Member Blogs

By Leah Kelley

Photo by Elina Fairytale

A client once asked if there is an upper age limit for paying taxes. Answer: No, there is no upper age limit on paying taxes. If you have enough taxable income you must file and pay even if you are a 100 years old. In fact, it’s likely that someone will still be dealing with []

Investing in bonds comes with two primary types of risk. The first is credit risk which represents the loss of capital if the issuing company or entity defaults on paying interest due on the bond. The second is interest rate risk which occurs when interest rates increase.

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Four years ago, I wrote about my lifelong passion (some would say obsession) for spare change. This dates back to counting the spare change and “egg money” in my grandmother’s chipped gravy boat in the 70’s. Today, this is the spare change stash in my office: But here in the 21st century, I don’t have []

When you pull out of the market, often due to fear, you miss the gains when the market rebounds.

Massachusetts Senior Circuit Breaker Tax Credit The Massachusetts Senior Circuit Breaker Tax Credit has been around for a long time. But I suspect not everyone who is eligible takes advantage of it. Once in a while I come across someone, usually a client’s elderly parent, who is unaware they are eligible for this credit. When []

International stock is selling at bargain prices, provides broader opportunities and reduces risk through greater diversification but it is also more volatile.

Most residents of Colorado will escape the burden of estate and inheritance tax, but you need to be aware of income and capital gains tax considerations on inherited money.

In most situations, your portfolio should be divided into three buckets - cash, fixed income, and stock. Stock includes individual stock, stock mutual funds and stock ETFs.

Recently, I was sitting with a client celebrating the fact that her IRA balance is nearing $1 million dollars. This is always an exciting milestone. I rang the bell for her. In 2023 my client will turn 72 and she will need to take a distribution from her IRA. The distributions are called Required Minimum []

Target date funds (TDFs) are based solely on your target retirement date. It is one size fits all without consideration for your risk tolerance, financial situation, or financial goals.

Clients frequently ask if their debt should be paid down. Generally, we recommend avoiding debt other than a reasonable mortgage, especially as retirement approaches. In some cases, however, debt can be innocuous or even helpful. This chart summarizes the logical process for deciding to pay off debt. The steps are described below Cash Flow Risk… [Continue] (Feed generated with FetchRSS )

Do you remember Paul Harvey? If you don’t remember life before the internet skip this paragraph. But those of a certain age may remember his daily radio program – at the end of each broadcast he would say in his distinctive radio voice: “And now you know…the rest of the story”. Earlier this month you []

Robert Powell has an advice column called Retirement Daily on TheStreet.com. He asks people like me how wed answer the questions he gets sometimes. He used my answer in a recent column, here: https://www.thestreet.com/retirement-daily/ask-bob/delaying-social-security-when-youre-at-the-maximum-benefit My answer had to do with minimization of regret. Ask me for a copy of the article if you want [] The post How to Increase Social Security Benefits appeared first on ProsperiTea Planning - Wendy Marsden, CPA, CFP® - Greenfield, MA .

When the market is down, our mantra is time eats volatility. We are very confident in the maxim because of the mathematics of volatility, but it’s important to understand how much time. S&P 500 Bear Markets To answer this question, we examine the monthly total returns of the S&P 500 since June 1927 through May… [Continue] (Feed generated with FetchRSS )

If you are over age 70.5, taking the standard deduction, and would like to make a gift to charity, consider taking advantage of the Qualified Charitable Distribution.

If you’ve inherited money, start by knowing it takes a while for the money to land. The executrix needs time — months and months — to get things retitled. Then it takes time for the IRS or the state to release a lien or expedite an audit. Do NOT expect the money all at once. While [] The post 10 Things You Should Know About Inherited Money appeared first on ProsperiTea Planning - Wendy Marsden, CPA, CFP® - Greenfield, MA .

Selecting where to live later in retirement is a big decision that involves one new major consideration: healthcare. We are faced with tremendous uncertainty, because we don’t know how long we will live, how much care we will need, what type of care we will need, or how our medical decline will unfold. The big question is: Will we make the last housing decision on our own and in advance or will we have a non-choice thrust upon us when a health crisis hits?

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Tax season is over and I am grateful my office coffee maker waited until April 20th to stop working.I enjoy coffee year round, but especially during tax season. You may find this strange, but I actually enjoy looking at tax forms so while it’s fresh in my mind I’d like to review one of the []

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Today’s newsletter features agreat article in the NYTby financial columnist Jeff Sommer. The news and images coming out of Ukraine are horrifying and my heart aches for the millions impacted by Russia’s aggression.  It is difficult to imagine what they are going through. The article begins: The worse the news, the less you should think []

Between two professional credentials that each need a lot of continuing education, plus family vacation time, you’ll find that Wendy works in weeks-long surges but is frequently out of the office in between. That’s okay, we’re planners, we’re good at this! Here’s what happens: Wendy is the only one who can create trade proposals if [] The post Wendy’s Vacation Conference Schedule for 2022 appeared first on ProsperiTea Planning - Wendy Marsden, CPA, CFP® - Greenfield, MA .

