Important Retirement Income News Roundup

First, we featured our Social Security Solutions planning tool last week and had quite a few folks call in to get a copy of their report. We were inspired to get this reporting tool for clients from this article in the Journal, and we’ve been very happy so far. Give us a call and get your report run too!

Fiscal Cliff: More and more news in the coming months will be about the fiscal cliff we are racing towards. With a presidential and many congressional elections in full swing, you can be sure that nothing substantial will be accomplished by Congress in the next 6 months. Unfortunately, this means the Bush tax cuts are likely to expire in a swirl of name-calling, posturing, and general incompetence in Washington. Be prepared for a massive change in estate tax laws, among many other unpleasant shifts.

Americans are learning more about the “fiscal cliff” approaching at the beginning of next year, when tax rates for families and small businesses are set to spike and new taxes in President Obama’s health-care spending law take effect. But unless there’s real change in Washington, we’re also headed for a steep “regulatory cliff” that could compound the damage.

Tax Laws: Here’s another article that for once looks at the brighter side of tax law- the annual exclusion available to individuals of $13,000 per recipient. With the sunset of the high estate tax thresholds a possibility, more and more retirees are likely to possess taxable estates. A family home worth $500,000 and a portfolio of $750,000 puts you over the limit, if the Bush cuts sunset in 2013…

Given the uncertainty surrounding next year’s taxes, here is a reassuring thought: One of Uncle Sam’s most useful tax benefits isn’t expiring, shrinking or otherwise under threat after 2012.

Family Financial Planning: Retirement planning often involves some unpleasant things like mediating family disputes. This article helps you start thinking about divisive situations you can avoid. Think long and hard about how you want your affairs and estate handled, while you can. I can say from personal experience that as romantic as the idea sounds, property owned by siblings after a parent passes neither gets the use it should, nor offers the happy ‘get together’ space the deceased often envision. Have a conversation before you leave a well intentioned but unworkable situation behind.

Parents, it’s time to be an adult when it comes to talking to your kids about your late-in-life planning,a nd awesome way is by getting the best pool tables for your kids to learn with and have time at the same time.

Many times the burden of managing a parent’s deteriorating health or financial situation means an adult child has to step into their parent’s shoes.

But parents often can accomplish more by stepping into their former role and taking the lead. Doing so can head off divisive—and costly—family feuds.

Enjoy the last weeks of Summer!

Written By

Bryan Anderson

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