There is an important rule that many in the retiree cohort should keep in mind in the coming tax season. If one does not withdraw funds from their IRA that meets the RMD or required minimum distribution there is fifty percent penalty of the RMD amount. This can be particularly painful for those on fixed or limited … [Read more...]

Nine retirees have expressed their opinions regarding their retirement scenarios. One unifying factor among the nine people was that they all needed to figure out what would happen next in their lives as they left their occupations in the past. Their solutions and reactions were varied, ranging from picking up new … [Read more...]

More retirees have been investing in funds that are not mutual funds. These funds sometimes pay more than traditional mutual funds and can be from non-traded real estate investment trusts or from private placements. These funds can have much higher fees and can be difficult to withdraw from. A lot of these funds are … [Read more...]

There are five areas that boomer retirees need to carefully consider. The RMD tax can be 50% of your tax distribution so it needs to be considered. Some state have no income tax but most tax retirement distributions differently. The Retirement Earnings Tax needs to be considered when taking Social Security income. … [Read more...]

Jamila Souffrant was tired of the long trip that she had to take to work to get from Brooklyn to her job in New Jersey. She also knew that she was missing seeing her two young sons grow up. That is when she decided to attempt the FIRE plan. FIRE stands for financial independence retire early. She decided to attempt the … [Read more...]

You might be blissfully married and have avoided any talk of a time when its a 'then there was one' situation but it is a fact of life. Another fact of life is that taxes become a huge enemy in this wrinkle in time. So how do you prepare for what lies ahead? One option is to switch from a deferred tax IRA to an after … [Read more...]

If you are retired and especially if you are on a fixed income, then finding clever ways to save money on taxes is critical. First, be aware of larger standard deductions which are available after you turn 65. You can still invest in IRA's and also remember that you can deduct your medicare payments. Although tax day … [Read more...]

One of the unpleasant truths about retirement is that there are still taxes in retirement that can make up the bulk of your expenditures. It is possible to plan effectively to maximize the amount of income you keep. A good strategy will reduce the amount of tax exposure you have, and planning should begin well before … [Read more...]

The decision on when exactly to take Social Security benefits can be one of the biggest decisions you make in retirement. There are many possible choices on when to begin withdrawals, and each person will have a different time that is ideal for their situation. If there are other streams of income, delaying the payouts … [Read more...]

The tax breaks made earlier on in 2017 were meant to help small business owners pay less in taxes. But, as it turns out, small business owners actually aren't going to benefit in the long run. If they are contributing to their retirement in an IRA they will end up paying more in taxes for that money, and then when they … [Read more...]