Recent stock market gyrations got you worried? Don’t lie…you KNOW you’re worried…and you SHOULD BE!!
Can you... –afford to lose 10%…20% or more of your retirement portfolio?
–devote the time it would take to recover any losses (aka postpone retirement…aka WORK LONGER????
I KNOW you can’t…NOBODY can!!
Profit From Market Upsides And Eliminate Losses From Downturns
Rather than wring your hands, continue to do nothing and/or live in constant fear…you can implement simple, safe, proven strategies that can give you access to all market upsides and eliminate any losses from market downturns.
What if you could:
==benefit for ALL stock market gains ==LOCK IN YOUR GAINS when the market drops
==KEEP ALL YOUR GAINS AND NEVER LOSE A DIME FROM ANY STOCK MARKET LOSSES
Over the last 20 years I’ve helped HUNDREDS of people and business owners and others create safe plans that allow them to GROW THEIR ASSETS, create GUARANTEED INCOME STREAMS YOU CAN’T OUTLIVE, generate TAX FREE INCOME streams at retirement (and have their business pay for it…legally) and as a result, sleep worry free when the markets gyrate.
Remember……. “Things don’t get better with neglect….”
Kevin Pritchett, Esq Law Office of Kevin Pritchett 312-505-1957 P.S. You KNOW you need growth but you’re scared to death of losses…find out how you can grow your money and eliminate the losses when the market turns…CLICK HERE
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Just south of ‘Sawmill Creek….. Hi Attorney Kevin Pritchett here
“Social Security Survivor Benefits: How Much Do I Get?”
As I’ve shared with you previously Social Security is a convoluted and complicated benefit maze. You CANnavigate it but you’ll need to know the lay of the land.
Today I’ll go over SURVIVOR BENEFITS.
Survivor Eligibility You are eligible to receive Social Security benefits as a survivor spouse if the following conditions are me:
==your spouse worked enough to collect Social Security benefits Eligibility=10 work credits. Every $1360 of wages or self employment income= 1 work credit workers can earn up to 4 work credits/year
==check your spouse’s Social Security statement to determine eligibility and work credits earned
==you must apply in person for survivor benefits and must bring proof of your spouse’s death
Survivor Benefits And Other Social Security Benefits You can be eligible for survivor benefits and also receive your own Social Security benefits.
Survivors benefits are completely different from spousal benefits.
Spousal benefits can be claimed if one spouse made significantly less than the other. They are designed to equal as much as 50% of the higher-earning spouse’s Social Security benefit, while survivors benefits can equal up to 100% of your spouse’s Social Security benefit.
If you are already receiving spousal benefits, the SSA will automatically convert you to survivors benefits once they receive the death record.
When Survivor Benefits Start Survivor benefits begin based on your work record and your age The payout rules are SO complicated and convoluted I’ll quote from a recent article that lays it all out clearly:
_________________________________
” If you are a widow(er), you can receive survivors benefits if you are 60 or older, although the amount is reduced if you take them before your full retirement age (FRA).
You can also receive them if you are 50 or older and disabled. If you are caring for a child who is under the age of 16 or who is disabled, you can receive survivors benefits at any age.
FRA is 66 for people born between 1943 and 1954. It rises a bit for birth years after that, and hits 67 for people born after 1960.
If you’re a widow(er) and take survivors benefits at your FRA, you will receive 100% of your spouse’s benefits.
If you take benefits between the age of 60 and your FRA, you will receive between 71.5% and 99% of your spouse’s benefits. (The percentage climbs for every year you get closer to your FRA.)
If you are a widow(er) and disabled and take survivors benefits between the ages of 50 and 59, you will receive 71.5% of your spouse’s benefits.
If you are a widow(er) and raising a child under the age of 16 or a disabled child, you will receive 75% of your spouse’s Social Security benefits.
If you are an ex-spouse, you are eligible for survivors benefits as long as you were married to the deceased person for at least 10 years. The percentages and relationship to FRA are the same as for a spouse.
That changes, though, if you’re a divorced ex-spouse who is raising a child of the deceased who is under 16 or disabled. You can receive survivors benefits even if the marriage was less than 10 years in duration.
