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This article explores the topic of sharing wealth during one's lifetime, specifically focusing on baby boomers who are expected to transfer a significant amount of wealth to their Gen X and millennial children. It highlights the advantages of giving while still alive, such as witnessing the impact of the support and ensuring responsible use of the funds. The article also provides insights into estate planning, including strategies for giving to family members and charities, as well as tax-efficient methods to maximize gifts. Additionally, it offers information on various charitable giving strategies, such as selling securities immediately after receiving them as a gift to avoid capital gains taxes. The document also discusses options like qualified charitable distributions, donor-advised funds, and charitable gift annuities. It concludes by mentioning charitable remainder trusts as an alternative for generating income and supporting charitable causes. [Extracted from the article]

This article explores the financial challenges faced by widows and widowers following the death of their spouse. It specifically focuses on the potential tax implications of transitioning from married filing jointly to single filing status, which can result in higher taxes. The article offers strategies to mitigate this "widow's penalty," such as converting traditional IRAs to Roth IRAs and disclaiming a portion of the deceased spouse's IRA. It also discusses the benefits of the step-up in basis for taxable assets and provides guidance on other financial considerations for surviving spouses. The article advises individuals to consider converting their traditional IRAs to Roth IRAs before they are required to take minimum distributions (RMDs) at age 73, as this can potentially lower their tax rates in retirement. It also suggests taking withdrawals from IRAs before RMDs begin, as these withdrawals will be taxed at a lower rate and can reduce the size of the IRA, thereby reducing the RMDs for a surviving spouse. By planning ahead, individuals can alleviate the burden of taxes and required distributions in retirement. [Extracted from the article]

This article provides information for retirees interested in spending their winters in warm-weather states. It highlights eight cities across the United States that offer affordable housing options, retiree-friendly amenities, and access to quality healthcare. The article discusses factors to consider when deciding whether to rent or buy a second home, the importance of healthcare access, tax considerations, and estate planning for snowbirds. It concludes with information on financing options for purchasing a second home, such as traditional mortgages, home equity loans, and reverse mortgages. The article also provides details on several potential snowbird destinations, including Florence, SC, and Brunswick, GA, as well as information on population, cost of living, average temperature during snowbird season, number of hospitals within 25 miles, closest airport, local vibe, state sales tax rates, tax exemptions, and retirement income tax rates for each state. [Extracted from the article]

This document provides a variety of tips and recommendations for saving money on various products and services. It suggests specific products that offer good value for money, such as the Samsung Galaxy Tab S9 FE, Hisense U6K Series TV, Yamaha YAS-209 soundbar, 2nd Gen Apple Watch SE, Samsung Galaxy A54 smartphone, and 1MORE SonoFlow SE noise-canceling headphones. It also offers advice on saving money on streaming services, travel, national park entry fees, bulk shopping at Costco, utilizing library resources, and landscaping with native plants. The document aims to provide practical and cost-effective solutions for individuals looking to save money in different areas of their lives. [Extracted from the article]

This article from Kiplinger Personal Finance discusses tax-smart strategies for withdrawing money from retirement accounts. Traditionally, it has been recommended to withdraw money from taxable brokerage accounts first, followed by traditional IRAs and other tax-deferred accounts, and finally Roth IRAs and Roth 401(k)s. However, some experts argue that a more effective strategy is to withdraw from a combination of taxable and tax-deferred accounts, as well as make strategic conversions to Roth accounts. This can help lower taxes on retirement income and preserve savings. Additionally, the article discusses the impact of withdrawals on taxes on Social Security benefits and considerations for charitable giving and estate planning. [Extracted from the article]

This article provides information and advice on making decisions about pension options. It discusses the choice between receiving a lump sum or a lifetime annuity payout, considering factors such as the health of the pension plan, life expectancy, other assets, and risk tolerance. The article also highlights the considerations of life expectancy, inflation, taxes, and flexibility when deciding between a lump sum and a monthly payout. It addresses the decision between a single-life payment or a joint-and-survivor option for married individuals. The article also discusses the importance of considering the overall investment portfolio and the potential impact of inflation. It provides guidance on whether to take a lump sum or lifetime payouts and offers tips for tracking down lost pension benefits. [Extracted from the article]

