- What Percentage of Retirees Have $1.5 Million?
A million dollars simply isn’t what it used to be, but it remains a wealth level that relatively few people reach. Only 4.7% of Americans have $1 million in retirement savings and just 1.8% have $2 million, according to the Employee Benefit Research Institute. The estimate is based on data from the Federal Reserve’s Survey… read more…
- Ask an Advisor: My Wife Will Retire 2 Years Before Her Full Retirement Age (FRA). How Do We Calculate Her Spousal Benefit?
I am 76 and I have been receiving my benefit since age 62—four years before my full retirement age (FRA). My wife is now 61 and will retire at age 65—two years before her FRA. She will begin drawing her teacher retirement from the State of Texas, which is no longer subject to the Government Pension… read more…
- What Is a Closed-End Second Mortgage and How Does It Work?
A closed-end second mortgage is a type of home loan that allows homeowners to borrow against their home’s equity while keeping their primary mortgage unchanged. This type of loan provides a lump-sum payment upfront with a fixed repayment schedule and interest rate. Unlike a home equity line of credit (HELOC), which allows for repeated borrowing… read more…
- Community Property States vs. Common Law States
Property division in a divorce depends on whether the state follows community property or common law rules. In community property states, most assets acquired during the marriage belong equally to both spouses and are typically split 50/50. In common law states, assets generally belong to the spouse who acquired them unless they are jointly owned.… read more…
- Form 1099-INT: What Is It, Who Files It and Who Gets It?
When tax season rolls around, one of the most common documents taxpayers receive is Form 1099-INT. This form, issued by banks, credit unions and other financial institutions, reports interest income earned over the tax year. If you’ve earned at least $10 in interest, you can expect to receive a Form 1099-INT from the institution that… read more…
- Form 1099-B: What Is It, Who Files It and Who Gets It?
Form 1099-B is a tax form issued by brokers or barter exchanges to both the IRS and the taxpayer. It provides details about sales of stocks, bonds, or other securities. Typically, brokers are responsible for filing this form with the IRS, while investors receive a copy. Investors then use the information on the form to… read more…
- Form 1310: How to Claim a Refund for a Deceased Taxpayer
Form 1310, officially known as the “Statement of Person Claiming Refund Due a Deceased Taxpayer,” is a document that allows you to request a tax refund on behalf of someone who has passed away. If you are an executor or personal representative of a deceased individual, you may need to know to properly complete and… read more…
- Form 1095-C: What Is It, Who Files It and Who Gets It?
Form 1095-C is a tax form many larger employers have to send to their full-time employees, detailing the health insurance coverage offered to them. This document confirms whether an employee was offered health insurance and provides information about the coverage itself, including the months it was available. Employees need this form to verify their health… read more…
- Amortization vs. Depreciation: Differences and Examples
Amortization and depreciation are accounting methods used to allocate the cost of assets over their useful lives. Amortization applies to intangible assets like patents and trademarks. Depreciation deals with tangible assets like buildings, machinery and vehicles. A financial advisor can help you apply both methods as part of a broader tax strategy to reduce taxable… read more…
- Ask an Advisor: I Need $3500 Per Month to Cover My Expenses. Should I Take Social Security or Tap My 401(k)?
I’m retired and receive a pension but I still need to supplement my monthly income. My choices are to claim Social Security or start withdrawing money from my 401(k). I’m 64 and have $200,000 in a 401(k). My Social Security estimates are around $2,600 a month. I need $3,500 a month to pay bills. Your… read more…
- How the Alternative Minimum Tax (AMT) Affects Stock Options
Stock options can be a powerful tool for wealth building, but they come with tax implications that many investors overlook—especially when it comes to the Alternative Minimum Tax (AMT). This parallel tax system was designed to ensure that high-income earners pay a minimum level of tax, but it can unexpectedly impact employees who exercise incentive… read more…
- Complete Guide to California’s Alternative Minimum Tax (AMT)
California’s tax system is complex, and for certain taxpayers, the Alternative Minimum Tax (AMT) can add an extra layer of financial obligation. California’s AMT operates alongside the state’s standard income tax. It employs a separate calculation that disallows many common deductions. If your income exceeds certain thresholds or includes specific tax preferences—such as incentive stock… read more…
- What Are the Tax Rates for the Alternative Minimum Tax (AMT)?
