So many examples of out there of the press just trying to catch readers attention. Here is one example that I saved from Valentines Day…the rest is history. If you get caught up in what the media is preaching, you WILL be worse off. Put your money in the markets long-term and LEAVE IT ALONE.
Below I have shown the S&P 500 (biggest 500 companies in US) from 2-14-2020 forward:
Last night the IRS announced it would not charge penalties and interest for up to 90 days for anyone (or any small business) who files their tax return by April 15th. You can read more from USA Today.
Now you can hold on to your money a little longer, but at today’s low interest rates you won’t earn much!
When I run long-term projections for folks, I regularly assume 95 years will be their life expectancy. You should see some of the looks I get! Almost everyone laughs and says there is no way they will make it to age 95. However, statistics show that a 65-year-old couple has a 90% chance that one of them will be alive at age 80 and nearly 50% chance that one of them will still be alive at age 90! How is this percentage going to change over the next 20 years until I reach retirement?
Also, keep in mind that data on the left is put together by the Social Security Administration, so it is a sample set of the entire population!
Do you go to the dentist regularly? Dr. David Cleveland at Darby Creek Dental shared that more than 1 in 5 Americans hasn’t seen a dentist in more than 3 years! Do you wear your seatbelt? According to the National Highway Traffic Safety Administration, 27 million Americans still do not? Do you have access to quality healthcare? What about the ability to buy quality fresh foods? If you answered yes to any of the above, you are likely to have a longer expectancy than the average American.
So again, I ask…is 95 absurd?
So how long of a retirement should you plan for? Can you change your life expectancy?
The obvious answer is to look at longevity in your family history. If both of your parents lived into their 90s and were physically and mentally healthy, you have a pretty good chance to be looking towards that centenarian mark. Want some tips directly from the Centenarian’s themselves, then read this article from PBS or watch this video from Sharp Health.
Ok, so what about you?!? Try taking the test at www.livingto100.com that will ask some specific health questions and compare your estimated life expectancy to the average. It will also recommend life changes and will show how those changes can impact your longevity.
So what age did you get?
If you need help planning for all those wonderful years of retirement, please feel free to reach out to me!
Okay, so it’s not as much as my headline would have you believe…but the new numbers for 2019 were just released.
Let me start off by saying I am very appreciative of all the help that friends and family have provided me over the years! I don’t mean to sound ungrateful at all, but rather want to use my situation to teach others.
My dad recently called me and told me that he had taken out a whole life insurance policy on me right after I was born and he was turning it over to me now that I have my own family. I was stoked! Free Money!
It was a $25,000 whole life policy that my dad paid $189/year in the event I passed away, they would have money to bury me. Kinda morbid, but a reality. The sales person talked about me having the ability to use it for college and the ability to take loans from the policy tax-free…blah…blah…blah…
Today I own a whole life policy that has a death benefit of $28,002 or I could take my cash value of $6,668.62 out to use for anything I want.
Here’s the problem…
If my dad would have just put that FIRST $189 payment into an S&P 500 fund it would have grown to $10,542.42 of cash. THAT IS JUST THE FIRST PAYMENT!
If he would have put that same $189/year into an S&P 500 fund until he turned it over to me, I would have an account balance of $74,511.36!
Again, I am not ungrateful for the gift, but that can be the difference between the next generation going to college or not…having the ability to take on the risk of a business venture or not…spending more time with kids or not.
What would an extra $67,842.74?
Want to take your education planning, and tax deductions, to the next level? Keep reading!
To add a layer of sophistication to education planning, you must recognize that Ohio allows a tax deduction of $4,000 per beneficiary and allows you to move accounts between beneficiaries within the same family.
Let’s look at an example. If a married couple (H & W) has two children (B & G) in private school, they could potentially pick up $16,000 in state tax deductions. They would open an account with B as beneficiary, G as beneficiary, H as beneficiary, and W as beneficiary contributing $4,000 to each account. Then H and W would move their accounts to B and G to be used for tuition.
$4,000 tax deduction * 4 beneficiaries = $16,000 Ohio tax deduction!
If you have questions, please do not hesitate to reach out!
Private school education can have many upsides, but saving for college while paying private school tuitions can be daunting. I have found very few people are aware of a recent tax change that can help reduce your taxes!
The recent tax change has now allowed section 529 education savings plans (if you don’t know what this is, I address it here) to be used for primary education expenses up to $10,000 per year. This can be a big tax win for Ohio parents with children in private school.
Ohio allows for a $4,000 state tax deduction per beneficiary (up from $2,000 last year) for funds contributed to an Ohio College Advantage plan. While the accounts were originally established for college savings, now they can be used to pay for private education.
So instead of making your next private school tuition payment from your checking account, simply contribute to your child’s College Advantage account and then request reimbursement for the tuition you paid. Simple as that and you have a $4,000 state tax deduction!
Feel free to reach out to me if you have questions!