Certified Senior Advisor Boise ID

Can Capital Gains Push You into a Higher Tax Bracket?

Posted by on Nov 19, 2019

Can Capital Gains Push You into a Higher Tax Bracket?   Making Money on your money sounds great until you have to pay taxes. The federal capital gains tax rate is 0%, 15% and 20%. This is lower than the tax rate on ordinary income. To determine your capital gains tax rate, you begin with your ordinary income. Then add your capital gains to it. Where does this total fall in the range for capital gains tax bracket? (See Table below) IRS Tax Rate: Single Taxpayers Married Filing Jointly Heads of Household 0% $0 – $39,375 $0 – $78,750 $0 – $52,570 15% $39,376 – $434,550...

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Slow Down a Hacker: Use Two-factor Authentication Guide

Posted by on Oct 9, 2019

Slow Down a Hacker:   Use Two-factor Authentication Guide   Two-factor authentication (sometimes called two-step verification) is an extra security measure you can place on certain of your accounts. When enabling this feature, you will have to enter a short-lived one-time code (sent to your phone or device) after submitting your username and password. This process adds an extra layer of security to your account—even if a hacker knows your username and password, they cannot log into your account without the one-time code that is sent to your phone. You need two-factor authentication enabled...

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Medicare and HSAs Don’t Mix

Posted by on Oct 1, 2019

Medicare and HSAs Don’t Mix   Health Savings Accounts (HSAs) are designed to have a triple tax benefit. Contributions are tax deductible. Assets in an HSA may grow tax free. Distributions for medical expenses are tax free.   However, once you enroll in Medicare your eligibility to contribute to an HSA is cancelled. If you made HSA contributions while covered by Medicare, you face tax fines and penalties. What if you are covered by your employer? Reaching age 65 doesn’t require you to enroll in Medicare. If you employer has credible insurance coverage, you may decline Medicare and continue...

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Can you benefit from a Health Savings Account?

Posted by on Sep 24, 2019

Can you benefit from a Health Savings Account? Health Savings Accounts (HSA) are designed for a triple tax benefit.         1. Contributions are tax deductible         2. Accounts can grow tax free. (You can accumulate dollars in this account.)         3. Disbursements for qualified medical expenses are tax free. Health Savings Accounts are growing in popularity. The total number of HSAs grew to 25 million in 2018, up 13% from 2017 according to Devenir Research. Many financial advisors are using them as another savvy strategy for stashing money away for your retirement years. To qualify for...

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How to Thrive in an Empty Nest

Posted by on Sep 11, 2019

How to Thrive in an Empty Nest Parents are returning home from dropping their child off at college. It’s a bittersweet experience. Parents are filled with pride, and excitement, as well as sadness. Some parents feel like they have lost their job and are wondering, what now? As a parent you have a new chapter unfolding in your life. Recognize and accept the feelings of grief. This is another step in letting go of your child. This can feel like a loss. Be open in communicating your feelings with your spouse. This is a season where both parents and children are finding new roles. Much planning...

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Should I Pay Off My Mortgage Now?

Posted by on Aug 13, 2019

To Pay or Not to Pay – that is a dilemma facing many Baby Boomers today. As retirement is approaching, do you pay off the mortgage or not? You are 3, 5, 10 years away from retirement. And you have 5, 10, 15 years left on your mortgage. Do you pay the mortgage off early? If so, which bucket of money do you use? In interest of full disclosure, this financial advisor prefers retirees to be debt free at retirement.  Less cash flow is required for monthly expenses which is less strain on investments. In a market downturn, retirees sleep better in a debt free home. However, being mortgage free may...

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