Note that there is an exception to the benefits percentages if you are a widow(er) and raising multiple children under the age of 16 or disabled. Benefits are usually capped, somewhere between 150% and 180% of the deceased person’s benefit.
If total survivors benefits paid to family members would exceed that amount, the benefits are proportionately reduced.
Survivors benefits will remain at the same percentage of the deceased spouse’s benefits you are initially eligible for throughout the time that you receive them. In other words, if you are a widow(er) and your survivors benefits are 75% of your spouse’s benefit because you took them before your FRA, they remain at 75% throughout the time you receive them.
Surviving spouses are entitled to a one-time payment of $255 if they live with the deceased person at the time of death.
Finally, for all survivors benefits, note that remarriage will make you ineligible for widow(er) benefits if it occurs before the age of 60.
If you remarry at 60 or later, though, you remain eligible.
Combining Survivors Benefits and Social Security Benefits On Your Own Record
If you are entitled to both survivors benefits and Social Security benefits on your own record, you can take them at the same time or manage the amounts you’ll receive strategically.
Let’s say you are 62 and your spouse recently passed away. You’d like to retire now. You are due to receive $2,000 if you wait until FRA on your survivors benefit, and $1,500 on your own work record if you retire at FRA.
You can elect to take your survivors benefit now and wait to receive your own Social Security benefits until your FRA. Your survivors benefits will be reduced if you take them at 62, but will still provide income until you claim your own benefits.”
Motley Fool March 20, 2019
Reach Out To Me If You Have Questions. If you have comments or questions about any of this…send me an email : ironkop@gmailcom or if reading on my blog or Facebook page leave your questions or comments below.
Remember….. “Things Don’t Get Better With Neglect…..”
Kevin Pritchett, Esq Law Office of Kevin Pritchett, Inc. ironkop@gmail.com www.KevinPLaw.com 312-505-1957
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Just south of ‘Sawmill Creek….. Hi Attorney Kevin Pritchett here Business Structure Part I”Which Business Entity Structure Is Right For You?” As you can see from the chart above the answer to the “which entity structure’ should I use?” question is REALLY about…..
TAXES More specifically, saving taxes. Also
PERSONAL LIABILITY
Starting with this newsletter, I will explain each of the business structure types revealing the pros and cons of each focusing on taxes and personal liability.
Today, I’ll begin with ‘Sole Proprietor’ structure. Don’t worry…you won’t have to be a CPA or Tax Geek like me to understand…I’ll keep it super simple and common sense…fair enough? Let’s dive in.
Sole Proprietorship (SP) SP is the most basic way to conduct business. You conduct business in your own name (even though you can and should register your sole proprietor business with a dba or ‘Doing Business As’ registration with the County Clerk where you conduct business.
Pros of SP: ==organizing business activity separately ==inexpensive and simple to start==no annual meetings or other corporate formalities ==limited business tax write offs
Cons of SP: ==not able to claim totality of available business deductions ==no personal asset protection…i.e. someone can sue your SP and ALL your personal assets not just the SP assets are at risk
Take Home Message For SP A SP is how many people begin operating business because of its simplicity and low cost.
However, in my opinion (and in my over 30 years of legal practice) the cons of personal liability and limited tax deductions clearly outweigh the cons.
Next time, I’ll go over the different types of corporations and other entity options.
Reach Out To Me If You Have Questions. If you have comments or questions about any of this…send me an email :ironkop@gmailcom or if reading on my blog or Facebook page leave your questions or comments below.
Remember….. “Things Don’t Get Better With Neglect…..”
Kevin Pritchett, Esq Law Office of Kevin Pritchett, Inc. 312-505-1957 ironkop@gmail.com www.KevinPLaw.com
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Just south of ‘Sawmill Creek….. Hi Attorney Kevin Pritchett here “What Is A Roth IRA?” There are two basic types of IRA retirement accounts. ==The Regular IRA ==The Roth IRA
A Regular IRA: ==$6,000 annual deposit limit ($1,000 catch up if over age 50) ==money grows tax deferred during your working years ==at retirement you get taxed on withdrawals ==withdrawals prior to age 59 1/2 incur tax penalty
A Roth IRA: ==$6,000 annual deposit limit($1,000 catch up if over age 50) == money grows tax deferred == NO TAX on withdrawals!!! == INCOME LIMITS: If you are single, you must have a modified adjusted gross income under $135,000 to contribute to a Roth IRA for the 2018 tax year, but contributions are reduced starting at $120,000. If you are married filing jointly, your MAGI must be less than $199,000, with reductions beginning at $189,000.
