Retirement Feed

We've yet to see autumn leaves here in Central Texas. It's still too hot and dry. But the arrival of October does bring another seasonal certainty: the Oct. 15 tax deadline. October is here and I've got to say that although it's still early, the month so far is disappointing. Here in Central Texas, by now we're usually enjoying daytime temperatures in the 80s, with overnight lows dropping into the 60s. That typically means our windows are open 24/7 to get full enjoyment of autumn weather. Not in 2019. We're at least 10 degrees higher both days and nights. One... Read more →


Flooding along I-10 in the Port Arthur, Texas, area due to Hurricane Imelda's excessive rain. (Photo by Jefferson County Sheriff's Office via Twitter) Coastal and East Texas is flashing back to 2017. That year, major Hurricane Harvey devastated Houston. Many parts of Space City and the Gulf Coast are still recovering. Now it's a tropical system, Hurricane Imelda that now has devolved into a depression, that has dropped way too much rain on the area. At least five people have died and the southeastern part of the Lone Star State is facing record-setting flooding. Google Maps Using nest egg to... Read more →


Some Bureau of Land Management (BLM) employees in Washington, D.C., are being offered financial incentives to move to the agency's Grand Junction, Colorado, office, which is near the scenic McInnis Canyons National Conservation Area pictured above. (BLM photo) Despite objections from workers and some members of Congress, the Interior Department is moving forward with its plan to relocate about 250 Washington-based Bureau of Land Management (BLM) employees to western states. The Trump Administration says the move ultimately will save taxpayer dollars, but it's willing to spend some federal cash in the short-term to win over employees who have concerns about... Read more →


U.S. Sen. Ron Wyden (D-Oregon) during a recent Senate Finance Committee hearing. (Screenshot from Wyden's YouTube channel) Most of the tax the rich action has been coming from Democrats who want to move into the White House in 2021. Now a top Senate tax committee member has joined the call to collect more from wealthier Americans. And he has specific plans for the new revenue. Sen. Ron Wyden's proposal would tax ordinary income and capital gains at the same rates. Currently, capital gains generally are taxed at lower rates, ranging from zero for some lower-income investors to 15 percent for... Read more →


Congress is back. But will Representatives and Senators get any more done these last few months of 2019 than they did earlier? Probably not. While this 116th Congress hasn't been a total bust — 56 bills have passed this year — it's not been a particularly productive one. None of these bills was major legislation. In fact, the enacted laws are 16 fewer than the lowest number passed in a single calendar year over the last 30 years. Plus, most of them have been commemorative measures or extensions of prior laws, not bills that change Americans' lives in any substantive... Read more →


The market is still volatile, dropping a bit today because … heck, who really knows exactly why this time? It's likely to keep bouncing a bit until the current and threatened trade wars and associated tariffs are resolved. I definitely am not a financial adviser, but even I know that you shouldn't try to time the stock market. Just when you think you've hit the bottom and cashed out, it drops more. Or it recovers and you miss a run back up that would have replaced (or more) your assets' losses. But if, after careful consideration and consultation with your... Read more →


Donald J. Trump speaking to supporters at an Aug. 15 rally in New Hampshire. (Photo from Trump's official personal Twitter feed) "If for some reason I wouldn't have won the [2016] election, these markets would have crashed. That'll happen even more so in 2020. See, the bottom line is … you have no choice but to vote for me because your 401(k), everything is going to be down the tubes. So whether you love me or hate me, you've got to vote for me." — Donald J. Trump Trump's recent campaign rally exhortation that people had to vote for him... Read more →


With markets down, it could be time to harvest tax losses or perhaps convert a traditional IRA to a Roth retirement account. What's scarier than Superman, the 415-foot tower roller coaster at Six Flags Magic Mountain in Valencia, California, that hits triple digit speeds? Some investors might say the recent stock market gyrations. (Photo courtesy Six Flags) Is the recent stock market drop freaking you out? How about the roller coaster ride back up, at least for a while, today? Yeah, it's worse than many stomach-churning amusement park rides and I'm right there, holding a barf bag, with you. But... Read more →


Hello, July! The heat is definitely on, but there are plenty of ways to chill out, both personally and to put your 2019 tax bill on ice. Yes, I know you want to head to the pool or beach or catch up on neglected novels or just be generally lazy. I'm right there with you. But you'll enjoy those recreational pursuits a lot more once you've taken some steps, like the seven listed below, to lower your 2019 tax bill. Let's get to 'em! 1. Get weather ready. A low pressure trough moved overnight from Georgia to the Florida panhandle... Read more →


Social Security might be in trouble, but as long as it's around in some form, Uncle Sam will keep collecting taxes related to it. That includes not only the payroll taxes from workers that go toward funding the federal retirement benefits, but also in some cases on the benefits themselves. If you have enough money when you're older to enjoy time the way you want with your grandchildren, you might face taxes on your Social Security benefits. Stop me if you've heard this before. Social Security is running out of money. That's the latest word from the trustees of the... Read more →


