Medicare surcharges for richer recipients
A big question every year at open enrollment for employer health insurance is how much will the premium rise? That doesn’t change once you’re on Medicare — Part B and Part D premiums typically increase each year. But with Medicare there’s added anxiety: Your income can shoot premiums through the roof. The government sets four Medicare surcharge tiers for 2018, based on a... READ MORE
Nine things to never keep in your wallet
You and your hard-earned savings have finally made it to retirement. Why risk losing anything if your wallet goes missing or is stolen? With every new bank slip that bulges from the seams, your personal information is getting less and less safe. With just your name and Social Security number, identity thieves can open new credit accounts and make costly purchases in your name. If they ... READ MORE
How to find ‘advice-only’ financial advisers
If you want money advice you can trust, your best bet is to hire a fee-only financial planner. The trick is finding a planner who’s willing to be hired for a reasonable fee. Fee-only planners don’t accept commissions or kickbacks from companies whose investments their clients buy. Instead, they are paid solely by client fees. Most use an “assets under management” model, where... READ MORE
How long will bull market continue?
The current bull market for U.S. stocks is now the longest of all time. How much longer might it last? Strong corporate earnings growth and a resilient U.S. economy bolstered by a solid job market and consumer confidence set the stage for the market to continue the upward trajectory it’s been on for more than nine years, experts say. Even rising interest rates are not likely to... READ MORE
How to weather a downturn in retirement
The older the current bull market gets, the more stories you’re likely to read about how this is an awful time to retire. Yes, we’re due for a correction that trims 20 percent or more from stock values. That could be a big problem for people taking withdrawals from investment portfolios, since market losses early in retirement increase the chances of running short of money. The... READ MORE
Savvy shopping advice: buy gently used
Most of us have wasted money on ill-considered purchases or stuff we really couldn’t afford. As we get more financially savvy, that happens less often. But we can still profit from other people’s bad choices. People who prize the latest and greatest, for example, quickly need to upgrade to the next shiny thing. That leaves plenty of lightly used cars and electronics for sale at a... READ MORE
How tax law changes affect you this year
One of the significant changes to the federal tax law for 2018 is the increase in the standard deduction to $24,000 for couples filing jointly, and $12,000 for individuals. This change, and others, will likely encourage many more people to use the standard deduction instead of itemizing. Other changes to the tax code will also impact taxpayer decisions. For example, starting in 2018,... READ MORE
A tax-friendly way to get income for life
Question: I heard that you can use $130,000 in an IRA to buy a deferred-income annuity without having to pay taxes on the money. Have you come across this before? Answer: That sounds like a Qualified Longevity Annuity Contract, or QLAC. In 2018, you can invest up to $130,000 within a traditional IRA (or 25 percent of the IRA balance, whichever is less) in this special kind of... READ MORE
Don’t let peer pressure spoil retirement
In retirement, it can be tempting to look over the fence at how neighbors are spending their golden years, and wonder if they’re living better or if you’re spending your time and money in the right ways. What’s more, social media heightens the pressure by serving as a highlight reel of everyone’s best experiences. But just like social media can put a filter on reality, many myths ... READ MORE
Consider a second career in childcare
Fed up with the inflexibility of the typical public-school curriculum, and passionate about working with children, PJ Lents of Palo Alto, Calif., founded the Periwinkle School — a “young 5’s” program for children transitioning from daycare to kindergarten — that she operates in her own home. Referring to her own school-age rebellion against the lack of creativity and... READ MORE
