McPeake & Company LLC

03/10/2023

Returning to the makeshift helipad brought redemption.

Eileen and Declan complete last year's hike in Yosemite's Grand Canyon of the Tuolumne

03/07/2023

The misadventures of Eileen the cancer patient...

Eileen gets helicoptered off the backcountry trail after fainting...twice.

07/27/2020

But what if my kid wins a scholarship, or doesn't go to college? What happens to the money I saved in his 529?

Many ask, "What happens to my 529 money if my kid gets a scholarship or doesn't go to college at all?" The answer? You have good options. Learn more here.

07/27/2020

529 plans are great vehicles for saving for college. Learn more:

High contribution levels. Low cost, age-based investment options. Savings grow tax free and distributions tax-free when used for qualified expenses.

04/06/2020

The Coronavirus Aid, Relief & Stimulus Act waives required minimum distributions (“RMDs”) from IRAs in 2020. It’s a one-time waiver that could substantially lower taxable income for those seniors fortunate enough to not need any/all of their RMD to support their annual income needs.
Let me explain.

The money you contributed to your Traditional IRA or Rollover IRA – created when you rolled funds from a 401(k) or other retirement plan from an old employer into an IRA – had not yet been taxed. In the years since, it’s grown tax-free. The IRS is going to require that you take a certain percentage out, every year after you turn 72[1], and pay income tax on that distribution. Simply put, after all of these years of tax-free growth, the IRS wants to collect its pound of flesh (aka tax). In the year you turn 72 this distribution must total 3.91% of the value of your IRA on December 31st of the year prior. From 73 on, the percent that you are required to take rises – to 4.37% at 75, 5.35% at 80, 6.76% at 85 and so on. These distributions are called RMDs. And if you fail to take them on time the penalty is severe – the IRS demands you pay them 50% of the RMD amount you should have taken. Ouch.

Some seniors are fortunate enough to be able to live off of their Social Security and other sources of income in retirement – for example, pensions, private annuities, and taxable savings. Some others need only take a distribution from their IRAs that is smaller than their RMD. For these fortunate seniors, a one-year holiday from RMDs means that their taxable income in 2020 could be substantially lower.

This opens up lots of opportunities, tax-wise and portfolio-diversification-wise. For those who have taxable brokerage accounts with substantial long-term capital gains but in dire need of change – like dumping legacy stock, mutual fund or bond holdings in favor of a shift to a lower-cost, better-diversified mix of Exchange Traded Funds (ETFs) – the waiver of RMDs coupled with the fall of stock market values represent a unique opportunity in 2020 to reconfigure smarter portfolios for the future.

Now is a good time to reach out to a Certified Financial Planner. Take advantage of the fact that s/he is a fiduciary who must put your interests first. You may discover that your current Financial Advisor isn’t actually earning the fees you’ve been paying.

04/06/2020

http://mcpeakeandcompany.com/blog/

03/30/2020

The Pandemic is testing our nerves AND our finances. A one time, $1,200 check isn't enough. More options for relief have opened up in the $2 trillion bill recently passed. Learn more in my blog post.

You can access more money from your 401(k), IRA to keep yourself afloat financially in this 2020 Coronavirus shutdown thanks to Congress's $2 trillion relief package. Learn more here.

02/27/2020

Most don't know what to do when they inherit an IRA or other retirement account from a spouse, parent, sibling or friend. Learn about your options in my latest blog post.

What to do with an IRA or other retirement plan you've inherietd from your late spouse, parent, sibling or friend.

11/05/2019

Shifting assets from your personal accounts to your small business' can raise your eligibility for college financial aid. It's all above board! Learn more here.

http://mcpeakeandcompany.com/2019/11/05/financial-aid-strategy-for-small-business-owners/

10/23/2019

Divorced parents often ask whose income and assets a college Financial Aid office will want to see. Spoiler alert, when it's a public university, it's only one of the two. But which one? Learn more in my latest blog post on paying for college: http://mcpeakeandcompany.com/blog/

10/16/2019

Yesterday, California Governor Newsom vetoed a bill that would have allowed middle class California taxpayers to deduct up to $10,000 per year (married, only $5k if single) for contributions made to California's 529 college savings plan. California parents are struggling to pay for the high costs of our public colleges and universities ~$25k annually for Cal States and $35k for UCs. This measure would have made it easier for parents to find money to set aside for their kids college. Can't fathom his logic.

10/16/2019

Widows who are 60+ can receive survivors benefits from Social Security, without impacting their future retirement benefits. Read more here: http://mcpeakeandcompany.com/blog/