Our Commentary

  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 […]

  Question: I plan to do home improvements that will cost $35,000. I have saved $15,000 and while I know taking money from my IRA is generally not a good idea I’d rather do that than get a loan. What are your thoughts? J.R. Answer: Since you are under age 59½ you’ll face both income taxes and a ten percent […]

  Question: My wife and I are 76 years old and have owned a vacation property for over forty years which has appreciated from $30,000 to $250,000. There may be benefits to leaving it to our two children but I would like to stop the upkeep and preside over the sale myself. The children will eventually get the […]

  Question: My mother, 73 years old, has an annuity with an option to convert to a lifetime income. If she continues taking the Required Minimum Distributions (RMDs), eventually all of the principal will be consumed. When is the best point to exercise the option to convert to guaranteed fixed income for life?   Answer: First, let’s […]

  Question: Do the changes from the recent tax legislation have any impact on taxes for those with incomes under $450,000 regarding their withdrawals from deferred compensation and 401k plans? D. D.   Answer: One item that is new under this tax law is that everyone with money in 401k or similar plans is allowed to […]

  In a made for daytime TV soap opera drama, Congress and President Obama agreed on new legislation that avoided $600 billion in tax hikes on most Americans. This does not mean that higher taxes were avoided. All workers will see smaller paychecks because Congress allowed the 2% payroll tax holiday to expire. For earners making $50,000 per […]