Year-End Tax Planning Strategies from the WSJ

On November 10, 2015, the Wall Street Journal published an insightful article by Bill Bischoff that discussed some year-end tax planning strategies that may be applicable to you. Included in the strategies are:

  1. Prepaying 2016 deductible expenses, such as your January 2016 mortgage payment, in 2015, if you expect your 2015 earnings to be greater than your 2016 earnings;
  2. Donating appreciated stock to charity without first selling it, which enables you to deduct the full value of the stock without the capital gains being included in your income;
  3. Selling stocks that have depreciated in value before donating the proceeds to charity, which enables you to claim the loss on your tax returns;
  4. Donating money from your retirement account directly to a charity, which allows those funds to bypass your income altogether, and which counts towards any required minimum distribution; and
  5. Updating your estate planning to account for any changes that have occurred and to take advantage of the current generous exemptions.

You can read the entire article by clicking here.

Whoopi Goldberg encourages the use of a prenuptial agreement

Whoopi Goldberg appeared on The Tonight Show Starring Jimmy Fallon on October 9, 2015. Although she was characteristically humorous, she gave some serious advice about the use of prenuptial agreements, as follows:

“[I]f you get the prenup there is no argument. If you don’t get divorced then it’s not a problem. If you are going to get divorced then it’s not a problem because the prenup is there…Just do it and shut-up and get happy.”

You can watch the hilarious clip by clicking here.

Cost of Long-Term Care Insurance Premiums Continue Upward Trend

The Journal of Financial Planning reported an 8.5% increase in the cost of Long-Term Care Insurance Premiums from last year. This upward trend will likely continue in light of increased patient longevity and the low interest-rate climate. Those who are contemplating Long-Term Care Insurance should consider locking in their rates sooner rather than later. A link to the full article can be found here.