Bob Carlson shares miscellaneous advice on retirement and related topics
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What do you do when interest rates are low but the Federal Reserve makes clear it is going to start raising rates? Now, you earn very little money from cash and safe investments. Bonds and similar investments have higher yields, but they’re going to lose value when interest rates rise. In many cases, principal losses […]
Plans need to be revised by taxpayers who intended to reap big tax breaks by donating used cars, boats, or planes to charity. Congress rewrote the law in 2004, and the IRS recently issued rules explaining the new law. Under the old law, a taxpayer could donate a used car to charity and deduct the […]
The recent termination of the United Airlines pension plan put pension safety on the front burner. The news quickly was followed in Congress by hearings and reports on the underfunding of both corporate pension plans and the government guarantee agency, the Pension Benefit Guarantee Corporation. Most large companies offer some kind of a guaranteed pension […]
Most advanced health care directives are not followed by doctors and loved ones. Studies consistently show that is the case, for a host of reasons. In last month’s visit we discussed why you need more than a living will in your estate plan to cover health care decisions. This month, let’s look at the steps […]
The prospect of rising interest rates this year could affect retirement payouts. If your retirement plan offers a choice between an annuity and a lump sum and you were planning to retire in the next year or two, pay attention now. Lump sum payouts increase as interest rates fall and decrease as rates rise. The […]
Business sellers often leave a lot of money on the table. They pay extra taxes on the sale, because they do not use some key tax breaks. We’ll look at one of those strategies in this visit. There are two problems a business seller must solve. One is liquidity. The seller wants cash for the […]
Estate planning discussions often assume that a married couple is involved. We all know that frequently isn’t the case. People can be widowed, and the divorce rate among older Americans is rising. The Census Bureau reports a doubling since 1989 of the number of older couples living together without being married. A single person ? […]
The standard retirement planning advice is to plan on spending 65% to 85% of your pre-retirement income each year of retirement. Unfortunately, that is a fallacy. Following that advice could diminish your retirement. Proof is in the latest Retirement Replacement Ratio Study, sponsored by Aon, a financial services company, and conducted by professors at Georgia […]