This article from Kiplinger Personal Finance provides five strategies for catching up on retirement savings. It acknowledges that many young workers may delay or limit their savings due to financial obligations like student loans and childcare costs. The strategies include making catch-up contributions to retirement plans, considering after-tax contributions to 401(k) plans, utilizing taxable brokerage accounts, utilizing health savings accounts, and using tax-advantaged accounts for side gig or self-employment income. The article provides details on each strategy, including contribution limits and potential benefits. [Extracted from the article]

This article from Kiplinger Personal Finance offers advice on how to grow wealth through various financial strategies. It emphasizes the importance of investing, even with small amounts of money, and highlights the availability of fractional trading. The article also discusses the significance of keeping investment costs low and provides tips on becoming a super saver. It suggests strategies for reducing tax bills and offers advice on selling investments, contributing to a Roth 401(k), and managing debt. The article also discusses the pros and cons of homeownership as a wealth-building strategy and provides information on protecting and managing wealth through insurance coverage, hiring a financial planner, and utilizing health savings accounts. [Extracted from the article]

The article discusses the optimal age to file for Social Security retirement benefits. While waiting until age 70 maximizes monthly payouts and reduces the risk of running out of money in later years, filing earlier can provide advantages that may improve financial security or quality of life. Factors such as health, life expectancy, and family circumstances should be considered when deciding when to claim benefits. The article also provides strategies for couples, surviving spouses, parents of minor children, and singles, as well as considerations for Social Security and investments. [Extracted from the article]

This article provides a comprehensive overview of tax preparation and planning for the year 2023. It emphasizes the advantages of filing taxes early, including faster tax refunds and reduced risk of identity theft. The article also highlights potential tax changes in the future, particularly the expiration of the 2017 Tax Cuts and Jobs Act in 2025, which may lead to higher taxes for many taxpayers. Additionally, it discusses new tax credits for electric vehicles and home energy-efficiency improvements, as well as changes to tax brackets and deductions for 2023. The article addresses the implications for self-employed individuals and offers tips for preventing refund fraud. It also covers the use of an IP PIN (Identity Protection Personal Identification Number) for tax returns and last-minute tax-saving strategies. The article concludes with advice on selecting a qualified tax professional. [Extracted from the article]

This document provides information on various obstacles to retirement savings and offers strategies to overcome them. It discusses the option of borrowing from a 401(k) plan, the rising cost of child care, college costs, health care costs, caregiving responsibilities, and running out of time to save. The document emphasizes the importance of taking advantage of tax breaks and workplace benefits, such as dependent-care flexible spending accounts and 529 college-savings plans. It also highlights the benefits of health savings accounts and offers advice on navigating divorce and protecting retirement savings. [Extracted from the article]

This article explores the advantages and challenges of downsizing in today's housing market, with a focus on retirees. Downsizing can offer financial benefits by freeing up equity and reducing maintenance costs. Retirees have advantages in the market, such as the ability to make all-cash offers and explore a wider range of homes. However, there are considerations to keep in mind, including the costs of selling a home, ongoing expenses for a new home, and access to medical care and community in a new location. The article provides practical advice on downsizing, including decluttering tips and the potential tax implications of selling a home. It emphasizes the importance of considering personal preferences and family ties when making housing decisions. [Extracted from the article]

Although rate cuts are unlikely in the near future, the Fed is winding down its rate-boosting campaign, so now may be a good time to lock in a high yield on a CD. Many one-year CDs with minimum-deposit requirements of $1,000 or less offer yields of more than 5%, and some five-year CDs offer rates north of 4.5%. The high-yield savings account from Evergreen (www.evergreenbank group.com) has a 5.25% yield, no monthly fees and a minimum-deposit requirement of $100. Look for a high-yield, low-minimum money market deposit account or savings account to store your emergency fund. [Extracted from the article]

