Recent Articles from Wayne Farlow
Cash for the college-bound
A 529 college savings plan is often the best way to save for a child’s higher education expenses. Let’s explore some of the ways that 529 college savings plans provide tax savings, flexibility, safety and even estate-planning opportunities for parents and grandparents of college-bound children. 1) Tax Savings – The gift tax exclusion allows an […]
Self-employed?
The number of self-employed Americans has skyrocketed. Whether fully self-employed or supplementing your income, consider saving some self-employment income in a tax-deferred retirement plan. Here are four possible retirement plans for the self-employed. 1. Solo 401(k) Plans: 401(k) plans for small companies often have high administration costs and limited investment options. Solo (individual) 401[...]
A couple’s seven-step guide to reducing financial stress
A leading cause for divorce is disagreements concerning financial matters. When a couple has different financial backgrounds and different opinions on spending, saving and investing, financial stress can occur. Here are seven steps that you and your partner can use to reduce financial tension and help your relationship thrive. 1) Understanding each other’s financial goals. […]
Financial plans for a lifetime
For many people, financial planning consists of determining if the amount they have or will have saved by the time they retire, will provide adequate funding to live the retirement they desire. We take a broader view of comprehensive financial planning. Using the Bodie Merton Samuelson theory of...
When college and retirement collide
With more families being formed later in life, children are often entering college near the time that their parents are preparing for retirement. Providing educational funds for our children, while simultaneously saving adequate funds for retirement, can be very challenging. Here are some tips t...
Seven tax actions to take before it’s too late
With the possibility that the “Bush era tax cuts” will be allowed to expire at the end of the year, 2012 tax planning should start now. While some tax reduction approaches can be postponed, here are seven techniques that may require action in early 2012:
Insurance for the future?
The cost of long term medical care is a primary risk management concern, especially as people age. In Colorado, the median cost of a private room in a nursing home was $81,030 in 2011. Unfortunately, the cost of a long term care (LTC) insurance policy continues to rise. Let’s look at some options that may […]
Ready, set — save!
many people put almost all of their savings into a 401(k), IRA or other tax deferred retirement plan. Conventional wisdom is that you should always save as much as possible in tax deferred accounts. Unfortunately, this approach may be very costly if a financial emergency occurs or if tax deferred...
It’s your inheritance
Recent studies have found that more than two-thirds of the baby boomer generation will receive inheritances from parents and/or other family members. While many of these inheritance gifts will be small, almost 54 percent will likely receive gifts of $100,000 or more. Often, the beneficiary has a d...
Maximize your college savings
There are two main financial planning goals that my clients most often want addressed. One is attaining an abundant retirement; the other is saving for college expenses. One method of minimizing your child or grandchild’s college expenses is to maximize tax savings. Another is to maximize college aid opportunities. Here are some ideas on how […]
A guide to inherited IRAs
There are few areas of the tax code as confusing as inherited IRAs. Let’s examine your current tax deferred retirement accounts (IRA, SIMPLE IRA, SEP IRA, 401(k), 403 (b), etc) and what is required to minimize taxes from an inherited tax deferred retirement account. The single, most important step you can take to assure that […]
A great alternative to early retirement
Many of my baby boomer clients are questioning their ability to retire before they reach their Full Retirement Age (FRA) for Social Security. When we do our annual retirement planning, we always explore several different retirement options to allow for the abundant retirement they desire. The goal of any retirement plan is to live throughout […]