You have already pledged to start on the road to physical fitness in the New Year. Congratulations and good luck! But have you considered your “Fiscal Fitness?” It is an equally beneficial exercise,no pun intended! You may ask, “how do I get started?”
January 19, 2022 – Below, I have offered what I call the “FIVE FUNDAMENTALS OF FISCAL FITNESS”: Pay Yourself First – Savings and Retirement: Save at least 10% of your annual income, including retirement savings. Begin by saving a liquid cash reserve. Once you have achieved sufficient liquidity, direct savings toward balancing and building your […]
Why is my portfolio underperforming the market?
January 12, 2022 – Few personal finance topics get more attention than how to manage money. Interestingly, writers, speakers, and professional money managers educate those who pay little attention to the subject but have the money to manage. Based on recent financial literacy statistics, the goal of educating the American public on personal finance topics […]
Silver Linings Playbook
January 12, 2022 – The New Year has thrown us an immediate curveball with the marked spread of the Omicron variant. I know many families and friends who have tested positive but, thankfully, are experiencing minor side effects or are asymptomatic. However, the rapid pace of transmissions is very problematic. We continue to live under […]
What changes will be taking effect in 2022 that may impact me or my business?
January 6, 2022 – Despite the media’s focus on proposed tax changes for 2022, none have taken place to date. However, Your paycheck will change: Tax brackets have widened, leading to higher tax withholding. Earnings, subject to social security tax, are now $147,000, an increase of $4,200. Maximum contributions to qualified plans (e.g., 401k) have […]
I am considering buying the “Twelve Days of Christmas” gifts for a special person. How much $$ would it set me back, and has inflation affected the cost?
December 22, 2021 – I would make sure this special person is, well, exceptional! The 2021 price for each gift (no repetition) would be $41,205, a 5.4% increase over 2019 and more than double the turn of this century price of $20,989. But like most of the economy, the details showed some variation. A swimming […]
My spouse and I cannot agree on who to appoint as guardians for our minor children. It is holding up the execution of our estate documents. What should we do?
The use of wills and trusts can be traced back to ancient Greece and Rome. The law surrounding the transfer and protection of assets, including guardianship of children, is well established. If you do not document your wishes in this regard, the courts will decide for you. Here are some tips if you cannot decide on […]
How do I withdraw money from a 529 Account?
December 8, 2021 – Here is a step-by-step outline of how to determine the amount of tax-free 529 plan savings that can be withdrawn: Only “qualified education expenses“ can be withdrawn tax-free. First, add up college expenses, including tuition, fees, books, supplies and equipment, and room and board if the student is enrolled on at […]
January 2022 Monthly Letter
+31.49%, +18.40%, +28.71% – any guesses as to what these are? They are the last 3 annual total returns of the S&P 500 Index. Compounded in that sequence amounts to a 200% return in 3yrs. It’s hard to find a better 3yr string. Actually, it isn’t that hard, ’97-’99 was a better 3yr string and […]
Approach Your Golden Years with Health Care Confidence
January 6, 2022 – “He who has health has hope, and he who has hope has everything.” This quote by the 18th-century Scottish philosopher Thomas Carlyle sums up the importance of being healthy. Maintaining good health is a high-stakes opportunity that is addressed every day by people worldwide. Good health typically is one of our […]
Social Security and Divorce
By Pam Friedman January 6, 2022 – The first thing to know about social security payments in retirement is that your divorce terms do not determine how much social security you’ll get FROM SOCIAL SECURITY e.g. the government program that is social security. Here are the two general rules for social security: If you […]
I was my husband’s IRA beneficiary at the time of his death in 2020. The IRA was transferred in 2021. Are RMDs required?
December 1, 2021 – The question of who must take the year-of-death RMD is tricky. This client’s question has an interesting twist because RMDs were waived in 2020. The answer is relatively straightforward. If the IRA owner did not already take the year-of-death RMD before death, it must be taken by the beneficiary. It is not […]
Clients are always looking for effective ways to carry out their charitable intent. We often recommend starting a Donor Advised Fund (DAF). “What is a DAF?”
November 24, 2021 – A “Donor Advised Fund” is a charitable giving vehicle, administered by a public charity, to manage donations on behalf of individuals and families. It allows donors to make a charitable contribution, receive an immediate tax deduction, and recommend grants over time. Donors can contribute to the fund as frequently as they […]