Retirement

If you received a Paycheck Protection Program (PPP) loan, but did not deduct payroll expenses on your 2020 tax return, this is what you need to know. First, the IRS completely changed its guidance on deductibility of 2020 expenses due to the enactment of legislation in late 2020 (see “Current Law,” below). Second, taxpayers who

As Americans get older we can count on two things: more Americans will be cognitively impaired and losses to financial fraud will increase. According to a new Federal Trade Commission report,  the average loss due to financial fraud to people over 80 is the highest of any loss due to financial fraud of any other

What you’ve done in the past isn’t enough for the future. That which has differentiated you enough to become successful thus far in your career likely isn’t sufficient to set you apart and perpetuate your success going forward. At one point, pushing product for a recognizable company gave you an edge. Then, being an asset

Have you ever thought that the IRS could use some help, that is, to improve services to taxpayers? Would you like to make a difference on behalf of your fellow taxpayers? Taxpayers may not realize it (or might not even believe it), but there is a way they can get involved at a meaningful level

Your estate plan is much more likely to be successful when you recognize and avoid the most common mistakes and take some key actions that often are overlooked. Most estate planners will tell you that the same estate planning mistakes and oversights recur with frequency, whether an estate is worth a billion dollars, a few

If you have any interest in having the IRS hear your voice, there are two mechanisms. One is the Taxpayer Advocacy Panel (TAP), which is a volunteer effort with a three-year commitment. Another means of getting through to the IRS is the yearly Priority Guidance Plan (PGP). As the new year for the IRS begins

Sometimes it makes sense to add risky assets to a conservative portfolio. Holy grail for the fixed-income investor: an asset that has a decent return of its own and runs counter to the bond market. Blend this magic stuff with your Treasury bonds and you’d have a solid core holding—something that wouldn’t be utterly destroyed

President Biden’s proposed massive expansion of Medicaid home-based long-term care is running into trouble in the Senate. And it may be done in, not by hard-core conservatives, but by a small group of self-styled Senate moderates. In his American Jobs Plan, Biden proposed increasing the federal share of Medicaid’s home and community-based services (HCBS) program

When the pandemic hit, priorities changed overnight. Healthy and working became the litmus test of whether you were on the fortunate side of the COVID-19 coin. This reduction in expectations has changed views on wealth. In its annual Modern Wealth Survey, Charles Schwab asked 1,000 people in the US to gauge their views on how

You Might Need to Plan Now Even if You’re Not Really Wealthy For wealth folks reviewing and beefing up insurance coverage and planning before income and estate tax rates may rise may be an obvious step. But, urgent planning is needed by many even moderate wealth taxpayers now! Very wealthy people are pursuing estate tax

Last Friday, the New York Times made a splash with its report, “Long Slide Looms for World Population, With Sweeping Ramifications,” laying out the consequences of persistently-low fertility rates all across the globe. “The strain of longer lives and low fertility, leading to fewer workers and more retirees, threatens to upend how societies are organized

For many contemplating retirement, one’s future living arrangements is the most thought about – yet least acted upon – aspect of retirement planning. According to the U.S. Bureau of Labor Statistics even though housing is the largest average cost in retirement, older Americans move far less often than the general population. The home is the

Today’s column addresses questions about whether a number of years with no income taxed by Social Security will actually lower retirement benefits rates, whether it’s possible to be reimbursed for a gap in different types of benefits and how spousal benefit rates are determined. Larry Kotlikoff is a Professor of Economics at Boston University and

This is a true story about what we sometimes refer to as an “elder orphan”. These folks have no children, they are single, and they can be very vulnerable to the worst abuse. Ralph, in his late 80s had a home in an expensive part of CA. As he grew more frail with age, and

If you thought investing in your 401(k) plan was hard, just wait until the time comes when you have to start taking money out of your retirement plan. Are you ready for this? “In pre-retirement planning, the investor needs to decide three things: how much to invest, asset location and asset allocation,” says James DiLellio,

One of the most common mistakes I see people make is overestimating their tax rate in retirement. This is important for a couple of reasons. First, as Roth 401(k) and 403(b) plans become more common, estimating your future tax rate is a big factor in deciding whether you should make Roth or pre-tax contributions. Second,

You’re retired. Congratulations. Now what? For decades, during most of your working years and especially at the end of your career, it’s all been about one question. “The most common question asked by pre-retirees regarding their financial situation is ‘At what age should I plan to retire?’” says Ann Martin, Director of Operations of CreditDonkey

The ivory tower of higher ed, the U.S. government, the financial industry, the bumper sticker barrage, a healthy pinch of pride, and, yes, even our genuine love for our children have all converged to serve up a big fat guilt sandwich for parents of college-bound kids. We’ve been made to think that we’re damned if

Forensic investigations in Rhode Island, North Carolina, Kentucky and Ohio reveal that gambling 30 percent or more on high-cost, high-risk, secretive alternative investments has exposed pensions to massively greater risks and reduced net returns. The time is ripe for legislators, regulators, and law enforcement to act to stop the looting. A recent New York Times NYT

There’s an old adage when it comes to building a seven-figure retirement account: “Save early and often.” Implicit in these four words lies the powerful concept of compound interest. You’ve heard the term “compounding,” you’ve probably grown numb to its true meaning. In case you need reminding, it refers to the fact that, over time,