RETIREMENT RETIREMENT MANY older Americans dream about traveling in retirement, but a growing number of intrepid retirees are taking their wanderlust to another level. Italy offers a similar elective residency visa, also known as a retirement visa, if you have retirement income of at least €32,000 a year (about $34,880), a valid passport, and proof that you have health insurance and a place to live. As a result, while withdrawals from Roth IRAs are tax-free in the U.S. as long as you're 59½ or older and have owned an account for at least five years, not all countries recognize that exclusion, he says. Portugal, which has become a haven for expats from around the world, provides a one-year residency visa to retirees from outside the European Union who have retirement income of at least €760 a month (about $828) and proof of a place to live. [Extracted from the article]

CONNECTICUT Estate tax: Yes Estate tax exemption: $12.92 million Estate tax rate: 12% Inheritance tax: No -> The Constitution State's estate tax exemption is the same as the federal estate tax exemption, and the tax due is limited to $15 million. VERMONT Estate tax: Yes Estate tax exemption level: $5 million Estate tax rate: 16% Inheritance tax: No -> Unlike most other states with an estate tax, Vermont doesn't impose a graduated estate tax rate. NEW YORK Estate tax: Yes Estate tax exemption: $6.58 million Estate tax rates: 3.06%-16% Inheritance tax: No -> New York's estate tax exemption is adjusted each year for inflation, and rates range from 3.06% to 16%. [Extracted from the article]

With this annuity, you give an insurance company a lump sum in exchange for a regular payment (usually monthly) for the rest of your life (or, in the case of a joint-and-survivor annuity, as long as the surviving spouse lives) or for a specific period. Because payments start much later than they do with an immediate annuity (and some policyholders die before payments begin), the payments are considerably higher than those for immediate income annuities. That aspect of charitable gift annuities makes them more palatable to retirees than traditional annuities, says Bryan Clontz, president and founder of Charitable Solutions LLC, a charitable-giving consulting firm. Fixed-index annuities (along with other types of annuities) typically come with a rider that allows you to convert your account to a pensionlike stream of income. [Extracted from the article]

Those heirs now have two options: Take a lump sum and pay taxes on the entire amount, or transfer the money to an inherited IRA that must be depleted within 10 years after the death of the original owner. For example, if you inherited an IRA in 2020, year one is 2021 and the account needs to cleaned out by December 31, 2030.) The 10-year rule also applies to inherited Roth IRAs, but with an important difference: You are not required to pay taxes on the withdrawals, and you don't have to take required minimum distributions (RMDs) because the original owner didn't have to take them, either. If you roll the funds into your own IRA and take withdrawals before age 59%, you'll pay taxes on the withdrawals as well as a 10% early-withdrawal penalty. MANAGING THE LOGISTICS Unless you plan on cashing out an inherited IRA - which, in the case of a traditional IRA, will trigger taxes on the entire amount - you need to open an inherited IRA account. [Extracted from the article]

Starting in 2025, adult children and non-spouse beneficiaries of inherited IRAs will no longer have the option to postpone required distributions. Previously, beneficiaries could extend withdrawals over their life expectancy to minimize taxes, but the SECURE Act of 2019 changed this for most heirs. Now, beneficiaries must either take a lump sum and pay taxes on the entire amount or transfer the money to an inherited IRA that must be depleted within 10 years. As of the first quarter of 2024, Americans held over $14 trillion in IRAs. [Extracted from the article]

According to an article in Kiplinger Personal Finance, retirees who rely on Social Security benefits may see a smaller cost-of-living adjustment (COLA) in 2025. The forecasted COLA for 2025 is 2.6%, down from 3.2% in 2024, due to a decline in the inflation rate. However, this increase may still be larger than the average COLA before the pandemic. Advocates for seniors argue that the COLA falls short of the actual rate of inflation for retirees' costs, particularly in housing and healthcare. Medicare Part B premiums are also expected to increase in 2025, affecting seniors' overall expenses. The article suggests planning ahead with a health savings account (HSA) to prepare for healthcare costs in retirement. [Extracted from the article]

