FINANCIaL
FIELd NOTES
Using Direct Indexing to Maximize Charitable Giving
Direct Indexing is an investment strategy where the investor purchases the individual stocks of an index instead of the underlying index fund itself. You may be wondering why someone would go through the hassle of owning so many stocks when the cost of index funds is so low, and they can be purchased very easily. I tend to agree that in most situations, direct indexing is not the solution.
However, there are some situations where they can provide a tremendous benefit. One of those is for investors with non-retirement investments who donate to charity…
How Much Income Do You Need To Replace In Retirement?
A common rule of thumb is that retirees will spend on average 80% of their pre-retirement income. In practice, however, I have seen the “replacement rate” vary greatly from person to person.
For some, their work keeps them very busy, so the first few years of retirement are filled with long-awaited travel plans that lead them to spend more. For others, the simplicity of life allows them to eat more at home and travel less, which leads to a decrease in spending…
How Much Does Private Healthcare Cost Before Medicare?
Retiring before 65 when Medicare begins can bring significant healthcare costs as early retirees are forced to find private healthcare plans.
When considering premiums and out-of-pocket health care expenses, $1,000/month per person is typically a good estimate, although it varies by the type of plan selected…
Should You Sign Up For Medicare If You Are Still Working?
When retirees turn 65, they typically sign up for Medicare unless they are covered by a federal or state government health care plan. However, if you are still working when you or a spouse turns 65, that becomes a bit trickier…
RMD Age Changing Again? SECURE ACT 2
Legislation that was approved in The House toward the end of March has the Required Minimum Distribution (RMD) age set to change again if fully approved.
The proposed legislation would not change the RMD age for anyone who has begun required distributions, only for those who haven’t yet…
Getting A 91% Charitable Tax Deduction In Virginia – Neighborhood Assistance Program
If you live in Virginia and are searching for charitable organizations to give to, you may want to consider the Neighborhood Assistance Program (NAP).
According to their website, “In return for [your] contributions...individuals may receive tax credits equal to 65 percent of the donation that may be applied against their state income tax liability.” That’s right - a 65% dollar-for-dollar credit on your Virginia taxes!