Retirement Watch Weekly
How to Beat the Alternative Minimum Tax (AMT)
The Alternative Minimum Tax (AMT) is trapping more taxpayers than ever. Created to ensure that the wealthiest taxpayers pay some income tax regardless of the tax breaks they use, the AMT now ensnares many middle class taxpayers. A taxpayer first computes regular taxable income, then adds back a number of tax breaks. After subtracting an […]
How Planned Disclaimers Can Improve an Estate Plan
A key to successful Estate Planning these days is flexibility. Scheduled changes in the federal estate tax, and the possibility of additional changes, make flexibility essential. In past visits we have discussed language that can be included in wills to increase flexibility. Another tool to make available to your heirs is the disclaimer. Normally, disclaimers […]
Estate Planning for Pets
Often a pet is a cherished member of the household. If that is the case, you might want to include the pet in the estate plan. This is particularly true of single people or owners of unusual or exotic pets that the heirs of the property estate are unable or do not wish to care […]
Get Set for the New Medicare Surtax
Medicare beneficiaries are used to annual premium increases to go along with the rising cost of medical care. But in 2007 many will be surprised by the new means-tested premiums. Higher income beneficiaries will pay higher premiums. The amount of the increase in premiums will depend on the beneficiary’s income. The higher premium is called […]
New Tax Law Enacted
As we went to press, Congress was wrapping up a new tax law. The law has important provisions for investors. The key provision is that the 15% tax rate on dividends and long-term capital gains is extended through 2009. Congress still could not make the rates permanent, but at least got them past the next […]
TopReasons for Buying Real Estate for College
The room at college doesn’t have to be an expense. It can be a tax break, with the potential for income and capital gains. It also might be a way for parents or grandparents to acquire a retirement home or second home. You can get these benefits by purchasing a place for your grandchild or […]
Which Life Insurance to Buy?
Most Americans are confused about life insurance. They admit this and aren’t doing anything about it. That is unfortunate, because changes in the life insurance industry are very favorable to insurance buyers. Let’s take a look at the traditional debate of term insurance vs. whole life insurance. Term insurance is a “life insurance only” policy, […]
Is it a Good Time to Shop for Life Insurance
Anyone who bought term insurance more than five years ago should consider shopping for a policy again. Because of much longer life expectancy and higher investment returns, premiums on term life insurance have declined significantly. In fact, over the past decade term premiums have declined by about 50%. Insurers also are being more generous in […]
