CMP Financial Planning

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How are you Coping with the Coronavirus Outbreak?

- May 20, 2020

If you are like us, you are probably having trouble processing all the massive changes that are rapidly occurring as a result of the coronavirus outbreak. It is no doubt shocking to see grocery store shelves empty, restaurants closed, and meetings canceled.  The Coronavirus outbreak and your investment portfolio We are encouraged by your reactions (or lack…

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Stock Market Concerns: Special Bulletin

- May 13, 2020

Information as of March 10, 2020 We have heard from a few of you about your stock market concerns but suspect there are many more who share in those concerns. We invite you to read our upcoming market analysis in the newsletter which you should be receiving in a few days, but thought a timelier…

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The SECURE Act and Retirement Planning Changes

- May 07, 2020

The passage of the SECURE Act legislation in late December 2019 brought a few key changes that may impact your retirement planning. Several notable provisions included:  1. Stretch your IRA with the SECURE Act The biggest change with the SECURE Act involves the time period during which the non-spouse beneficiary can “stretch” an inherited Individual…

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Investment and Economic Update: 1st Quarter 2020

- Apr 29, 2020

Economic update as of March 4, 2020 Until March, the stock market expansion, in its 11th year, seemed impervious to bad news. Then came the coronavirus! US stocks, as measured by the S&P index, were down 13% by the end of the week and 9% year to date. At the time of writing this article,…

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CARES Act Provision Summary

- Apr 24, 2020

The 2 trillion-dollar CARES Act was recently signed into law. This is CMP’s summary of how you or your business might be impacted. Although most families with disabilities will receive a recovery payment of ($1,200 per single or $2,400 per married couple), any adult who is claimed as a dependent, including many individuals with disabilities, will not…

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Helpful Year End Tax Strategies

- Dec 30, 2019

By Barry Jamieson, CFP®, MAThere is still time to save on your taxes for 2019! For most tax-saving type accounts (not including 401Ks and 403B) you have until April 15 of 2020 to contribute. For those who have extra savings that you would like to invest, consider maxing out your contributions to your HSA, 401K, IRA or…

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Can Social Security Benefits Be Stopped?

- Oct 29, 2019

For millions of special needs families and individuals with disabilities, Social Security benefits provide a key pillar of regular income. I was recently made aware of a situation where, to the shock of the person in question, their Social Security benefits were suddenly discontinued even though the spouse had been receiving SSDI benefits for several years.   This…

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Should I collect Social Security retirement benefits early?

- Oct 29, 2019

Social Security is a valuable but complex social benefits program. Most people are challenged to understand how to maximize the benefits they are entitled to. Even in the “simple” case of the wage earner who has contributed to Social Security and wants to know the best time to start collecting benefits, the answer is not always…

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529 or STABLE account?

- Oct 29, 2019

I recently gave a presentation where many questions were asked about STABLE accounts and when they might be the most appropriate savings/investment vehicle for the individual with a disability. This article addresses one of those questions: whether it is preferable to use a 529 account or a STABLE account to save for a loved one’s future education…

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Making Long Term Care a Part of Your Financial Plan

- Oct 29, 2019

In last month’s Disability Insight article I discussed why my wife and I decided to buy long-term care insurance. For most Americans, long term care is the single biggest risk factor in their financial plan; however, since the annual cost of this insurance can run in the two to three thousand per person range this…

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Should the Person with Disabilities File a Tax Return?

- Oct 29, 2019

Tax season is almost over. If you have not filed your taxes yet you may want to refer to the prior two Disability Insight articles (Tax Tips) and (Should I Claim my Child as a Dependent .) Special needs families and individuals with disabilities may be confused about whether filing a return for the individual is…

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Why My Wife and I Decided to Buy Long Term Care Insurance

- May 18, 2019

By Barry Jamieson I found out that my wife and I were approved for long-term care insurance coverage – hurrah!   We sailed past arduous medical interviews and a memory test and apparently passed with flying colors!  We have thus officially prepared for embarking on our–hopefully– long and happy journey through our golden years.  Why would I be so…

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Managing Your Digital Estate

- May 18, 2019

MBy Barry Jamieson, CFP®, MAThe best place to get started with taking care of your digital estate is by listing all of your accounts with your passwords, web addresses, etc., and creating a master file containing this information. Next you will want to store this file safely online. Services such as “Last Pass” and “Tru Key”…

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Should I Claim my Adult Child with a Disability as a Dependent?

