Comments for Getting Your Financial Ducks In A Row http://financialducksinarow.com Articles about retirement savings & income, investing, and income tax Fri, 03 Feb 2012 13:46:42 +0000 hourly 1 http://wordpress.org/?v=3.3.1 Comment on Pre-Death Planning: Roth Conversion by jblankenship http://financialducksinarow.com/4592/pre-death-planning-roth-conversion/#comment-2639 jblankenship Fri, 03 Feb 2012 13:46:42 +0000 http://financialducksinarow.com/?p=4592#comment-2639 Steven, thank you for the insights from an attorney's perspective. I always appreciate your commentary. jb Steven, thank you for the insights from an attorney’s perspective. I always appreciate your commentary.

jb

]]> Comment on When to File For Social Security Benefits by jblankenship http://financialducksinarow.com/4597/when-to-file-for-social-security-benefits/#comment-2638 jblankenship Fri, 03 Feb 2012 13:44:16 +0000 http://financialducksinarow.com/?p=4597#comment-2638 Excellent point, Steven - thanks for sharing. In the early years (before 70 1/2) there is leeway to work with in planning income, which many folks don't take advantage of. As you say, a bit of planning can smooth out the tax hits and allow for greater benefits later. jb Excellent point, Steven – thanks for sharing. In the early years (before 70 1/2) there is leeway to work with in planning income, which many folks don’t take advantage of. As you say, a bit of planning can smooth out the tax hits and allow for greater benefits later.

jb

]]> Comment on Pre-Death Planning: Roth Conversion by Steven J Fromm http://financialducksinarow.com/4592/pre-death-planning-roth-conversion/#comment-2637 Steven J Fromm Fri, 03 Feb 2012 01:57:01 +0000 http://financialducksinarow.com/?p=4592#comment-2637 This is a great strategy from an estate planning perspective. In estates where the assets are top heavy in retirement plans funding for the unified credit trust can be difficult. The income tax implications are imperfect and messy. If the IRA is converted to a Roth, taxpayers can designate as beneficiary of such Roth a trust. If the trust can meet all the tests as a qualified beneficiary, this may be a better and easier arrangement than a regular IRA with less income tax implications. This is a great strategy from an estate planning perspective. In estates where the assets are top heavy in retirement plans funding for the unified credit trust can be difficult. The income tax implications are imperfect and messy. If the IRA is converted to a Roth, taxpayers can designate as beneficiary of such Roth a trust. If the trust can meet all the tests as a qualified beneficiary, this may be a better and easier arrangement than a regular IRA with less income tax implications.

]]> Comment on When to File For Social Security Benefits by Steven J Fromm http://financialducksinarow.com/4597/when-to-file-for-social-security-benefits/#comment-2636 Steven J Fromm Fri, 03 Feb 2012 01:46:33 +0000 http://financialducksinarow.com/?p=4597#comment-2636 Great post on a very slippery subject. The other point here is that with those taxpayers will retirement plans and IRAs there is an interplay at work here. Sometimes it makes sense to increase IRA or retirement plan payouts and delay the beginning of social security payouts. This could help smooth out the effective tax brackets over time while deferring the social security payouts to a later year and with the kicker of a higher payout. Of course the numbers need to be crunched, but there can be some pretty neat results here. Great post on a very slippery subject. The other point here is that with those taxpayers will retirement plans and IRAs there is an interplay at work here. Sometimes it makes sense to increase IRA or retirement plan payouts and delay the beginning of social security payouts. This could help smooth out the effective tax brackets over time while deferring the social security payouts to a later year and with the kicker of a higher payout. Of course the numbers need to be crunched, but there can be some pretty neat results here.

]]> Comment on When to File For Social Security Benefits by jblankenship http://financialducksinarow.com/4597/when-to-file-for-social-security-benefits/#comment-2630 jblankenship Mon, 30 Jan 2012 14:45:36 +0000 http://financialducksinarow.com/?p=4597#comment-2630 Thanks, Anne! Thanks, Anne!

