One of the most important benefits of the Social Security program is the spousal benefit. This payment is made at retirement to the spouse of the individual who paid into the Social Security system over time. The spousal benefit payment was originally intended to provide some income in retirement for the non-working spouse in a […]
Can I contribute to an HSA while on Medicare?
Many people are attracted to the tax benefits of health savings accounts (HSA’s) when these accounts are linked to a high deductible health insurance plan. HSA’s offer a triple tax break – contributions are tax-deductible, assets grow tax-free, and qualified distributions are also tax-free. Once an account holder turns 65 the monies in the HSA […]
What is the Required Minimum Distribution (RMD)?
If you’ve reached a certain age, you may have recently received a letter from your bank, brokerage firm or mutual fund company, informing you that you’ll have to take an RMD before year end – and they may have even told you what the amount is. So what is an RMD? Well, let’s start by […]
Modest Increase in Social Security Cost of Living Adjustment for Next Year
According to the Social Security Administration, benefits will receive a 0.3% increase in 2017, compared to the 0% increase they received this year. The average monthly benefit will increase to $1,360 from $1,355 starting in January. There was no automatic adjustment in 2016 because of low inflation. Next year will mark the fourth consecutive year […]
Springwater’s Source – Why the Sequence of Your Returns Matters [October 2016]
![Springwater’s Source – Why the Sequence of Your Returns Matters [October 2016]](http://springwaterwealth.com/wp-content/uploads/2016/10/Sequence-of-Returns-image-540x340.png)
Experiencing market volatility early in retirement can be a very unsettling experience for a new retiree, and may raise the legitimate concern of whether early early market declines combined with portfolio withdrawals can jeopardize a retirement plan. In fact, the risk – more formally known as “sequence of returns” – is real. The chart below […]
Springwater’s Source – Low Interest Rates and Expected Portfolio Returns
This is Springwater’s Source – a topic or issue in personal finance and investing, shared visually. The Source will share one concept, once a month, in about a minute or less. An important concept derived from financial economics is that of a “risk premium”. In a nutshell, this premium is what investors can expect to […]
If you own a variable annuity, don’t give up hope.
First of all, we do not sell annuities – or indeed any financial products. We are not insurance agents nor do we represent any insurers. We work for our clients – some of whom have purchased annuity contracts they later wish they hadn’t. Here is how we may be able to help you: The Tax […]
Springwater co-founder completes specialized program in divorce analysis
The Institute for Divorce Financial AnalystsTM (IDFATM) has announced that Springwater principal and co-founder Jim Corbeau, MBA, CFP®, CDFA® has completed a specialized educational program in professional divorce analysis and is now a Certified Divorce Financial Analyst®. A CDFA® is an expert on the immediate and long-term financial implications of divorce. Certified Divorce Financial Analysts […]
Elder Financial Abuse – Prevalent and Predatory
According to a study financed by the Justice Department, as many as one in 20 older adults said they were financially mistreated in the recent past. And with 10,000 people turning 65 every day for the next decade, a growing pool of retirees are susceptible to such exploitation. To help elders in financial and other […]
The IRS has announced the 2016 retirement plan limits
The 2016 retirement plan limits have recently been announced by the IRS. These new limits are effective January 1, 2016. If you are an employee and a retirement plan participant, be sure to contact your employer as soon as possible if you wish to change your retirement plan salary deferrals for 2016. Of course, if […]