A year-end checklist always gives you a number of ways to take control of your finances—and possibly save on your taxes. Here are a few to consider—just make sure you do them by December 31, 2012, as discussed by Charles Schwab & Co. 1 Prepare for new tax reporting changes. Review legislation related to cost basis reporting that could affect your taxes. 2 Convert to a Roth IRA. Compared to a Traditional IRA, a Roth IRA can give you control over your income taxes when you start taking withdrawals from your retirement account(s). 3 Turn losses into…
Seven million adults in the United States care for their elderly parents from afar, according to the National Institute on Aging. But it is no easy task to coordinate doctor’s visits long-distance or evaluate nursing homes or analyze the safety of your parents’ home if — like 90 percent of older adults, according a recent AARP poll — they choose to age in place. However, if you cannot stay at home, due to ill health or cannot perform activities of daily living, your options may be choosing a nursing home. At the Law Office we are in contact with many…
The program, "Family Matters," focuses on financial planning for multigenerational households. At the Elder Law Office we work with many local families in this situation, often with aging parents who move in with adult children when their health deteriorates. One of the first episodes of the program delves directly into elder law issues. The program shares the story of a family that was forced to make many adjustments when a woman's 84-year old father needed a caretaker. The woman explained that the adjustment was not easy. Not only did the job of caretaker not come naturally, but figuring out how…
As the Baby Boomer generation continues to age, more and more seniors are finding themselves facing a harsh reality: they didn’t adequately plan financially for their later years. Sure they saved enough to retire, pay the bills, and travel. However, there is a potential financial drain waiting towards the end of their lives that they just did not see coming—the need for long term care. Perhaps this is where you find yourself now. Maybe your spouse has suffered a debilitating fall and you need a home health aide to assist you in caring for them. Or perhaps you are an…
The first stage of the retirment planning is the period when you first enter the workforce and begin setting aside funds for later in your life and ends when you actually retire. A consideration in choosing an employer should be the amount they will contribute to your retirement savings and if they have a pension plan. Sign up for the 401(k), 403(b), or 457(b) plan if offered and contribute the maximum allowed as soon as you start working. In 2007, less than 32 percent of workers under age 35 participated in plans when they were offered at work, according to…
If you participate in a 401(k), you may be surprised to learn that your employer could actually over-ride your investment choices if they think you’re not making appropriate decisions yourself. It’s called a “re-enrollment,” and employers say they are doing it for your own good. You might want to pay attention, though, because your employer’s choices may not be right for you – especially if you are older, female or have other unique circumstances. Re-enrollment is different than “auto-enrollment.” Auto-enrollment is a fairly common practice, in which employers automatically enroll workers in a 401(k) plan and defer a certain percentage…
Financial and insurance products have long been key retirement planning components – helping savers mitigate retirement risks and provide retirement income. According to a recent issue of MarketWatch, however, those types of products are getting harder to find as some of the major companies back out of the market.Genworth last week said it will stop selling variable annuities and MetLife decided late last year to stop selling long-term care insurance policies.Why? These are all business decisions based on current economics. But in the case of long-term care insurance, it seems some of the bigger providers got their pricing wrong. Many…
If you are a parent of an adult child, especially a recent college grad, you may be challenged to help your kids get on their feet financially – especially in today’s tough job market. While most parents are quick to put their kids’ needs first, it’s only prudent to do so in ways that won’t jeopardize your own retirement funding. For a little guidance, U.S. News and World Reports offers a list of ways in which you can help support your adult children without also ruining your retirement funds. 1. Budget for any support you plan to provide. Develop a…
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