Category: Financial and taxes in retirement
October 15, 2024 -- As if Florida condo owners didn't have enough to worry about. A deadly duo of hurricanes caused suffering and loss of human life. But Condo buildings 3 stories face other kinds of challenges, as December 31 deadlines for Florida's stringent new engineering inspections and reserve studies go into effect.
If condo and HOA boards aren't nervous about all this - they should be.
The original Building Safety Law (SB 4), and later clarified by SB 154, was a reaction to the tragic Surfside building collapse in Miami in 2021. It specifies 2 key requirements for condominium associations that will fundamentally those will affect their finances. The first is a Milestone Inspection Study, the second is the Structural Integrity Reserve Study. We will explain those in greater detail, later. But first, let's talk about how this will unfold in the real world.
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Published on October 14, 2024
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Category: Financial and taxes in retirement
Sept. 1, 2024 --You could write a best seller on the ingenious ways criminals use to steal money from people, especially those over 60. These crooks capitalize on a sense of trust to drain senior retirement accounts with ploys like asking for help on stamping out corruption, or rescuing a relative or friend in trouble.
Folks 60 and over are often targeted by cybercriminals because they are such a rich source of funds. Among all age groups in 2023, people over 60 lost more than $3.4 billion from scams, according to the F.B.I.
Per the New York Times, retired attorney Barry Heitin lost almost all of his retirement savings, $740,000, to an incredibly complicated scheme. Criminals persuaded him that he was helping out with an important government investigation, so he spent months and many hours draining his accounts, where the money vanished into the black hole of the Internet. What's more, he owed the IRS taxes on his "withdrawals".
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Published on August 31, 2024
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Category: Financial and taxes in retirement
August 6, 2024 -- The New York Times reported on a phenomenon that is literally uprooting retirees and others in Florida and elsewhere. In "Skyrocketing Insurance Is Clobbering Consumers" the Times reported on the crippling escalations in homeowner insurance that are forcing many homeowners out of their homes.
An unhappy situation!
When someone retires one of their most important moves is to calculate a retirement budget. To do that they balance how much money have they saved plus their income from all sources against expected expenses. Let's say that a retired couple figures they can swing a move to Florida or Arizona. Everything looks good when they retire. But after a few years one of their big budget items, home insurance, has doubled (FL insurance rates are up 40% in the last 5 years, higher in some areas). Instead of paying $3000 a year in premiums a few years ago, they might be on the hook for double what they originally budgeted for. Mortgages typically require flood and other types of homeowners insurance, so it is not optional. For anyone with a tight budget, the increases could be catastrophic.
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Published on August 5, 2024
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Category: Financial and taxes in retirement
May 15, 2024 -- Many people are eager to quit their jobs and enter the ranks of retired. Spending their days golfing, relaxing, fishing, socializing, etc. But for more people than you think, retirement doesn't stick. Florida NPR has a great podcast that explains how and why some Florida retirees ended up re-entering the workplace, for a variety of reasons. It is definitely worth a 20 minute listen, particularly because it has interviews with real people explaining the circumstances why they went back to work, and the types of jobs they found.
Fastest growing group of workers in Florida - folks over 65!
It doesn't seem to make sense that so many workers in their 60's and 70's are going back to work. In fact it is not unusual to find people over 80 who are working. There are many reasons why. For one, the realities of the world can wreck even the best of dreams. Insurance costs have exploded in many areas of Florida, particularly on the coast. Home Owner Association fees are growing faster than the rate of inflation, usually because of insurance, but also because of higher than expected maintenance costs and other community expenses. Rents and ground leases go up steadily. Cars wear out and need repairs. The cost of everything is going up, particularly since Covid's disruptions started 4 years ago. The result is that many retirees are finding their income is not coming up to what it takes stay afloat. So in most cases, their only recourse is finding a job.
