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With 79% of workers surveyed by the Employee Benefit Research Institute indicating they will rely on Social Security as a source of retirement income, clients will probably want to calculate the benefit. Many workers understand the rules about collecting Social Security and have identified the age at which they can receive their full retirement benefit.
While estimates may have decreased due to the Great Recession, baby boomers are still likely to inherit trillions of dollars as wealth is transferred from the previous generation. In fact, a 2010 study by MetLife estimated the boomer generation will inherit $8.4 trillion (based on 2007 data). Indeed, on a historical basis, inheritances or gifts
According to a Pew Research Center poll, 29% of parents with grown children had a child move back home in recent years, primarily due to economic conditions. At the same time, about 10 million boomers care for an elderly parent, according to a 2011 study by the MetLife Center for Long-term Care. Living situations have
This election season has re-energized the debate about the tax code and how to make it more effective. In general, most proponents of “tax reform” call for simplification through a combination of fewer (and presumably lower) marginal tax rates and an elimination or sharp reduction in tax preference items. To understand the evolution of the
Now is a great time to review Roth IRA conversions that occurred during 2011 within your book of business, and, if appropriate, contact clients to confirm they would like to keep the conversion in place. Roth IRA owners who converted accounts in that period have until October 15, 2012 (the tax filing deadline plus extension),
There are several estate-planning strategies that can be used to transfer business wealth efficiently. Buy-sell agreement A buy-sell agreement is a legally binding agreement for transfer of ownership when one owner exits. The agreement is usually funded with life and disability insurance. Typical models include cross-purchase and stock redemption. A cross-purchase arrangement involves business partners
Advisors can play a role in helping clients navigate the many options for transferring business ownership. Step 1: Choose a successor • Sell to partners. This option may provide continuity with customers and associates, but a sale in the open market could be more valuable. • Transition to family. Family ownership can have challenges and
From financial security to providing for family members, succession planning is an important process for any business owner. Unfortunately, many entrepreneurs, particularly small, family-owned businesses may not have a plan in place. Of the more than 25% of family-owned businesses expected to change hands in the next five years, nearly half of them do not
Many people establish irrevocable family trusts to fund their children’s college tuition and expenses, but the possibility of higher tax rates in 2013 may make this year an opportune time to consider designating a portion of those trust assets to own a 529 college savings plan. Irrevocable trusts are generally not tax efficient entities since
Borrowing money remains a significant part of most students’ plans for paying for college. According to Pew Research Center, 60% of all graduates in 2008 had borrowed money for school, compared with 52% in 1996. Considering this trend, it’s likely that taking out a loan will be part of the discussion when planning for college.