The article discusses the ongoing expenses of owning a home and emphasizes the importance of considering these costs when determining if a home is affordable. It mentions that property taxes, homeowners insurance, and maintenance have significantly increased in the past four years. The average cost of owning and maintaining a home in the US is $18,118 per year, with variations depending on the state. The article provides tips for managing ongoing expenses, such as maintaining savings for unexpected costs, completing a home inspection, shopping around for homeowners insurance, and taking advantage of property tax breaks. [Extracted from the article]

The Employee Retirement Income Security Act (ERISA) is celebrating its 50th anniversary this year. ERISA protects pensions and 401(k) plans, ensuring that employees' retirement benefits are safeguarded. However, critics argue that ERISA has made it expensive for companies to offer traditional pensions, leading to their decline. Additionally, around one-third of private-sector workers lack access to an employer-sponsored plan, putting their retirement security at risk. Despite its limitations, ERISA has played a crucial role in protecting retirement benefits for many workers. [Extracted from the article]

The article discusses the impact of high interest rates on college students and savers. It highlights that the interest rate for federal undergraduate student loans will be the highest in 16 years, making it more difficult for families to pay for college. Private student loans may offer more competitive rates, but they come with risks and lack important features of federal student loans. The article also mentions that savers may be disappointed with the interest rates for Series I savings bonds, but high-yield savings accounts and one-year CDs continue to offer better rates. [Extracted from the article]

NELLIE S. HUANG INVEST IN HIGH-QUALITY STOCKS The stocks below, from S&P Capital IQ, are among the S&P 500 stocks that are trading at levels furthest below Wall Street analysts' projected 18-month price targets. We also uncovered promising stocks and other investing deals to feed your bottom line. Out of 27 analyst recommendations on the stock tracked by S&P Capital IQ, 20 are "Buy" or "Outperform", and the stock carries a quality rating of A-minus, which translates to above average. N.S.H. SNAG TOP TECH DEALS The best tech deals feature the latest innovations at budget-friendly prices. [Extracted from the article]

For instance, if you have an IRA that's smaller than your total RMD, you can empty out the small IRA and take the remainder of the RMD from a larger IRA. While SECURE Act 2.0 reduced the penalty for failing to take an RMD from 50% of the amount you should have withdrawn to 25% (10% if you take the necessary RMD by the end of the second year following the year the RMD was due), that's still a hefty slice of your savings. The formula the IRS uses to calculate RMDs (see the box on page 55) assumes you'll live for a long time, so if your withdrawals are limited to RMDs, there's a good chance you won't outlive your savings. If you own multiple IRAs, you need to calculate the RMD for each account, but you can take the total RMD from just one IRA or any combination of IRAs. [Extracted from the article]

Once you've set up your account, you can get a copy of your Social Security statement, which is available to all workers who pay Social Security taxes on their wages. While business owners are usually encouraged to claim all of their legal deductions, those deductions will reduce earnings subject to Social Security taxes, which could reduce the individual's Social Security benefits, Valega says. Social Security will pay benefits to you and your family if you worked long enough and paid Social Security taxes and meet the medical criteria to qualify for benefits. The more years you meet the substantial-earnings test, which is the amount of your earnings each year that were subject to Social Security taxes, the less the WEP reduces your benefits. [Extracted from the article]

RETIREMENT Congress has given retirement savers and retirees a huge gift: a slew of changes designed to help you achieve a more comfortable, financially secure retirement. Like Roth IRAs, Roth 401(k) plans allow you to make after-tax contributions that will be tax-free in retirement. Unlike contributions to Roth IRAs, there are no income restrictions on rollover contributions to a Roth from a 529 plan. HARDSHIP RELIEF More Penalty-Free Withdrawals Traditional 401(k) plans and IRAs provide a tax break for retirement savers, but with a catch: If you need the money before you're 59½, you'll usually have to pay taxes on the money, plus a 10% early-withdrawal penalty. [Extracted from the article]

