You’ve undoubtedly heard the term “Roth IRA” – these tax-free retirement accounts are incredibly popular and, if you meet the qualifications, they can be a fantastic retirement planning tool. A less-known retirement planning option is the Roth 401(k). While Roth 401(k)’s are growing in popularity, they are not as widely available as traditional 401(k) plans. Here are a few Roth 401(k) basics: Contribution Limit: A Roth 401(k) has the same annual contribution limit as a traditional 401(k). This … [Read more...] about What is a Roth 401(k)?
Secrecy is Not the Best Estate Planning Strategy
Families differ when it comes to their level of comfort about discussing financial matters, and this can have an impact on their estate plans. If you don’t feel comfortable taking a “full disclosure” approach with your kids (or if this approach simply wouldn’t be wise given the dynamics of your family), it’s especially important to have an effective and well thought out estate plan. Here’s an example of what can happen if you don’t: A recent Canadian case, Barrick v. Lilliste, involved Alvin … [Read more...] about Secrecy is Not the Best Estate Planning Strategy
What Your Pet’s Guardian Needs To Know
What is your plan for taking care of your pet after you’ve passed away? If you are thinking about establishing a pet trust to ensure your pet is well cared for, there are some things you’ll need to let your pet’s guardian know. For instance: Your Pet’s Habits and Quirks You and your pet share a home, so you’re well aware of its feeding schedule, when it needs to go for a walk, and what its favorite toys are. You also know how to deal with your pet’s quirks, whether they include a morbid … [Read more...] about What Your Pet’s Guardian Needs To Know
Safeguarding Your Estate Planning Documents
When it comes to paperwork you need to keep safe and secure, your estate planning documents are at the top of the list. So, where’s the best place to keep them? While there is no single answer to this question, there are some things you’ll want to consider when choosing a storage location for these important papers. For instance: Where will your documents be protected from theft and from the threat of flooding, fire, and other natural disasters? Where’s the best place to keep your documents … [Read more...] about Safeguarding Your Estate Planning Documents
Qualifying for Medicaid: Timing is Everything
If you or your spouse anticipate the need for nursing home care in the future, and particularly if you’re concerned about how you’ll finance that care, you’ll likely want to meet with an elder law attorney sooner rather than later. Given the strict rules that govern Medicaid qualification, the absolute best case scenario is to start planning to qualify for the program at least five years before you actually need apply for benefits. Medicaid imposes a five year “look back” period, which means … [Read more...] about Qualifying for Medicaid: Timing is Everything
How’s This for Tough Love?
At a recent awards ceremony, Jackie Chan told the press that he intends to leave his entire estate to charity, and leave nothing to his son, singer Jaycee Chan. “If he is capable, he can make his own money. If he is not, then he will just be wasting my money,” Chan said. This stance actually reflects the feelings held by more than a few wealthy Americans. When U.S. Trust surveyed a group of 457 individuals with investable assets of more than $3 million, only 49 percent said that passing … [Read more...] about How’s This for Tough Love?
What is the Windfall Elimination Provision?
If you’re among the dwindling minority of Americans who can rely on a pension when you retire, you might wonder whether you’ll be able to collect your full social security retirement benefit, too. For most people, the answer to this question is “yes”, but it depends on whether you’ve always worked for an employer that participates in the social security system. There are certain government agencies, nonprofits, and foreign employers that don’t pay Social Security tax on behalf of their … [Read more...] about What is the Windfall Elimination Provision?
Is a Revocable Living Trust a Good Asset Protection Tool?
The revocable living trust is a flexible and useful estate planning tool with many benefits to offer; however, it has its limits. For instance, did you know that – contrary to a popular myth – simply establishing a revocable living trust does not protect you and your assets from creditors, or from a divorcing spouse? Trust Property is Treated Like It’s Yours Since the trust is revocable, meaning that you retain the power to change or eliminate the trust in its entirety at any time, the assets … [Read more...] about Is a Revocable Living Trust a Good Asset Protection Tool?
Placing Your Kids in Good Hands
As parents, we want the absolute best for our children. That’s why estate planning can be especially difficult for parents of children who are still too young to take care of themselves. It can be daunting to name a guardian to step in and handle the care and upbringing of your children if you can’t be there. And then there’s the concern of who should manage the inheritances you plan to leave behind. Minor children aren’t legally permitted to manage significant amounts of money for … [Read more...] about Placing Your Kids in Good Hands
Three Smart Uses for Your Tax Refund
What do you plan to do with your tax refund this year? Here are three suggestions that could net you long-term benefits: Reduce Your Debt: If you have credit card bills or other consumer debt hanging over your head, consider putting your tax refund to work by using it to pay down those debts. Not only will this reduce your current monthly bills and free up some cash, getting out of debt and staying out of debt can put you in a better position when the time comes to retire. Pay Down Your … [Read more...] about Three Smart Uses for Your Tax Refund
