Why worry about loss of ‘basis step-u­­p’?

Death and taxes may be the only certainties in life, but death taxes are only a remote possibility for most people. The vast majority of Americans won’t ever have or give away enough to owe estate or gift taxes. But far more people could be affected if a tax break that benefits heirs is eliminated. While campaigning for president, Joe Biden proposed doing away with something called the ... READ MORE

Answers to readers’ financial questions

Q: I have a long-term care health policy with Genworth. I understand that these policies may be taken over by a Chinese company. Should I continue to pay the premiums, or should I cancel this policy and obtain a new policy from another company? A: You should not cancel your policy. If you do try to obtain a new long-term care policy, you may not be approved if your health condition has... READ MORE

Afraid to retire, even though you can?

I am seeing an interesting pattern in discussions with my clients about retirement — and it’s certainly not one I was expecting. Instead of worrying about whether they’ll have enough saved to enjoy retirement, they’re worrying about whether they’ll enjoy retirement at all. Discussions about retirement start almost as soon as people get their first jobs. Whether it’s saving as ... READ MORE

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IRS ignores those filing paper tax returns

I have been filing my federal tax returns on paper for more than 50 years. It was never any trouble at all. After all, I had been an enrolled agent for several years. But that all changed after I filed my 2019 return. I filed it in April 2020. The IRS still has not processed it. When I go to the IRS website and use the “Where’s my refund?” option, the IRS doesn’t even indicate ... READ MORE

Will you run out of money in retirement?

You just left a meeting with your financial adviser, and your nest egg is looking bulletproof, with a projected worth of over $1 million at age 95. But wait a second: Are you sure about that? If your financial projections look too good to be true, they might well be, for a variety of reasons. When the pandemic hit in March 2020, the stock market crumbled, and many people saw their... READ MORE

Reap cash rewards by referring friends

Do you like your credit card or bank account enough to recommend it to a friend or family member? If so, you may be able to scoop up extra cash, rewards points or frequent-flier miles by making a referral — and your friend may get a bonus, too. Several major card issuers provide referral bonuses to eligible cardholders. Chase, for example, offers $100 cash back for each friend who... READ MORE

Is your credit report wrong? What to do

Consumers filed complaints with the Consumer Financial Protection Bureau (CFPB) in record numbers in 2020, according to a report released last month by the U.S. Public Interest Research Group, a nonprofit consumer advocacy group. Credit reporting issues were cited in 282,000, or 63%, of the complaints. The majority noted “incorrect information” on credit reports or “information... READ MORE

Four financial ‘experts’ you shouldn’t ask

None of us knows everything we need to know about money, so we may turn to experts for help. But some money professionals who offer advice are not qualified to do so — nor are they required to put our interests ahead of theirs. Be cautious when accepting advice from the following sources: A dealership about how long your auto loan should be A dealership wants to sell you a... READ MORE

Protect against risk of outliving nest egg

Few of us would go without auto, home, life or health insurance. But the kind of insurance that protects against the risk of running out of money in old age is still greatly underutilized. It’s called a deferred income annuity or a longevity annuity. I believe most people planning for retirement should strongly consider an income annuity, and a Brookings Institution report confirms... READ MORE