After the preparer quotes a price, make sure you understand what it covers, such as preparation of a state return, e-filing or office visits, and any type of audit protection if the IRS flags your return. Late last year, the IRS announced that it would delay for one year a new tax reporting requirement that will require third-party payment apps, such as Venmo, PayPal or Square, to report payments of $600 or more to the IRS. MONEY As you prepare to file your 2022 tax return, take inventory of how your life changed last year. You can use the IRS's Directory of Federal Tax Return Preparers with Credentials and Select Qualifications (https://irs .treasury.gov/rpo/rpo.jsf) to search for a tax preparer in your area who has credentials or has completed the IRS program. [Extracted from the article]

The annuities are available to workers age 59½ and older, who will have the option of converting any portion of their savings to an annuity when they retire. Although you can't contribute to a Roth IRA if your income exceeds annual thresholds - $153,000 for singles and $228,000 for married couples in 2023 - there are no income limits on contributions to a Roth 401(k) plan. But as you change jobs and roll over 401(k) plans to IRAs - and if you also convert some of those funds to a Roth - you may have more opportunities to fine-tune asset location. RETIREMENT Follow a local newspaper (or local news website) long enough and you'll probably come upon a story about a 100-year-old resident who still bowls (or golfs), goes square dancing twice a week and occasionally enjoys a shot of tequila. [Extracted from the article]

According to Kiplinger Personal Finance, the U.S. dollar is expected to remain strong in 2024 due to continued economic growth and inflation. This means that American tourists can enjoy affordable travel in countries where the dollar is particularly strong. Some recommended destinations include Japan, South Korea, South Africa, Eastern Europe, and Southeast Asia. These countries offer a range of low-cost activities, attractions, and accommodations for budget-conscious travelers. Additionally, the article provides tips for getting the best exchange rate, such as using credit cards without foreign transaction fees and avoiding currency exchange at airports. [Extracted from the article]

The rise in layoffs has led to an increase in job-related scams, with reports to the Better Business Bureau doubling in 2023 compared to the previous year. Scammers are using artificial intelligence and social media to target job seekers, often offering "work from home" opportunities. These scams aim to elicit personal information for identity theft or request upfront payments. Other popular scams include investment swindles, romance scams on social media, credit-repair and debt-relief scams, and loan-forgiveness scams. It is important to be cautious and verify the legitimacy of job offers and other financial opportunities. [Extracted from the article]

This article discusses the pros and cons of switching banks. It highlights that while large banks offer advanced technology and a wide range of products, they often have lower interest rates on savings accounts compared to small banks and credit unions. The article also mentions that customers of large banks are willing to accept lower rates in exchange for other benefits, while customers of small banks are more price-sensitive. Additionally, the article suggests that internet banks offer competitive rates due to their lack of physical branches. It also provides tips on how to switch bank accounts and mentions that credit cards from small and medium-size banks and credit unions generally have lower interest rates compared to those from large banks, but paying off the balance every month can be more beneficial. [Extracted from the article]

This article from Kiplinger Personal Finance discusses the tax implications of renting out a vacation home. If you rent your vacation home for 14 days or less during the year, you are not required to report rental income on your tax return. This rule also applies to your primary residence. However, if you exceed the 14-day threshold, you must report rental income to the IRS and you will be eligible for deductions that can reduce your tax bill. The article provides information on how to determine whether your vacation home is considered a business or a personal residence for tax purposes. Additionally, the article includes a table of top places to buy a vacation home based on rental income rate of return. [Extracted from the article]

