File and Suspend: A Flexible Social Security Strategy The Social Security system may seem complex, but understanding your claiming options could help increase your benefits. One strategy to consider is “file and suspend” (sometimes referred to as “voluntary suspension”). The basic concept is to file for benefits at full retirement age (66 to 67, depending […]
Expenses in Waiting: Managing Costs on Your Property and Casualty Insurance You may not think of the deductibles and liability limits on your insurance policies as part of your financial strategy, but they could make a difference in your overall financial picture. Consider them “expenses in waiting” — potential costs that you should be prepared […]
Last-Minute Legislation: 2014 Tax Extenders After contentious congressional negotiations and the threat of a presidential veto, the Tax Increase Prevention Act of 2014 — extending 55 tax provisions through the end of 2014 — finally became law in December with less than two weeks left in the tax year. Unfortunately, the fate of these provisions […]
Highly Appreciated Giving The stock market has been strong over the last few years, with the S&P 500 gaining about 200% from its bottom in March 2009 through the end of 2014.1 The housing market has also turned upward, and national home prices have bounced back to 2005 levels.2 In this improving economic environment, many […]
Are You an Investor or a Speculator? Legendary investor and teacher Benjamin Graham — considered the “father of value investing” — once said, “The individual investor should act consistently as an investor and not as a speculator.”1 This simple quote captures a fundamental concept that could help you establish and maintain a sound financial strategy. […]
Blame It on the Weather: The Economic Effects of Unusual Events Many parts of the United States experienced a particularly harsh winter. The Midwest and Northeast suffered the toughest blows from a stream of heavy storms. Boston’s record seasonal snowfall topped 110 inches.1 As winter was settling in, U.S. economic growth fell to a seasonally […]
Financial Strategies for Changing Families It should come as no surprise that American family life has changed over the past four decades, but U.S. census data reveals just how widespread this change has been. In 1970, about 40% of households were married couples with children under 18 living at home. By 2012, only 20% of […]
Aiming at Target-Date Funds Target-date funds are increasingly popular in workplace retirement plans, where they are often the default option for new employees. A 2014 study found that 15% of all 401(k) assets — including 32% of assets for recently hired plan participants — were invested in target-date funds.1 These funds are not limited to […]
Fixing Social Security: America Faces Tough Choices In May 2015, researchers from Harvard and Dartmouth published a report suggesting that actuaries for the Social Security Administration have been underestimating the demographic challenges facing the program since 2000.1 The fact that Social Security is in trouble was not a surprise, but the possibility that the day […]
How Much Money Can I Put into My IRA or Employer-Sponsored Retirement Plan? IRAs and employer-sponsored retirement plans are subject to annual contribution limits set by the federal government. The limits are periodically adjusted to compensate for inflation and increases in the cost of living. IRAs For the 2015 tax year, you can contribute up to $5,500 to […]