Asset location is a tax optimization strategy that takes advantage of the fact that different types of investments receive different tax treatment. To benefit from this strategy, you must have investments in both a taxable account (e.g. a brokerage account) and a tax-deferred account (e.g. an IRA, 401(k) and/or 403(b)). You determine which investments should […]
CDs, Treasuries and the “Yield Curve”
There is an old adage for investors that goes something like, “It’s not what you earn, but what you keep, that matters”. This of course relates to expenses like commissions and fees, but it’s primarily about taxes. After all, taxes are one of the few aspects of investing that you can control. For the fixed […]
Why Bonds?
All of our clients, even the most aggressive investors, own bonds in their portfolios. Why? Because bonds serve a variety of purposes in the construction of a balanced portfolio. They provide income to the investor. The issuer of a bond borrows money from the bond holder (which can be a mutual fund, or an individual […]
Participating in the Mentor Graphics Share Matching Plan
Mentor Graphics, owned by the German engineering group Siemens, offers its employees the opportunity to participate in the company’s Share Matching Plan. The enrollment window for the Plan is now open, and closes December 12th. If you’re planning to participate, you’ll need to act fast if you haven’t already. Here’s what you need to know. Background […]
About that Old Life Insurance Policy
If you are over the age of 60 and are (or were) married with children, you may own life insurance that you purchased years ago. The life insurance industry sold (and still sells) life insurance to traditional families to protect them from financial insecurity in the event of an income-earning parent’s premature death. For decades […]
Your Medicare and IRMAA
This week, some Medicare beneficiaries will receive a letter from the Social Security Administration, letting them know that because of their income, they will pay more for Medicare next year. Since 2007, Medicare beneficiaries whose income exceeds $85,000 for individuals or $170,000 for married couples have paid a Medicare surcharge in addition to their regular […]
Bunching Your Deductions
In a previous post, we highlighted the fact that the 2017 tax law may affect the ability of some taxpayers to receive a tax deduction for their charitable donations, because the law (a) eliminated or reduced many deductions previously available, and (b) significantly increased the standard deduction, making it more difficult to exceed the standard […]
Do Charitable Gifts Still Make Sense Under the New Tax Law?
The 2017 tax law resulted in some important changes to how deductions work for federal taxes. Under the new tax law, many deductions have been eliminated or reduced, while at the same time the standard deduction was nearly doubled – to as much as $26,600 for a married couple filing jointly. As result, it is […]
Intel’s SERPLUS Election Window is Open
Every year at or near the beginning of November, certain Intel employees are provided the opportunity to participate in the company’s deferred compensation plan, called SERPLUS. It should be noted that, technically speaking, a deferred compensation plan can refer to any program through which employees can elect to have a portion of their income paid […]
American Retirees Finally Get a (Small) Raise
The US Social Security Administration recently announced that beneficiaries – including retirees, disabled workers and their eligible dependents and surviving family members – will receive a 2.8% increase in their benefits in 2019. This will be the largest annual inflation adjustment since 2012. The cost of living adjustment (or COLA) for 2018 was 2.0%, and […]