Buying or selling income property has definite tax consequences. A taxpayer should clearly understand them, whether he or she intends to acquire a property or put one on the market. A sale of income property incurs either a capital gain or loss. If you profit from the sale of income property, that profit is considered…
Read More
As tax day quickly approaches, Americans are compiling their W-2s, 1099s and charitable contribution receipts. Though many may be looking forward to receiving a refund, others are likely to discover they owe more. In the latest contribution to LetsMakeaPlan.org, CFP Board offers six tips to help reduce your tax bill to make this season a little…
Read More
Many affluent professionals and business owners put estate planning on hold. Only the courts and lawyers stand to benefit from their procrastination. While inaction is the biggest estate planning error, several other major mistakes can occur. The following blunders can lead to major problems. Failing to revise an estate plan after a spouse or child…
Read More
If you receive a distribution from your IRA or workplace retirement plan, what will you do with it? You will probably want to arrange an IRA rollover – a common and useful financial move designed to take these invested assets from one retirement account to another, without tax consequences. The I.R.S. may give you just…
Read More
The Roth IRA changed the whole retirement savings perspective. Since its introduction, it has become a fixture in many retirement planning strategies. The key argument for “going Roth” can be summed up in a sentence: Paying taxes on retirement contributions today is better than paying taxes on retirement savings tomorrow. Here is a closer look…
Read More
It’s always important to keep open lines of communication with your significant other. Talking about money is no exception, but it can be a sticky subject – and one that can bring up issues related to your own anxiety around your finances. It’s time to break the cycle of non-communication and have “the money talk.”…
Read More
Saving for retirement takes decades and demands the investment of significant amounts of your income. As this major effort unfolds, you should recognize that some subtle factors and seemingly minor decisions could end up making a sizable and positive impact on your financial future. Your investment yield may be less important than the amount you…
Read More
Why do people open up Health Savings Accounts in conjunction with high-deductible health insurance plans? Well, here are some of the compelling reasons why younger, healthier employees decide to have HSAs. #1: Tax-deductible contributions. These accounts are funded with pre-tax income – that is, you receive a current-year tax deduction for the amount of money…
Read More
Investment management can be active or passive. Sometimes, that simple, fundamental choice can make a difference in portfolio performance. During a particular market climate, one of these two methods may be widely praised, while the other is derided and dismissed. In truth, both approaches have merit, and all investors should understand their principles. How does…
Read More
If you withdraw money out of a workplace retirement plan in your fifties, will you be penalized for it? In most cases, the answer is yes. Distributions taken from a qualified retirement plan before age 59½ usually trigger a 10% IRS early withdrawal penalty. The key word here is “usually,” for there are ways to…
Read More