Should Retirees Pay Off Their Mortgage? A Balanced Decision

The age-old advice to pay off your mortgage before retirement is getting a modern makeover. No longer a universal rule, the decision to clear your home loan as you enter your golden years hinges on a mix of financial calculations and personal priorities. From comparing mortgage rates to investment returns to weighing the emotional relief of being debt-free, this choice shapes your retirement’s financial freedom. In this guide, we’ll unpack the factors that influence whether to keep or pay off your mortgage, helping retirees and

Mastering Social Security in Your Financial Plan

Estimated Read Time: 5 minutes Social Security is a vital component of financial planning, offering a safety net for retirement, disability, and survivor benefits for Americans of all ages. Whether you’re just starting your career, mid-career, or nearing retirement, understanding Social Security can help you make informed decisions to secure your financial future. Beyond providing income, Social Security requires strategic planning to maximize benefits and protect against risks like identity theft, which can jeopardize your financial stability. In this blog, we will explain Social Security

Protecting Seniors: Elder Identity Theft and Its Impact on Financial Planning

Estimated Read Time: 5 minutes Identity theft is a growing menace in our digital age, and seniors are often in the crosshairs. When a criminal swipes a senior’s personal details—think Social Security numbers, bank account info, or credit card details—it’s not just a minor inconvenience. It’s a direct attack on their financial security, unraveling years of careful planning. This blog dives into the world of elder identity theft, exploring why seniors are prime targets, how it disrupts their financial futures, and what practical steps can

Qualified Charitable Distributions

Estimated Read Time: 5 minutes Qualified Charitable Distributions, known as QCDs, are a great way to reduce your taxable income while supporting a favoriate charity. QCDs entail a direct transfer of funds from your retirement account to a qualified charity. QCDs allow you to donate money to a charity of your choice while also excluding the donation from taxable income. This can help lower your taxable income and may reduce the impact of certain tax credits and deductions. In this blog, we will explain QCDs

Year End Investment Ideas

Estimated Read Time: 8 minutes The last thing any of us want to have to worry about this holiday season is another time-consuming task. However, year-end investment planning is one thing you can do now that will help set you up for financial success later on down the road. Not to mention, it will give you a head-start controlling any taxes you might end up owing next April. By setting aside a small amount of time this holiday season to make some strategic saving and

Retirement: How Long Are We Talking?

Retirement isn’t a one-size-fits-all concept. The traditional image of a planned exit from the workforce followed by leisurely days of relaxation has given way to a more tailored approach that focuses on individual aspirations, financial circumstances, and personal preferences. As you move towards this significant milestone, understanding your options can empower you to create a retirement plan that aligns perfectly with your unique vision. In this blog post, we’ll discuss three common retirement options. Whether you’re dreaming of early retirement, considering delayed retirement, or planning

What is a Retirement Income Certified Professional and Why It Might Matter to You?

As we grow older, we start thinking more about the income we’ll have in retirement. We want to ensure a comfortable and secure future. This is where working with a Retirement Income Certified Professional (RICP) comes in handy. The RICP designation is a professional certification program that focuses on retirement income planning. It is designed to help financial professionals provide clients with the knowledge and tools they need to create a comprehensive retirement income plan. I was drawn to this program because I have seen

10 Years and Counting: Approaching Retirement

Estimated Read Time: 5 minutes 45 seconds If you’re a decade or so away from retirement, you’ve probably spent at least some time thinking about this significant life change. How will you manage the transition? Will you travel, take up a new sport or hobby, or spend more time with friends and family? Should you consider relocating? Will you continue to work in some capacity? Will changes in your income sources affect your standard of living? All of these questions can make the process seem

Estimating Retirement Income

Estimated Read Time: 4 minutes You probably already know how important it is to plan for retirement, but where do you begin? One of your first steps is to estimate how much income you’ll need to fund your ideal retirement. But that’s not always as easy as it sounds because retirement planning is not an exact science. Everyone will have different priorities when it comes time to retire. Your needs will be unique and depend on your expenses, goals, and lifestyle. The key takeaways from

Retirement Planning: The Basics

Estimated Read Time: 4 minutes You may have a very idealistic vision of retirement — doing all the things you never seem to have time to do now. But how do you pursue that vision? Social Security may be around when you retire, but the benefit you get from Uncle Sam may not provide enough income. Additionally, only a few employers today offer a pension that guarantees you a specific income at retirement. Furthermore, people are living longer and will need to find ways to

Is a Roth Conversion Right for You?

