Retirement Watch Weekly
Bob’s Journal for 5/9
Social Security Trust Fund Estimated to Last One Year Longer The trust fund that helps pay for Social Security retirement and survivors’ benefits is expected to run out of money in 2033, according to the latest annual report from the Trustees of Social Security and Medicare. That’s one year longer than estimated in last year’s […]
Bob’s Journal for 5/2
FDIC Changes Insurance for Trust Accounts The Federal Deposit Insurance Corporation (FDIC) changed its deposit insurance coverage effective April 1, 2024. The basic insurance limit of $250,000 per account still holds and most types of accounts aren’t affected. The changes affect trust accounts and effectively reduce the insured amount for some trust bank accounts. The […]
Markets Realize Rates Will Be Higher for Longer
Investors finally are accepting that the Federal Reserve is in a “forever war” against inflation. Beginning in early 2022, investors ignored strength in the economy and labor market and convinced themselves the Fed soon would bring interest rates back near zero. The furious stock and bond rally of November and December brought the yield on […]
Is It Better to Donate Cash or Property?
Taxpayers should give as much consideration to how they make charitable donations as they do to the amounts they give. They might deliver more benefits to both themselves and the charities. Cash contributions are the most common and easiest way to donate, and that includes donations made by checks and payment cards. The donor makes […]
How Retirees Use Tax Diversification to Slash Income Taxes
Tax diversification is a key to minimizing income taxes during the retirement years, especially when it comes to avoiding or reducing the Stealth Taxes directed at retirees. During the working years, many people use deductions and tax deferral to manage their tax brackets and tax burden. But during retirement, tax diversification provides a unique ability […]
Slash Taxes on Employer Stock in a 401(k) Plan
There are significant tax-reduction opportunities available when employer stock is held in a 401(k) plan. The opportunities are more significant now, as are the potential consequences of a suboptimum decision, because prices of many stocks increased significantly in recent years. Yet, many people diminish their benefits by rushing their decisions. The key tax break is […]
How to be Sure Your Roth IRA Distributions are Tax Free
The general rule is that distributions from a Roth IRA are tax free to both the original account owner and beneficiaries who inherit. But this is the tax law, so there are exceptions that could make a Roth IRA distribution taxable. Roth IRA owners must be aware of the five-year rule. In fact, details about […]
What You Should Know About Family Limited Partnerships
The family limited partnership (FLP) is a favorite tool of many estate planners. But it isn’t appropriate for every estate, and precautions are in order when it is appropriate. FLPs became a popular tool when the lifetime estate and gift tax exemption was much lower, and many more people had to worry about estate taxes. […]