]]> Comment on When to File For Social Security Benefits by jblankenship http://financialducksinarow.com/4597/when-to-file-for-social-security-benefits/#comment-2629 jblankenship Mon, 30 Jan 2012 14:41:35 +0000 http://financialducksinarow.com/?p=4597#comment-2629 Robert, I have started work on such a decision tree in the past but it gets pretty complicated quickly. I may give it another go sometime soon, as I agree such a tool would be helpful to lots of folks. jb Robert, I have started work on such a decision tree in the past but it gets pretty complicated quickly. I may give it another go sometime soon, as I agree such a tool would be helpful to lots of folks.

jb

]]> Comment on When to File For Social Security Benefits by Anne http://financialducksinarow.com/4597/when-to-file-for-social-security-benefits/#comment-2628 Anne Mon, 30 Jan 2012 14:07:01 +0000 http://financialducksinarow.com/?p=4597#comment-2628 Social Security appears to be a fascinating facet of our Government; a facet we citizens can take Hope in...and social security is interesting to understand too ! ps will be buying your book in the very new furture; thanks ! Anne in Conn. : ) Social Security appears to be a fascinating facet of our Government; a facet we citizens can take Hope in…and social security is interesting to understand too !
ps will be buying your book in the very new furture; thanks ! Anne in Conn. : )

]]> Comment on When to File For Social Security Benefits by DIY Investor http://financialducksinarow.com/4597/when-to-file-for-social-security-benefits/#comment-2625 DIY Investor Mon, 30 Jan 2012 00:07:41 +0000 http://financialducksinarow.com/?p=4597#comment-2625 Excellent post! As an advisor I often have to direct a bunch of questions at clients to get at an appropriate decision. Many times everything goes out the window and people take SS early because they hate the thought they might die and the government "win". I wondered if there is a decision tree like set-up to guide people in making the right (for them) decision that simplifies the analysis and even spouts out the break even. Excellent post! As an advisor I often have to direct a bunch of questions at clients to get at an appropriate decision. Many times everything goes out the window and people take SS early because they hate the thought they might die and the government “win”.
I wondered if there is a decision tree like set-up to guide people in making the right (for them) decision that simplifies the analysis and even spouts out the break even.

]]> Comment on When to File For Social Security Benefits by jblankenship http://financialducksinarow.com/4597/when-to-file-for-social-security-benefits/#comment-2623 jblankenship Sat, 28 Jan 2012 17:02:54 +0000 http://financialducksinarow.com/?p=4597#comment-2623 Excellent points, Dana, and good fodder for future articles. I have written quite extensively on Spousal and Survivor benefits - and more examples are always helpful and always seem to garner a lot of attention and commentary. Thanks for your kind words re: my book - and I'll have to get over to your site and see your work. Thanks again - jb Excellent points, Dana, and good fodder for future articles. I have written quite extensively on Spousal and Survivor benefits – and more examples are always helpful and always seem to garner a lot of attention and commentary.

Thanks for your kind words re: my book – and I’ll have to get over to your site and see your work.

Thanks again – jb

]]> Comment on When to File For Social Security Benefits by Dana Anspach http://financialducksinarow.com/4597/when-to-file-for-social-security-benefits/#comment-2622 Dana Anspach Sat, 28 Jan 2012 02:44:53 +0000 http://financialducksinarow.com/?p=4597#comment-2622 Hi Jim, I think an important distinction to make is how you look at claiming for singles vs. marrieds. For singles the traditional breakeven analysis is a decent way of evaluating the decision. For marrieds, as you suggest above, survivor benefits, and often the ability to use spousal benefits, can have a big impact. Married couples, as you know, can often get substantially more in benefits by coordinating between them how and when they claim. P.S. I am reading your Social Security Owner's manual right now and plan to post a book review on my About.com MoneyOver55 site soon. In your book your example about cumulative taxes paid based on when you claim Social Security and how much you withdraw from your IRAs is great. I have similar <a href="http://www.sensiblemoney.com/financial-planning.php" rel="nofollow">case studies</a> in graph format on my website. Hi Jim, I think an important distinction to make is how you look at claiming for singles vs. marrieds. For singles the traditional breakeven analysis is a decent way of evaluating the decision. For marrieds, as you suggest above, survivor benefits, and often the ability to use spousal benefits, can have a big impact. Married couples, as you know, can often get substantially more in benefits by coordinating between them how and when they claim. P.S. I am reading your Social Security Owner’s manual right now and plan to post a book review on my About.com MoneyOver55 site soon. In your book your example about cumulative taxes paid based on when you claim Social Security and how much you withdraw from your IRAs is great. I have similar case studies in graph format on my website.

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