Retirement Income Question

Q: Is there any way to make 3% annual income on $200,000 and still protect the principle? Or is this just impossible? I am retired and would like a bit more income each year. There is a way to make close to 3% by buying the 10-year treasuries now that are trading around 2.85%. They […]

Lump Sum and Pension for Retirement

Q: I am a 64-year-old male and will retire this May. Presently my only bill is my $2000/month house payment which still has 14 years to go. My company is offering me a lump sum package of my pension account of $500,000 or I can take a monthly pension of $2700 with my spouse getting $1300 per month […]

New Tax Plan – Medical Expenses

Q: I have a looming medical expense of $5500. Are medical expense deductions being eliminated under the new tax plan for 2018? Should I incur the expense this year? A: Thanks for reaching out to us. For 2017 and 2018, the new tax law will allow you to deduct qualified medical expenses that exceed 7.5% of your […]

Tax Plan Question – QCD

Q: I have two questions regarding the new tax plan. Is there an additional standard deduction amount for over 65 age? Is the qualified charitable donation (QCD) from IRA’s still available? A: The new tax plan leaves intact the additional $1,300 deduction for each filer 65 and over. It is also our understanding that the new […]

New Tax Plan – 2017 Taxes

Q: Regarding the tax plan, are the changes going to affect us when we file our 2017 taxes? A: When passed, the bulk of the changes in the new tax law will go into effect in 2018, so they will not be retroactive back to your 2017 taxes.

Tax Questions – Capital Gains

Q: Does the new tax plan do away with the 3.8% Obamacare real estate capital gains tax? A: Thanks for reaching out to us. Under the new tax plan there will be no change to the 3.8% Obamacare surtax on investment income.

Retirement Planning Question – Backdoor Roth

Q: With the new tax plan, can individuals still perform the backdoor Roth IRA in 2018? A: Thanks for reaching out to us. It is our understanding that under the new tax plan you will still be able to take advantage of the backdoor Roth conversion strategy in 2018.

Tax Question – Personal Exemption

Q: What happens to the $4050 personal exemption in the new tax law? I just read on one site that it goes away. If so, then the benefit from the increase in the standard deduction is partially muted, isn’t it? A: Thanks for reaching out to us. Starting in 2018, the personal exemption will go away and […]

Tax Question – Personal Items

Q: A friend of mine recently sold personal items (such as jewelry). Will she be she taxed on these items as income? Is there a dollar amount under which she can avoid being taxed?  A: According to the IRS, if you sell a personal item for more than the original cost of the item, then it should […]

Spousal Social Security Benefit

Q: Can my spouse start her full Social Security when she turns 66 and when I start my Social Security when I turn 67 can she shift hers to a Restricted Application for Spousal Benefit only? We are considering this as a strategy. After that, when she turns 70, can she go back to her […]