On November 2, 2015 when President Obama signed into law the Bipartisan Budget Act of 2015 as voted for by our Congress, two Social Security claiming strategies were unexpectedly eliminated. As a result, retirement planning has become a little more complicated for people planning to use those strategies to enhance their income in retirement.
Owning a home outright is a dream that many Americans share. Having a mortgage can be a huge burden, and paying it off may be the first item on your financial to-do list. But competing with the desire to own your home free and clear is your need to invest for retirement, your child's college education, or some other goal. Putting extra cash toward one of these goals may mean sacrificing another. So how do you choose?
Evaluating the opportunity cost
Minimizing Taxes of Highly Appreciated Assets
If the value of your stocks, bonds, or other capital investments has increased substantially, steps that can be taken to minimize taxation include:
- timing the sale of your capital assets,
- using capital losses effectively,
- charitable giving, and
- passing assets to heirs at your death
Timing the sale of assets is important
Planned Charitable Giving
Standard donations or "checkbook giving" to charities or favorite causes are often tax deductible, but planned charitable giving allows you the opportunity to maximize the personal, financial and tax benefits of your gifts.
Once you know what charity or cause you want to contribute to, you may also want to consider:
This is the third and concluding post about some options you might have if you inherit an IRA or benefit from an employee sponsored benefit plan.
If you're a non-spouse beneficiary of an IRA or benefit from an employee sponsored benefit plan, you unfortunately generally have far fewer options.
Recently I posted about some options you might have if you inherit an IRA or benefit from an employee sponsored benefit plan. As promised, here are a few additional options for you to consider.
If the IRA owner or plan participant died before he or she began taking required minimum distributions, you can generally elect to distribute the entire interest in the IRA or plan within five years of the owner's or participant's death. (In this case, you don't have to begin taking distributions the year after death.)