IRS Backs Away from Letter Rulings on Grantor Trusts
The Internal Revenue Service has added some types of grantor trusts to the list of areas in which it does not plan to issue letter rulings or determination letters. Detail may be found here.
Long-Term Care Costs Rise at Faster Pace
New data suggests the cost of LTC remains on the rise. Below are the median averages and their respective growth rates. Home Health Aide $20/hr representing a 1.27% increase from prior year 1.03% annualized growth over prior 5 years Adult Day Care $69/day representing a 5.94% increase from prior year 2.79% annualized growth over prior [...]
Avoiding IRA RMDs
You’re about to reach age 70 ½. You’re facing Required Minimum Distributions from your IRAs. Want to avoid them? Still working? Here’s how: Although RMDs are required for IRAs they are NOT required for Qualified Retirement Plans (“QRPs”) such as a 401(k). As such rolling IRA balances into an employer’s QRP will allow deferral of [...]
Failing To Plan Is Planning to Fail
According to a recent survey by the Certified Financial Planner Board of Standards 86% Americans say they’re stressed about their finances. What do they do about it? Nothing...at least in a meaningful or productive sense. 27% say that having a financial plan is the best way to reduce stress 22% say the answer is having [...]
Doing the Right Thing Doesn’t Cost More
The fiduciary standard is an ongoing debate in financial services. Who is a fiduciary, what is a fiduciary obligation, is it right for everyone and what happens if it’s cost prohibitive? To understand the debate requires a bit of context. Historically financial services were delivered piecemeal. Need to get your tax return filed? Call a [...]
Long-Term Care Insurance Costs Increase 8.6%
According to the American Association for Long-Term Care Insurance the average year-over-year price increase (using a healthy, 55 year old single male as the baseline) was 8.6%. The culprit is twofold: In the short-term insurers’ bond portfolios continue to earn paltry returns diminishing their ability to fund benefits. Over the long-term insurers’ poor product rollout [...]
Should You Disenroll from Medicare?
Promotions abound for enrolling in Medicare but did you know you can opt out of Medicare? WHEN CAN I DO IT? The Medicare Advantage Disenrollment Period (“MADP”) runs from January 1st through February 14th. AM I ELIGIBLE? You must have a private Medicare plan (often referred to as Medicare Part C or a Medicare Advantage [...]
Goodbye §529s – Hello Attack on ‘Wealthy’
In Tuesday’s State of the Union the Orator in Chief proposed cutting back on the tax break afforded to §529 college savings plans. His reasoning? §529s are used primarily by the ‘wealthy.’ We’ll get to that in a moment. By way of review §529s were established in 1996 as a means for people to save [...]
Are Inherited IRAs Creditor-Protected?
Generally qualified retirement accounts such as pensions, 401(k)s and IRAs offer good and meaningful protections from creditors. Traditionally under federal bankruptcy laws (states offer varying levels of protection) up to $1.25 million in an IRA has been protected from creditors. A 2014 Supreme Court ruling, however, reduced the protections afforded if the funds are held [...]
Robo-Advisors More Hype Than Substance
In many ways technology has lowered the cost of service delivery. For a nominal cost the friendly automated voice of the credit card company allows us to “press 1” to find out our balance. Similarly we can contact a customer service rep halfway around the world when we need to speak with someone. The question [...]