Year: 2013

 Reader Question:  I am 52 years old and would like to retire soon and we have our home and all property paid for with $1.5 million in savings. We have cash value life insurance policies which are requiring payments every year. Should we keep them as an investment or cash them out? Answer:  First, congratulations!  $1.5 […]

 Reader Question:  In a previous column, you discussed the exemption of tax on the profits for the sale of a personal residence ($250,000 for single filers; $500,000 for couples).  My questions are, “Do you include the costs of upgrades/renovations in addition to what you paid for your home?  And if there is a taxable profit, […]

When the economy tanks and unemployment rises, so does petty crime.  This has certainly shown up in my community in the form of home and vehicle break-ins.  Being robbed of your possessions is not the end of the world but it’s pretty disturbing and an unwanted distraction.  I recently became a victim when someone stole […]

 Reader question:  I plan to retire in the next 5-8 years at 58 years old and expect to have approximately $800,000 in my 401K plan.  I originally planned to move my 401K plan into a traditional IRA so I could have more control and more investment options.  However, I do not expect to need it […]

  With the generational bear market that began in October of 2007 we saw U.S. stocks, as measured by the S&P 500, drop 57%. The market bottomed out in March 2009 and since that time we have experienced a four-year bull market that brought the U.S. stock market to an all-time high. If you fear that […]

  Question: I am a 60 year old retired public employee with a defined benefit pension and a 403-b plan that I plan to begin drawing from in two years.  My allocation mix is 57% in an inflation adjusted bond fund, 17% in a US large cap stock fund and 26% in a real estate fund. […]

  Springtime is just around the corner and that means it’s almost time for spring cleaning. What I love about spring cleaning is the feeling of accomplishment once it’s done. It’s like you have removed all of the deadwood and are ready for new growth. Here’s how you can carry the concept of spring cleaning over to your […]

  Question: In 2012, I converted my IRA to a Roth and now realize that I owe approximately $16,000 in taxes on the conversion. This is in addition to the taxes on my wife’s regular earnings. Since I have not filed my 2012 tax return, can I convert back to a traditional IRA to avoid the $16,000 tax […]

  Question: I have a question about selling my home in 2013 (should I get so lucky!). I do not understand the new 3.8% tax (as part of the Affordable Care Act) on home sales. I am a widow; my annual income is far less than 100,000; I will not realize more than $250,000 over and above what […]

  Question: I recently read about using an IRA to own real estate. I am very interested in taking money in my IRA and buying a rental property. Do you have to have a specific kind of IRA? What are the pros and cons of this strategy? L.B. Answer: It is possible to own rental properties in your IRA and a […]