The author of today’s article calls it “one of the more underutilized strategies for taxable investment accounts”. That strategy? Tax-loss harvesting, whereby poor performers are sold at a loss in order to offset that year’s capital gains – and lessen one’s tax burden. The author proceeds to identify areas that may offer the best opportunities to exploit the tax-loss harvesting…
Half of retirees don’t need to worry about it at all. Others will have no way of avoiding it. And more and more retirees will fall victim to it in the coming years. It’s the ‘tax torpedo’, which the author of today’s article explains is “a name given to the unexpected way that Social Security can get taxed, depending on…
Among the myriad of potential issues to contend with in a divorce is the splitting of qualified retirement accounts between you and your ex – a transaction that the author of today’s article cautions, if done without the proper due diligence, can result in a very expensive tax trap: “You can divide up tax-favored retirement account money the tax-smart way…
It’s a nice problem to have, but a problem nonetheless: What do you do with your windfall if you have received – or are expecting to receive – a large inheritance? Today’s article tackles the complexities of this issue, noting that “even if you have a lot of investing experience, there are plenty of tax and legal pitfalls that can…
There is no end of lists purporting to identify the best cities or states in which to retire – but, for those planning on relocating to a warmer or less expensive locale in retirement, today’s article cautions there are a number of factors to consider that could lead to unexpected consequences – both financial and non-financial. The big one? Taxes…
When it comes to whether personal finances or portfolio management is more important, the author of today’s article is firmly in the personal finances camp. As such, he lays out a list of 20 personal finance rules, or “20 simple ways you can be smarter about your money.” Among these rules, why does he state that your goal should not…
When it comes to retirement planning, today’s article provides a case study in what not to do. In fact, it provides seven of them, as relayed by the financial planners who have seen people make these big retirement planning mistakes first-hand. From being too optimistic (or, conversely, too pessimistic) about one’s financial situation, to underestimating the impact taxes will have…
While many investors will not begin to think about taxes for several more months, today’s article argues that “anytime is a good time for tax planning” and that this time in particular – the fourth quarter of the year – is a particularly good time for this, stating that “planning before the end of the year increases the number of…
“This is a big deal and it will help a lot of people,” declares a certified public accountant in today’s article on the Internal Revenue Service’s easing of a rule that previously had retirement savers who exceeded the 60-day window for IRA rollovers face substantial taxes and penalties. Under the new relaxed guidance, retirement savers who do not roll over…
Is the conventional wisdom wrong? Is a 401(k) not really the best way to save for retirement? The author of today’s article makes that case. After outlining the three main reasons typically put forward as to why you should maximize your contributions to your 401(k), he presents three reasons to the contrary. One reason? You are not necessarily in a…