Category: Tax

Not All Muni Bonds Are Tax Free

At a wedding in 2007 I met a retired treasurer from a prestigious east-coast university.  He told me that all his investments were exclusively in insured municipal (muni) bonds.  The returns he received were good, sufficient to cover all his expenses, and were practically guaranteed.  But the best part of the muni investments, as he…
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Time To Worry About Underfunded Pensions?

I recently attended a seminar about public pension reform led by Chuck Reed, formerly mayor of San Jose and currently board member of the Retirement Security Initiative. As you probably recall, Reed led the effort to pass a pension reform measure for San Jose in 2012.  Here are some of the implications of the underfunded…
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How to Delay the IRS From Taxing Your Savings

If you’ve been working for a midsize or larger employer, chances are you’ve been utilizing a 401(k) to save for retirement. And even if you haven’t, you probably have an Individual Retirement Account (IRA) into which you’ve been saving every year. The great thing about these savings accounts is that the IRS gives you a…
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Blatantly Illegal Tax Deductions

Since we are currently in the midst of tax season, just for fun I thought I’d share some of the more creative tax deductions taxpayers have attempted to get away with.  Warning: do not try this at home! From the Minnesota Society of Certified Public Accountants comes the following: A woman tried to claim her…
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You Inherited an IRA. Now What?

IRAs are among the simplest and best ways to transfer wealth to heirs.  In effect, you are not simply passing on a chunk of money, but rather a chunk of money with future tax-deferred or tax-free growth embedded.  However, if you are the beneficiary of an IRA, it’s important that you take the right steps…
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Taxes Have a Big Impact on Retirement

A recent Lincoln Financial Group survey found that retirees significantly underestimate the impact taxes will have on them during their retirement years. When asked before they retired what they expected their top expenses to be in retirement, the majority of pre-retirees surveyed anticipated home and mortgage, health care, and travel/leisure costs to be the highest.…
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