Thanks to much larger standard deduction amounts under the Tax Cuts and Jobs Act (TCJA), fewer filers are itemizing deductions. But that doesn't mean they aren't still writing off some tax-deductible expenses. During this first filing season after the many changes wrought by the latest tax reform law, taxpayers are still claiming what used to be called above-the-line deductions. Technically, they are and always have been adjustments to income. They got the above-the-line moniker because they previously appeared in the last section of the old long Form 1040, just above the last line of that form's first page where your... Read more →


Tax Day every April is the biggie for individual taxpayers. That's when our annual Form 1040 is due. And yes, I know this year there are two Tax Days, since Patriot Day celebrants in Maine and Massachusetts get until April 17 to send in their federal returns. But most of us must meet the April 15 deadline, so that's what I focus on in this post. Completing a 1040, however, is not the only mid-April tax deadline. It's just one of the 10 tax tasks listed below that many taxpayers also must make by next Monday, April 15. 1. File... Read more →


April 1 could be costly for older retirement account owners. No fooling. That's the deadline for taking a required minimum distribution, or RMD, if you turned 70½ last year and did not take the specified amount from your tax-deferred retirement funds by Dec. 31. RMDs are, as the name says, required amounts that you must withdraw from a retirement plan that's been earning money over the years without you having to pay tax on it. The tax law has been letting these accounts ride for years, decades in many cases. But when you get halfway through your 70th year, the... Read more →


Welcome to the Year of the Pig, the twelfth of the 12-year cycle of animals which appear in the Chinese zodiac related to the Chinese calendar. While this year and sign has many meanings in the Chinese culture, it also conjures thoughts of the ubiquitous piggy bank and how we can save more this and every year, regardless of which calendar we follow. Click image to watch full Year of the Pig video from Global News Canada. More of us could use a bigger, and fuller, piggy bank this 2019's Year of the Pig arrives. The recent federal government shutdown... Read more →


The current, and longest-ever, federal government shutdown has made it painfully clear that many of Uncle Sam's employees don't have an emergency savings cushion. They are not alone. A study released last summer found that only about a quarter of all Americans across nearly all ages and generations have no savings whatsoever in an emergency fund. Just more than a quarter of U.S. residents, 29 percent, had saved enough to cover six months' worth of living expenses. When people do save, they tend to do so for retirement. It's not necessarily that they're looking ahead to their golden years. Rather,... Read more →


Yes, I'll get to the tax moves to make by Dec. 31. Keep reading. But first I've just got to vent about some confusing year-end tax move info making the television and internet rounds. There's a tax feature that I've seen twice on local television and a couple of times online as a video with accompanying text and it's driving me crazy! It's about purportedly tax-saving moves to make in the last few days of 2018. Good idea. Confusing information. Specifically, one of the points is about charitable giving, which long-time readers know I'm a big fan of from both... Read more →


Truman the cat guarding presents under the Christmas tree. (Photo by Shawn Kinkade via Flickr CC) Ho, Ho, Ho, Happy Holidays! December is here. Time to decorate and, most importantly, get cracking on those gift lists. If you're not into frantic, crowd-fighting, last-minute shopping trips, here are five easy tax-related gifts for just about everyone on your nice list, including yourself. 1. Give to your favorite charities. You're probably already well aware of this option, since nonprofits have been sending out year-end donation solicitations since Halloween. Their urgency can be forgiven a bit more this year because of the tax... Read more →


North Carolina flooding in the wake of extensive hurricane rains. Photo courtesy Federal Emergency Management Agency A bill that would extend some expired tax laws, enact a handful of new ones and correct some errors in last year's tax reform bill is now before the House of Representatives. The extensive and expensive — the Congressional Budget Office estimates it will add another $55 billion to the federal deficit over the next 10 years — measure has a decent chance of clearing the House, where all it needs is the votes of the Republicans who control that chamber. Its chances in... Read more →


Welcome to Part 7 of the ol' blog's 2019 series on tax inflation adjustments. Today we look at changes to the Alternative Minimum Tax (AMT) and next year's Social Security wage base. You can find links to all 2019 inflation posts in the series' first item: income tax brackets and rates. Note: The 2019 figures apply to 2019 returns that are due in April 2020. For comparison purposes, you'll also find 2018 amounts to be used in filing this year's 2018 tax return due April 15, 2019. Taxpayers who face the alternative minimum tax, or AMT, see it as the... Read more →


Don't let tax turkeys gobble up your money. Make these tax moves, a couple of which are related to recent tax reform, this November and for sure by the end of 2018. South Park turkeys via Giphy It's November! The start of the holiday season. Time to get into the festive spirit with some year-end tax moves. "Whoa! Wait! What the what are you thinking?" you say. "I'm still adjusting to Standard Time and already have a huge to-do list to make sure my family has the perfect Thanksgiving. Then as soon as that's over, I've got to start with... Read more →