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There are numerous incentives for parents to save for a child’s future higher education, rather than rely on borrowing. Cost is one. Total charges at both private and public four-year colleges rose more than 4% from 2011-2012 to 2012-2013, according to the College Board. Source: The College Board, “Trends in College Pricing 2012.” Another incentive
A big concern for workers is ensuring that their assets last in retirement. As workers plan for retirement, they may want to understand that withdrawal rates and investment style in retirement can significantly impact how long those assets will last. That is why it is important for pre-retirees to seek professional financial advice. Selecting a
With escalating costs, health care has become a critical part of retirement planning. But health expenses are not limited to acute care. Many people may need long-term care, which can quickly reduce or drain household assets if you or your spouse goes to a nursing home. If clients intend to pass along their home and
From a series of meetings and presentations with investors and advisors around the country in the first three months of this year, tax uncertainty has emerged as the leading financial planning concern. While the passage of federal tax legislation in January brought some clarity, many clients still find aspects of the current law confusing and
Beginning in 2014, businesses with more than 50 full-time employees will be required to provide health insurance coverage or face a penalty, as the federal health-care reform legislation continues to be implemented. Some businesses already offering health insurance may also face a penalty if the coverage does not meet certain thresholds outlined in the law.
Health-care reform legislation introduced a payroll tax increase and a new Medicare surtax this year. While the rise in payroll tax was automatic for taxpayers with a specific income level, the 3.8% investment surtax does not apply to all forms of income. There are several types of income that are not affected by the tax
New taxes took effect this year as a result of the 2010 health-care reform legislation that may have an impact on tax-planning strategies. As of January, the Medicare payroll tax increased to 2.35% from 1.45%. In addition, a 3.8% surtax on “net investment income” was also introduced to help fund health-care reform. Both taxes affect
Limitations on tax deductions for high earners and a reduction in expected Social Security benefits are among many provisions in President Obama’s FY 2014 budget proposal. The $3.77 trillion budget, released this week proposes more than $1 trillion in savings from spending cuts, entitlement reforms, and interest savings. Additional revenue from reforming the tax code
Any business owner who may be at risk of litigation by customers or employees should consider protection from claims against business assets. There are a variety of corporate structures available for business owners to use that may make it difficult or expensive for someone to make such a claim. Both corporations (C Corp and S
The new federal tax law expands the use of Roth IRAs in retirement plans, opening the door for tax diversification. Roth savings accounts were introduced to 401(k) plans by the Economic Growth and Tax Relief Reconciliation Act of 2001. This law allowed for the designation of a Roth 401(k) plan beginning in 2006. These plans