- Mar 01, 2019

By Barry Jamieson In last month’s Disability Insights, various tax issues of particular importance to individuals and families with disabilities were discussed. In this article, we take a more in depth look at one of those topics addressed: the topic of claiming your adult child as a dependent.  When the Tax Cuts and Jobs Act passed…

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Tax Tips for Special Needs Families & Individuals with Disabilities

- Mar 01, 2019

Tax Tips for Special Needs Families & Individuals with Disabilities By Barry Jamieson The weary gray cold days of winter are upon is! To make things worse, with winter comes the necessary chore of preparing your taxes!  Whether you are filing yourself or work with a tax professional, below are some tax issues special needs families need…

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Special Bulletin Regarding the Stock Market

- Jan 01, 2019

While the Christmas holidays may provide us with many reasons for celebration, the precipitous volatility and decline of the stock market indexes is certainly not one of them. A typical 60/40 portfolio was down nearly 10% for the year as of Christmas, with much of that decrease occurring in December alone.  So please be forewarned that unless…

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Year-End Tax Planning

- Jan 01, 2019

 By Barry Jamieson, MA, CFP® With increases in the standard deduction ($24K for couples, $12K for singles) resulting from last year’s tax changes, it has become harder to take advantage of the tax breaks provided through itemized deductions. For those of you who are taking required minimum distributions, or RMDs, having the part of your distribution…

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Estimating Expenses for Your Special Needs Financial Plan

- Nov 23, 2018

By Barry Jamieson One of the more difficult tasks in establishing your special needs financial plan is estimating expenses of your adult child after he or she begins living independently from you. Much of the difficulty is the result of the uncertainty of not knowing precisely what kind of support will be needed when your…

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Creating a Special Needs Financial Plan

- Oct 29, 2018

Creating a special needs financial plan involves putting together two plans: one for the parent and one for the child with a disability. Because the combined financial plans take into account the needs and goals of both the parents and the adult child with a disability there is additional complexity in producing an overall projection…

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Investing in Socially Responsible or Sustainable Funds

- Sep 27, 2018

 By Christina Povenmire, MBA, CFP® According to the 2014 Nielsen Global Survey of Corporate Social Responsibility, more than half of consumers surveyed globally said they would be willing to pay more for products and services from companies committed to a positive social and environmental impact. And when it comes to investing, a recent Morgan Stanley survey…

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Obtaining Your Social Security Benefit Estimate

- Sep 27, 2018

 by Barry Jamieson, CFP®, MA As you approach retirement, you may want to estimate more precisely estimate what your monthly Social Security benefit will be.  For many this figure is important because this benefit is likely to represent a significant share of their retirement income.  Unfortunately, the Social Security Administration does not send out paper statements as…

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Do Roth Accounts Makes Sense for Special Needs Families?

- Aug 13, 2018

Barry Jamieson,  CFP®, MA Since their inception, Roth accounts have been a great saving vehicle for families planning for their retirement. This saving tool has also been a nice way for families to help their children get started with their own future planning. But do Roth accounts make any sense for families with children with…

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Should I Buy an Annuity?

- Jul 17, 2018

by Barry Jamieson, CFP®, MA Some of you may have been on the receiving end of a sales pitch to buy an annuity. The proposition that annuities defer taxes and guarantees growth on your investment is indeed enticing. What is not to like? Although these complex financial instruments may have a place in the financial…

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Should I Take My Social Security Retirement Benefit Early?

