 Time to Give Your W-4 a Once-Over
This year is half-over, so if you earn a steady paycheck (meaning one not dependent on bonuses or fluctuating earnings month-to-month), now is the time to check your withholding and to stop overpaying on your taxes. If you had a tax refund last year of more than $1,000 and have made no adjustments to your W-4, AND if you don't anticipate any major life changes, you might want to adjust the number of withholding allowances.
Use the withholding calculator from the IRS web site. You will need your most recent pay stub and last year's income tax return to complete the exercise.
In order to avoid underpayment penalties, you want to claim the number of allowances that satisfies 100% to 110% of the taxes you owed for the prior year. |
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Parents, Alzheimer's and Money
How do you ease into this difficult conversation? Every eighth American aged 65 and older has Alzheimer's disease, and 43% of Americans aged 85 and older have it, according to the Alzheimer's Association. Consider those percentages in light of the Social Security Administration's estimate that about 25% of today's 65-year-olds will live past age 90. These statistics have implications for family wealth.
So what options do you have when it comes to helping a parent out with money management?
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Do You Know the ABC's of IRA's?
This popular retirement savings vehicle comes in several varieties. The two types you recognize are:
Traditional IRA (or deductible IRA) is an individual savings plan for anyone who receives taxable compensation. IRA assets may be invested in any number of vehicles, and contributions may be tax-deductible. Earnings in a traditional IRA grow tax-deferred until withdrawal, but will be taxed when withdrawal begins - and withdrawals must begin by the time the IRA owner reaches age 70½.
Roth IRA offers you tax-free compounding, tax-free withdrawals if you are older than age 59½ and have owned your account for at least five years, and the potential to make contributions to your IRA after age 70½ without having to take required minimum distributions.
And there are also Inherited IRA's, Rollover IRA's and SEP's, among others. There are many choices available, and it is important that you understand how your choice could affect your financial situation. No one IRA is the "right" IRA for everyone, so we are available to give you advice before you proceed.
Contact Amy Brandts or Nancy Rick for assistance.
(This material was prepared by MarketingLibrary.Net Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. Marketing Library.Net Inc. is not affiliated with any broker or brokerage firm that may be providing this information to you. All information is believed to be from reliable sources; however we make no representation as to its completeness or accuracy. Please note - investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is not a solicitation or a recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.)
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Registered Representatives. Securities offered
through Cambridge Investment Research, Inc., a Broker/Dealer, Member FINRA/SIPC. Investment Advisor Representatives, Cambridge Investment Research Advisors, Inc. a Registered Investment Advisor. Cambridge and Symphony are not affiliated |
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Quote for the Month
Your time is limited, so don't waste it living someone else's life.
~ Steve Jobs
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Monthly Tip
At a 4% rate of inflation, expenses will double every 18 years. That's a pretty good argument for growth investing in retirement.
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June Economic Update
After the worst month for stocks in two years, the major U.S. indices were all still in the black YTD.
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Symphony Financial
481 Carlisle Dr, Suite 202
Herndon, VA 20170
Office: 703-865-4092 - Fax: 703-865-4096
www.symphonyfinancial.net |
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