True TAX FREE Income If you meet the income guidelines the Roth IRA is one of only two strategies that allow you to achieve truly TAX FREE GROWTH AND TAX FREE INCOME.
Converting A Regular IRA To A Roth IRA A question I get all the time is
“Kevin, can I convert my regular IRA into a Tax Free Roth IRA?” The answer is YES!!! There is of course a catch…..Every dollar you convert from a Regular IRA to a Roth IRA is taxed as ordinary income. Even with this conversion tax, it almost ALWAYS makes sense to convert…..the real barrier is the psychological impact of paying the tax.
In future newsletters I’ll discuss this topic of Roth Conversion in more detail.
Reach Out To Me If You Have Questions. If you have comments or questions about any of this…send me an email :ironkop@gmailcom or if reading on my blog or Facebook page leave your questions or comments below.
Remember….. “Things Don’t Get Better With Neglect…..”
Kevin Pritchett, Esq Law Office of Kevin Pritchett, Inc. 312-505-1957 ironkop@gmail.com www.KevinPLaw.com
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Just south of ‘Sawmill Creek….. Hi Attorney Kevin Pritchett here:
“What Is A Power of Attorney For Health Care?” A Power of Attorney For Heath Care is a document you sign that gives the person you designate the power to make medical decisions for you in the event you are unable to make decisions for yourself.
A Power of Attorney For Health Care is”Durable” if it stays in effect even after you become incapacitated.
“Ok..But Why Do I Need A Power of Attorney For Heath Care?” Glad you asked!!
Let’s assume you suffer a stroke or massive heart attack and you are incapacitated. You’re on life support, a machine to help you breath and your medical prognosis is uncertain.
What should your family do? ==Keep you on all life support indefinitely?
==Take you off life support? If so, when?
I Personally Had To Live This Nightmare I can tell you from personal experience(having had to make this agonizing decision for my mother, my father and my sister,its a living Hell not knowing.
With a Power of Attorney For Heath Care you literally tell your designated representative what YOU want them to do. Typically the form you complete states YOUR wishes and desires.
Eliminates The Agony of Not Knowing What To Do A properly drafted Power of Attorney For Health Care gives your designated person your EXACT wishes and eliminates the agonizing guess work a family member would otherwise have to go through trying to decide what to do.
Reach Out To Me If You Have Questions. If you have comments or questions about any of this…send me an email :ironkop@gmailcom or if reading on my blog or Facebook page leave your questions or comments below.
Remember….. “Things Don’t Get Better With Neglect…..”
Kevin Pritchett, Esq Law Office of Kevin Pritchett, Inc. ironkop@gmail.com www.KevinPLaw.com 312-505-1957
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Just south of ‘Sawmill Creek….. Hi Attorney Kevin Pritchett here Qualified Business Income Deduction The new tax bill, The Tax Cut And Jobs Act Bill contains a brand new business deduction:the Qualified Business Income Deduction.
Eligible taxpayers may be entitled to a deduction of up to 20 percent of qualified business income (QBI) from a domestic business operated as a sole proprietorship or through a partnership, S corporation, trust or estate.
There are TONS of eddys and currents ,exclusions and exceptions to this deduction and rather than list all of them here, I’ve posted a link to the IRS website on my Facebook Business Page which gives ALL the details. CLICK HERE TO GET ALL THE DETAILS
Reach Out To Me If You Have Questions. If you have comments or questions about any of this…send me an email :ironkop@gmailcom or if reading on my blog or Facebook page leave your questions or comments below.
Remember…..”Things Don’t Get Better With Neglect…..”
Kevin Pritchett, Esq Law Office of Kevin Pritchett, Inc. 312-505-1957 ironkop@gmail.com www.KevinPLaw.com
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Just south of ‘Sawmill Creek….. Hi Attorney Kevin Pritchett here “Are My Social Security Benefits Taxed?” There’s good news and bad news….
The good news: If you don’t have any other income other than your Social Security, chances are you won’t pay much tax.