- Jun 15, 2018

By Barry Jamieson, CFP®, MA Most special needs families understand the critical role Social Security plays in the financial wellbeing of their loved one with a disability.  For families with children 18 or older the monthly Social Security Insurance (SSI) benefit represents a building block towards independence.  By itself of course, the additional monthly income…

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Creating a Letter of Intent

- May 14, 2018

By Barry Jamieson, CFP®, MA There are many dimensions to a family’s special needs plan. Past articles in the Disability Insights series have focused on estate and financial planning topics; however, as families well know, the daily considerations and routines of the child with a disability are also a key component of the special needs…

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Retirement Planning For Three

- Apr 16, 2018

The initial planning energies of special needs families are often on hiring an attorney to draft necessary estate planning documents (e.g., wills, trusts).  Developing a solid financial plan for such families is equally important.  A comprehensive financial plan takes into account both the needs of the individual and the goals of the family members. While…

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Should You Avoid Designating Your IRA to the SNT?

- Mar 20, 2018

By Barry Jamieson, CFP®, MA Ok, so you have established a Special Needs Trust (SNT) or you have plans to do so. You have been thinking about what assets will be used to fund the trust. Those plans include designating some of your 401K and IRA retirement funds to the trust, because much of your…

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How ABLE Accounts and SNTs Can Work Together

- Feb 12, 2018

By Barry Jamieson In presentations I have recently given to special needs families about Special Needs Trusts (SNTS) it is apparent that there is still confusion about when to establish an SNT and when to start an ABLE account. Specifically people want to know: “Should I set up an SNT or an ABLE account?” The…

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“Smile” How the Tax Overhaul Bill Affects Dentists

- Feb 07, 2018

By Christina Povenmire, CFP ®and Barry Jamieson,CFP® Source: William Vasil, CPA, Ary Roepcke Mulchaey, P.C. and ADA News bulletin The recently passed tax bill contains a number of provisions which will help dentists and small businesses save tax dollars. Each of these provisions outlined below are effective for 2018. “ Improving Section 179 Deductions. The…

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How the Tax Overhaul Bill Affects People with Disabilities

- Jan 17, 2018

By Barry Jamieson.   The tax overhaul bill passed at the end of 2017 ushered in major changes for all taxpayers including people with disabilities.  Here are a few of the major changes that could impact individuals with disabilities depending on their tax situation. Standard Deduction Increase to $12K. Starting in 2018 the new threshold…

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Contributions from a Special Needs Trust to an ABLE Account

- Dec 24, 2017

Special Needs Trusts (SNTs) have their advantages and disadvantages to consider in the estate planning process. The recent CMS directive regarding ABLE contributions highlights how the two planning vehicles can work together for the benefit of the individual with disabilities and their families.   Before going into the details of the CMS directive, let’s first review…

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Financial Plans Help Dentists Reduce Stress

- Nov 14, 2017

According to our survey of Ohio-based dental practitioners, dentists are stressed about their finances. Consider that of the 42 Ohio-area dentists we surveyed: 47% of dentists working with a financial planner cited being stressed about growing their practice compared to 70% of those who didn’t utilize financial professionals. 38% of dentists who worked with a…

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Equifax Security Breach

- Nov 14, 2017

  by Barry Jamieson, CFP®   Some of you have expressed concern about the Equifax hacking and have asked what precautions should be made in light of this latest security breach.  With this latest breach it should be clear that breaches of this magnitude will continue to be regular occurrences well into the future. While personal security…

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Quarterly Market/Economic Overview for the 3nd Quarter, 2017

- Oct 16, 2017

Stocks and politics here and globally seem to be running in parallel realities. In the political sphere, news of some crisis or political impasse, either in the US or around the world, grab our attention almost daily. The inability of governments to successfully address many of these events or issues would seemingly have a negative…

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August Economic Update

- Oct 02, 2017

The economy, unlike our political situation, keeps on chugging along, growing at an annual 2% clip.  Unemployment at 4.3% is at a 16 year low.  The positive stream of earning reports and economic news continues to support the stock market. The 2nd quarter saw US stocks rise by 3% and 8.9% YTD.  International stocks did…

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HSAs Double as Retirement Savings Vehicles!