The article discusses the impact of layoffs in certain sectors, particularly the technology sector, as well as media companies and financial firms. However, the majority of industry sectors are experiencing demand for employees above pre-pandemic levels, particularly in health care, wellness, beauty, and child care. The layoffs in the tech sector are attributed to a pullback from the industry's rapid expansion during the pandemic and the Federal Reserve's interest rate hikes. Despite the layoffs, there are signs that the rate of layoffs is slowing and hiring is picking up, with some companies planning to expand. However, competition for job openings, especially in software engineering, has intensified. Additionally, job seekers may have less flexibility in terms of hybrid and remote work, and remote workers may be more vulnerable to layoffs. The article provides tips for job seekers in a competitive market and offers advice on protecting finances during a layoff. [Extracted from the article]

With this game plan, a retiree would file for spousal benefits at full retirement age, even if those benefits were lower than what the individual would receive based on his or her own earnings. If you want to start collecting benefits before your spouse applies for Social Security, you can file for your own benefits as early as age 62, then switch to the spousal benefit once your partner files for his or her own benefits. RETIREMENT Getting the most out of your Social Security benefits could significantly improve your retirement security, and if you're married, it's not a decision you should make in a vacuum. [Extracted from the article]

If you still have funds left to spend, make doctor's appointments for you or your family and use FSA funds for the co-payments or deductibles. MONEY TRIM YOUR 2022 TAX BILL Don't buy a tax liability. A distribution of 2% to 3% of the share price probably won't cause you a lot of tax headaches, but if the fund estimates it will pay out 20% to 30% of the share price, wait until after the distribution to buy - or consider investing in a different fund. Even if you don't itemize and choose to take the standard deduction, giving appreciated assets to a donor-advised fund can provide a tax benefit because you may eliminate paying taxes on capital gains you've accumulated through the years. [Extracted from the article]

Say you have $1,000 to invest and want to buy stock in NVR (NVR), a homebuilder recently rated "strong buy" by investment research firm CFRA. REWARDS INVEST IT Buy some small fry. But you should be able to buy a few hours of time with a fee-only adviser, who accepts no commissions from companies for selling their financial products to clients. Labor market analysis firm Lightcast recently analyzed thousands of job postings and found growing demand for data visualization, social media marketing and data analysis skills, even for positions in areas such as human relations and marketing that as recently as 2016 did not have such technology requirements. [Extracted from the article]

Consumers should be cautious of companies offering insurance against lost, damaged, or stolen packages during the holiday shopping season. The National Association of Insurance Commissioners warns that many of these companies fail to deliver on their promises and may not be licensed. It is recommended to verify the company's license before purchasing package protection coverage, and to consider whether homeowners or renters insurance policies already cover stolen packages. Additional precautions, such as tracking packages or using secure lockers for delivery, can also help prevent theft. [Extracted from the article]

Kansas State University has been offering a graduate certificate in financial therapy for over 15 years. The program was created in response to the stress experienced by financial planners and therapists during the Great Recession. The certificate program teaches financial planners skills such as asking better questions, tracking nonverbal cues, and improving communication and listening skills. It also encourages planners to examine their own money values and goals in order to better guide their clients. Financial therapy can also help couples resolve financial disagreements and achieve their financial goals. Additionally, therapy can help individuals address and overcome financial traumas that may be influencing their behavior. The Certified Financial Planner Board of Standards has recently added therapy training to its requirements for certification. Those interested in financial therapy can find qualified planners through the Financial Therapy Association. [Extracted from the article]

A study conducted by economists and medical experts from Georgetown University and the Federal Reserve Bank of New York found that individuals with Alzheimer's disease often make poor financial decisions years before they are diagnosed with dementia. The study analyzed credit data from 2000 to 2017 and found that credit scores began to decline an average of five years before an Alzheimer's diagnosis, while delinquent bill payments increased. The researchers hope to use these financial outcomes to develop an algorithm that can predict who may develop Alzheimer's and receive early testing. The study emphasizes the importance of discussing finances with older family members before symptoms of dementia appear. [Extracted from the article]