R E T I R E M E N T I N S I G H T
“The thing always happens that you really believe in; and the belief in a thing makes it happen.”
– Frank Lloyd Wright
Some fats you want in your diet, others you don’t. Try to strip out the saturated fats and trans fats (hydrogenated or partially hydrogenated vegetable fats). Fats found in olive, sesame, canola, sunflower and peanut oils are good fats, as are those found in avocados, unsalted nuts and
DID YOU KNOW?
Hard cider was a preferred drink in much of colonial America, as apples were plentiful and water quality
IS YOUR STATE RETIREMENT-FRIENDLY?
Some states put less of a tax burden on retirees than others. Federal income taxes are consistent for everyone, but the amount of retirement income (and Social Security income) you retain may be affected by where you live.
Do you anticipate retiring in Pennsylvania or Mississippi? All retirement income is tax-free in those states, including pension income. Seven states don’t levy state income tax: Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming. Tennessee and New Hampshire only impose state taxes on dividend and interest income, but with related tax breaks available to people 65 and older. A majority of states let retirees shelter a portion of retirement income from state tax; Georgia leads the way, offering an exclusion of $65,000 per individual (and $130,000 per couple). In California, Minnesota, Nebraska, North Dakota, Rhode Island and Vermont, there are no exclusions on retirement income taxation.
Only 14 states impose state tax on Social Security income. Some of those 14, such as Connecticut, Missouri and Kansas, only do so when Social Security payments exceed a certain level. New Mexico permits your benefits to qualify for a tax break as part of an overall tax exclusion on retirement income. Other states, such as West Virginia and Rhode Island, tax Social Security income exactly as the IRS does.1
HOW CAN YOU CUT HEALTH-CARE COSTS IN RETIREMENT?
After age 65, a Health Savings Account (HSA) gives you a tax-free health care savings fund: you can use those assets to pay for Medicare Part B and Part D and Medicare Advantage premiums. Whether you pay for a long-term care policy or not, saving years ahead to meet potential LTC costs is wise. Shop around: you may find a cheaper and better Medigap policy than the usual Plan F, and switching to generics (or a Part D plan with lower out-of-pocket costs) may provide some relief when it comes to medicines. Visiting an urgent care facility, a radiology center or an outpatient surgery center may save you money on select procedures.2
ON THE BRIGHT SIDE
This material was prepared by MarketingPro,
Inc., and does not necessarily represent the views of the presenting party, nor
their affiliates. This information has been derived from sources believed to be
accurate. The publisher is not engaged in rendering legal, accounting or other
professional services. If assistance is needed, the reader is advised to engage
the services of a competent professional. This information should not be
construed as investment, tax or legal advice and may not be relied on for the
purpose of avoiding any Federal tax penalty.
TRIVIA ANSWER: Stumped? Contact me for the answer!
1 – tinyurl.com/pvckrad [8/6/14]
2 – kiplinger.com/article/retirement/T027-C001-S003-5-ways-to-reduce-retiree-health-costs.html [6/13/14]
3 – time.com/money/2854310/three-retirement-trends-to-be-happy-about/ [6/10/14]
4 – blog.americanhistory.si.edu/osaycanyousee/2012/12/what-was-in-colonial-cups-besides-tea-cider-water-milk-and-whiskey.html [12/6/12]