Estimated Read Time: 3 minutes One silver lining in the current bear market is that this could be an excellent time to convert assets from a traditional IRA to a Roth IRA. Converted assets are subject to federal income tax in the year of conversion, which could rack up a substantial tax bill. However, if assets in your traditional IRA have lost value, you will pay taxes on a lower asset base when you convert. If all conditions are met, the Roth account will incur

The Ins and Outs of Medicare

Estimated Read Time: 7 minutes Medicare is a federal program that provides health insurance to retired individuals, regardless of their medical condition, and to certain younger people with disabilities or end-stage renal disease. As you age, you are more likely to develop health issues and require additional care or medication. Coverage through Medicare can help to keep these medical costs down. In this blog we will explain the ins and outs of Medicare. The key takeaways of this blog are: ● Medicare

Planning for Incapacity

estimated reading time 4 minutes 58 seconds Incapacity — it’s a scenario few of us wish to consider. But what would happen if you were mentally or physically unable to take care of yourself or your day-to-day affairs? You might not be able to make sound decisions about your health or finances. You could lose the ability to pay bills, write checks, manage assets, or otherwise conduct your affairs. Unless you’re prepared, incapacity could devastate your family, exhaust your savings, and undermine your financial, tax,

Caring for Your Aging Parents

estimated reading time 7 minutes Caring for your aging parents is something you hope you can handle when the time comes, but rarely is it something that is planned for. Whether the time is now or somewhere in the future, there are steps that you can take now to make your life (and your parents’) a little easier. Some people live their entire lives with little or no assistance from family and friends, but today Americans live longer than ever. It’s always better to be

Tips for the Sandwich Generation

reading time 7 minutes 15 seconds At a time when your career is reaching a peak and you are looking ahead to your own retirement, you may find yourself in the position of having to help your children with college expenses or the financial challenges of young adulthood while simultaneously looking after the needs of your aging parents. Squeezed between the two, like two pieces of bread, you’re considered part of the “sandwich generation” – a group loosely defined as people in their 40s to

Maximizing Your Real Estate Inheritance: 3 Smart Moves for Pre-Retirees

Receiving an inheritance is always a significant event, but when it comes in the form of real estate, it can be a game-changer for your financial future. Whether it’s a family home, a rental property, or a piece of land, inheriting real estate can open up a world of possibilities for pre-retirees. In this article, we’ll explore three ways to use this gift to your advantage or benefit as you retire. 1. Generate Passive Income through Rental Properties One of the most common ways to

Inheriting Real Estate: Top 3 Concerns for Pre-Retirees

You’ve just learned that you’re going to be inheriting real estate, which can be a significant windfall and an excellent addition to your retirement plan. However, before you start counting your blessings, addressing some concerns that pre-retirees should consider is crucial. This article will explore the top three concerns you must consider as you prepare to inherit real estate. Understanding the Property The first and most critical concern is to gain a deep understanding of the property you’re inheriting. This goes beyond knowing its location

FAQ Regarding Silicon Valley Bank’s Failure

On Friday, March 10, 2023, Silicon Valley Bank was shut down by bank regulators. This piece is meant to be an overview of events. Note this is an event where next steps are being updated daily, so answers are subject to change. Information available as of March 13, 2023: What happened? Silicon Valley Bank (SVB) collapsed last week, with the FDIC now in control of the bank. The collapse of SVB marks the 2nd largest bank failure in US history (Washington Mutual was first), and

Deductible Home Office Expenses

If you use part of your home to conduct your trade or business, you might be able to deduct certain related expenses. To qualify for the home office deduction, you must pass certain tests. You must use part of your home regularly and exclusively for your trade or business. Exclusive use means that this space is not used for any nonbusiness purpose, such as watching television, during the tax year of the deduction. If the space is used for business only sporadically or occasionally, you

Sale of Vacation Home: Tax Considerations

What are some tax considerations associated with selling a vacation home? If you sell your vacation home and wish to know the tax consequences, you must first determine whether your residence qualifies as a vacation home in the eyes of the IRS. Assuming that it does, you should know how to treat capital gains and losses. You should also know what to do about closing costs. What is the tax definition of a vacation home? The tax treatment of your additional residence depends on how

Education Tax Credits and Deductions

What are the tax credits and deductions relating to higher education? There are two education tax credits — the American Opportunity credit and the Lifetime Learning credit — that provide some relief to families in the midst of financing their children’s college education. There is also a federal income tax deduction for individuals who are repaying student loans. As a general rule, a tax credit is a dollar-for-dollar reduction against taxes owed, and it is therefore more valuable than a tax deduction of the same

Understanding Tax Credits

What are tax credits? A tax credit is a dollar-for-dollar reduction of your tax liability. After you’ve calculated your federal taxable income and computed the tax on it, you can subtract any income tax credits that may apply to arrive at the amount of tax you must pay or the refund you’ll receive. What’s the difference between a tax credit and a tax deduction? A tax deduction reduces the income on which your taxes are calculated, and so only reduces your tax liability on a

SECURE 2.0 Act: Small Business Provisions

Bigger tax credit for start-up retirement plans. The SECURE Act improves the small employer pension plan start-up cost credit in three ways for tax years starting after 2022. First, it makes the credit equal to the full amount of creditable plan start-up costs for employers with 50 or fewer employees (up to an annual cap). Previously only 50% of costs were allowed (which still applies to employers with 51 to 100 employees). The Act also retroactively fixed a technical glitch that prevented employers who joined

SECURE 2.0 Act: Key Retirement Plan Provisions

Automatic salary deferral enrollment. For plan years beginning after 2024, the Act provides that a plan that permits salary deferrals generally will not be treated as a qualified cash or deferred arrangement or annuity contract unless it includes an automatic contribution arrangement (EACA) that satisfies these requirements: Exceptions: Automatic enrollment is not required for SIMPLE 401(k) plans, plans established before December 29, 2022, governmental or church plans, plans maintained by an employer in existence for less than three years or with fewer than 11 employees.