- Oct 02, 2017

More Americans are participating in high deductible health insurance plans, making them eligible to also participate in a Health Savings Account (HSA). HSAs can be a super retirement savings vehicle. Here is why:  contributions are made tax free, they grow tax free, and withdrawals are tax free as long as they are made for  “qualified…

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Choosing a Corporate Trustee

- Jul 06, 2017

  For many parents choosing someone to look after their child with a disability is the most difficult part of their estate planning process. The chosen person must not only be responsible and committed to your child’s emotional and physical wellbeing but must also have the technical expertise to manage the child’s financial affairs. (The…

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Purchasing a Home For Your Family Member with Special Needs

- Jul 06, 2017

  As their child with a disability reaches adulthood, families give increased thought to their child’s housing needs.   Many families want to promote the maximum independence of their child while others are concerned for their loved one’s living arrangements after their own death.  In either case, home ownership can be a great way to provide…

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Quarterly Market/Economic Overview for the 1st Quarter, 2017

- May 01, 2017

The US and global stock markets continue to reach market highs. The US expansion is now in its eighth year. At the beginning of the first quarter market analysts were fixated on the next policy moves of the Trump administration. In anticipation of a more favorable business climate (e.g. Deregulation, lower taxes) stocks jumped higher….

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Social Security and Disability Planning

- May 01, 2017

If you have a special needs child who has a permanent disability, it is likely that social security benefits will be an important component of their special needs plan. Although in most cases Social Security benefit payments will need to be supplemented to pay for your adult child’s living expenses, particularly if they are living…

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Should I Establish a Special Needs Trust?

- May 01, 2017

One of the most pressing questions special needs families face with their estate planning is whether to establish a Special Needs Trust (SNT). Because individuals with disabilities are living longer, there is a stronger likelihood that they will survive both of their parents, putting more emphasis on careful estate planning including the use of tools…

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Savings Account Strategies for Individuals with Disabilities

- May 01, 2017

The creation of STABLE accounts in Ohio has given people with disabilities and their families a new tool to save for future expenses. In addition to STABLE accounts there are multiple savings tools that can be potentially employed including the use of Roth IRAs, 401Ks, Trusts, and pensions. Which accounts does it makes sense to…

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Life Insurance and Special Needs Planning

- May 01, 2017

The previous Disability Insights article addressed the importance of developing a comprehensive financial plan. A key component of any comprehensive financial often involves insurance. Insurance protects assets in case of premature death. For the special needs family, insurance can provide funding for a special needs trust set up to provide for the child with a disability….

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How Do I Choose a Trustee for my Special Needs Trust?

- May 01, 2017

So you have decided to establish a Special Needs trust (SNT).  The previous Disability Insights article mentioned that the naming of a successor trustee of an SNT is a critical appointment, for that person will have full discretion in maintaining and distributing assets on behalf of the disabled individual. Because it is such an essential job,…

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Quarterly Market/Economic Overview for the Fourth Quarter, 2016

- Feb 16, 2017

The 4th quarter 2016 was full of market changing news and events. Donald Trump was elected. OPEC reached agreement on limiting oil production. The Federal Reserve raised interest rates by ¼ of a percent. Collectively, these events helped propel US stocks higher from their already lofty peak.   The US stock market responded positively to Trump’s…

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Social Security Benefits to Remain Flat in 2017

- Jan 15, 2017

Because of the low inflation figures contained within the CPI index that determines Social Security increases, Social Security benefits are set to go up a mere 0.3% starting in January 2017.  If, for example, you currently receive $2,000 per month from Social Security, your payments will go up by a negligible $6 per month. Compounding…

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Trusts and STABLE Accounts: Which One Do I Use?

