Tag Archive

Taxable VS. Tax Deferred Investments

Published on March 19, 2015 By Tim Barton

How much would you have to earn each year from a taxable investment in order to equal earnings on a tax-deferred investment? This chart illustrates the potential benefits of a tax-deferred investment vs. a taxable investment. Annual Tax-Deferred Yield Federal Income Tax Bracket: 10% 15% 25% 28% 33% 35% Annual Taxable Equivalent Yield 3% 3.33% 3.53% […]

What Are the Implications of Dying Without a Will?

Published on December 2, 2014 By Tim Barton

People who die without a valid will, die intestate. In this event, the state in which they resided effectively provides a will through the state’s intestacy law. This means that the state dictates who will receive the estate owner’s property and in what proportion. While state intestacy laws do attempt to provide for a “fair” […]

What Is a Power of Attorney?

Published on November 10, 2014 By Tim Barton

Durable Power of Attorney What Is It? A power of attorney is a written document in which one person — the principal — authorizes another person — the attorney-in-fact — to act on the principal’s behalf. What Authority Is Granted by a Power of Attorney? The authority granted by a power of attorney depends on […]

Another Role for Life Insurance

Published on October 28, 2014 By Tim Barton

Another Role for Life Insurance… The Wealth Replacement Trust The Problem: There can be significant tax advantages in giving appreciated assets to a charity. Examples include real estate and securities. If you were to sell an appreciated asset, the gain would be subject to capital gains tax. By donating the appreciated asset to a charity, […]

Why Should You Consider a Living Will?

Published on October 2, 2014 By Tim Barton

What Is a Living Will? “Living will” is a term commonly used to refer to a legal document available in most states that allows an adult to state in advance whether or not life-sustaining medical procedures should be used to prolong life when there is no chance for a reasonable recovery. Why Should You Consider […]

She Solved Her Retirement Needs. And So Can You

Published on September 24, 2014 By Tim Barton

Need retirement income you can’t outlive? Have coffee with Meg. Take a video break and learn how Meg uses a single premium immediate annuity (SPIA) to alleviate concerns about outliving her retirement assets and being unable to meet monthly expenses. Retire with Confidence People are living longer than ever before, meaning  that unpredictable market performance, higher  […]

Benefits of Retirement Plan In-Service Withdrawal Make Sense for You?

Published on September 3, 2014 By Tim Barton

You might know that you can move money from your employer’s qualified retirement plan to an IRA when you leave the employer.  But do you know you may be able to take advantage of this opportunity while still employed by the company?  There can be big benefits to this move. What is an In-Service Withdrawal? […]

5 Reasons People Give

Published on August 7, 2014 By Tim Barton

According to the Giving USA Foundation, individual giving accounted for 72% of all contributions to charitable organizations in 2012.  Source: Giving USA Foundation™ – Giving USA 2013 Highlights People give to charities for a variety of reasons. They give: Because they have compassion for the less fortunate. From a belief that they owe something back […]

Teaching Grandkids about Money… Money Does Not Grow on Trees

Published on July 25, 2014 By Tim Barton

At this point in our lives we’ve raised our own kids and hopefully the values we struggled to impart before they left home have become part of their family lives.  Now they’re raising  our grandchildren and like us, when we were new parents our kids will try to bring all of their life lessons into the mix.  The […]

Return of Money Trumps Return on Money / Happier Retirees

Published on July 9, 2014 By Tim Barton

Return of Money Trumps Return on Money Gallup March 31,2014 “United States investors are generally a cautious group when thinking about risk versus return options for their retirement savings.” Nearly 2 thirds (66%) of investors surveyed by Gallup said a guarantee that their initial investment was secure even if that meant lower growth potential; outranked […]

IRA Rollover Rules Altered by Tax Court

Published on March 28, 2014 By Tim Barton

The January 2014  Bobrow tax court ruling  is an IRA game changer with huge ramifications for IRA owners.   The tax court has ruled the once a year IRA rollover rule applies to all of someone’s individual retirement accounts and not to each separately.  This ruling is stunning in that it changes the Internal Revenue Service’s long standing position in private […]

Naming an IRA Beneficiary

Published on February 13, 2014 By Tim Barton

What Are the Options Available in Naming an IRA Beneficiary? When you open an IRA account, you are asked to name a beneficiary or beneficiaries to receive the value of the IRA at your death. You can also change beneficiaries during your lifetime. There are generally three classes of beneficiaries: Primary Beneficiaries: A primary beneficiary […]

An Income Annuity Solution

Published on February 9, 2014 By Tim Barton

How Can an Income Annuity Protect Against the Risk of Living Too Long? The purpose of an annuity is to protect against the financial risk of living too long…the risk of outliving retirement income…by providing an income guaranteed* for life. In fact, an annuity is the ONLY financial vehicle that can systematically liquidate a sum […]

What Happens at an IRA Owner’s Death?

Published on February 4, 2014 By Tim Barton

The following is an overview of the options available to an IRA beneficiary. Depending on the type of IRA, whether or not the IRA beneficiary is the spouse of the deceased IRA owner and the IRA beneficiary’s needs and objectives, different options may be appropriate.  In order to avoid unforeseen and/or negative tax consequences, an […]

Retirement Savings Tax Credit

Published on February 3, 2014 By Tim Barton

What Is the Retirement Savings Tax Credit? This is often an overlooked tax credit. Remember you have until April 15, 2014 to make your 2013 IRA contribution.  The Retirement Savings Tax Credit dates back to the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA 2001)which  introduced a new temporary tax credit for IRA contributions and elective deferrals […]

2014 Individual Federal Income Tax Rates

Published on January 7, 2014 By Tim Barton

2014 Individual Federal Income Tax Rates Federal income tax rates are available on this handy chart to help with your tax planning and preparation. Download the 2014 Tax Digest  PDF For additional information regarding: Individual income tax rates Deductions & Tax Credits Social Security/ Medicare rates Health Savings Accounts Retirement Plan Contribution Limits including Traditional and […]

WI Health Insurance Companies May Extend Renewals

Published on November 21, 2013 By Tim Barton

This could be some money saving good news for Wisconsin residents who have or would have received nonrenewal notices from their health insurance company.   On November 21, 2013 Wisconsin Office of the Commissioner of Insurance issued a bulletin to the state’s health insurance companies- Consistent with state requirements and the Office of the Commissioner of […]

Which Way is the Market Going?

Published on June 24, 2013 By Tim Barton

Stock market indexes have been for the most part rising this year;  high enough that some portfolios have made up for their losses from the last market decline.  Some investors and their advisors are starting to think of themselves as Albert Einstein’s of the market investing.   Although over the last 40 years I have yet to meet one […]

Foundation of Retirement – Social Security

Published on June 4, 2013 By Tim Barton

Social Security payments are important to most American’s retirement plans.  After all,  a worker has contributed a significant portion of their income to Social Security via payroll taxes;  starting at 2.25% in 1950 – steadily increasing to 15.3% 1990 and later.  Because retirement could last 30 years or more a retiree must consider how and when to receive their […]

81 Different Social Security Possibilities

Published on May 14, 2013 By Tim Barton

How many ways are there to take Social Security benefits? Would you believe there are 81 different possibilities? Most people think of 3: Early retirement at age 62 Full retirement at 66 or later depending on birth date Maximum retirement at age 70. Known as the “break-even” analysis method; retirement planners use stock computer models that add up the monthly […]