22NancyHechtD14ed

“I would maintain that thanks are the highest form of thought, and that gratitude is happiness doubled by wonder.”
– G. K. Cheserton

Have you noticed small changes when talking to your parents? Nothing big, just little mentions about almost getting the power turned off because they forgot to pay the bill. Your Dad tells you they got a letter from the IRS stating they now have to pay penalties for not filing their tax return. You go visit them and notice that their desk is piled high with papers, a sight you normally do not see. You glance at their checkbook and see errors in an account that was once flawless. These may be signs of diminished capacity or the beginnings of Alzheimer’s disease.

One easy thing you can do to protect your parents is to meet their Certified Financial Planner Professional, their CPA, attorney, and banker. You can asked to be contacted if your parents start exhibiting odd behavior, like going to the bank three days in a row to withdraw the same amount of money, or suddenly changing how they have their assets invested. You don’t need to be called upon for every meeting or decision they make, but, it is nice to know that your parents will have you for their financial professionals to reach out to if a red flag pops up.

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Many of us like the idea of a Roth IRA but cringe at the thought of converting a Traditional IRA to have one. No one really likes to pay taxes any sooner than required. Now the IRS has finally cleared up the rules on transferring from a 401(k) account to a Roth IRA.
Taxpayers can split off their after-tax money in their 401(k) account and send it directly to a Roth IRA.
Roth IRA accounts, under current tax law, accumulate interest on a tax free basis and do not require minimum distributions at age 70.5. This account may be the answer for your after-tax deposits in your 401(k).

disclosures:http://www.hechteffect.net/?page_id=31

I have good news for you. H.R.4719 has had some of the provisions permanently extended. Especially the provision that allow for tax-free distributions from individual retirement accounts (IRAs) for charitable purposes.
Most of us have the largest amount of investments in our IRA accounts. You can make a direct transfer from your IRA to qualified 501(c) 3 charities, not pay tax on the distribution, and help make your chosen charity happy.
A win-win for all!

disclosures:http://www.hechteffect.net/?page_id=31

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.

disclosures:http://www.hechteffect.net/?page_id=31

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

 Disclosures:http://www.hechteffect.net/?page_id=31

disclosures:http://www.hechteffect.net/?page_id=31

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.

disclosures:http://www.hechteffect.net/?page_id=31