Fee-Only Financial Planning Advice

New Advantages to Long Term Care Planning

Aug 18 2020

Disclosure: This article is sponsored by Navy Mutual.

Have you ever considered long term care coverage? If not, you should. An overwhelmingly large percentage of the population will need some form of long term care as they age.

As many as 69% of the people turning 65 this year will need some level of long term care. 15% of those people will spend $250,000 or more on those care costs.

Let that sink in for a moment. Without proper planning, long term care expenses have the potential to significantly impact your life savings or create an excessive financial burden …

IRA Rollover Waiver Denied When Funds Used as a Loan

Aug 17 2020

A recent Private Letter Ruling (PLR) from the IRS may be of interest to IRA owners who are thinking about using IRA funds as a short-term loan. There are a couple of factors in this ruling that you need to understand if you’re looking to use IRA funds for a short-term loan (hint: it’s not recommended!).

PLR 202033008 was issued August 14, 2020. The taxpayer had, upon the advice of his real estate agent, taken a withdrawal from his IRA in order to purchase a home. At the time, his old home had not yet sold, so he needed a …

Is It Time to Rethink the Emergency Fund?

Aug 14 2020

For the longest time in wealth management the recommended amount of money to have in an emergency fund has been three to six months of non-discretionary expenses (mortgage, rent, utilities, groceries).

Typically, three months was the recommendation for a single individual or married couple with dual incomes. Six months was generally for married couples with one income earner.

Every so often, something comes along challenging conventional wisdom, and that can be a good thing. In this case, it’s a pandemic that’s changing how we think – about many things.

The pandemic has wreaked havoc on many lives. People have been …

Online Learning: Budget for the Costs

Aug 11 2020

Some parents in online parenting groups are joking that they bought pajamas in preparation for the upcoming school year because they children will participate in online learning. They laughed over saving on back-to-school clothes since their children will not be in the classroom. But the truth is that learning at home, no matter the setup, may not save money. Parents who already homeschool know that there are costs associated with purchasing certain curriculums as well as buying supplies. If you haven’t done any financial planning for distance learning, here are some expenses to consider and factor in to your budget…

Inherit an IRA? Don’t forget to name a beneficiary!

Aug 10 2020

After the death of a loved one, there are many things that you have to deal with, not the least of which is handling your own emotions and grief over the loss. In addition to this very difficult transition, there often are lots of financial things to take care of as well. One of those matters is to make sure you have your own beneficiary designations properly assigned to any inherited IRAs or other retirement plans.

As with any IRA, if you haven’t properly designated a beneficiary, you’re dependent on the IRA custodian’s rules (and often your state probate rules) …

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