Americans are always looking for new ways to save taxes. Health Savings Accounts (HSAs) are a way for Americans to save on taxes while also saving for medical emergencies. To be eligible for an HSA, you must be covered under a high-deductible health plan (HDHP) with an annual deductible of at least $1,400 for an individual or $2,800 for a family. Additionally, you cannot be covered under any other health plan, such as Medicare, and you cannot be claimed as a dependent on anyone else's … [Read more...] about Save Taxes and Money, Too with a HSA
Trusts Can Help Protect from Bank Failure
When you visit a savings institution in the United States, you'll often see a "Member FDIC" seal on the door. The Federal Deposit Insurance Corporation (FDIC) was established in 1933 as a response to the Great Depression's bank runs. The FDIC provides each person with up to $250,000 of insurance for funds in that bank in case of bank failure. However, applying this limit to trusts has been complicated until recently, as trust beneficiaries' names had to appear in the bank's records, and … [Read more...] about Trusts Can Help Protect from Bank Failure
Your Grandkids Could Retire as Millionaires
You’ve worked hard all your life. You may not have started with much, but now you have a comfortable life. You have a family you love and you no longer have to clip coupons, though you may still out of habit. When your children were growing up, you had work and responsibilities and were not able to savor their childhood as you wanted. It hardly seems possible, but now they have kids of their own. But, this time around, you can savor the children. You can take them to the park, play board … [Read more...] about Your Grandkids Could Retire as Millionaires
You May Be Worth More Than You Think
In the 1997 book, “the Millionaire Next Door” the authors examined the typical millionaire in the United States. Surprisingly, they had lives that were rather commonplace. The typical millionaire had the following characteristics: The authors also have a simple rule of thumb for how wealthy you should be: Multiply your age in years by your household income and divide by ten. So, if you make $100,000 and are age 50, that would be $5,000,000 divided by 10, or $500,000. If your net … [Read more...] about You May Be Worth More Than You Think
10 Tips in Planning for Taxes
“In this world, nothing is certain but death and taxes.” Benjamin Franklin. While taxes may be a certainty, you can minimize your obligation with a little planning. The time to plan is before you sit down to file your taxes on April 15th. Minimizing your taxes is a yearlong process, with particularly important decisions to make as the end of the year approaches. Keep good records. Good record keeping will help you remember all of your deductions. Without records, … [Read more...] about 10 Tips in Planning for Taxes
As Time Draws Near
Someone close to you has little time left in this world. What can you do? You want to do everything you can for them. You watch helplessly as they fight what you both know is a losing battle. The doctors have already written the final chapter in the story. There are planning strategies that can be taken advantage of even when time is short. You stay with them to brighten their days, helping to bring joy and even levity into their lives. But, you want to do more. Perhaps they are concerned … [Read more...] about As Time Draws Near
Planning With Retirement Assets
For many of us, our retirement fund is our largest single asset. It could be an IRA, a 401(k), 403(b), or other qualified plan. Retirement assets require careful consideration because unique rules apply to them. Retirement assets are favored assets in some ways, and disfavored in others. Retirement assets are favored in that they are exempt from your creditors in bankruptcy, at least up to the amount that is needed to fund your retirement. On the other … [Read more...] about Planning With Retirement Assets
Do You Know Who Your Beneficiaries Are?
Who will get your assets at your death? Do you think you know? You may not. While you probably know who is listed in your Will or Trust, most of us have significant value in assets that are not controlled by either a Will or Trust. Examples of assets not governed by your Will or Trust are: Property held in joint tenancy with right of survivorshipLife insuranceIRAs, 401(k)s and other retirement plans Joint tenancy property goes automatically to the surviving joint tenant(s). So, if you … [Read more...] about Do You Know Who Your Beneficiaries Are?
Legacy Planning: A Holistic Approach
Compliments of the McGee Law Firm, Attorney Brandon McGee While “Estate Planning” is the process of planning to pass assets from one generation to the next, “Legacy Planning” is the next generation of Estate Planning. Estate Planning is the starting point, but Legacy Planning takes it beyond the basics. Legacy Planning recognizes that we are more than the material wealth we have acquired. Our material wealth is just one part of the equation. When we leave this life, we will leave more … [Read more...] about Legacy Planning: A Holistic Approach
IRS Clamps Down on Wesley Snipes and Other Tax Protesters
Compliments of the McGee Law Firm, Attorney Brandon McGee Actor Wesley Snipes has given the anti-tax movement in the U.S. a new face. The actor earned more than $38 million between 1999 and 2004, but failed to file any income tax returns for those years. He and his co-conspirators claimed that a technicality in the Internal Revenue Code allowed him to escape taxation of his earnings. If convicted of the criminal tax charges against him, he faced up to 16 years in prison. Snipes’ defense … [Read more...] about IRS Clamps Down on Wesley Snipes and Other Tax Protesters
