Whether You’re Retired or Not Be Tax Smart in the Year to Come 5 COMMON FINANCIAL STRUGGLES FOR SENIORS 4WAYS TO PLAN FOR 2019
As the end of the year approaches, we’ve already got next year on the brain.This is an opportunity to start thinking about 2019 and how you can maximize resources with the decisions you make. While there are few changes you can make that will affect your 2018 taxes — other than last charitable contributions — now is the ideal time to think about how you’ll choose to make contributions and distribute your resources for the year to come. Here are five aspects of planning that you can start. 1. Look at your 401(k) contributions. Look to see that your contributions will meet your long-term goals for retirement. Do you need to increase them to achieve your objective? Talk with your tax advisor to make sure you’re maximizing the options your company provides. 2. Plan charitable donations. Consider how and where you’ll make these contributions in the coming year. Each is a personal choice that will have an impact. So taking some time to research how you’ll make your donations will ensure you’re making the most of what you give. 3. Be diligent about tax documentation. Nothing makes tax season easier than organizing your receipts and documents throughout the year instead of all at once in the spring. Designate a cabinet or file folder for these documents, with clearly labeled separators.This will make it easy to file a piece of paper or receipt as soon as you get it. 4. Evaluate if a 529 plan makes sense for your family. Parents and grandparents can contribute to a 529 plan for their children, which can be used for qualifying educational expenses.There are state credits and deductions available for these contributions and federal tax advantages, as well. Getting a start now and considering how each of these components fits into your 2019 plan will help you maximize your taxes in the year to come. As you’re looking for a tax advisor to go over some of the details with you, the team at Capital Advisory Group is here to help. Give us a call.
Planning for and navigating retirement is the most pressing financial concern for older adults. While understanding how to budget and spend as you approach and enter retirement is crucial, it’s far from the only issue that seniors face. Last year, a report from the Consumer Financial Protection Bureau (CFPB) investigated the most commonly reported complaints the organization had received from adults age 62 and older. Aside from retirement savings, here are the five major issues reported by seniors. Debt The number of seniors and retirees with debt is at an all-time high. Many seniors carry excessive debt in order to ease the burden on their children and grandchildren. Some still have student debt from their college years or other outstanding loans. Others turn to credit cards to defray a surprise cost like a medical emergency. If you’re in danger of falling behind on payments, contact your lenders before opening a new credit account. Reverse Mortgages Many seniors have reverse mortgages, which allow them to buy into home equity provided they repay it when the property is sold. In this mortgage structure, however, people still need to pay property taxes and homeowner’s insurance.These mortgages can end up being a trap for seniors, which is why Jean Setzfand, a senior vice president at AARP, refers to them as a last resort. Scams and IdentityTheft Sadly, many identity thieves and cybercriminals target the elderly. While your credit report can be corrected after such an event, many seniors are unequipped to deal with the process.The best defense is to check your statements often to ensure that any foul behavior is caught as early as possible. Confusion Regarding Fees Many seniors reported charges they didn’t understand to the CFPB. Often, they were signed up for subscriptions they didn’t use or weren’t sure how interest was being calculated. As with identity theft, monitoring your statements for unusual charges is the best way to avoid this source of stress. Loss of a Spouse The loss of a spouse presents challenges much greater than the financial burden, but that is often a major part of navigating the death of your partner. Accessing bank accounts and other assets can prove difficult, especially if it was the deceased who primarily managed the finances. Working with a financial planner or elder law attorney can help make this process less daunting.
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