Health Insurance Landscape for 2018 for Those Not Covered by an Employer Plan
Anyone who follows the news is aware that the last several months have been tumultuous for the individual health care market primarily served by carriers offering plans under the ACA (Obamacare). But the law survived, and we are now in the open enrollment period for 2018. Other options for those not covered by an employer plan are COBRA, association plans (in certain states), and faith-based cooperatives (also only offered in certain states). In this blog I discuss the pros and cons of each and how to think about your options for 2018. You...
read moreIntroducing Jim Moore who will be joining WJL Financial Advisors
I am using this blog to announce some exciting news. Jim Moore will be joining my firm. Below he’ll introduce himself and talk a bit about why he chose this path. Jim and I were co-workers back in my public accounting days and like me spent many years in corporate finance. We both made the switch to financial planning because that is where our passion lies. Going forward Jim and I will take turns writing the blog. Jim’s practice will be based in Connecticut. Let me introduce myself. My name is Jim Moore. As I progressed through the various...
read moreWhy You Should Consider Purchasing Disability Insurance to Supplement Your Employer-Provided Coverage
Disability coverage is designed to replace income lost during your working years in the event you become disabled and cannot perform the duties of your job. Most policies will pay benefits until age 65. Typically, employers that provide employee benefits offer disability coverage but there are a couple of reasons why you may want to supplement your coverage with a private policy. First, most employer policies provide a benefit that covers 60% of your base salary. But many corporate employees receive bonuses and other incentive compensation...
read moreDo Annuities Ever Make Sense in a Retirement Portfolio?
Annuities are an underutilized tool in retirement planning—according recent academic research. The value of an annuity is that you receive a steady stream of income for the rest of your life, and in certain instances the cash received will exceed the amount that can be safely drawn from a portfolio. In those instances, investing in annuities can allow someone to increase spending without increasing the risk of running out of money during retirement. The resistance to annuities is due to a couple of primary factors. First, many financial...
read moreCommon Errors and Omissions on Tax Returns
Even tax returns that are professionally prepared often have errors and omissions that may cause you to miss out on some valuable deductions. Having just made it through the 2016 tax season I want to share some of the common errors and omissions I see when reviewing tax returns. The state-specific issues relate to New Jersey, New York, and Minnesota, the three states where most of my clients reside. If you think something may have been missed on your return, it is not difficult to prepare and file an amended return. I’ll start with Medical...
read moreAsset Allocation During Retirement
One of the most vexing issues facing retirees is deciding on an asset allocation and withdrawal rate that minimizes the risk of eventually running out of money. Conventional wisdom suggests that over time you should steadily decrease the percentage of stocks in your portfolio throughout your retirement. However recent studies indicate that the opposite may be a better approach. Wade Pfau and Michael Kitces not too long ago published a study called “Reducing Retirement Risk with a Rising Equity Glide Path.” Their findings run counter to the...
read moreHSAs – The Underappreciated Tax Free Investment
Significant changes could be coming to the health care landscape in the United States now that Republicans are in control of Congress and the White House—and one element that seems common to all the proposals being considered is an increased emphasis on HSAs or Health Savings Accounts. HSAs provide significant tax benefits and are used to pay for out-of-pocket medical expenses such as deductibles and co-pays; they also and can also be used as a supplementary retirement investment vehicle. Most people are aware that HSAs are used for medical...
read moreWhy You Should Care about the New Fiduciary Rule
A significant rule change goes into effect in the spring of 2017 that impacts the financial advisory business. After years of deliberation, the Department of Labor is implementing a rule that requires that any financial professional who gives advice related to retirement accounts such as IRAs and 401(k)s to act as a fiduciary for the client. This means financial professionals must act in the best interest of the client when dispensing advice. The obvious question is, Hasn’t this been the standard all along? The answer is that it has been for...
read moreYear End Tax Strategies for Those Who Had a Job Transition
Those who experience a job transition (voluntary or involuntary) often have income levels that vary significantly during the transition period. Income fluctuations can be caused by severance payments, accrued vacation payouts, deferred compensation payouts, signing bonuses as well as a reduction in income if a new job is not secured immediately. This fluctuation in income from one year to the next can create tax planning opportunities due to shifts in tax brackets. Those in a job transition may find that their income has fluctuated during...
read morePaying for Your Health Insurance through COBRA? Consider Switching to an Exchange Plan Before December 15
In my financial planning practice, I spend a fair amount of time with people in a job transition. In the past I have spoken with several who pay for their health insurance through COBRA and don’t realize that they could potentially save hundreds of dollars a month in premiums because of subsidies available when they purchase their health insurance from the government’s health care exchange. This blog looks at this potential opportunity and provides an overview for anyone considering using the government health care exchange. Gaining...
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