If you think this sounds too good to be true, you’re wrong. The Endow Kentucky Tax Credit enables any Kentucky taxpayer (business or individual) to receive a state tax credit of up to 20% of their charitable gift to a permanent endowment fund approved by the program (up to $10,000 per taxpayer). This limited-time opportunity is available for fiscal year 2014 which begins in July 2013. (2013 credits have been exhausted). Each fiscal year has $500,000 in tax credits available.    ...  Read more...

The Employee Benefit Research Institute recently released their 2013 “Retirement Confidence Survey.” The results are not positive – Americans are not doing a good job preparing for their future. The percentage of workers confident about having enough money for a comfortable retirement is essentially unchanged from the record low numbers of 2011.  13% Are very confident 38% Are somewhat confident 21% Are not too confident 28% Are not at all confident   ...  Read more...

I recently attended a social security training seminar and the presenters recommended an article by PBS News titled “34 Social Security 'Secrets' All Baby Boomers and Millions of Current Recipients Need to Know”.   I’ve read many of these types of articles, but this one may be the most comprehensive I’ve seen.  For example, below is the type of “secret” you will learn: Secret #16 “If you take retirement, spousal, or widow/widower benefits early and lose some or all o...  Read more...

To replace 85% of pre-retirement income, Fidelity Investments has recommended obtaining the following savings targets in your retirement accounts (401(k)s, IRAs, 403(b)s):  By Age                                  You Should Have  30               &...  Read more...

Most small business owners and highly compensated employees do not realize they are in danger of falling into a gap between the disability protection they have and what they actually need. According to the Bureau of Labor Statistics, we have a 30% chance of becoming disabled before reaching full retirement age, and yet only a third of employees in the private sector have long term disability insurance.  Highly-compensated employees who are covered by an employer- paid or group long term ...  Read more...

“Uncertainty” is a major concern for America’s small business owners according to a recent survey by the National Federation of Independent Business (NFIB). Uncertainty in tax and health care law, in particular, are two of the biggest worries.  So what can the time-starved small business owner do to keep abreast of major changes in these areas? Understand where to go for timely unbiased and non-partisan public policy information.  The following websites are well-respected bec...  Read more...

As the Thanksgiving holiday approaches, the majority of us are focusing on spending time with our families and finding the best shopping deals for Black Friday. While lawmakers are in their home districts this week, their staff is working in Washington laying out the parameters for a deal on the Fiscal Cliff. Will they be able to offer us a holiday recipe to avoid higher taxes and major spending cuts?    Below are the major components of the Fiscal Cliff and what ...  Read more...

This isn’t the most exciting news for those of you who aren’t taxation and financial planning pros, but the government has come out with their annual cost of living and inflation changes. This affects those who receive social security benefits as well as those of us who utilize qualified retirement plans. Social Security Changes: The Social Security Administration has announced a 1.7% cost of living increase for social security benefits.  If you are still in the workforce, there wil...  Read more...

This isn’t one of my most exciting financial planning topics, but could be one of the most important.  Frequently, I come across clients or prospective clients with outdated or blank beneficiary designations. Your guess is probably correct on how these situations come about: divorced spouses forgetting to take one another off, deceased spouses forgetting to update with new beneficiaries, etc. Without regular reviews of your beneficiary elections, money may be passed to people or ...  Read more...

Receiving Lump Sum Social Security Payments through “File and Suspend” I recently attended a social security seminar conducted by a retired social security associate of 35+ years. He reminded me of a social security strategy that I thought would be beneficial to repeat.   The strategy is called “File and Suspend” (aka “Claim and Suspend”). It is available to anyone who has reached their full retirement age. Typically, someone would “file and suspend” if they were married a...  Read more...