The Social Security system can be complicated to navigate. Whether you’re in the early years of your career or nearing retirement, it’s important to understand how social security works and how to maximize your eventual benefit, especially if you are divorced or widowed.
Maximizing Your Charitable Giving
Giving back to your community feels great for several reasons and many of us living in the United States are fortunate to have the relative prosperity to do so. For some, it’s an inherent part of their value system or they’ve had a personal experience that connects them to a particular cause and for others, there are financial benefits driving their decision to give. Whatever the motivation, charitable giving can be an important part of your overall financial plan and it’s important to understand how the recent tax law changes affect the financial impact of donating cash and securities to your favorite causes.
The most significant change to the tax code for most taxpayers is the increase in the standard deduction. The amount nearly doubled to $12,000 for single filers and $24,000 for couples beginning in 2018. This means that unless your total itemized deductions are over these amounts, you will no longer be able to deduct the amount of your charitable donations. As with any tax law change, it’s best to consult your CPA to assess the impact to your personal situation but there are steps you can take on your own to get started.
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Life Transitions – Death of a Loved One
Losing a loved one is one of the most emotionally challenging events we face in life. In addition to the grief and heartache, there are many financial implications with which to contend that can be complicated by family relations and whether or not the person had his/her estate plan in order.
One of the greatest gifts you can give your loved ones is to be proactive and well organized in not only preparing your estate plan, but in communicating your intentions to your beneficiaries. Right down to the music you want played at your funeral, every detail you think through in advance will relieve the burden from those left to handle your estate so they can focus on mourning and honoring your wishes.
Life Transitions – Navigating Divorce
People are living longer now than ever before. This is surely something to celebrate, however, one of the unintended consequences of our additional longevity is that divorce is on the rise for people over 50. In fact, divorce rates for people 50 and older have almost doubled since the 1990s. Divorce is typically not something you plan for in advance but there are things you can do to prepare for the wide range of emotional and financial implications both before and after it is finalized.
Total Return Investing and Income-Focused Investing Compared
One of the biggest questions for people entering retirement is how to generate income from their hard-earned savings. Moving from accumulation to withdrawal mode is an uncomfortable transition for many. Setting aside the emotional and behavioral component, what are the logistics involved in creating your own paycheck? From which accounts should you draw and how does this affect your investment strategy?
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