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 […]
Is an Annuity a Good Choice for Retirement Money?
Convert Your 401k to Roth Under New Law
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 […]
Fiscal Cliff Averted- But Is It Enough?
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 […]
Keeping Your New Year’s Resolutions
How many of you have made a New Year’s resolution only to break it within a few weeks or months? I see quite a few raised hands, including my own. Why do you think it’s so hard to keep these important promises we make to ourselves? My experience is that our resolutions lack the elements necessary for […]
With the Fiscal Cliff Coming, Is My Money Market Safe?
Question: With all the upcoming changes is it safe to keep your money in a savings account? Or should you invest in Gold or some other safer investment? R.K. Answer: I assume you are not referring to the Mayan calendar that some folks think predicts the end of the world on December 21st, but rather the fiscal […]
Understanding IRA Required Minimum Distributions
One thing I love about writing this column is that if I make a mistake or create confusion, readers are quick to let me know! I always strive for perfection and typically have one or two other professionals review my column before sending it to our editor but sometimes there are still mistakes…as from last […]
Tax Benefits of Charitable Donations
Question: I am retired and gross $156,000 per year in income from my retirement account. I net $9,998 after taxes per month. I donate $400 per month to my church. How much of that is deductible and how much does that reduce my tax bill? T.W. Answer: Assuming that you itemize deductions and are married […]
5 Year-End Tax Saving Strategies
As 2012 quickly comes to a close, now is the time to sit down and consider what you might do to reduce your April 15 tax bill. This year will be a particular challenge because Congress is planning significant changes to the tax laws and we may not know the new rules until after December […]
Don’t Drop that Long-Term Care Policy!
Eighty million Baby Boomers are headed for the retirement exits and many will face a significant rise in medical costs during their retirement years. Your choices include self-insuring these potential expenses or hedging your bets by purchasing long-term care insurance. We had one case where both the husband and wife required around-the-clock nursing care at an […]
Black Friday- Winning the Game!
With Thanksgiving fast approaching, we each have so many things to be thankful for including living in the greatest nation in the world. The day after Thanksgiving, Black Friday, marks the official kick-off of the holiday shopping season and with a bit of planning you can get great deals on gifts without starting the New […]