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Every now and then, legislation is passed that alters the retirement savings landscape. The Setting Every Community Up for Retirement Enhancement Act (SECURE Act), signed into law on December 20, 2019, represents the first major piece of retirement legislation passed in a decade. Like many people, you are probably wondering what this means for you.
Every now and then, legislation is passed that alters the retirement savings landscape. The Setting Every Community Up for Retirement Enhancement Act (SECURE Act), signed into law on December 20, 2019, represents the first major piece of retirement legislation passed in a decade. Like many people, you are probably wondering what this means for you.
Even if you aren’t currently taking any medications, if you’re turning 65 soon and will be eligible for Medicare, you may want to seriously consider enrolling in Part D coverage at the same time you enroll for Medicare. In most cases, delaying Part D enrollment means you’ll have to pay a penalty if you want to enroll later than when you are first eligible.
There are a few changes of note regarding 529 College Savings Accounts for 2020.
One of my areas of interest in my position as a Wealth Manager with Bernicke Wealth Management, Ltd. is developing strategies for our client’s children and grandchildren to help pay for their college education. College costs have been increasing rapidly for quite a while now, and the amount of student loan debt is increasing each year as well. According to Nitro College, as of 2020 there is $1.53 trillion dollars of U.S. student loan debt, with the average student loan debt balance being $37,172. This is quite a burden for a young person to take on, especially in their early years of employment when they typically will be earning lower starting salaries as they enter the workforce.
In 2001, my wife and I bought our first home. We were fortunate to save enough money and put down 20% on the home. This allowed us to avoid paying Private Mortgage Insurance on the remaining 80% owed to the bank. It is hard to describe the amount of fear I had prior to this large purchase. I kept thinking of possible scenarios that could cause us to be unable to make our loan payments, and what that could mean for our family’s future.
One of my favorite pastimes is golf. While playing golf over the years, I have had the pleasure of meeting a number of people who have become close, life-long friends. I have also had the opportunity to play with a few people who should probably consider quitting the game.
A Health Savings Account (HSA) is a tax-exempt trust or custodial account that you set up with a qualified HSA trustee to pay or reimburse certain medical expenses that you incur. For 2019, the IRS has set the maximum contribution amounts at $3,500 for individuals and $7,000 for families. If you are age 55 or older, a “catch up” contribution of $1,000 can be added as well.
Much of the research done on how much money can safely be withdrawn from retirement nest eggs focuses on an initial amount that is withdrawn in the first year of retirement, and then assumes that this initial amount is increased by an inflationary factor every year thereafter. So what does this look like? Is this realistic? What does this practically mean for you as an investor?
I learned a long time ago that I sometimes fail to make the correct decisions about what I truly need. I find this frustrating because it causes me to occasionally make mistakes that are preventable.
Bernicke Wealth Management, Ltd. is an independent, multi-disciplinary financial firm serving the Eau Claire, Wisconsin area and the Twin Cities metro. Our financial advisors provide wealth management services for individual investors, businesses, foundations, and nonprofits, including investment management, retirement planning, estate planning, and tax minimization.
