Retirement Watch Weekly
Pension Lump Sum Payouts to Decline
Lump sum pension payouts are likely to fall for many retirees over the next few years. The Pension Protection Act of 2006 changed the rules for computing payouts, and they apply retroactively. The new rules affect people in old-fashioned defined benefit pension plans. These are the plans that guarantee annuities to members at retirement. Members […]
How to Evaluate Free Financing Ads
Flip through the ads in the newspapers and you will find offers for attractive financing of purchases of high-ticker consumer items. The offer usually states there is no-interest for a period of one year to three years. The offers are most likely to cover purchases of electronics (such as big screen televisions) and furniture. Are […]
How to Make Unlimited Tax-Free Gifts
Anyone can make unlimited tax-free gifts. The strategy gets wealth out of your estate, and unlike many other gifts, you can be sure of how the money will be used. The strategy of maximizing tax-free gifts is growing in popularity, especially since the change in Congress makes it unlikely that elimination of the estate tax […]
How Long-Term Care Insurance Can Reduce Risk
Most people evaluate long-term care insurance the wrong way. Sales approaches also often stress the wrong factors. LTCI should be analyzed in much the same way we analyze investment opportunities. Fear often is the focus of LTCI discussions. Scary statistics are used to try to convince consumers that they need the policies to protect them […]
Tax Reduction Opportunities for 2006
There still is time to make some valuable year-end tax planning moves, and this year there are some special opportunities to reduce tax payments. The Alternative Minimum Tax. The AMT snares more taxpayers each year, taking away tax benefits and pushing up tax bills. Basically, we have two tax systems, the regular tax and the […]
Wealth Replacement Strategies with Trusts
As we discussed in the legacy planning segment, grandparents and parents usually have multiple goals, and it can take some thought to put together a plan that tries to meet all or most of those goals. One tool that can add a lot to a plan is the wealth replacement trust. That is a clever […]
Social Security and Your Spouse
Benefits for a spouse are among the least understood part of the Social Security program. Your earnings and your decision of when to begin benefits affect the benefits received by your spouse and even by an ex-spouse. Every married person eligible to receive Social Security benefits looks to two work records to determine the amount […]
Building the Legacy Plan
What is your legacy plan? Most people are familiar with estate plans. The goals of the estate plan are to ensure that assets are transferred to the people you want in the most efficient manner, that is with the smallest burden in taxes and other expenses. The standard estate plan includes a will, a financial […]
