Note: Sample below may appear distorted but all corresponding word document files contain proper formattingExcerpt from Essay:
Though this means a loss of $150,000 over the five years the Social Security benefits are not taken, this will be paid for in just twelve and a half years by the increased amount of the benefits (that is, it will take 12.5 years for the additional $12,000 per year to equal $150,000). In addition, there is a tax benefit in waiting to collect Social Security benefits until no additional income is coming in, and as Harry plans to continue working part-time for the foreseeable future and this could lead to taxation of the Social Security benefits. When Social Security benefits are the only source of income they are very rarely taxed, but even with the healthcare expenses Harry plans to commit his salary towards this income could lead to what essentially amounts to a tax penalty, pushing the combined total of his salary and the Social Security benefits into a taxable realm rather than leaving the couple likely without any income tax liability. There will still be capital gains taxes on anything the couple earns from their retail investment account and of course the taxes on the traditional IRA withdrawals as mentioned above, but income taxes -- which are likely to be highly variable -- can be avoided. Harry's SEP IRA can essentially be treated as another traditional IRA for all of the above recommendations regarding spending and taxation.
This touches on another issues that the couple does not seem to have faced: the reality that Harry will not be able to continue to work in perpetuity, and that healthcare costs for the couple will continue to rise even while the income that currently covers healthcare costs disappears. This decrease in income and increase in costs means that there will be a wider deficit in the couple's budget, which will place an increasing strain on the substantial but not inordinate amount of retirement savings they have amassed. If the coupe waits to collect Social Security until both are aged 70, the combined income from these benefits and the pension payments Harry receives will equal $74,000 -- $2,000 more than current annual expenses, but quite possibly less than expenses will be when healthcare costs are added to that side of the equation (insurance premiums alone could well be close to or even over $2,000 per month, let alone per year, and this is not accounted for in the $6,000 estimate provided by the couple). Extra funds will continue to be available form the Roth IRAs and from what will likely be a sizeable amount left in the traditional IRA, but a reduction in monthly expenses to increase the longevity of current funds might be recommended.
The above plan will all but certainly ensure that Harry and Sally are able to continue much in the same lifestyle for the rest of their lives, though some adjustments will be necessary and a regular review of the situation is recommended. The primary goal of this financial review having been met, it is also worthwhile to make certain recommendations as towards the planning of the estate. If care is taken to not draw down the retirement accounts' principle too steeply, there will likely be several tens of thousands if not a hundred thousand dollars left in the couple's estate after both have passed. How this is to be disbursed is of course a matter for personal discussion, yet the couple could consider taking out additional whole life policies at a certain point as long as they built cash value relatively quickly; life insurance benefits avoid many of the taxes associated with inheritance, and can be a useful vehicle for transferring wealth to loved ones. A trust for Chad's special needs child to ensure long-term care and funding is available should also be considered.
Harry and Sally are in a solid position, though it will take care and planning to ensure that they remain on sure footing into the future. Taking a conservative approach in regard to future taxation is wise, and taking tax hits now so as to avoid what will likely be higher taxes in the future is recommended. Postponing Social Security benefits and taking other steps to manage income…[continue]
"Harry & Sally's Estate Plan" (2012, November 27) Retrieved October 23, 2016, from http://www.paperdue.com/essay/harry-amp-sally-estate-plan-76665
"Harry & Sally's Estate Plan" 27 November 2012. Web.23 October. 2016. <http://www.paperdue.com/essay/harry-amp-sally-estate-plan-76665>
"Harry & Sally's Estate Plan", 27 November 2012, Accessed.23 October. 2016, http://www.paperdue.com/essay/harry-amp-sally-estate-plan-76665
Harry Potter The hero of J.K. Rowling's Harry Potter series is a remarkably complex character for one that is crafted to relate to a young adult readership. In the first book of the series, Harry Potter and the Philosopher's Stone, which was renamed Harry Potter and the Sorcerer's Stone for American readers only. As Davis points out, the too-intelligent or sophisticated sounding word "philosopher" might have put off American readers. The
Harry Potter, The Deathly Hallows and Christianity Harry Potter and the Deathly Hallows: A review The New Testament is all about life, death, sacrifice, resurrection and battle between good and evil. These themes or conceptual constructs found in Bible are indicated in fictional literature too as they are the common traits of the heroic characters and villains found in the fictional universe. Examining Harry Potter and the Deathly Hallows Life, death, sacrifice, endless battles
Lesson Plan Amp; Reflection I didn't know what state you are in so was unable to do state/district standards! Lesson Plan Age/Grade Range; Developmental Level(s): 7-8/2nd Grade; Below grade level Anticipated Lesson Duration: 45 Minutes Lesson Foundations Pre-assessment (including cognitive and noncognitive measures): All students are reading below grade level (5-7 months) as measured by standardized assessments and teacher observation Curricular Focus, Theme, or Subject Area: Reading: Fluency, word recognition, and comprehension State/District Standards: Learning Objectives: Students will develop
Branding in Service Markets Amp Aim And Objectives Themes for AMP Characteristics Composing Branding Concept Branding Evolution S-D Logic and Service Markets Branding Challenges in Service Markets Considerations for Effective Service Branding Categories and Themes Branding Theory Evolution S-D Logic and Service Markets Branding Challenges in Service Markets Considerations for Effective Service Branding Branding Concept Characteristics Characteristics Composing Branding Concept Sampling of Studies Reviewed Evolution of Branding Theory Evolution of Marketing Service-Brand-Relationship-Value Triangle Brand Identity, Position & Image Just as marketing increasingly influences most aspects of the consumer's lives, brands
Workplace Violence Everyday in the United States millions of Americans leave their homes and enter the places of their employment. Captain Among these millions, most report to work unaware of the prevalence of workplace violence or fully understand the gamut of actions that represent such violence. It is typical of the media to only report high profile cases including a former employee or a worker losing control - the most
Neo-Confucianism is a philosophy which was born from the need to explain the existence of man and the universe in a manner which was just as complex as the Buddhist one. The philosophers which belong to this school of thought took the core of the Confucian philosophy and enriched it with contributions from other philosophies. It can also be stated that neo-Confucianism is a reaction to various provocations of philosophical
Many individuals have trouble accepting mothers as artists, as they are inclined to consider stereotypes when taking into account the traditional role of the mother. By doing so, they automatically think of people like Mann as having to focus on a series of choirs that have traditionally been associated with her position. By being an artist a mother would presumably be less able to perform a series of basic tasks