- Nov 03, 2016

  Now that STABLE accounts are available to individuals with disabilities, parents and guardians often ask   whether they should establish a trust for their loved one as a substitute or in addition to these accounts.   Before addressing this question it is important to review the benefits and limitations of both. STABLE accounts are a tax…

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Evaluating Your Portfolio’s Performance

- Sep 06, 2016

For many of us, evaluating our investment account statements is like going to the dentist:  it’s the right thing to do but we would rather put it off!   Sure, we want to feel good about our investments’ performance.   Charting investment returns?   Ranking investments, picking a strategy?   About as much fun as that dentist visit. The good…

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Quarterly Market/Economic Overview for 2016 Q2

- Jul 28, 2016

In the second quarter, ending June 30, 2016, the stock market roller coaster ride continued–markets fluctuated depending on the news about either oil or China.  Also during this quarter, investors showed greater attention to the slowing economy, interest rates, and finally “Brexit”. Great Britain’s vote to leave the European Union was a surprise to almost everyone. Because investors hate…

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Think Before You Tip!

- Jun 25, 2016

Think Before You Tip! Our society is becoming increasing mobile not just physically but financially. We love the convenience of paying for goods and services by swiping our credit card through a vendor’s card reader or through our phones.   Increasingly, when we go out to eat at our favorite restaurant, these mobile device applications will…

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Economic and Investment Update: Second Quarter 2016

- Jun 15, 2016

Economic and Investment Update As the second quarter draws to a close, many stock categories are showing gains for the year, while all bond categories are up.  Large and small value stocks returned 3.5% to 5.5% and have outperformed growth stocks, which have small losses for the year. US stocks have outperformed foreign stocks; most foreign…

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Taking Care of Your “Digital Estate”

- May 04, 2016

Taking Care of Your “Digital Estate” For those of you who have a formal will and estate plan, congratulations!  You are way ahead of most folks in making sure your assets are properly attended to at your decease. But what about your online presence and stuff you store electronically either on your phone, tablet, or…

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Economic and Investment Update: First Quarter 2016

- Mar 16, 2016

Economic and Investment Update: First Quarter 2016 It doesn’t take a sophisticated investor to know that this past quarter has been a roller coaster ride for the stock market. US stocks are down a bit over 4% over the past 3 months (6% over the past year), but this is up from their 3-month low…

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Tax Help for Families with Disabilities

- Mar 15, 2016

Tax Help for Families with Disabilities Ohio families with individuals with disabilities will soon be able to experience tax relief for providing for their loved one. The federal Achieving a Better Life Experience (ABLE) Act, which allows a state to create tax-free savings accounts for individuals with disabilities, became law in December 2014. Subsequently, Ohio…

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Update: Congress ends one Social Security Maximization Strategy

- Dec 10, 2015

Update: Congress ends one Social Security Maximization Strategy The budget deal that was signed into law recently gets rid of one of the key strategies that has increased lifetime Social Security benefits by up to roughly $60,000 for some high-earning couples. The strategy known as “File and Suspend/Restricted Application” was applied when both spouses who worked under…

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Q4 Economic and Investment Update

- Dec 10, 2015

Q4 Economic and Investment Update According to John Waggoner, a market observer and contributing writer for Morningstar.com, there were three major financial stories for 2015.  First, there has been the tumbling price of oil, due to the enormous production by the US and Saudi Arabia at the same time that slowdowns in Europe and emerging…

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Ways to Simplify Your Financial Life

- Sep 10, 2015

Ways to Simplify Your Financial Life Who doesn’t want to simplify their life, particularly when it comes to their finances?   Consolidating and automating your financial chores can make sense because it reduces the time spent organizing and tracking financial records. Below are some tips to simplify your finances: Collapse the number of accounts you are…

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Q3 Economic and Investment Update  

- Sep 10, 2015

Q3 Economic and Investment Update This column is not much fun to write when the markets are volatile, and it feels like we are giving back all of the gains we experienced earlier this year! The good news is that US economic indicators aren’t showing signs of an imminent economic downturn. Looking at the returns…

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Managing Healthcare Costs in Retirement

