Life insurance and retirement planning
There are many reasons why families entering retirement should re-evaluate their life insurance needs. First and foremost, retirees are generally living longer, especially women, so it is important that retirement plans consider the fact that one or both spouses may live into their 90s. Inflation has not been a major retirement-planning factor for some time — until recently. This... READ MORE
A 2022 guide to key dates for retirees
Deadlines are relentless, whether for tax filings, health plan open enrollments or required distributions from retirement savings. The clock is always ticking, even in retirement, and the consequences for missing a financial deadline can be painful. This guide to key dates in 2022 serves as both a reminder and a checklist of what you need to do and when. Tear it out of the Beacon and... READ MORE
Reasons to pay one’s taxes cheerfully
At my advanced (and advancing) age, it’s not smart to ruin friendships. They are harder than ever to repair and replace. But I fear I may have just blown things up with an equally ancient pal. You be the judge as to which of us is at fault. This friend and I were talking on the phone about taxes. He was bemoaning the burden they place on him, a single man in his 70s who lives mostly ... READ MORE
10 tax-friendly places for early retirement
Retiring at a relatively younger age may mean needing to stretch your nest egg further. One way to do that is to find the right retirement destination. Where you live makes a big impact on your budget, as it helps determine your living costs, tax bills and income opportunities. Even if you retire, you may actually want to keep working a bit — whether to help pad your budget, pursue... READ MORE
How to pay no tax on your capital gains
One opportunity that investors should never pass up is the ability to convert a taxable long-term capital gain into tax-free basis — without paying taxes to do so. This is known as harvesting long-term capital gains. It’s a process of intentionally selling an investment with a taxable long-term capital gain, in a year when — due to low income — that gain will not be taxed. Then,... READ MORE
Your quick guide to key dates this year
Planning is everything. Financial strategies can take years to put in motion and even longer to bear fruit. The last thing you want is to sabotage yourself by missing an important financial deadline, like any one of these dates in 2021. Use this guide as a checklist and reminder of what you will need to do. January: A new year is your cue to take stock of your retirement savings.... READ MORE
Fund your IRA by April to cut your taxes
Make sure you haven’t overlooked one of the best ways to cut your 2020 tax bill (even in the new year) and secure your future: funding a traditional IRA. (Note: There is no upfront tax break for funding a Roth IRA.) You can make an IRA contribution for the 2020 tax year up until the time you file your tax return, which is due April 15, 2021, and still be able to deduct your IRA... READ MORE
Maryland tax credits for owners, renters
As the COVID-19 pandemic continues, thinking about the impacts on your household can be overwhelming. But now is an ideal time to learn about the resources available to you and your family. The Maryland Consumer Rights Coalition (MCRC) is ramping up its “Take the Credit” campaign, which reminds Maryland homeowners and renters about two sometimes forgotten tax credits. The... READ MORE
A new rental income tax break available
Renting out property can create a retirement income stream that is Uncle Sam-friendly. The federal tax law is replete with breaks for landlords, and the 2017 tax law created a new write-off that many landlords can take for their Schedule E rental income. The new tax break falls under the special 20% deduction for individual owners of “pass-through entities.” Self-employed individuals ... READ MORE
Moving to escape taxes? Make a clean break
Breaking up can be hard to do if the other party doesn’t want to let you go. People who move out of high-tax states may learn this the hard way — through a residency audit. States such as New York, California and Illinois use the audits to claim that your recent interstate move was just a tax dodge and that you still owe their state income taxes. Proving you’ve actually moved... READ MORE
