Are you aware of them? The federal government offers some major tax breaks for older Americans. Some of these perks deserve more publicity than they receive. If you are 65 or older, your standard deduction is $1,300 larger. Make that $1,600 if you are unmarried. Thanks to the passage of the Tax Cuts & Jobs Act, the 2018 standard deduction for an individual … [Read more...] about Tax Considerations for Retirees
A look at grants, scholarships, 529 plans, and other methods. How much could a college education cost in the 2030s? You may want to take a deep breath and sit down before reading the next paragraph. A MassMutual analysis projects that four years of tuition, room, and board at a private college will cost nearly $369,000 in 2031. An article at CNBC offers a slightly … [Read more...] about Ways to Ease the Cost of College
A look at how variable rates of return do (and do not) impact investors over time. What exactly is the “sequence of returns”? The phrase simply describes the yearly variation in an investment portfolio’s rate of return. Across 20 or 30 years of saving and investing for the future, what kind of impact do these deviations from the average return have on a portfolio’s final … [Read more...] about What is the Sequence of Returns Risk?
Some alterations to the Internal Revenue Code were less publicized than others. Late last year, federal tax laws underwent sweeping changes. Nearly a year later, you can be forgiven for not keeping up with them all. Here is a look at some important (yet underrecognized) adjustments that may affect the numbers on your 2018 federal return.1 First, most miscellaneous … [Read more...] about Tax Changes That May Be Overlooked
Some say yes, pointing to the recent federal tax reforms. Will federal income tax rates ever be lower than they are right now? Given the outlook for Social Security and Medicare, it is hard to imagine them falling much further. Higher federal income taxes could very well be on the horizon, as the tax cuts set by the 2017 reforms are scheduled to sunset when 2025 … [Read more...] about Is Now the Right Time to Go Roth?