If you are approaching retirement, before you plan your party, you need to consider how you will pay for health care coverage once you are no longer employed. Many retirees significantly underestimate how much they need to pay for medical expenses. For a close look at the questions you need to find answers to and items to discuss with your financial planner about health care in retirement, read this Insurance Know-How.
Taxes play a very important role in shaping a divorce settlement. Some items, like alimony or cash settlements, are taxable to the spouse who receives it, while child support payments are not. For more information on important divorce tax issues, read this C.P.A. Insight.
A guardian is someone who the parents choose to care for their minor children in the event they cannot. While this may prove to be a tough decision to make, once agreed upon, the guardian can be simply named in the parents’ Wills. For more information, such as the things to consider when choosing a guardian, read this Financial Strategy.
You filed your tax return, but you found an income statement you forgot to include. Your situation need not be a nightmare. You simply need to file a 1040x, Amended U.S. Individual Income Tax Return. This form will allow you to amend your both your income and deductions. For more information on when to file an amended return, read this C.P.A. Insight.
Children play a humongous role in your financial life. When adding a child to your family, you should prioritize and address the most critical areas of your finances to prepare for the future. Having a child involves estate, insurance, tax, and education planning. For more information on how a child affects each of these key areas, read this Financial Tip.
If you are 50 years old or older by the end of your retirement plan year, you are eligible for a catch-up contribution allowed in IRA, 401(k), 403(b) and SIMPLE plans. For more information on the amount of the catch-up contribution allowed by each type of plan and other frequently asked questions, read this Financial Strategy.
Now is a great time to assess your financial needs and set achievable goals for your financial future. One way to accomplish this is to develop a financial plan. Simply, financial planning is a process in which you determine what you want to achieve in life and how best to do it with the money you have and will earn.
If you were faced with an emergency, would you have the funds to cover it? Emergencies may vary from needing a new roof for the house to unemployment. An emergency fund with cash and cash equivalents in low-risk investments provide easy access to money should you need it. For more information on how much you should have in your emergency reserve, read this Financial Strategy.
If you owe taxes this year and cannot afford to pay the full amount, there are options that you can take to ensure that you will not incur late filing penalties. The best option is to pay as much as you can by the deadline. While you will still incur late payment fees, you will not be penalized for filing late. For more information about this option and to learn more about the possibility of an Installment Agreement, read this C.P.A Insight.
Municipal bonds are issued by a city or other local government, such as counties, redevelopment agencies, special-purpose districts, school districts, public utility districts, publicly owned airports and hospitals and any other state government entities. Also known as “munis,” municipal bonds are attractive to many investors within taxable accounts, because the interest income is exempt from federal income tax, and in many cases, state and local taxes as well.