Most children stop being “and-a-half” somewhere around age 12. Kids add “and-a-half” to make sure everyone knows they’re closer to the next age than the last. When you are older, “and-a-half” birthdays start making a comeback. In fact, starting at age 50, several birthdays and “half-birthdays” are critical for Middle-Class Millionaires to understand because they … Continue reading “Important Birthdays Over 50”
Important Birthdays Over 50
Preparing for the Sunset
When the Tax Cuts and Jobs Act (TCJA) Act passed in 2017, we were told that all of the provisions—lower tax rates, much more generous estate tax exemption—would sunset at the end of 2025. That seemed a long way off back then. But now it’s 2024, less than two years before what could be a … Continue reading “Preparing for the Sunset”
New Retirement Contribution Limits for 2024
The Internal Revenue Service (IRS) has released new limits for certain retirement accounts for the coming year. Individual Retirement Accounts (IRAs) Traditional IRA contribution limits are up $500 in 2024 to $7,000. Catch-up contributions for those over age 50 remain at $1,000, bringing the total limit to $8,000. Remember, once you reach age 73, you … Continue reading “New Retirement Contribution Limits for 2024”
Effective vs. Marginal Tax Rates
What you think is your tax rate may not actually BE your tax rate. For instance, if you report just over $182,000 in adjusted gross income, the tax table says you’re in the 32% tax bracket. But you aren’t going to be paying anywhere near 32% of your reported income to Uncle Sam. There is … Continue reading “Effective vs. Marginal Tax Rates”
The Economics of Tax-Loss Harvesting
’Tis the season when many financial services professionals look at the best way to offset the taxable dividend distributions their clients might be receiving, using losses that can be ‘harvested’ by selling under-water investments and booking the losses on taxable (that is, not IRA or Roth) accounts. This is not always a trivial exercise; a … Continue reading “The Economics of Tax-Loss Harvesting”
Charitable Contribution Complexity
If you donate money to somebody in need, you can write off that gift on your tax returns, right? If only the charitable contribution laws were that simple. The actual rules say that you can itemize your charitable donations on Schedule A of IRS Form 1040. But (and these are enormous ‘buts’) only if you’re … Continue reading “Charitable Contribution Complexity”
The Looming Revert
Nobody is talking about the fact that the tax provisions in the Tax Cuts & Jobs Act of 2017 are due to revert back, after December 31, 2025, to what they had been in 2017—just 26 months from now. But if and when that threshold is crossed, it could be a rude awakening for a … Continue reading “The Looming Revert”
Eight Mistakes That Can Upend Your Retirement
Pursuing your retirement dreams is challenging enough without making some common, and very avoidable, mistakes. Here are eight big mistakes we help our Middle-Class Millionaire clients steer clear of: No Strategy: Yes, the biggest mistake is having no strategy at all. Without a strategy, you may have no goals, leaving you no way of knowing … Continue reading “Eight Mistakes That Can Upend Your Retirement”
9 Facts About Retirement
Retirement can have many meanings. For some, it will be a time to travel and spend time with family members. For others, it will be a time to start a new business or begin a charitable endeavor. Regardless of what approach you intend to take, here are nine things about retirement that might surprise you. … Continue reading “9 Facts About Retirement”
Traditional vs. Roth IRA
Traditional Individual Retirement Accounts (IRA), which were created in 1974, are owned by roughly 36.6 million U.S. households. And Roth IRAs, created as part of the Taxpayer Relief Act in 1997, are owned by nearly 27.3 million households. Both are IRAs. And yet, each is quite different. Up to certain limits, traditional IRAs allow individuals … Continue reading “Traditional vs. Roth IRA”