In 2022, Social Security recipients got a 5.9% cost-of-living adjustment (COLA). That was the largest increase in 40 years. The COLA coming in 2023 may be even bigger. Social Security calculates cost-of-living increases based on changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from September to September each year. According to the Bureau of [...]
1975 was a big year in financial annals when Americans were given a brand new way to save for retirement in something called an Individual Retirement Account—an IRA. You could put money into the account before taxes and the money got to grow tax-deferred. You didn’t have to pay taxes until you started taking money out, theoretically after you retired. [...]
It’s not often that politicians agree about anything, but in a rare vote in the U.S. House of Representatives, men and women, Republicans and Democrats, liberals and conservatives voted 414 to 5 in favor of the Secure Act 2.0, a series of changes to retirement savings plans. You can see the entire list of changes here. The bill builds on [...]
My, how things have changed. When I was growing up, if you found out someone had a trust, well, that person must be rich—they must be a millionaire (that’s back when a million dollars was really worth something). Today, though, trusts of all kinds are a common planning tool providing specific benefits to a multitude of situations. But boil it [...]
Alhambra's Bob Williams discusses Medicare's part in Long Term Care, and what to ask if you're considering long-term care insurance.
PROBATE—a word that strikes terror in the hearts of people planning the distribution of their estates. They worry that the probate process can drag on for months or years, that probate costs will eat up a chunk of what they want to leave their heirs, or that people will find out how the assets get distributed because probate is a [...]
One of the questions that have to be answered when planning for retirement is, “Where’s my income going to come from.” Identifying the income is a necessary first step when you’re planning. But people often miss the second step—how much of that income will be taxed? Uncle Sam doesn’t give you a pass on taxes just because you’re retired. Most [...]
Alhambra's Bob Williams describes 6 mistakes that will blow up your estate plan.
Alhambra's Bob Williams answers a viewer question about deciding when to begin Social Security.
Every little bit helps, especially in the worst inflationary period in 40 years. But for people who have to take Required Minimum Distributions (RMD) from Traditional IRAs, Inherited IRAs, and Retirement Plans, there’s good news. Beginning in 2022, the amount you’re required to withdraw goes down meaning your tax bill on those distributions goes down, too. People are living longer, [...]
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