The tax legislation that became law in December 2017 reduced the mandatory federal income tax withholding on certain types of compensation, including non-qualified stock options (NQSOs), restricted stock units (RSUs) and cash bonuses, from 25% to 22%. If you’re a Nike, Inc. employee who own NQSOs – which have a vesting date approaching – the […]
C.R.A.D.L.E. your investments
Since second quarter performance results were made available last week, we’ve received a few inquiries from clients asking about investment returns. Some have been surprised at the returns since the beginning of the year. These inquiries provide an opportunity to review Springwater’s investment management philosophy. At Springwater, we have been students of investing for several […]
Mild inflation has returned
After attempting for several years to coax inflation back up to 2% in the US economy, the Federal Reserve has finally succeeded. The Commerce Department reported last Friday that consumer prices were 2.3% higher in May than they were the year before. Core inflation, which ignores food and energy prices, was up 2% year over […]
Social Security, Medicare and Inflation
Social Security benefits include automatic cost of living adjustments (“COLAs”), which are intended to ensure that payments keep pace with inflation. However, years of low inflation and rising Medicare premiums have meant that, for many seniors, the adequacy of Social Security for retirement income has declined. Over the past eight years, COLAs for Social Security […]
It’s time for another “reform” for Social Security
The trustees for Social Security and Medicare released a report on June 5, 2018 indicating that the benefits paid out by the Social Security program will exceed the program’s income for the first time since 1982. As a result, the trustees will be forced to draw down on the program’s trust fund to cover the […]
Do we really need to think about long-term care insurance?
The title of this blog probably induced an immediate reaction. If you’re like most of our clients, it was probably not positive. If you own long-term care insurance, you’re probably frustrated that the carrier has come back to you (perhaps more than once) and asked you to agree to higher premiums for the same coverage, […]
Projecting Your Health Care Costs in Retirement
A recent survey of retirees by the Employee Benefit Research Institute and Greenwald & Associates found that half of them had not attempted to calculate their health care expenses in retirement before they retired, and more than 40% said their health care costs are higher than they originally had expected. Years ago, when we built […]
With Social Security, don’t confuse spousal and survivor benefits
Claiming Social Security can be quite confusing, and determining the strategy that will maximize your lifetime benefits can be complicated. If you are or have ever been married, it may seem even more so. Retirement benefits and survivor benefits (available to widows and widowers) can be thought of as two different buckets of money. If […]
Floating Rate Bonds and Rising Interest Rates
A few weeks ago, we discussed interest rates, the 10-Year Treasury Notes and short-term bonds. We briefly mentioned floating rate bonds, a subject to which we return today. To review, in a rising interest rate environment, bonds will lose value. Why? Investors want the best yield possible. If interest rates are rising, investors interested in […]
Dear Graduate – Time is on Your Side
“Did I ever tell you the story about the magic of compounding?” That’s what you should ask your recent college graduate when you give her a Roth IRA contribution for graduation. It’s possible she won’t listen, but years from now she’ll be very grateful. The power of the Roth IRA A Roth IRA makes a […]