Taxes
How Do Taxes Affect The 4% Rule?
Because the tax situations of individuals will vary so greatly in terms of tax rates, interest and dividends supported by the portfolio, and the cost-basis of the taxable account, it is impossible to create one general number for a sustainable spending rate from a taxable account.
Read MoreDoes Your Mindset Affect How You Make Retirement Income Decisions?
The fields of behavioral finance and behavioral economics have uncovered various biases humans have which are great for day-to-day survival, but somewhat maladaptive for long-term investing.
Read MoreDoes Your Retirement Plan Account For Your Own Cognitive Decline?
When it comes to financial planning, Vanguard’s “Alpha” and Morningstar’s “Gamma” are really just the tip of the iceberg.
Read MoreShould You Downsize in Retirement?
One method for freeing home equity for other uses is to downsize your home as a part of moving. Downsizing could mean either moving to a smaller home, or moving into a similar-sized home in a less expensive community.
Read MoreShould I Stay or Should I Go? Housing Decisions in Retirement
A plan to meet housing needs is an important part of a retirement income strategy.
Read MoreTax Considerations When Delaying Social Security
Delaying Social Security can potentially contribute to an overall tax strategy for retirement. Every case is different, but generally speaking, when you add taxes to the mix, the case for delaying Social Security becomes even stronger than usual.
Read MoreWithdrawal Sequencing: Avoiding the Pitfalls of Retirement Distribution Order
Taking retirement income from your investment portfolio in retirement is like walking through a minefield. Most people don’t think about it, but your distribution strategy in retirement – how you actually take money out of your portfolio – and the resulting taxes can have a significant impact on how long your money lasts and how much you’ll be able to spend throughout retirement.
Read MoreThe Value of Financial Advice
I am often asked whether it is worth the cost to hire a financial advisor. After all, they charge you money to make you money. People say they can listen to the news and know where and how to invest, so, “Wouldn’t I be better off just keeping that fee for myself?” That is an excellent question with an answer that depends on many factors.
Read MoreCharitable Giving with Donor Advised Funds
If you make lots of charitable contributions, it behooves you to understand 2 items with regard to tax planning for donations. 1) There can be large additional benefits…
Read MoreMaximizing the Combined After-Tax Value of IRAs and Roth IRAs
In the Spring 2015 issue of the Journal of Personal Finance, I was the co-editor with Joseph Tomlinson for this research journal sponsored by the IARFC. The issue has five articles, and the issue’s theme evolved rather organically into retirement taxation topics.
Read More