The bad news: If you’re like MOST people and you’re receiving other income other than just your Social Security, your Social Security benefits WILL be taxed..and in some cases up to 85%!!
Social Security Benefit Tax Rates To determine the percentage of your Social Security benefits that are taxable , calculate your “provisional income,” which is your adjusted gross income (not counting Social Security benefits), plus any nontaxable interest and half of your Social Security benefits.
If that total is less than $25,000 if you’re single or $32,000 if married filing jointly, your Social Security benefits are not taxable.
If your provisional income is more than $34,000 on a single return or $44,000 on a joint return, 85% of your benefits may be taxable.
Social Security Taxes Are Different An entirely different issue, and one that infuriates many people, is the amount of Social Security tax you pay on your regular income.
The issue of course is
“If I pay tax on my income initially to fund my Social Security, why should I pay tax on it again?“
This is an entirely different tax and issue…more on this in a later newsletter.
Reach Out To Me If You Have Questions. If you have comments or questions about any of this…send me an email :ironkop@gmailcomor if reading on my blog or Facebook page leave your questions or comments below.
Remember….. “Things Don’t Get Better With Neglect…..”
Kevin Pritchett, Esq Law Office of Kevin Pritchett, Inc. 312-505-1957 ironkop@gmail.com www.KevinPLaw.com
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just south of ‘Sawmill Creek….. Hi Attorney Kevin Pritchett here
2019 Qualified Retirement Plan Contribution Limits A ‘Qualified’ Retirement Plan is a plan==savings program just for retirement==money placed in grows tax deferred==special tax rules apply to each type of qualified plan
2019 Qualified Plan Contribution Limits The saying ‘there’s no free lunch ‘applies equally to Qualified Retirement Plans.
While Uncle Sam allow your money to grow tax deferred, they at the same time place limits on the amount of money you can put into each type of Qualified Plan in any given year.
In 2019 here are the maximum amounts you can contribute per year per person in each type of Qualified Plan:
Traditional and Roth IRA IRA: $6,000 per person per year; $7,000 over 50 Roth IRA: $6,000 per person per year; $7,000 over 50
401k /403b/457 Plans401k/403b/457: $19,000 per person; age 50 catch up: $6,000
Employer match or profit sharing contributions aren’t included in these limits. 401k and 403b share the same limit.
The 457 plan limit is separate. You can contribute to both a 401k/403b plan and a 457 plan.
Total Employer Contributions In Defined Contribution Plans
Total Employer+ Employee Contribution: $56,000
The total employer plus employee contributions to all defined contribution plans by the same employer will increase by $1,000 from $55,000 in 2018 to $56,000 in 2019.
The age-50-or-over catch-up contribution is on top of this limit.
Income Limits Of course NOTHING from the government is easy. There are income limits associated with each type of Qualified Plan.…something about there being ‘no free lunch!’
Reach Out To Me If You Have Questions. If you have comments or questions about any of this…send me an email :ironkop@gmailcom or if reading on my blog or Facebook page leave your questions or comments below.
Remember….. “Things Don’t Get Better With Neglect…..”
Kevin Pritchett, Esq Law Office of Kevin Pritchett, Inc. 312-505-1957 ironkop@gmail.com www.KevinPLaw.com
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Just south of ‘Sawmill Creek….. Hi Attorney Kevin Pritchett here
Estate Plan Series: ‘What Is A Will And Why Should You Have One’ In previous newsletters I’ve shared that a proper Estate Plan has 5 components: 1. Last Will; 2. Power of Attorney For Healthcare; 3. Power of Attorney For Property and5. Revocable Living Trust.
Today I’ll explain EXACTLY what a Willis and isn’t.
A Will Is A Roadmap Through The Probate A ‘Last Will and Testament’ is a written declaration of how you wish your estate assets to be distributed.
To start the estate distribution process, your heirs file your will with a Probate Court. Probate Court is the official, legal and binding court process that reviews your Will and declares that it is valid and that your assets may be distributed according to the provisions of the Will.
A Will in effect, is the ‘roadmap’ a Probate Judge will use to determine how your estate will be distributed.
