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You need an estate plan even if you don’t expect to owe taxes. Even if you expect to owe taxes, tax planning still should not be the focus of your planning. It is more important to decide who should receive the wealth, how much each should receive, when the wealth should be transferred, and how […]
Retirees don’t receive much advice on the best ways to take distributions from their investment accounts after retirement. Financial firms have a wealth of easy-to-find information on saving through taxable and various tax-advantaged accounts. Yet they don’t seem interested in helping you decide how to plan withdrawals from the accounts. Most Americans have their retirement […]
We’ve done better than most investors since the market peak in March 2000, including the most recent market decline. Even so, you still might own some underwater investments, especially in your Core Portfolio. For example, American Century Income & Growth has declined with the general market. These underwater investments can be used productively to minimize […]
This year for the first time Renee and I were hit by the alternative minimum tax. A large capital gain, over which we had no control, triggered this tax and increased our bill. Many of you recently had the same experience, and many others will in the next few years. More people will pay this […]
Today’s retirees are the wealthiest generation in history, and that makes them a target for the tax man. A special tax problem for many retirees is the required quarterly payment of estimated income taxes. After decades of having taxes automatically deducted from their paychecks, many have trouble adapting to the system of writing a check […]
Some Social Security beneficiaries might soon find that their benefit checks are for less than expected. They will be joining federal retirees and those doing business with the government. A 1997 law authorized the IRS to place a levy on government checks intended for those who have outstanding federal tax debts. The first levies were […]
Family limited partnerships are evolving, and people are finding more uses for them. Until recently, family limited partnerships (FLPs) were considered primarily vehicles for reducing estate and gift taxes. But these vehicles are so flexible that families are finding many practical uses for them, even when taxes aren’t an issue. You might find that they […]
You’ll be able to give away more money tax free in 2002. Inflation indexing finally has pushed the annual tax-free gift amount to $11,000. The annual amount has been indexed for inflation since 1997, but adjustments are only to the nearest $1,000. Tax-free gifts can be made to anyone. You don’t need a relationship with […]