If you’re expecting a bonus check from your employer this year, you may be tempted to blow it all on the latest iPhone or a bigger TV. But before you decide to splurge, first take a look at your overall financial picture to make sure you’re taking the best advantage of that extra cash:
There is a common misconception that life insurance benefits are not subject to estate tax.
While the proceeds of a life insurance policy are not taxable income to the beneficiaries, they are part of a person’s taxable estate if the insured dies owning the policy.
Every year, the Internal Revenue Service announces cost-of-living adjustments that affect contribution limits for retirement plans and various tax deduction, exclusion, exemption, and threshold amounts. Here are a few of the key adjustments for 2019.
Employer retirement plans
There are a number of ways an individual can avoid the 10% early withdrawal penalty from their IRA or employer work plan. Some exceptions apply specifically to IRAs (i.e. higher education; first-time home buyer, etc.) and others pertain only to company plans (for example, the age-55 exception and qualified domestic relations orders, among others).
Do you picture yourself owning a new home, starting a business, or retiring comfortably? These are a few of the financial goals that may be important to you, and each comes with a price tag attached.
There’s a pretty good chance that your parents and grandparents retired just because they turned 65. Today’s retirement is a bit more complicated than that. While age is still an important factor, your ability to connect your financial resources to your lifestyle goals is what will truly determine if you’re ready to retire.
Teachers are on the front lines of our children’s futures, so it’s unsettling to see evidence that their own future is increasingly at risk.
It sure is fun to see the positive returns of a bull market. But, if you are cringing at the sight of significant downturns and losses when a big, bad, bear comes into view, perhaps the slow, steady, performance of a fixed indexed annuity should be part of your retirement savings mix.
The window of opportunity for many tax-saving moves closes on December 31, so it's important to evaluate your tax situation now, while there's still time to affect your bottom line for the 2018 tax year.
Timing is everything
If you're a small-business owner, you probably pour your heart, soul, and nearly all your money into your business. When it comes to retirement planning, do you cross your fingers and hope your business will provide the nest egg you'll need to live comfortably? What if you become ill and have to sell your business early?