SECURE 2.0 Act: Provisions Benefiting Individuals

Tax-free rollovers from 529 accounts to Roth IRAs. After 2023, the Act permits beneficiaries of 529 college savings accounts to make up to $35,000 of direct trustee-to-trustee rollovers from a 529 account to their Roth IRA without tax or penalty. The 529 account must have been open for more than 15 years, and the rollover is limited to the amount contributed to the 529 account (and its earnings) more than five years earlier. Rollovers are subject to the Roth IRA annual contribution limits, but are

Choosing a Real Estate Investment

When thinking about whether to invest in real estate, the factors you should consider depend on what kind of purchase you’re considering and the reason you’re buying it. Real estate can help diversify an investment portfolio and serve as a hedge against inflation, but there are many ways to do that. Your reasons for buying will affect how you choose to invest in real estate. In turn, the form that your real estate investment takes will affect the factors you should consider in your purchase.

Types of Real Estate Investments

A real estate investment can be a fairly common transaction, such as the purchase of a primary residence, or it can be a complex commercial venture involving multiple investors and/or syndicates. When choosing a real estate investment, think carefully about your objectives for that investment. Your specific needs may suggest which form of real estate ownership makes the most sense for you. Each type of real estate investment involves differing risks and potential rewards. It is important to know what these are, and to determine

Introduction to Real Estate Investments

Real estate as an investment can be a way to diversify a portfolio and potentially serve as a hedge against inflation. Returns typically are derived from capital gains, tax credits, and/or rental and lease income. There are many ways to invest in real estate. Direct investment typically involves the purchase, improvement, and/or rental of land or buildings. Indirect investment typically involves the purchase of shares in an entity that invests in real estate, such as real estate investment trusts (REITs), mutual funds and exchange-traded funds

How to Breakdown Year-End Tax Planning

Estimated Read Time: 4 minutes The window of opportunity for many tax-saving opportunities closes on December 31, so it’s important to evaluate your tax situation now, while there’s still time to affect your bottom line for the 2022 tax year. In this blog, we will be breaking down the most important points to consider during your year-end planning process. The main points of this blog are: ● Timing is Everything ● Higher-Income Earners ● IRAs and

Taking Full Advantage of Employer-Sponsored Retirement Plans

Estimated Read Time: 6 minutes Employer-sponsored qualified retirement plans, such as 401(k)s, are some of the most powerful retirement savings tools available. They offer a convenient way to start planning for retirement and many employers offer a ‘match contribution’. Whenever possible, I encourage you to contribute the maximum amount allowed to your retirement plan, however, if you are unable to contribute the maximum amount, you should strive to contribute at least as much as the matching contribution. The trick may be understanding how it works,

Taking Full Advantage of Employer-Offered Life Insurance

Estimated Read Time: 5 minutes If your employer offers life insurance as a benefit, most likely it will be in the form of group life insurance. Group life insurance provides insurance for you and your fellow employees through a contract that exists between your employer and the insurance company, making you a third-party beneficiary. This type of insurance is similar to individual life insurance policies such as term, whole, and universal life. In this blog, we will discuss group life insurance as well as a

Taking Full Advantage of Employer-Offered Disability Insurance Plans

Estimated Read Time: 5 minutes The inability to work due to physical or mental incapacity can be a major problem when you least expect it. Taking advantage of your employer’s sick-leave plan or disability insurance plan can help alleviate some of the risks of the unknown. A sick leave plan can reimburse you for lost wages due to an illness or accident that lasts for a short period of time (usually no longer than six months). And disability insurance can provide you with benefits if

Taking Full Advantage of Employer-Offered Special Benefits

Estimated Read Time: 4 1/2 minutes Many employee benefits packages provide the usual retirement, vacation, health, vision, dental, basic life, and disability insurance benefits; however, some employers offer additional benefits. There are different benefit programs that can cover a variety of special circumstances. In some instances, they could be exactly what you need. Here are the key benefits that you will learn about in this blog: ● Dependent Care Assistance Program (DCAP) ● Education Assistance ●

Saving for Retirement and your Child’s Education

Estimated Read Time: 5 minutes You want to retire comfortably when the time comes. You also want to help your child go to college. So how do you juggle the two? The truth is, saving for both your retirement and your child’s education at the same time can be a challenge. But take heart — you may be able to reach both goals if you start making some smart choices now. The key takeaways are: Determining your financial needs? To understand your financial needs for

529 Plans: How They Could Affect Financial Aid Eligibility

Estimated Read Time: 4 minutes As the last blog highlighted, the financial aid process is all about assessing what a family can afford to pay for college and trying to fill the gap. To do this, the federal government and colleges examine a family’s income and assets to determine how much a family should be expected to contribute before receiving financial aid, which is often much more than a family can actually afford. Financial aid formulas weigh assets differently, depending on whether they are owned

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