or two. One way to do so is with a […]
