Once you reach age 70½, Uncle Sam wants you to start paying taxes on at least a portion of your IRA or 401k balance. He gets you to do that by requiring you to withdraw a percentage of money from your tax-deferred account, and every dollar that you withdraw from your IRA or 401k is taxed as ordinary income. The minimum amount that you must withdraw each year is not… Read More
A Season of Gratitude
Our previous blog post, written by my associate Tim Tyson, encouraged all of us to approach the Christmas season with an attitude of generosity. Well, Christmas of 2018 has come and gone. I hope you were able to both practice and graciously receive generosity. As I reflect on this season, and the past year, my mind goes to another important attribute – gratitude! Gratitude comes from a heart that is… Read More
A Season of Generosity
Christmastime is a season of generosity, a season of focusing on others, rather than ourselves, giving generously to others and receiving the generosity of others. I was recently reminded of a story that is not a Christmas story but that nonetheless captures the heart of the Christmas season. Nabal was a very wealthy man who owned a large amount of livestock. Nabal’s servants were tending sheep in the wilderness near… Read More
Perspective As Our Reminder
Until recently, you may have found yourself feeling foolish when investing became the topic of conversation and you didn’t have significant positions in FAANG (Facebook, Apple, Amazon, Netflix, Google) stocks. These major companies seemed to rule the market news day after day, making huge announcements and seeing their stocks make enormous gains. In periods of extended growth and low volatility, such as we have had over the past few years,… Read More
Inheritance in Pennsylvania
When you receive an inheritance in Pennsylvania, along with the good news you might also get some bad news. I have listed some of the good news as well as some of the bad news that accompanies certain assets Pennsylvania residents inherit. Traditional IRA, 401(k), 403(b) Good news: Since there are named beneficiaries, this asset does not pass through probate. You will not owe Pennsylvania state income tax* Bad news:… Read More
Being Prepared
The news reports this summer of the horrid fire storms in California and the damage that remains in the wake of Hurricanes Florence and Michael have left me wondering what I would do if I had only moments to vacate my home. Would I be prepared to walk out the door confident that I had the most important things with me? That little discussion with myself left me sure that… Read More
Faulty Mindsets
The way we think has a powerful way of affecting our behavior and ultimately who we become. I’m going to highlight five faulty mindsets that can lead to a compromised financial future. I will make more money in the future, and then I’ll save. When you expect to be in a better financial situation in the future, you are tempted to take the emphasis off what you need to do… Read More
The Habit of Saving
When Warren Buffet spoke to students at Georgetown’s McDonough School of business back in 2013, he said that good habits might be more important than being smart. He then went on to stress the importance of establishing the habit of saving. Buffet has also been quoted as saying: “Don’t save what is left after spending; spend what is left after saving.” The easiest way to save is to put your… Read More
Debt Considerations
To borrow or not to borrow, that is the question. Today’s blog will provide some thoughts regarding the use of debt. There are many different opinions on this subject. Circumstances and stages of life certainly play a role in these decisions. For example, a younger couple will most likely need a mortgage to buy a house, but those approaching retirement are usually better served by having their home paid for…. Read More
The Simple Cash Flow Plan
To me, the word budget is not a friendly one. It sounds restrictive and limiting. So when I discuss this topic with clients I prefer to use the term ‘cash flow planning’ instead. Isn’t that more elegant? For our fall blog series, we will be focusing on Household Cash Flow Planning, digging into the tools and strategies we recommend to our clients to create sustainable tracking of your financial goals…. Read More
