Most Couples Shouldn’t BOTH Delay Social Security
Key Takeaways: Two-income households have more complex Social Security timing decisions The higher-earning spouse generally benefits from delaying payments The lower-earning spouse generally benefits from starting payments early We’ve written a previous breakdown on the Social Security timing decision. Briefly, between ages 62-70, if you delay taking income, your monthly benefit grows. We discussed that […]
Tax Savings on Company Stock
If you work for a publicly traded company, chances are you can own company stock inside your 401(k) retirement plan. We’ve seen many workers nearing retirement who have accumulated substantial shares of company stock. These workers are often unaware that they have an option with the tax treatment of these shares that could potentially result […]
Putting a Value on Your Social Security Benefits
Key Takeaways: Most retirees don’t think of Social Security as an asset and therefore exclude it from their balance sheet. The present value of Social Security payments over an average life expectancy can easily be several hundred thousand dollars. We can’t predict what will happen with Social Security down the road, so it is important […]
Evaluating the Benefits of Flex Spending and Health Savings Accounts
Most employees face countless and confounding options each year when they select their benefits. There is no unanimous choice in any benefit area, it really comes down to what the employee needs and will benefit from most, particularly long-term. Flex spending accounts and health savings accounts are very common options these days, particularly as employers […]
Social Security Income: Not-So-Simple Basics
When I first started writing this article, my introductory sentence was “Social Security on the surface is a very simple concept.” However, as I began to write about all of the “simple” information, I have to conclude that Social Security is not very simple at all if you are not continually dealing with it. Below, I […]
Managing a Household Allocation
One of our mantras in planning is to “Know What You Own.” Peter Lynch popularized this term during his management of a Fidelity mutual fund in the 1980’s, and we think it applies to more than just investments. Your home, your health insurance, your business, and yes, your investments each have features, risks, and opportunities […]
Pre-RMD & Social Security Roth Conversions
Key Takeaways: Roth conversions should be especially considered if retired and not yet 70 years old. Withdrawing pre-tax funds and paying taxes before Social Security and Required Minimum Distributions (RMD) may result in less tax paid on those funds over the long term. Careful retirement income tax planning prior to age 70 may present significant […]
Cash Flow Planning and Long Term Care
One of the most challenging planning areas for us as practitioners is Long Term Care. In principle, it should be easy to universally recommend everyone go out and buy a Long Term Care policy that pays for skilled nursing needs at the end of their life. However, we have found planning in this area to […]
The Investor Taxation Lifecycle
We are not CPAs nor are we tax preparers, but a great deal of our time is spent working with clients and their professionals honing a financial plan that is tax efficient. We advise our clients to hire a CPA with whom we can work together to manage their financial plans. The financial plan and […]
Alternative Uses of Social Security Income
Key Takeaways: If you live a longer than average life, you will very likely receive more in Social Security if you wait until age 70 to claim. However, in numerous situations, we have advocated for earlier enrollment if the client’s situation justifies doing so. In most of these instances, the rationale is a combination of […]
When Too Much Tax Deferral Becomes Counterproductive
Click here to watch video in new window. Most of us have been told from early on in our careers to defer as much income as possible to ensure we’ll be properly prepared for retirement. While not bad advice, most of these strategies involve only qualified deferrals, meaning all income tax gets punted until the […]
Give and Get: Qualified Charitable Distributions
Key Takeaways Tax reform has decreased the households who itemize to about 10% of taxpayers. Those who don’t itemize may not realize tax benefits from charitable donations. Qualified Charitable Distributions help donors above age 70 ½ realize a tax benefit. Donors younger than 70 ½ should consider the timing of their contributions. With Scottie Scheffler […]