- Jun 10, 2015

Managing Healthcare Costs in Retirement For those who are thinking about retirement, it is important to consider the impact that future health care costs will have on your budget. Although Medicare, the federal health insurance program for the elderly and disabled, will pick up most retirees’ medical costs once they turn age 65, the out-of-pocket…

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What Increased Longevity Means for Your Retirement

- Mar 10, 2015

What Increased Longevity Means for Your Retirement By Alissa Henry Good news! Older Americans are living longer than ever. However, that means retirees now need to save more than ever to make their retirement money last during these extra years. A leading membership-based organization for actuaries in the United States and Canada, Society of Actuaries,…

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Your Healthy Retirement: Low-Carb Diet that Embraces Fat

- Dec 10, 2014

Your Healthy Retirement: Low-Carb Diet that Embraces Fat By Alissa Henry Every year, losing weight tops the list of the most popular New Year’s Resolution. But what’s the best way to do it? There are countless diet options out there, but a new study says one diet is the most effective of all: The Low-Carb…

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Five Things To Do With A Tax Refund

- Mar 20, 2014

Five Things To Do With A Tax Refund by Alissa Henry It’s the most wonderful time of the year – tax refund season. A new Bankrate.com poll found that 80% of Americans expect to receive a check from Uncle Sam this year. In fact, the IRS says that for every dollar it collects, it returns…

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Surefire Ways to Increase Investment Returns!

- Sep 10, 2013

Surefire Ways to Increase Investment Returns! While academic research has shown it is difficult or impossible to beat market returns, often we can effectively improve our returns simply by reducing the taxes on our investment income and gains! The first step is to understand how tax treatment differs for each account type, especially when taking…

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Your Health in Retirement: How To Live To Be 100!

- Jun 15, 2013

Your Health in Retirement: How To Live To Be 100! by Alissa Henry If you’re hoping to celebrate your 100th birthday someday, you’re in luck! According to the latest Census Bureau data, a growing number of Americans are living to see their centenarian birthday. Brian O’Connell, writing for the digital financial media company “The Street”…

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Are Annuities Always a Bad Deal?

- Apr 23, 2013

Are Annuities Always a Bad Deal? An annuity is a contract between you (the annuity owner) and an insurance company. In return for your payment, the insurance company agrees to provide either a regular stream of income or a lump sum payout at some future time— often at retirement. Generally annuities have a bad reputation,…

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New Driver’s License Option: Next of Kin Notification

- Jun 05, 2012

Next of Kin Notification If you live in Ohio, then you may have noticed a new option the last time you renewed your Driver’s License: Next of Kin. One of the difficulties emergency personnel face is how to locate next of kin for a victim who is unconscious, dead or otherwise unable to answer questions….

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Gifting: A Win-Win Proposition

- Apr 23, 2012

A Win-Win Proposition Did you know that there’s a wealth-transfer technique you can use to reduce your taxable estate and keep more of your assets for your heirs? You can make annual gifts of up to $13,000 ($26,000 per married couple) to as many people as you wish without incurring federal gift taxes. An example:…

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Caring for Our Parents

- Feb 23, 2012

Caring for Our Parents By Alissa Henry More than 42 million Americans provide family caregiving for an adult who needs help with daily activities. An additional 61.6 million provide at least some care during the year. Are you prepared to take care of your parents? Lori Wengerd, owner of Home Care Assistance Columbus, says that…

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The Art of Asset Location

- Mar 23, 2011

The Art of Asset Location While academic research has shown that no manager can beat the market (not even on Wall Street!), we can, in effect, improve our returns by reducing taxes on our investment income and gains! Christine Benz has done a nice job of discussing this topic in her article What Goes Where?…

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Tips to Keep You Safe While Shopping Online

- Jan 23, 2011

Tips to Keep You Safe While Shopping Online by Alissa Griffith If you’re like millions of Americans this holiday season, you may be getting some of your shopping done online. Stay safe while doing so with the following tips: Update! The first thing you want to do is update your browser. Along with other benefits…

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