Category Archives: investing

Can you imagine….

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Yourself retired? If you are within two years of retirement, I would like you to try this exercise – live on your retirement budget for 6 months. Many people think that their expenses will decline in retirement but my 30 yrs. in business has shown that not to be true. Look at what your retirement cash flow would be and then look at your expenses with a fine toothed comb. Don’t just look at what you are averaging each month in expenses, we all have those semi-annual and annual bills that must be paid too. Try to think of that unexpected trip you may have to make and don’t forget inflation. 20+ years in retirement inflation can really eat into a budget.

So give it a test run, make your adjustments, and retire with ease.

 

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

Be careful how you Roth…

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One of the tax law changes for 2013 gives workers of any age the ability to convert a regular 401(k) to a Roth 401(k), assuming your plan allows this. In the past, you had to roll from your 401(k) to an IRA, and then you could convert to a Roth. But beware – this type of conversion does not allow for a do-over.

If you convert a Traditional IRA to a Roth, then realize this was not in your best interest, you can re-characterize, or reverse the conversion. Once you convert the Traditional 401(k) to a Roth 401(k), it is a done deal. Another drawback to this type of Roth is you will have to take Required Minimum Withdrawals at age 70.5. To avoid this RMD, you call roll your Roth 401(k) into a Traditional Roth IRA.

If you are considering this type of transaction, please consult your CFP or CPA first.

 

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

Who can get the $255?

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This past Saturday we received a number of calls regarding who can file for the $255 Death Claim through Social Security, here is the answer:

The lump-sum death benefit of $255 is payable upon the death of a person who has worked long enough to be insured under Social Security.
The one-time lump-sum death payment of $255 is payable to:

•A surviving spouse if he or she was living with the deceased; or, if living apart, was receiving certain Social Security benefits on the deceased person’s record; or
•If there is no surviving spouse, a child who is eligible for benefits on the deceased person’s record in the month of death.
If no spouse or child meeting these requirements exists, the lump-sum death payment will not be paid. The lump-sum death payment cannot be paid to funeral homes or estates for funeral expenses.

To file for the benefit, call 1-800-772-1213

 

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

Important questions to ask your Parents.

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For the last 8 months we have been going through agony trying to help my Father-in-Law, who has Parkinson’s. He has known for years that he has this disease but refused to prepare. I don’t want you to have to walk down the same path we have been. Here are some very important questions to ask your Parents – and don’t stop asking until you get answers.

Where are your assets held? You will want to know where they bank, do they work with a Financial Advisor, who holds their insurance policies, and have they filed their taxes.

What different doctors do they see? What medications do they take, where are their health insurance policies, have they names anyone through a health care directive?

Do you plan on staying in your home? Is the house assessable for a wheelchairs or walker, what type of caregiver can be brought in to help, is everything in working order?

It is a tough conversation to have – but one that must be had.

 

 

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

So far, this is the oldest I’ve ever been.

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Today is my birthday so I thought I would reflect on how the world has changed over these 54 years.

In 1959:
Inflation was 1.01%
GDP was $503.5 billion
Unemployment was 6.8%
Top Federal Income Tax Rate was 91%, Capital Gains was 25%

In 2013:
Inflation is 2.0%
GDP is $15864.1 billion
Unemployment is 7.6%
Top Federal Income Tax Rate is 39.6%, Capital Gains is 20%

Some things are better, others are not. If you are healthy, have someone to kiss everyday, and can say your life is good so far, then you can live with the stats.

Have a great day – I am going to eat my birthday cupcake for breakfast now!

 

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

The IRS wants to friend you on Facebook.

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Now you have one more thing to worry about in regard to filing your taxes. Those taxpayers whose returns have been “red flagged”, especially those with a lot of deductions, may have a new “friend” looking at your Facebook page.

If you claim a deduction on your income tax returns, but the lifestyle you lead has manifested in social media that is inconsistent with that deduction, that would be a red flag and it would cause the IRS to dig a little deeper,” Napolitano told Stuart Varney Tuesday on Varney & Co.

Read more: http://www.foxbusiness.com/personal-finance/2013/04/09/is-irs-stalking-on-social-media/#ixzz2Q6f2xlX0

Anything you post is there for the whole world to see and is there forever. Be careful and thoughtful about how much of your life you put out there for everyone to see.

 

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

I am so outraged!

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The thought that because you worked hard, lived within your means, saved money for your retirement, and hired someone like myself to help manage your retirement savings is now something to be penalized for – outrages me. We live in a country where opportunity is there for the taking. We are free to pursue the professions we choose and help others along the way. Limiting how much you can accumulate in your retirement account just so more tax dollars can go to offset the deficit is just plain wrong.

Call your congressmen, call your Senators, find websites that are against this proposal and make your voice heard.

http://www.bloomberg.com/news/2013-04-05/obama-budget-calls-for-cap-on-romney-sized-iras.html

 

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

A taxing question.

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Q: My sister passed away and I have inherited her IRA – I am not 70.5 yrs. old yet. When do I have to take money out of her IRA?

A: As a non-spouse, you have to take a withdrawal not later than the year following the year she passed away. You can either completely liquidate the IRA, or take annual payments over your lifetime. Please keep in mind that everything that is paid out from her IRA will be taxable to you as ordinary income.

 

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