The positives of PUSHES

Are you someone who PUSHES through life? If so, the odds are in your favor to age well. Most individuals probably wouldn’t think that pushing through life would be conducive to aging well. In fact, when we think of pushing through life, we tend to think of slogging along, day after day in the obligations of our lives. However, when it is in the context of retirement, the PUSHES are what give our lives meaning and purpose.1 Consider the following: P – Has a sense of Purpose. The idea of having a purpose in retirement is not contingent on a grandiose plan to invent, create or produce something. It is the overarching sense of having a reason to get out of bed in the morning, having the motivation to make the most of your day. This sense of purpose will certainly evolve over time as your desires and abilities change but it gives meaning to your life. U- Uses time to participate in activities, helping others, going to events. The pandemic has certainly taught everyone how important it is to Read on! →

2022 Contribution and Benefits Limits

  As we approach the end of 2021, Clearview Wealth Management provides you with the 2022 Contribution and Benefits limits.  These were announced by Social Security and the IRS. Social Security 2021 2022 Cost-of-living Adjustment (COLA) for December (payable in January). 1.3% 5.9% FICA tax rate (combined rate is 7.65% for both employees and employers) Social Security Medicare (Hospital Insurance). An additional FICA tax of 0.9% applies to high-income beneficiaries with annual incomes above $200,000 ($250,000 for married couples filing jointly). 6.20% 1.45% 6.20% 1.45% Maximum Social Security earnings for tax contributions and benefits Medicare taxable earnings. $142,800 no limit $147,000 no limit Earnings required to earn one credit (max. of four credits per year). $1,470 $1,510 Retirement Earnings Test exempt amounts: Under full retirement age (FRA) throughout year (age 66 & 4 months)   Reaches FRA in year (time before the month FRA is attained)   FRA and over $18,960 $50,520 no limit $19,560 $51,960 no limit   Gifts and Estates 2021 2022 Annual Exclusion for gifts $15,000 $16,000 Estate Exclusion Amount $11,700,000 $12,060,000     Deductions 2021 2022 Read on! →

Medal Winning Savings!

You have probably heard the advice that you should maximize contributions to your employer’s retirement savings plan. Because it lowers your current income taxation by deferring pre-tax dollars to the plan and grows tax-deferred until distributed, you are encouraged to save to your employer plan (401k, 403b, etc.). Employers may also match a percentage of what you contribute. This can be a powerful way to save, but it should not be the ONLY way you save for retirement. The following medal-winning strategies might add flexibility, potential retirement tax savings and a more secure future to your retirement savings mix. Bronze Medal Winner The bronze medal winner for savings might seem too simple to have an impact but can add versatility and flexibility when trying to increase tax efficiency in retirement. Many people step into retirement with inadequate non-IRA savings.  This forces them to distribute fully taxable income from their employer plan/IRA each time they need cash and increases their tax liability. For those individuals with a mix of IRA and non-IRA savings, more control can be gained over taxation in Read on! →

Retiring to Charlotte?

Cheryl Sherrard was quoted in a recent Financial Advisor magazine article entitled, “Retiring in Charlotte is all about location, location, location“.  The article mentions that Charlotte is ranked near the top of the 50 best metro areas for retirement, according to MagnifyMoney and Bankrate, but the specific area within Charlotte will determine whether you face sticker shock or a pleasant surprise.  

Buckets of Savings!

When saving for retirement, most people save to their employer retirement plans, knowing they are reducing current taxable income, typically receiving an employer match on their contributions, and deferring taxation until retirement.  However, if this is the only place where retirement savings takes place, you can be in for a surprise when reaching retirement.  If all your usable savings resides in a tax-deferred bucket, every dollar you take out to meet expenses will be subject to income taxation at ordinary income rates, thereby forcing you to take additional money out to pay the taxes.  It can also be a shock to find that your retirement income tax bracket isn’t much different than your income tax bracket when you were working.  Additionally, higher taxable income levels in retirement will also impact the amount of your Social Security benefit which is subject to taxation and can also result in higher Medicare premiums. So what should you do differently to give yourself more flexibility and lower overall taxation in retirement?  There is great benefit in having multiple buckets of savings in retirement, each Read on! →