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Published on May 14, 2024
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Category: Financial and taxes in retirement
April 20, 2024 -- The Dow Jones average is up over 10% in the past year, and the S & P 500 could hit its all time high of 40,000. If you have investments in the stock market that has probably been sweet music for you. But you might be wondering what will happen next - will the market continue to go up, sink like a stone, or just stay the same? Should you buy, sell, or just hold on to what you have? Here are some thoughts for retirees or those approaching retirement.
Safety is important. First, recognize that your investment decisions now have a different weight than they were when you were younger. You now have fewer years to recover, should something go wrong. So protecting your retirement funds should be your first priority. That means rash decisions - like selling everything or going all in - should be avoided at all costs.
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Published on April 19, 2024
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Category: Family and Retirement
March 27, 2023 — If that is an unpleasant question, it certainly is. Less than half of Americans have discussed their end of life plans with a relative. The result of that inaction is incalculable trouble and work for those left behind. Like finding out that all your money is…
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Published on March 25, 2024
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Category: Financial and taxes in retirement
March 12, 2024 — The vast majority of people for whom Social Security is their only source of income generally won’t pay any taxes on their benefits. But it might come as a surprise to others that their Social Security benefits could count as taxable income. People with enough revenue from pensions, savings, Required Minimum Distributions, etc., might have to pay income taxes on up to 85% of their benefits.
How are Social Security benefits taxed?
The law was changed in 1983 to help improve the stability of Social Security. After that, lower earners continued to get a break on their taxes, but higher earners now had to pay some taxes on their benefits. Over time the brackets have not expanded along with inflation, so an estimated 50% of people now pay some tax on their benefits. SS uses an adjusted gross income formula (earnings, investment income, retirement saving withdrawals and other taxable income, non taxable interest, and one half of Social Security benefits to determine what taxes might have to be paid.
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Published on March 11, 2024
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Category: Financial and taxes in retirement
February 26, 2024 -- Choosing an investment firm to manage retirement savings and IRA and 401(k) investments is an important task, no matter how small those might be. But which of the big 3 investment firms is best - Schwab, Vanguard, or Fidelity? In this article we outline how to choose a firm that protects that money and provides the options to make it grow.
The good news is that all three of these big firms have great products, service, and reputations. Determining whether Vanguard, Fidelity, or Schwab is best for retirees depends greatly on individual preferences, investment goals, financial situation, and the range of services each offers. Additionally, retirees today are becoming increasingly aware of emerging financial trends, such as the anticipated growth in digital investment sectors—particularly bainry und online Casinos 2025, where binary trading platforms and online casinos might present alternative investment opportunities or risks worth understanding. Some retirees choose accounts at multiple brokerage firms and often have distinct opinions about their experiences (we'd love to hear your insights).
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Published on February 25, 2024
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Category: Financial and taxes in retirement
January 9, 2024 - People contemplating retirement often wonder what is the Maximum Social Security Benefit is 2024. That is the benefit received by high earners who have maximized their FICA payments for 35 years, and who waited until age 70 to collect. The answer is pretty impressive - the maximum Social Security benefit in 2024 is $4,873 per month!
Others with less fortunate earning records, or who claimed as early as age 62, are more likely to receive something around the average 2024 Social Security benefit. That figure is a relatively paltry $1,907 per month in 2024, up from $1,848 in 2023.
Waiting until Age 70 Helps with the Maximum Social Security Benefit
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Published on January 9, 2024
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Category: Financial and taxes in retirement
December 7, 2023 - Some people ask, am I required to take an RMD this year (Required Minimum Distribution) from my IRA or 401(k)? It is a good question because of recent changes in the law (SECURE 2.0). The actual answer depends on your age. If you were born in or before 1950, YES, you must take one. If you were born Jan. 1, 1951 or later, you are not required to take one this year. The new age for taking the distributions is 73.
Required to take an RMD this year?
Again, if you are required to take an RMD this year, it depends on your birthday. If you hit the age of 72 in 2023 you can postpone your first RMD until April 1, 2025. But you could take it in 2024 to avoid having to pay taxes on two RMDs in the same year (you would have a second one by Dec. 31, 2025 for the 2024 year).
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Published on December 6, 2023
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