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Categories for Financial Planning

  • Municipal Bond Outlook for 2024

    Posted Date February 1, 2024 Posted Time 12:00 am Published in

    🖨 Print⏱ 3 min readOne of the positive aspects of sustained high-interest rates is higher yields on bonds, particularly high-quality municipal bonds. It is possible that 2024 will present a different scenario as the Federal Reserve begins a schedule of monetary easing by reducing interest rates over time. The potential for this strategy, combined with a slowdown in inflation and economic growth – and exacerbated by the potential volatility of a U.S. presidential election – offers a hazy but ultimately positive outlook for municipal bonds. For now, investors with a long-term outlook (up to 10 years) can take advantage of... View Article

  • Considerations For Paying Off a Mortgage Early

    Posted Date January 1, 2024 Posted Time 12:00 am Published in

    🖨 Print⏱ 5 min readFor many, buying a home is the biggest asset they will ever own. However, you aren’t able to fully benefit from that asset until you pay off the mortgage; until then, it is technically a liability. The most common length of a mortgage loan is 30 years, but most people either sell their home, refinance their mortgage – or even pay it off before the end of that term. What are the pros and cons of paying off a mortgage early? Obviously, you no longer have to make monthly payments, so money can be directed elsewhere.... View Article

  • How to Manage Taxes in Retirement

    Posted Date December 1, 2023 Posted Time 12:00 am Published in

    🖨 Print⏱ 6 min readThe biggest difference between managing taxes throughout your career versus during retirement is that when you are retired, you are responsible for calculating how much you owe and paying it on a timely basis. Retirees normally have several different income sources, and not all automatically withhold taxes from distributions. Retirement Income Sources Having multiple sources of income during retirement is a good strategy, as it helps protect you from market declines, tax legislation changes, and potential defaults or cutbacks in pensions or entitlement programs. However, be aware that the more income sources you have, the more... View Article

  • 2024 Cost of Living Adjustments

    Posted Date November 1, 2023 Posted Time 12:00 am Published in

    🖨 Print⏱ 4 min readIn one year’s time, the U.S. inflation rate dropped by more than half, from 8.2 percent in September 2022 to 3.7 percent in September of 2023. If there is a downside to lower inflation, it’s a lower cost of living adjustment (COLA). This year, the inflation rate plummeted from 6.4 percent in January to the current 3.7 percent. While food prices, both grocery and dining out, continue to increase. Between February 2020 and September 2023, grocery store prices rose 25%. That was slightly above the 23% increase in menu prices during the same period. But a... View Article

  • Work and Social Security Benefits

    Posted Date October 1, 2023 Posted Time 12:00 am Published in

    🖨 Print⏱ 4 min readYou can work and still receive Social Security benefits, but how much you receive depends on a number of factors. First, if you do plan to continue working after becoming eligible to receive benefits, you might consider delaying filing for benefits for as long as possible. That’s because the earlier you begin drawing benefits, the lower the amount you will receive. In fact, your monthly payout will be permanently reduced from what you’ll receive if you wait until full retirement age (FRA). Your FRA depends on the year you were born (note that for people born... View Article

  • Widow/er Social Security Benefits

    Posted Date September 1, 2023 Posted Time 12:00 am Published in

    🖨 Print⏱ 5 min readA widow or widower is eligible for a survivor’s benefit from Social Security even if they never worked – as long as the deceased spouse qualified for benefits based on his or her own income record. Also, note that surviving spouses must have been married to their most current spouse for at least the nine months prior to their passing or for 10 years if the couple was divorced. When Can You Claim? A widow/er may apply for benefits once she turns age 60, age 50 if she qualifies as disabled or if she is responsible... View Article

  • The Ins and Outs of a Reverse Stock Split

    Posted Date August 1, 2023 Posted Time 12:00 am Published in

    🖨 Print⏱ 4 min readWhen a company decides to conduct a reverse stock split, also referred to as a stock consolidation, the number of shares available to investors is reduced. In a normal (forward) stock split, a company increases its number of outstanding shares without changing their market value. For example, one share of stock valued at $200 may split into two shares, with the shares then valued at $100 each. So, with a shareholder who holds 10 shares for a total of value of $2,000, a traditional one-to-two (1:2) stock split would change his holding to 20 shares –... View Article

  • New Personal Finance Provisions in the 2.0 Secure Act

    Posted Date July 1, 2023 Posted Time 12:00 am Published in

    🖨 Print⏱ 4 min readThe Continuing Appropriations Act, enacted at the end of 2022, included several provisions that impact retirement plans going forward. Specifically, the legislation enacts SECURE 2.0, an updated version of the Setting Every Community Up for Retirement Enhancement Act of 2019. The following provisions are financial planning considerations that affect individuals. Increases Catch-up Contributions Beginning in 2024, catch-up contributions to employer retirement plans made by employees who earn more than $145,000 a year (regularly adjusted for inflation) must be classified as after-tax Roth contributions. This is necessary for eligible plans to retain their tax-favored status. Starting in... View Article

  • How To Recession-Proof Your Portfolio (Just in Case)

    Posted Date June 1, 2023 Posted Time 12:00 am Published in

    🖨 Print⏱ 4 min readSome economists and market analysts have been predicting a U.S. recession ever since last fall. They’ve been wrong before – but they’ve also been right. Rather than try to predict how the stock market will react during the next recession, investors are better off planning for a range of potential outcomes. This will help reduce the risk of losses regardless of whether or not the United States experiences a recession in 2023. Bear in mind that stock and bond markets are forward-looking and typically priced to take into account economic conditions such as higher interest rates,... View Article

  • Estate Taxes vs. Inheritance Taxes: Understanding the Differences

    Posted Date May 1, 2023 Posted Time 12:00 am Published in

    🖨 Print⏱ 4 min readEstate and inheritance (“death”) taxes are levied on the transfer of property at death. The difference between an estate tax and an inheritance tax is based on who pays the bill. An estate tax is levied on the estate of the deceased, while an inheritance tax is levied on the heirs of the deceased. That’s the simple explanation. As for execution, there are far more nuances based on the monetary value of a bequest; the status of the beneficiary/(ies); and where you live when you pass away. Federal Estate Tax An estate tax applies to the... View Article

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