When You Change Jobs…You May Have an Important Decision to Make!

30 April
What to do with your money in an employer-sponsored retirement plan, such as a 401(k) plan.  Since these funds were originally intended to help provide financial security during retirement, you need to carefully evaluate which of the following options will best ensure that these assets remain available to contribute to a financially-secure retirement. Take the Funds:  You can withdraw the funds in a lump sum and do what you please with them.  This is, however, rarely a good idea unless...

Another Role for Life Insurance…The Wealth Replacement Trust

23 April
The Problem: There can be significant tax advantages in giving appreciated assets to a charity.  Examples include real estate and securities.  If you were to sell an appreciated asset, the gain would be subject to capital gains tax.  By donating the appreciated asset to a charity, however, you can receive an income tax deduction equal to the fair market value of the asset and pay no capital gains tax on the increased value. For example, Donor A purchased $25,000 of...

The Pension Crisis

15 April
I’m sure you’ve heard about the problem our country faces with “Social Security, corporate pensions, state pensions, county pensions, municipal pensions…virtually all defined benefit pensions.”  The following abstracts from an industry publication really brought it home.  This is a must read. OUR COUNTRY’S PENSION CRISIS IN A NUTSHELL – Pension plans that promise a specific benefit in the future are essentially a contract between current and future generations, and those future generations aren’t represented at the bargaining table.  As a...

Long-Term Care… Did You Know?

8 April
About one-third of individuals turning 65 in 2010 will need at least three months of nursing home care, 24% more than a year, and 9% more than five years.  (Source:  What Is the Distribution of Lifetime Health Care Costs from Age 65?, Center for Retirement Research at Boston College, March 2010) About 71% of nursing home residents are women.  (Source CDC Vital and Health Statistics, Series 13, No. 167, June 2009) The national median daily rate in 2013 for a...

Avoiding Probate

20 March
Probate is simply the Latin word for prove…the process by which your will is brought before a court to prove that it is a valid will.  The courts charged with this responsibility are generally known as probate courts, which may actually supervise the administration or settlement of your estate. Supervision of the estate settlement process by the probate court can result in additional expense, unwanted publicity and delays of a year or more before heirs receive their inheritance.  The publicity,...