The CNBC.com article “Yes, marry for money: A Harvard economist shares the surprising financial benefits of marriage” offers surprising advice in this era when many people enter into marriage for romantic and person fulfillment.  The article’s economic expert freely admits that he thinks the marriage is better than being in a long-term partnership and says, [] ©Bring Clarity to Your Finances™. Marriage Advice from an Economist is a post from Bring Clarity to Your Finances™

As CNBC.com points out in “Remarrying? These should be your key financial considerations,” the decision to remarry “… goes far beyond deciding whether to keep separate checking accounts or determining who pays which bills”. If those are some of the considerations people have before entering into a first marriage, then there are many more financial [] ©Bring Clarity to Your Finances™. Things to Consider Before Remarrying is a post from Bring Clarity to Your Finances™

We go to (or stream) movies, particularly fictional ones, to relax but that doesnt mean we arent learning something along the way. Some kids leave a superhero movie and attempt to fly. Sometimes all of us are informed and insptired by the stories we see onscreen. 5 Hollywood Movies That Teach Us Great Financial Lessons, [] ©Bring Clarity to Your Finances™. Movies Arent Just for DreamingThey are also for Financial Planning is a post from Bring Clarity to Your Finances™

The financial weather seems to be turning nasty and market storms are on the horizon. Inflation is blazing and the Federal Reserve is expected to raise interest rates. In January the ETF SPY (S&P 500 index) lost 9.2%, but then regained some back. Can anything be done to protect your portfolio? Well, yes, but perhaps… [Continue] (Feed generated with FetchRSS )

If you feel as if you do not earn enough to put money away in a retirement account, all is not lost. According to CNBC.com, this is a good time to have that problem. Why exactly is now a good time for that problem? There is a tight labor market and you can try to [] ©Bring Clarity to Your Finances™. Dont Assume You Cant Afford to Save for Retirement is a post from Bring Clarity to Your Finances™

USA Today offered its readers a primer on Social Security in Explaining Social Security, TLDR Edition: The 8 things you should learn about your benefits. (If you dont already know. TLDR is internet-speak for too long, didnt read. If reading the entire Social Security rulebook is too much for you, you can get by with [] ©Bring Clarity to Your Finances™. Get the Highlights on Social Security is a post from Bring Clarity to Your Finances™

The title of this CNBC.com article says it all, 40% of Americans with credit card debt dont know their interest rate, survey shows. Are you a part of this forty percent? Many people do not want to face their financila reality. It seems easier to make the minimum payment (or perhaps even more than the [] ©Bring Clarity to Your Finances™. Do You Know How Much Interest Youre Paying on Your Credit Cards? is a post from Bring Clarity to Your Finances™

A successful retirement is a very desirable goal. Unfortunately, the first and most important step to ensuring a successful retirement is not what anyone wants to hear - creating a spending plan (aka a budget).

I ignore a lot of financial journalism.Much of it is noisy clickbait and not relevant to the long-term goal-focused investor. In fact some have dubbed it “financial porn”. But this headline, dated December 10th, 2021 from Marketwatch caught my eye: The SP 500 is an index (group) of stocks that includes 500 of the most valuable companies []

This is the time of year when publications put out lists of what they predict for the following year. Some of these predictions are not cheerful (higher inflation?). Other lists are published in a Hot or Not format, listing things from the previous year that will not be popular in the year to come. However [] ©Bring Clarity to Your Finances™. Hot Financial Practices for 2022 is a post from Bring Clarity to Your Finances™

There really is still time to do a few things that can alter the way your tax bill looks next year…if you act quickly. USA Today offered Ten tips to lower your federal income tax bill before 2021 ends. Wait on that bonusIf it is possible, ask to get your year-end bonus next year. That [] ©Bring Clarity to Your Finances™. There is Still Time to Lower Next Years Tax Bill is a post from Bring Clarity to Your Finances™

One woman looking to snag a deal and make someone happy found what she thought was an Xbox at an incredible price. It turned out that what she thought was a low-priced Xbox game console was actually an Xbox fridge. This novelty item was made and packaged to look like the game console when was [] ©Bring Clarity to Your Finances™. Does it Look Too Good to Be True? Seek Financial Planning Advice is a post from Bring Clarity to Your Finances™

There is a popular set of memes used all over the internet in which someone is seen saying Why not both? There is no indication of the question being asked but the idea behind it is that if you arent forced to pick one of two choices, you can choose both and this might be [] ©Bring Clarity to Your Finances™. Do You Have to Choose Between an IRA and a 401(k)? is a post from Bring Clarity to Your Finances™

Image: 10 Attractive Beach House Design Ideas That Will Leave You Speechless (architectureartdesigns.com) First-time home buyers face multiple challenges in today’s market, especially in the seller’s market of Silicon Valley. Houses routinely sell for 15% to 30% over asking price, with multiple cash offers. It is hard to find properties under a million dollars, and The post What are the tax benefits of owning a home instead of renting? first appeared on Michael Garber Financial Planning .

I’m talking to a lot of clients this month about charitable giving and how to give in the most tax-efficient way possible. Since Tax Reform took effect in 2018 fewer taxpayers are getting a deduction for their charitable contributions. Donations to charity are deducted when a taxpayer itemizes deductions. After Tax Reform far fewer people itemize. Only about 10% []

Three years ago,I wrote about my lifelong passion (some would say obsession) for spare change. This dates back to counting the spare change and “egg money” in my grandmother’s chipped gravy boat in the 70’s. Today, this is the spare change stash in my office: But here in the 21st century, especially during a pandemic, I []