The Alternative Minimum Tax (AMT) is a parallel income tax system designed to ensure that high-income individuals pay a minimum level of tax, regardless of deductions and credits that might otherwise lower their tax liability. Unlike the regular income tax, which has a progressive structure with several tax brackets, the AMT operates under a separate… read more…
- Who Actually Has to Pay the Alternative Minimum Tax (AMT)?
The alternative minimum tax (AMT) was designed to ensure that high-income individuals and trusts pay a minimum level of tax, even if deductions and credits would otherwise significantly lower their tax liability. While originally aimed at the ultra-wealthy, the AMT now affects a broader range of taxpayers, particularly those with high earnings, numerous deductions or… read more…
- Comparing Property Taxes in Texas vs. California
If you’re thinking about moving to or investing in Texas or California, property taxes are an important factor. Each state has different tax rules that can affect your finances and business costs. A financial advisor can help you understand how these differences impact your situation. Property Taxes in Texas vs. California Property taxes are a… read more…
- What Is an Acceleration Clause in a Mortgage?
An acceleration clause allows a mortgage lender to demand full repayment of the loan if certain conditions are not met. This clause protects against missed payments, violations of loan terms, or significant changes in the borrower’s financial situation. If triggered, the borrower must pay the remaining balance of the mortgage in full, rather than continuing… read more…
- Ask an Advisor: Will the $500k in My Retirement Account Be Taxed When My Heirs Inherit it?
I have about $500,000 in a 403(b) account. I am writing my will and I do not know whether the money in my 403(b) will be subject to taxes when it is distributed to those I list in my will. Or, will the money just pass directly to those whom I have named? – Bill Bill,… read more…
- How Does Series B Funding Work for Startups?
Series B funding is the second round of funding for many startup businesses acquiring new capital to pay for scaling operations, expanding market reach and enhancing product development. This phase of funding typically involves venture capital firms and investors who want to invest in companies with proven business models and a clear path to profitability.… read more…
- Florida Corporate Tax: What It Is and How It Works
Florida, known for its business-friendly environment, offers a unique corporate tax structure that can be advantageous for companies operating within its borders. Unlike many states, Florida does not impose a personal income tax, which can be a significant draw for entrepreneurs and corporations alike. However, businesses must still contend with the Florida corporate tax, a… read more…
- How Much Should You Have Saved for Retirement at Age 45?
Planning for retirement can often feel like navigating a complex maze, especially when trying to determine how much you should have saved by a certain age. For those at the midpoint of their careers, understanding how much should be saved for retirement at age 45 is crucial for ensuring financial security in the golden years.… read more…
- At What Age Can You Retire With $500,000 in Savings?
While many people think the magic number for retirement is $1 million, others wonder if $500,000 is enough. To determine how much you need, you must evaluate how long this sum will last based on your anticipated annual spending and the rate of return on your investments. Additionally, factors such as Social Security benefits, healthcare… read more…
- Texas Corporate Tax: What It Is and How It Works
Unlike many states, Texas does not impose a traditional corporate income tax. Instead, it levies a franchise tax, which is a type of gross receipts tax. This means that businesses are taxed based on their total revenue rather than their net income. The franchise tax applies to most entities, including corporations, limited liability companies and… read more…
- What Is the Treasury Stock Method and How Is It Used?
The Treasury Stock Method is a widely used accounting technique that helps companies calculate the potential impact of outstanding stock options and warrants on their earnings per share (EPS). By providing a clearer picture of a company’s financial health, the Treasury Stock Method aids investors in making informed decisions. At its core, the Treasury Stock… read more…
- How Is IRS Section 1245 Used for Real Estate Taxes?
IRS Section 1245 determines how certain types of property are taxed upon sale. Specifically, it deals with recapturing depreciation on personal property and specific kinds of real estate. When applicable, this rule can significantly impact the tax liabilities of property owners. When a property that has been depreciated is sold, IRS Section 1245 requires that… read more…
- I Have $1.4 Million Invested with My Advisor Who Charges a 1% Fee. Am I Paying Too Much?
The fee your advisor charges is based on the services you’re receiving, the individual advisor’s fee structure and other factors, including the amount of money you have to invest. With $1.4 million invested, many advisors would likely charge about 1% of the account balance as an annual fee. However, this could vary widely among advisors.… read more…