Month: June 2019

Can an IRA Be a College Savings Vehicle?

Jun 28, 2019

College Graduates
You might be surprised at its potential

An IRA is a retirement savings account, right? Indeed. IRA stands for Individual Retirement Arrangement. Even with that definition, however, there is no prohibition on using an IRA to save for other purposes, such as funding a college education.

Why would anyone choose an IRA as a college savings vehicle? At first glance it may seem strange, since there are other types of investment accounts specifically dedicated to that objective. On closer inspection, though, IRAs (especially Roth IRAs) present some features that may be quite attractive to the parent or grandparent who wants to build education savings.

Parents are urged to save for their children’s college education as soon as possible, but what if their children end up spending little or no time in college? (more…)



Helping Your Parents Manage Financial Tasks

Jun 26, 2019

Broken Puzzle Pieces
How can you make things easier on them later in life?

Worldwide, the number of people aged 60 and older is growing.By 2050, this demographic will be more than twice as large as it was in 2015.¹

Some of these seniors could face a financial test.Will they be able to look after their investments or financial matters at age 80 or 90 with the same level of scrutiny they exercised earlier in life?

Your parents may be facing such a challenge.If you sense that they are not quite up to it, then a conversation about financial issues could be in order.

If you need to have this kind of talk with your parents, it is best to proceed gently, while acknowledging some potential risks that may heighten if the status quo persists. (more…)



2019 Mid Year Outlook

Jun 25, 2019

thumbnail of 2019 Midyear Outlook



The FIRE Movement

Jun 24, 2019

Man working on his laptop
A radical new approach to working, saving, and retiring.

Retire before 50 and live your best life. That is the message of the FIRE (Financial Independence, Retire Early) movement, which is drawing interest worldwide.

Adherents of the FIRE movement contend that many young adults can pursue financial freedom and retire in their 40s (or 30s) through sufficient commitment, investment, and resourcefulness. Detractors think this idea is not only radical, but also radically unrealistic for many.

Is it really possible to retire so young? Actually, yes – there are people who have done it, and their stories often appear on financial websites. These early retirees tend to have some things in common. (more…)



Making a Charitable Gift from Your IRA

Jun 21, 2019

Retired Couple
Follow the rules and you could get a nice tax break on your reportable income.

Is your annual IRA withdrawal a bother? If you are an affluent retiree, that might be the case. The income is always nice, but the taxes that come with it? Not so much.

If only you could satisfy your yearly IRA withdrawal requirement minus the attached taxes. Guess what: there might be a way.

If you gift traditional IRA assets to charity, you could see some big tax savings. The Internal Revenue Service calls this a Qualified Charitable Distribution (QCD), and you may want to explore its potential. Some criteria must be met: (more…)

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Six Most Overlooked Tax Deductions

Jun 19, 2019

Tax Written on Paper
Deductions you do not want to miss

Who among us wants to pay the Internal Revenue Service more taxes than we have to? While few may raise their hands to voluntarily pay more taxes, Americans regularly overpay because they fail to take tax deductions for which they are eligible. Are you one of them? Let’s take a quick look at the six most overlooked opportunities to manage your tax bill. (more…)

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Tax Moves to Consider in Summer

Jun 14, 2019

Making changes earlier rather than later.

If you own a business, earn a good deal of investment income, are recently married or divorced, or have a Flexible Savings Account (FSA), you may want to think about making some tax moves now rather than in December or April.

(more…)

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Bad Spending Habits That Can Be Corrected

Jun 12, 2019

Americans have a great deal of disposable income relative to many other nations, yet our free spending can take us further and further away from the potential for financial freedom. Some people fall into crippling spending habits and injure their finances as a consequence.

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More Insights

Dec 1, 2021

Getting rich quick can be liberating, but it can also be frustrating. A sudden wealth windfall can help you address retirement saving or college funding anxieties, and it may also allow you to live and work on your terms. On the other hand, you’ll pay more taxes, attract more attention, and maybe even contend with … Continue reading “When a Windfall Comes Your Way”

Nov 29, 2021

  You may have seen this statistic before or one resembling it: the average 65-year-old retiring couple can now expect to pay more than $250,000 in healthcare costs during the rest of their lives. In fact, Fidelity Investments now projects this cost at $285,000. The effort to prepare for these potential expenses is changing the … Continue reading “Healthcare Costs are Cutting into Retirement Preparations”

Nov 24, 2021

Preparing for retirement just got a little more financial wiggle room. This week, the Internal Revenue Service (IRS) announced new contribution limits for 2022.

Nov 22, 2021

Financial markets can be challenging to understand. But when markets enter a “bad news is good news” cycle, it becomes even more difficult to follow along. Enter the Fed’s decision for tapering bond purchases.

Nov 19, 2021

The past year and a half have tested all of us, but overall, the economy continues to strengthen, COVID-19 trends are greatly improving, and this still relatively young bull market is alive and well. As the leaves turn colors and begin to fall to the ground, there are many reasons to be thankful.

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