Heirs And Creditors Can Challenge Every possible heir gets a copy and notice of the Probate Court filing and has the opportunity to challenge any provision of the Will. Possible creditors (people you may owe money to) also get notice of the Probate filing through a required notice that gets posted in a local newspaper. Any creditor who believes you owe them money can file a petition with the Probate court. As you can see, the entire Probate process can be quite lengthy and as a result can become enormously expensive if there are numerous challenges from heirs and creditors.
Objective Is To AVOID Probate With A Trust As a result of these possible delays and expense involved the planning objective is almost always to AVOID PROBATE.
The simple and effective way to avoid Probate is to create A Revocable Living Trust and use it in conjunction with a ‘Pour Over Will. ‘
A Trust is simply a legal entity that can own and distribute assets. A Trust avoids probate because:
==A Trust is a private document that does NOT require filing. All provisions made in a trust remain absolutely private.
==Since there are no court filings there are no delays and extensive legal fees like those associated with a Probate proceeding which is in essence a trial if there are legal challenges.
A ‘Pour Over Will’ So if a Trust is the preferable way to transfer Estate assets why have a Will at all…?
The problem with not having a will is if for some reason your heirs or creditors challenge or there is some other challenge that must be resolved in court.
Without a Will, the Probate Judge will be required to apply the Law of ‘Intestate Succession’ ( the priority of persons who receive your assets ) with all the delays and expense of Probate.As a result of this law, your assets will be divided according to that arbitrary law rather than by your wishes.
So the solution is to create a special Will called a ‘Pour Over’ Will that states that your intention is that all your assets are distributed through your Revocable Living Trust and not the Will.
As a result, if for some reason your estate is brought into court, a valid Pour Over Will must be upheld and honored by a Court and your Estate will be divided according to your Trust and not through Intestate Succession or by any heirs or creditors contrary desires.
Stay tuned for upcoming installments of this Estate Plan Series where I’ll explain the components of a Trust in more detail.
Reach Out To Me If You Have Questions. If you have comments or questions about any of this…send me an email :ironkop@gmailcom or if reading on my blog or Facebook page leave your questions or comments below.
Remember….. “Things Don’t Get Better With Neglect…..”
Kevin Pritchett, Esq Law Office of Kevin Pritchett, Inc. 312-505-1957 ironkop@gmail.com www.KevinPLaw.com
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Just south of ‘Sawmill Creek….. Hi Attorney Kevin Pritchett here
Who Is Eligible For Social Security Spousal Benefits Let me break it down by category
Non Working Spouse If you are a non working spouse you can qualify for Social Security under these conditions:
==your partner must qualify for Social Security on their own working history
==your partner must already be receiving Social Security benefits your you to receive spousal benefits.
==if you are NOT caring for an eligible child under age 18, you must be age 62 to start receiving Social Security spousal benefits and you must be your full retirement age (66 or 67 depending on when you were born) to receive 100% of eligible Social Security spousal benefits.
Working Spouses If you qualify for Social Security based on your own work record, you can only take the higher of either your eligible working Social Security benefit or your eligible spousal social security benefit…you cannot take both!!
Former Spouses You can claim spousal benefits from a former spouse if: ==you are single or widowed==marriage lasted at least 10 years==you are at least 62 years old
Any benefits you obtain from a former spouse will not reduce that spouse’s Social Security benefit.
How Much Is The Spousal Benefit ? The maximum spousal benefit that current or former spouses can collect is 50% of the working spouse’s benefit at their full retirement age, or their Primary Insurance Amount. PIA.
To receive the 50% benefit, you must wait until your own full retirement age to file for spousal benefits. You can claim as early as age 62, but if you do, your benefit will be reduced by up to 35.
Income Issues As if all this weren’t confusing enough. On top of it all, you must remember that spousal Social Security benefits can be taxable and can place you in a category where you are penalized or lose benefits altogether. In upcoming articles I will discuss the entire vexing issue of the Taxation of Social Security Benefits…a topic that boils almost EVERYBODY’S blood!!
Reach Out To Me If You Have Questions. If you have comments or questions about any of this…send me an email :ironkop@gmailcomor if reading on my blog or Facebook page leave your questions or comments below.
Remember…..”Things Don’t Get Better With Neglect…..”
Kevin Pritchett, Esq Law Office of Kevin Pritchett, 312-505-1957 ironkop@gmail.com www.KevinPLaw.com
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