Tag: Ask A Trust Officer

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 […]

Dear Trust Officer: When the Fed cut interest rates at the end of July, the stock indices fell. I thought lower interest rates were good for stock prices? What’s going on? Should I be worried about my portfolio? — WORRIED INVESTOR DEAR WORRIED INVESTOR: Two factors seem to have been at work to produce this […]

Dear Trust Officer: My parents are retired, living in another state. They have a sizable investment portfolio and are financially comfortable. However, as they are getting older, they are having trouble keeping up with their paperwork. Last year they were late in making tax payments, very unlike them. I would help them, but I just […]

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, […]

Dear Trust Officer: The S&P 500 stock index has reached new highs. Should I consider selling now? — Prosperous but worried DEAR PROSPEROUS BUT WORRIED: Passing a stock index milestone is not a signal to buy or sell.  However, it does focus attention on the market, and it may cause some investors to evaluate their […]

Dear Trust Officer: Can I provide something for my pets in my will? Didn’t Leona Helmsley set up a trust for her dog? — THOUGHTFUL ANIMAL LOVER DEAR THOUGHTFUL ANIMAL LOVER : Yes,  Mrs. Helmsley did create a $12 million trust to care for her pet, Trouble.  However, the probate court subsequently reduced the size […]

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? — […]

Dear Trust Officer: Which is better, the traditional IRA or the Roth IRA? — Generous, but Prudent DEAR FUTURE RETIREE: There is no simple answer to your question, unfortunately.  The traditional IRA offers an immediate income adjustment and savings in federal and state income taxes.  If you are short on cash, you may need the […]

Dear Trust Officer: I bought shares in a mutual fund last summer and now I’m getting a distribution of capital gains from the fund.  Why?  I don’t want that.  Do I have to pay taxes on it? — Buyer and Holder DEAR BUYER AND HOLDER: Federal law requires mutual funds to distribute nearly all of […]

Dear Trust Officer: I’ve heard of something called a “charitable IRA rollover.” What is that? — Generous, but Prudent DEAR GENEROUS, BUT PRUDENT: If you are older than 70½, you are permitted to arrange for a tax-free transfer of up to $100,000 per year from your IRA to the charity of your choice.  This is […]