...Before you invest your money by paying your own costs or footing the bill for a loved one to attend a particular college, understand that the responsibility for doing research and asking questions is on you...
...First, don’t wait to ask for more money if you truly need it. There is no telling what may happen to aid budgets in the coming months, given a likely deluge of families seeking relief from financial pain...
...Health Savings Accounts (HSAs) offer a further incentive for HDHP enrollment, as they provide a very attractive ‘triple-tax’ set of potential benefits...
...Specifically, the GPO rule applies to individuals who meet three criteria: 1) worked at a federal, state or local government job where they did not pay Social Security taxes; 2) qualified for a pension from that job (that did not pay into Social Security); and 3) are eligible to receive spousal or survivor’s benefits from a spouse who did work in a job covered by Social Security...
...These three maneuvers will tend to deliver a higher tax benefit than writing a check and deducting it, and may even improve your portfolio...
...the key point is that retiree should be aware of the circumstances under which the Windfall Elimination Provision applies to a retiree’s benefits, and the various rules around how their retiree’s total retirement benefit (as well as any family/auxiliary Social Security benefits based on the retiree’s own record) may be impacted by the WEP...
...A QCD is a direct transfer of funds from an IRA custodian, payable to a qualified charity, as described in the QCD provision in the Internal Revenue Code. Amounts distributed as a QCD can be counted toward satisfying your RMD for the year, up to $100,000, and can also be excluded from your taxable income (note-discuss with your financial professional regarding changes to RMD rules in December 2019 and how they might impact any QCD's)...
...the key point is that, although not nearly as sweeping as the Tax Cuts and Jobs Act of 2017, the SECURE Act of 2019 makes numerous updates to the rules around retirement plans in an effort to increase access to employer-sponsored retirement plans...
...Ultimately, the key point is that a QDRO offers some flexibility in planning strategies for both the Participant and the Alternate Payee. While the Shared Payment method must be used if the Participant has already begun payments when the QDRO is implemented, either the Shared Payment or Separate Interest strategy can be chosen if the QDRO is implemented before pension benefits begin...
...If you're signing up for employer-provided benefits, don't just re-up for last year's choices...
...Addressing portfolio problem spots often involves a tax bill; here's how to avoid paying extra and possibly even save...
...Everyone should start a small Roth IRA as soon as they can, so they will get the five-year waiting period started for every Roth IRA they will ever own...
...Tiny, nearly imperceptible changes can make a huge difference when you factor in time...
...Regardless, despite the upheaval, itemizing deductions is still a viable strategy to reduce overall tax obligations, and there are still six core deductions available to taxpayers, including: medical expenses (to the extent that they exceed 10% of Adjusted Gross Income); taxes paid to other governmental entities (both state or local municipality taxes as well as foreign governments, but with a $10,000 maximum deduction limit… regardless of filing status!); at least some types of interest paid (for not only mortgage interest – up to a $750,000 principal limit – but for investment purposes as well); charitable giving (but with limits); casualty and theft losses (but, for individuals, only if they were attributable to a Federally declared disaster); and other (miscellaneous-but-not-subject-to-the-2%-of-AGI-floor) deductions (such as gambling losses, among others)...
...If your income has indeed increased since you opened your credit card, and you have considerable self control over your spending, you should go ahead and update your income. The increased credit limit could actually boost your credit score...
...Once your son or daughter moves in, the room will never look like that again. Opt for sturdy items and be realistic...
...Some worries belong in the "unlikely to happen/deal with it when it actually does" bin...
...Tax-deferred accounts have long been a boon to savers, allowing them to earn additional growth on top of the growth without Uncle Sam taking a share. But tax-deferred doesn’t mean tax-free, and sooner or later, Uncle Sam will eventually take his share, since each and every retirement account is subject to Required Minimum Distribution (RMD) rules at some point...
...It’s probably low relative to your future earnings potential. It may even give you permission to dial back your own intensity – and spend some more quality time today with your family...
...When it comes to risk-taking, one size does not fit all. Each of us takes different types of risks at different times depending on our personal motivations. Our risk tolerance is relative to our life experience, unique personality, education, and situational factors...
