Taxes in Retirement. Tax Rules That Await You in Your “Golden” Years.

Taxes in Retirement. Tax Rules That Await You in Your “Golden” Years.

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Published: February 11, 2019

Retirees face new tax issues when they stop working (or start working part-time). And it affects you whether or not you change tax brackets. Once retired, many of us will have less income than we had during our peak working years. And that implies lower taxes, but most also will have multiple sources of income. And that complicates tax payments for those who are used to a single source of income. There will be Social Security income, required minimum distribution income from tax-advantaged retirement accounts and perhaps other income from investments, property, freelance or part-time work, etc. So, instead of getting a

Retire At 55? Maybe. If You’re Up for a Challenge

Retire At 55? Maybe. If You’re Up for a Challenge

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Published: February 1, 2019

It’s you’re 25 years old and contemplating retirement 30 years hence, an age 55 retirement is a possibility – if you start planning now. Put away at least $350 per month and plan on increasing that amount of savings each year. If you’re approaching age 40 (or older) and you’d like to retire by 55, it may be a bit more challenging, although in many cases it is still possible – if you’re willing to commit to the changes needed to make it happen. Of course, there is a third option that doesn’t get considered as often as it should. Find work

An Introduction to Medicare Part B Premiums

An Introduction to Medicare Part B Premiums

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Published: January 28, 2019

Everyone knows (or should know) they can sign up for Medicare at age 65. In fact, given the uncertainties regarding health insurance over the past year or so, many are chomping at the bit to get there faster. What many don’t know, though, is that there are several parts to Medicare. Part A is the more commonly known feature of Medicare. That’s the part most people are thinking about when they refer to Medicare. But there are also parts B, C and D. Here are some common questions about Medicare Part B. What is the difference between Medicare Part A and Medicare

Don’t Get Pinged by the Social Security Earnings Limit

Don’t Get Pinged by the Social Security Earnings Limit

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Published: January 4, 2019

I’d like to introduce you to Peggy. Born in 1956, Peggy reached age 62 in 2018. She has worked in retail her whole life, the past twenty-five years spent in management. Peggy divorced from her husband 14 years ago, is still single and has no children. According to the Social Security Administration, Peggy’s Full Retirement Age (FRA) will be age 66 and four months which is when she will be entitled to full Social Security retirement benefits. FRA is a government set limit that varies based on your year, month and day of birth. FRA is gradually rising, and for those

2018 Arizona Tax Credit Limits

2018 Arizona Tax Credit Limits

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Published: November 24, 2018

The Arizona State Tax Credit program allows you to make a donation to an eligible organization and receive a dollar-for-dollar credit against Arizona state taxes owed. Donating to tax credit eligible organizations will most likely leave you in a tax neutral situation – meaning you’ll pay about the same total amount whether you use the tax credits or just pay the tax. But by donating you get a say in how the money is spent by choosing which of the tax credit eligible organizations you contribute to. You can contribute up to the amount of your expected Arizona tax liability. If you

6 Smart Year-End Tax-Saving Money Moves

6 Smart Year-End Tax-Saving Money Moves

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Published: November 10, 2018

Why is it, every year after Halloween, we are “shocked” to find that we are hurtling towards December 31st? As busy as it may get at year-end, make a promise to yourself. Find a way to steal two hours from your day to focus on something that will help you save money before heading into 2019. Sit down and estimate your 2018 taxes. Once December 31st passes, there is almost nothing you can do about your tax bill. A little planning now goes a long way. When you project what your tax return will look like BEFORE the year ends, you can identify

The Scoop on Fee-only Financial Advisors

The Scoop on Fee-only Financial Advisors

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Published: August 24, 2018

Do you know how your financial advisor is compensated? A lot of people don’t. And maybe you don’t care. But you should. It can impact your wealth and the quality of advice you receive. I heard about this first hand from a friend recently. She shared with me that her MBA-degreed 60 year-old-brother, Michael, admitted he didn’t know how his financial advisor Meg, affiliated with one of the country’s top brokerage firms, made her money. Michael, with $3,000,000 in investments, is a pretty savvy fellow. How could he not know how Meg earns her keep? Is she a fee-only advisor that

Best Retirement Investments for a Steady Stream of Income

Best Retirement Investments for a Steady Stream of Income

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Published: August 16, 2018

As you near your 60’s, your prime earning and saving years will transition into a period of time where you get to enjoy the “fruits of your labor,” a.k.a retirement. We call this segueing from accumulation to decumulation, the period when you will be drawing from your accumulated nest egg. You need to find the best retirement investments so that you can generate regular income, without having to go back to work. Here’s an overview of the most popular income-producing retirement investments. 1) Immediate Annuities Immediate annuities provide guaranteed income immediately (hence the name). They are a form of insurance rather than

How to Build a Retirement Portfolio That Will Stand Up Over Time

How to Build a Retirement Portfolio That Will Stand Up Over Time

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Published: July 5, 2018

When working and saving, the goal of your retirement portfolio is to earn as high a rate of return as you can while not taking so much risk that it will scare you into pulling out of the market during a downturn. Once retired, the goal changes. A different goal means a different portfolio. A retirement portfolio needs to produce reliable cash flows that last the rest of your life regardless of the variety of market conditions that occur over your retirement years. In other words, you need a retirement portfolio that remains standing under all conditions. There are four primary ways you

When Can I Retire?  Two Calculations (And a Bit of Philosophy) to Find the Answer

When Can I Retire? Two Calculations (And a Bit of Philosophy) to Find the Answer

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Published: June 1, 2018

The question is not “When can I retire?” it’s “When can I retire so I don’t run out of money in my lifetime?” Wouldn’t it be great if there were a simple answer to tell you how much you need to retire without financial worry? Everyone is different, and the right amount for you will be different than the right amount for your neighbor. However, there are calculations each of us can make to determine if we have enough to retire and live the life we want. Happy Retirees Plan Ahead While it makes sense to gauge how much you will need,