To make it possible for voluntary retirement savings to keep up with inflation, the various numerical limits embedded within qualified retirement plans are indexed for inflation. The IRA contribution limit stays at $6,000 if the individual is younger than age 50 in 2019, and $7,000 if he or she attains age 50 or older in […]
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Happiness in Old Age – Observations of a Family Physician
(What you can do to experience happiness in old age) In no particular order: Stay outwardly focused by keeping your mind on the well-being and/or the activities of others. If you can only do one thing, this is it. Everything below will help keep you outwardly focused. Take on volunteer jobs that will help others. […]
Read MoreRetirement Checks Should be Cashed Promptly
An employee was due a $900 distribution from his employer’s qualified plan. The plan withheld income taxes and sent the employee a check for the balance. The distribution must be included in taxable income for the year in which the check was cut. For unknown reasons, the employee never cashed that check, nor did he […]
Read MoreSix Predictors of Happiness in Retirement
A study of adult development has been carried out at Harvard for roughly the last century and is a study worth reading about happiness in retirement. It identifies characteristics and behaviors which are good predictors of happiness in retirement. Three groups have been tracked: 268 Harvard graduates born about 1920; 90 middle-class gifted women born […]
Read MoreAsk a Trust Officer: Planning for the Long-term
Dear Trust Officer: Should I buy long-term care insurance? Is it a good deal? — Retiring Soon DEAR RETIRING SOON: These are excellent questions for which there are no simple, easy answers. You are wise to be addressing your potential need for long-term care now, while you still have choices. According to the AARP (formerly […]
Read MorePhilanthropy and your IRA
Making a direct transfer from an IRA to a charity, a long-time valuable planning strategy has become even more valuable following the enactment of the 2017 Tax Cuts and Jobs Act. This is because the higher standard deduction coupled with the $10,000 cap on the deduction for state and local taxes effectively means there will […]
Read MoreSocial Security Planning 101
It’s trickier than many realize Although Social Security benefits aren’t likely to make up a sizable part of your retirement income, your planning wouldn’t be complete without getting a good grasp on how much you’ll be receiving and, if you plan to work part-time after retirement, the impact of your earnings on your benefits. What […]
Read MoreAsk a Trust Officer: Saving for Retirement
Dear Trust Officer: How much of my salary do I need to save for retirement? — RESPONSIBLY PLANNING DEAR RESPONSIBILY PLANNING: The irreverent answer would be “all of it.” All kidding aside, there is no simple answer for everyone. The answer depends upon how many years until retirement, how much income will be required then, […]
Read MoreAsk a Trust Officer: Retirement Readiness
Dear Trust Officer: I’m old enough to retire, but I’m not sure I’m ready yet. I think I have strong financial resources, but I don’t know if they are enough to make me financially independent for the rest of my life. Retirement seems so terribly uncertain to me. When should I make the jump? — […]
Read MoreTime for “The Talk”?
In January, 97 year old Prince Phillip, who is the husband of Queen Elizabeth, was in a car accident. Although the Prince’s car flipped upside down after striking another vehicle, he was able to walk away from the accident after a good Samaritan helped him to escape from the car. Fortunately, there were no major […]
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