Fee-Only Financial Planning Advice

Your Financial State of the Union

Feb 04 2020

Tonight, the President of the United States will deliver a State of the Union address. This practice was first referenced in the Constitution, which states that the President will inform Congress “from time to time”. Over the years, the format has changed: our first two presidents addressed congress personally; Thomas Jefferson sent written messages and the presidents after him did the same until Woodrow Wilson. And as technology has advanced, the public has had the opportunity to participate, via radio, then television, and now webcast. (https://fas.org/sgp/crs/misc/R44770.pdf)

No matter where you stand politically, you can see the practicality of …

Arm Yourself with Information to Stop Tax Identity Theft

Jan 28 2020

Next week (February 3-7, 2020) is Tax Identity Theft Awareness Week and you need to know that you can fall prey to scammers whether they contact you directly or find some behind-the-scenes way to operate.

A scammer can obtain your Social Security number illegally and file a tax return without your knowledge, The thieves will make off with your tax return and there is a good chance you will only realize what has happened once you file. If a fake return has been filed, the IRS won’t accept yours. You will need to wait for the IRS to complete its investigation …

Yes, You Can Practice Being Retired

Jan 07 2020

The practice of offering consumers the chance to take a vehicle they might buy on a test-drive has been in place for a long time. And a few years ago, realtors got into letting people “test-drive” homes by spending the night in them. And in “Test-Drive Your Retirement,” Kiplinger.com suggests that instead of just outlining your retirement goals on paper, you actually take those goals for a test-drive to see if the retirement life you are planning will really work for you.

Location, Location, Location: You would expect to be advised to try for an extended stay in …

IRA Contributions after the SECURE Act

Jan 06 2020

Following our articles last week – SECURE Act RMD Rules and The SECURE Act and Student Loans – today we’ll cover IRA contributions after the SECURE Act. A big change in store here for folks who are still working later in life, but not really earth-shattering.

With the passage of the SECURE Act, the prohibition for IRA contributions after age 70½ is lifted. Previously, once you hit that magical age, you were no longer allowed to make contributions to an IRA.

Employer plans, such as the 401(k) have always allowed contributions to continue as long as the employee was still …

The SECURE Act and Student Loans

Jan 03 2020

The recent passing of the SECURE Act brought about some changes that have impacted savers and retirees alike. Required minimum distributions (RMDs) from retirement account have now been raised to age 72. Also, gone is the ability to “stretch” required distributions from retirement accounts to non-spouse beneficiaries (with few exceptions).

One potentially beneficial change comes from the broadening of the expenses 529 college savings plans can cover. 529 plans are tax-advantaged savings plans that allow parent, grandparents, and other relatives to save money for education. Contributions grow tax-deferred and withdrawals for qualified expenses are tax-free. In the past, qualified expenses …

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