Starting in January you will be able to save more for yourself through the various retirement accounts available.
For those contributing to a 401K, 457, or 403B account you will be able to contribute $18,000/year and the over age 50 catch up contribution has increased to $6000/year.
If you file single or head-of-household, the deductible IRA phase- out limit was increased to $61,000-$71,000. For those married filing a joint return, the phase- out has changed to $98,000-$118,000.
Roth IRA phase-out ranges have changed also. For 2015, the phase-out range will be $191,000 for single filers and $193,000 for joint filers.

Please take advantage of these changes and save as much as you can for your retirement.

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This is my 200th blog post. I would love to know how you have found my blog. Do you read my blog via Facebook? Has someone forwarded my blog to you? Are you a subscriber?
I would also like to know how you feel about the content I have blogged about. Have you found it interesting and helpful? Are there topics you wish I would write about? Any constructive comments or insights are most welcome.
You can either reply through my blog or email me at nancy@financialgroup.com.

Thank you for your support!
Nancy Hecht, CFP

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http://money.cnn.com/video/news/economy/2014/10/21/we-the-economy-cave-o-nomics.cnnmoney/index.html?iid=HP_River

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Social Security checks will rise by 1.7% — which translates into $22 more each month for the average retired worker. But how much does it matter?
We are all facing sharper increases for utility and grocery bills, among other essentials. If you are on a fixed income, any increase is a problem.
To help pay for the increase the Social Security Administration also announced Wednesday that the maximum amount of earnings that workers pay Social Security taxes on will increase from $117,000 to $118,500 in 2015. That is a 1.26% increase in what workers will have to pay toward social security.

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I have been recently told of “investment rules” presented to a client who is managing their parent’s investments. Both of their parents are over the age of 80. Along those lines, my husband is cleaning up a mess that his father followed just because he is over the age of 80.
First off, my client’s dilemma. They were told because their parents were over that age of 80 that they could only invest in annuities, that they had to have an annuity that paid them out at least $20,000/year so they could spend all of their money, and last but not least, they are too old for investments. None of these statements are true. I have many clients in their 80’s, and a few in their 90’s. We invest in a prudent manner with leanings toward the conservative. If, however, your family history shows life expectancy well into your 90’s or later, a client in their early 80’s may have a long term need for their investments to provide income + growth. Many Octogenarians invest with thoughts of succession and not current income needs. This leads to a whole different, possibly, more growth based investment for that person.
Second, my in-laws were told that because they were over the age of 80 they no longer had to file a tax return. Age is not one of the factors considered by the IRS as a reason not to file. My husband has had to pull together all of their tax information for the past 4 years and get them filed. You can go to www.irs.gov and check out who is exempt from filing.
We need to watch out for our parents and grandparents when it comes to their investments.

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But it is not. It doesn’t mean that the match won’t hurt you, but it is manageable.
I do not mean to make light of the market gyrations this week, however, when talking to my clients, we take a step back and look at the big picture. Most of us realize that investments are for the long term. If you cannot keep you assets invested for at least 5 years, then you need to be in cash. If you are at or near retirement, I know you are worried because you feel you do not have enough time. We plan for your time in retirement; this may be 20 years or more. The world is not on fire – it is only a match.

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Many soon to be retirees feel that they need to transition their investment portfolio away from equities and into income for a successful retirement. This conventional thought could leave you short in retirement. Total Return is the key to success.
Total Return is a measure of investment performance that accounts for two categories: growth and income. If you plan to be like the average American and live at least two decades as a retiree, you need total return to keep you ahead of inflation. Appreciation through equity investments can allow you to keep pace with inflation, while the dividends from your income side can cover your current spending needs.
Investing for total return forces you to diversify which can provide additional protection to your portfolio and may provide for a more successful retirement.

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This is the time of year when many of our clients retire. They have banked sick and vacation days, and can now leave work while getting paid through the end of the year. Along with planning for these final paychecks my clients look at a few important retirement planning items. Here are 3 for you to consider:
What will you do with your house?
Do you want to stay where you are or downsize? Do you want to move to another state? If you stay, can you manage the upkeep and expenses? These are important lifestyle questions to ask when considering where to live in retirement.

Long Term Care
No one likes to think about this issue. LTC can average $6000/mo. or more depending on the level or care and where it is provided. If you are wealthy you can self fund, if you are poor you can use Medicaid, if you are in the middle, you have to plan. Take the time to look at what LTC planning options are available.

When should you take Social Security?
This has become one of the biggest questions my clients have. If you can wait until age 70, you will receive an extra 8%/year for every year over your full retirement age. If you are retiring prior to your full retirement age, you should have a comprehensive Social Security Analysis completed for your.

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You save throughout your working life in a tax qualified account, you’ve retired and are living within your means, your taxes are at a level that you feel are manageable, and now you have to pay more! Yes, it is MRD time.
Each October we start working on the minimum required distributions that clients have to take. If you are 70.5 yrs. old, you must begin withdrawing funds from your qualified retirement accounts and pay tax on that withdrawal. The penalty for under withdrawing is 50%. To help you avoid this penalty, find a MRD table to help calculate what you must withdraw.

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http://www.orlandosentinel.com/business/os-ask-an-expert-promo-20140928-column.html

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