from FREEDMAN FINANCIAL | September 16, 2016

Taxes in Retirement

Uncle Sam still visits even after you stop working!

"Once I stop working, I'll no longer need to pay taxes to the IRS." That's what a listener to Marc's radio show, Dollars & Sense wrote in an email to the office. "For a moment I laughed," said Marc, "then I realized it's just another example of how poorly (as a country) we've educated Americans on financial literacy and basic personal economic issues."

If your only source of income is a Social Security check, then yes, it's possible you won't be subject to paying Federal taxes. However if you have income sources in retirement such as a pension, 401(k), IRA, dividend/interest income, and annuity and more, you will likely need to pay some federal taxes when you retire.

Managing your tax burden in retirement is an important piece of any sound financial plan. It is important that you understand how to best draw from your accounts and that's something we help our clients with every day.

Retirement Income & Taxes

Note: Marc is happy to visit your school, place of business, or place of worship to offer a free class on personal financial education. Each class is crafted specifically for the audience. Want more information? Send us an email

The Cost of Skipping Classes

There are plenty of excuses to not go to class, but just how much money is being wasted by students is staggering.

So your kids have been in college for a few weeks. Have they skipped a class yet? Did the class start too early? Did they have too much "fun" the night before? Whatever the excuse there is a real cost to missing classes.

According to the College Board, the typical class at a public college is $30 and at a private college it's about $104. Cutting class can really add up; and lead you to wonder whether your child is making the most of their tuition.

A recent survey suggested that average college student will skip 240 classes over their four years of school. This comes out to missing roughly 2 or 3 classes a week. For some, that might be hard to imagine, others maybe not so much!

Marc's Note: "Hey Ilana (University of Rhode Island) and Mindy (Babson College) get to class!"

Wasting Money by Skipping Classes

IN CASE YOU MISSED IT

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Won't I Be Covered by Medi-Something?

Do you understand how Medicare & Medicaid work when you need long term care?

Nursing home care is expensive and we hope that we'll never have to spend our hard earned money on such an expense. But preparing for the cost of long term care is something we all need to consider.

Medicare does not pay indefinitely for nursing home care. Instead it covers up to 100 days of care in a "skilled nursing facilities." However, there are a number of requirements that must be met before the nursing home stay is covered.

Medicaid is a form of welfare. To be qualify for Medicaid benefits you need to be "impoverished" under the program's guidelines (they vary state to state.) Your income and assets cannot exceed certain limits, which a generally VERY low. Some folks have been known to shift assets to others with the hopes of appearing that they have less money. That's not a smart move. If you think you're eligible for Medicaid benefits contact a qualified Elder Care attorney for the most appropriate action.

What You Need to Know

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Investment advice offered through Freedman Financial, an SEC registered investment advisor.