A little bit of planning can go a long way in avoiding taxes and having real world results when paying for medical expenses. Recently I experienced this after needing a significant amount of dental work that insurance wouldn’t cover. After diving deeper into Health Savings Accounts and utilizing some of these tax-saving strategies myself, I wanted to share this information.
Think of Social Security as an asset to be managed. It may be a bit of an abstract thought since it is impossible to call up Social Security and ask for a withdrawal. Still, the lifetime value of your Social Security benefit is likely to be substantial, and can be dramatically larger or smaller depending on your claiming strategy, timing, and longevity.
Would you rather have a dollar today or a dollar tomorrow? What about one dollar every month or twelve dollars at the end of the year? The majority of us would take the money as soon as possible. This is based on two old economic principles; opportunity cost and the time value of money. We know that having a dollar today rather than some time in the future is more valuable because it means we can use that dollar immediately. This could mean saving, paying off debt, or even investing it for the future. Therefore, as we evaluate something of equal value received in the future, we discount its worth and prefer that same value now. This is relevant to us as taxpayers as every month we are given the option to receive more now or more when we file our taxes (assuming we are withholding too much).
Almost all our engagements and recommendations with clients are Fiduciary. Why does that matter to you? Under current regulations, all advisors are now required to act as Fiduciaries for new recommendations in retirement accounts (for example IRA accounts). However, they were not required to do that until very recently, and your account might be grandfathered under the old, weaker, “suitability” rules.
In our prior videos (College Planning), we have talked about ways to reduce the cost of education through AP course, college selection, and scholarships. Assuming you have done that and still have a shortfall, you are probably moving on to methods of obtaining financial aid. Today we are going to talk about the $150 billion in federal aid that the US Department of Education offers to 15 million students each year. The aid is provided in the form of grants, work-study, and loans.
Think of Social Security as an asset to be managed. It may be a bit of an abstract thought since it is impossible to call up Social Security and ask for a withdrawal. Still, the lifetime value of your Social Security benefit is likely to be substantial, and can be dramatically larger or smaller depending on your claiming strategy, timing, and longevity.
Almost all our engagements and recommendations with clients are Fiduciary. Why does that matter to you? Under current regulations, all advisors are now required to act as Fiduciaries for new recommendations in retirement accounts (for example IRA accounts). However, they were not required to do that until very recently, and your account might be grandfathered under the old, weaker, “suitability” rules.
We work with clients through all stages of life and through multiple generations. From going to college, paying off debt, getting married, saving for a house and of course, planning for retirement. And while accomplishing these important financial and life goals is critical, it can all go up in smoke in an instant if you haven’t planned properly. Premature death, disability, and an inability to handle one’s own affairs can leave you and your loved ones in a difficult position. Luckily, there are some simple things you can do to plan for the unforeseen and protect your loved ones and your financial legacy.
Let’s be frank; no one likes to pay for insurance. It’s one of those things we do because we’re “responsible adults”. But in many cases we’re paying to protect ourselves against something that isn’t likely to happen. Most people don’t totally destroy their cars. Most houses don’t burn down. But when those things do happen, they can have catastrophic financial effects on those who are ill-prepared. While this is true for things like houses and cars, it’s also true when it comes to planning your financial future. Let’s take a quick dive into three areas we think are critically important to address when thinking about your financial plan.
Many investors view the stock market as risky, because they may lose money. In our eyes, it is worthwhile to have some awareness of the various types of investment risk. In our video, we share several sources of investment risk that you may not have fully considered. Below, we talk in more detail about those risks.
The start to 2016 has been marked by uncertainty in a number of areas. China, ISIS, Oil, etc. Not surprisingly, this uncertainty has caused plenty of fear and, consequently, volatility in global stock markets. Also not surprising are the familiar echoes from the “talking heads” on television and even some investors to “Get out!” or do something. Of course, there is no one-size-fits-all approach to investing or risk management.
If I were to make a generalization about the people who have bright financial futures ahead of them: they are prodigious savers and investors. For the most part, they have set up their wealth accumulation plan to be automatic, via either large 401(k) contributions, large contributions into other investment accounts, or, in many cases, both.
