February 22nd, 2024

Social Security: Five Facts You Need to Know

Social Security can be complicated, and as a result, many Middle-Class Millionaires don’t have a full understanding of the choices they may have. Here are five facts about Social Security that are important to keep in mind. 1. Social Security Is a Critical Source of Retirement Income Some have the perception that Social Security is … Continue reading “Social Security: Five Facts You Need to Know”

February 22nd, 2024

New Highs. Now What?

We’re all reading headlines telling us that the stock market has reached all-time highs, something that never happened in 2023.  Many investors who have a worrisome mindset will think that means that there’s a high likelihood that we’ll see a downturn in the near future. The markets have nowhere to go but down from here, … Continue reading “New Highs. Now What?”

January 26th, 2024

Important Birthdays Over 50

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”

January 26th, 2024

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”

December 13th, 2023

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”

December 5th, 2023

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”

November 17th, 2023

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”

November 17th, 2023

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”

October 25th, 2023

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”

September 26th, 2023

The FDIC’s Dilemma

Pssst? Want to buy a low-interest bond? That’s basically what the Federal Deposit Insurance Corp. is saying to investors, who are understandably not eager to take them up on the offer. The bonds in question are part of the $114 billion in debt obligations that the agency acquired when it took over the failed Silicon … Continue reading “The FDIC’s Dilemma”