Gifts that give back: Can the Qualified Charitable Distribution help fill a void in charitable giving?

Following the passage of the Tax Cuts and Jobs Act in December 2017, the law’s impact on charitable organizations has come to the fore. Although the law provides for an increase in cash gifts to public charities from 50% of the donor’s adjusted gross income (AGI) to 60% of AGI, the donor must itemize their deductions to realize a tax benefit for their gift. The new law’s increase in the standard deduction to $12,000 for single filers and $24,000 for married couples filing a joint return is expected to result in a sharp reduction in the number of households that itemize their deductions, reducing the marginal tax benefit of gifts to charity by more than 25%. The impact of the law on charities remains to be seen, but with an estimated 72% of charitable gifts coming from individual donors it may be profound. Fortunately, the Protecting Americans from Tax Hikes (PATH) Act of 2015 has made permanent a hitherto underutilized incentive for older Americans to give to charity. The Qualified Charitable Deduction (QCD) is in vogue once again. Continue reading

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Retirement Income Planning: a practical framework for approaching retirement

retirement-img-25Feb15People face many questions as they transition from work to retirement, but perhaps none more daunting than how to provide a reliable income stream without running out of money. While accumulating assets is a necessary part of retirement planning, at most levels of wealth, it is not sufficient to ensure a worry-free retirement. Continue reading

Medicare’s IRMAA Blows Ashore in 2018

Medicare open-enrollment season is here again, running from October 15th-December 7th.  During this period, the roughly 45 million Americans enrolled in Medicare have the opportunity to review their current coverage and make changes for the upcoming year.  It’s also the time when Medicare recipients are reminded of the costs associated with their coverage, and how these might change going forward.  And while some costs are expected to remain stable, or even decrease slightly, in 2018 an increasing number of higher-income enrollees will be subject the Medicare’s Income-Related Monthly Adjustment Amount (IRMAA), which increases their Medicare Part B and Part D premiums.
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How the Tax Cuts and Jobs Act Affects You

On November 2nd, following months of buzz but few details, the House of Representatives introduced the “Tax Cuts and Jobs Act”, the opening salvo in what is sure to be a contentious process of turning complex legislation into law before Congress’s self-imposed year-end deadline. Continue reading

2017 Medicare Open Enrollment Checklist

healthcareIt’s that time of year again. If you’re one of the roughly 45 million Americans enrolled in Medicare, get ready for some year-end shopping. Medicare open enrollment for Medicare Supplement and Advantage plans and Medicare prescription drug plans runs from October 15th until December 7th. Open enrollment presents a great opportunity for seniors to manage their health care costs for the coming year. Continue reading

Life Insurance Awareness: managing policies, and disposing of those you no longer need

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September is life insurance awareness month and serves as a good reminder that life insurance is an asset and, just like most any other investment, requires ongoing monitoring. Continue reading

Highly Effective Social Security claiming strategies designed to maximize your benefits

Money imageSocial Security benefits provide the foundation that most Americans will rely on in retirement, and decisions related to the claiming of benefits can have a profound impact on retirement income and overall quality of life. Despite the heavy reliance on Social Security- it provides over 90% of the retirement income for one in three recipients-less than 5% of seniors avail themselves to strategies designed to maximize their benefits. Continue reading

Making the most of Social Security Retirement Benefits

Beach photoThe importance of Social Security cannot be overstated. The program provides approximately 60% of America’s seniors with half of their monthly retirement income, and for a third of recipients it comprises over 90% of their income. Despite this heavy reliance, less than 5% of seniors avail themselves to strategies designed to maximize their lifetime income and relieve the burden of poverty in old age.   Continue reading

Ready to Retire? How to Properly Frame the Investment Allocation Conversation.

Retirement puzzleYoung investors are often told to embrace risk in their portfolios. The ups and downs of the markets are an ally in the pursuit of long-term growth, and losses only matter when they’re realized. Rarely is this common and often correct advice applied to investors that are nearing retirement. But indeed it should. Not because sixty is the new forty, but because investment allocation decisions should be based on when the invested funds will be needed, not on how old you happen to be. Continue reading

How Planning for a Long Life Impacts your Retirement Income

Nest Egg with large billsRetirement planning involves a delicate balance between adequately planning for a long retirement and maximizing the enjoyment of the money you’ve worked hard to accumulate. In most cases, a retirement that lasts 35 years will require far more financial resources than will one that lasts 20 or 25 years. What is more, the final years of retirement may be the most expensive, as costs associated with chronic or end-of- life care come due. Advances in medical technology have extended life expectancy for many, but certainly not all, demographics. Longevity is a critical consideration of retirement planning, but so too is recognizing that living to an advanced age demands more retirement savings or a lower lifetime income, and whether this is justified based on your current health, lifestyle and family history. Continue reading