Retirement Watch Weekly
All the Ways You Can (Legally) Avoid Probate
Avoiding probate often is a major estate planning goal, but most people don’t learn all the strategies available. In probate, a deceased person’s estate is administered and distributed according to state and local law. The process ensures debts are paid and legal title to assets passes as the decedent wanted, or according to state law […]
How Investors Undermine Their Forecasts
Investors have been on a roller coaster ride of their own creation for the last couple of years. Each time inflation cools and the economy slows, investors become ebullient. They conclude the Fed is about to cut interest rates rapidly and significantly. That anticipation of easy monetary policy leads to reduced interest rates and lifts […]
What You Should Know About the New Medicare Prescription Drug Spending Limit
In 2024, Medicare beneficiaries start to benefit from prescription drug coverage changes in recent laws, but the benefits won’t be as generous for some as they expected. The phaseout has begun of unlimited out-of-pocket prescription drug spending for Part D policyholders. The changes apply to those who have Medicare Part D prescription drug insurance. Those […]
Why Line 11 Is the Most Important Number on Your Tax Return
When you’re in or nearing retirement, the most important number on your income tax return isn’t gross income or taxable income. It isn’t even the total tax bill. You want to closely monitor line 11 on the first page of the 2023 Form 1040, your adjusted gross income (AGI). Congress knows retirees have the bulk […]
Surviving Spouses Now Have More Rights in 401(k) Plans
Surviving spouses who are beneficiaries of 401(k) accounts have choices similar to those when they inherit IRAs, but there are important differences. The first step is to contact the plan administrator and determine the options allowed. While the tax code permits several options, a plan doesn’t have to offer all of them. Historically, 401(k) plans […]
What the SECURE Act and Recent IRS Regulations Mean for Spouses Who Inherit IRAs
Some of the most important decisions a surviving spouse will make are how to handle inherited IRAs and 401(k)s. Yet, advice for surviving spouses has been overshadowed by changes made for non-spouse beneficiaries since the enactment of the Setting Every Community Up for Retirement Enhancement (SECURE) Act in late 2019. The SECURE Act famously eliminated […]
3 Trusts Married Couples Should Consider for Their Wills
Trusts have fallen out of favor as part of the wills of married couples, and that could be a mistake for many. Trusts created in wills are known as testamentary trusts. The portability of an unused lifetime estate and gift tax exemption from one spouse to another is the main reason testamentary trusts are used […]
17 Record Highs in 50 Trading Days
The S&P 500 set 17 record closing highs in the first 50 trading days of 2024 through March 13, according to Bespoke Investment Group. That’s the most record highs to start a year since the 20 in 1998. Here’s another bit of investment trivia: There have been only five years since 1953 that record highs […]
