Common goals of many folks is to build up their estate assets so that they can live comfortably during the Golden Years and – hopefully — have a nest egg left to pass down to their children, grandchildren, and/or other loved ones. These goals could be threatened, however, if the hard earned assets are put at risk – and they could be at risk without you even realizing it. The best way to protect your assets, your future, and your loved ones is to include asset protection planning as a component … [Read more...] about Asset Protection Planning: Should You Be Worried?
We regularly get inquiries from our clients who are recipients of an inheritance. An ever increasing asset that is being inherited is a retirement account such as an IRA. Special considerations must be attended to when inheriting an IRA because of their special characteristics. In this blog, we'll discuss some of these considerations. Don’t automatically request to cash in the IRA. The income tax repercussions could be great and there are better options. If you opt for a lump sum … [Read more...] about Tips When Inheriting IRAs
When you are living on a fixed income, there are challenges, because the cost of living is typically going to rise year-by-year. To account for this, the Social Security Administration can apply annual cost-of-living adjustments if the consumer price index justifies an increase. Increases are quite modest when they are applied. As a case in point, there was a cost-of-living adjustment for 2015, and it was just 1.7 percent. That doesn't sound like it would help much, but things are even worse … [Read more...] about Bad News for Social Security Recipients
The term "retirement planning" can trigger some beautiful thoughts. You can sit back, look out the window, and imagine all the things that you will be able to do during your active retirement years. This vision may include plenty of time on the golf course, fine dining, and exotic travel to all of the places that you always wanted to experience when you were busy traversing your career path. Without question, if you take the financial end of retirement planning seriously, your golden years can … [Read more...] about Holistic Retirement Planning: Look Past the Active Years
When you are looking ahead toward your retirement years, you probably view Social Security as a future financial foundation. Without question, most people are going to rely upon Social Security to one extent or another, so you should know all of the facts. Retirement Credits You do not automatically qualify for Social Security when you reach a particular age. To qualify for Social Security, you have to accumulate sufficient retirement credits. You earn these credits while you are paying FICA … [Read more...] about When Will I Qualify for Social Security?
On the surface, the value of an individual retirement account is self-explanatory. You contribute into an individual retirement account so that you have a nest egg to draw from during your golden years. However, when circumstances are right, an individual retirement account can also be useful from an estate planning perspective. Let's look at the details. Traditional Individual Retirement Accounts You would contribute into a traditional individual retirement account with pretax earnings. This … [Read more...] about Can an IRA Be Used for Estate Planning Purposes?
Most folks know that an IRA can provide you with a financial underpinning during your retirement years. However, did you know that you can also use an individual retirement account as part of your estate plan. Let's start by looking at the two types of IRAs - traditional and Roth. A traditional individual retirement account is funded with pretax earnings. One can begin taking penalty-free distributions from the account when you are 59.5 years of age. Because you didn’t pay taxes on the funds … [Read more...] about Estate Planning with IRAs: Traditional v. Roth
A recent U.S. Supreme Court decision, Clark v. Rameker, will have big implications for clients. In the Clark case, the Supreme Court held that, while a person’s own IRA can be protected in the case of bankruptcy, the court has determined that an inherited IRA cannot, at least when it is inherited by someone other than a spouse. While that is big news for those who have already inherited an IRA, it is a call to action for those planning to leave one behind. Being aware of the consequences of … [Read more...] about How to Protect IRAs Left to Your Beneficiairies
The growing number of baby boomers reaching retirement age has caused many people to re-examine their retirement plans in light of long-term care costs. As people age and their needs change, many of them have to go into a nursing home or assisted living environment to receive necessary care and assistance. What many people don’t realize is that the costs associated with such long-term care are usually something they have to pay for out of their own pocket. Unless you are able to qualify for … [Read more...] about Don’t Count on Medi-Cal For Long-Term Care
If you have decided it’s time to move to a retirement home or you are just thinking about it, there are some practical steps you can take to help make choosing the right home a lot easier. Investigating each elder care facility you are thinking about does not take a lot of effort, but you will want to have a plan in place. Here are several tips you can use to help get you started. Make several visits. Start by creating a list of all the retirement homes you think match your needs and budget. … [Read more...] about Some Simple Preparations Can Help You Choose the Right Retirement Home