Dear Garden State Trust: How much longer will these low interest rates last? As the bonds in my portfolio mature, I’m having a really hard time replacing their income. —Frustrated Bond Investor Dear Frustrated: I’m afraid that the very low interest rates we have today will not soon change. Interest rates are being kept low…
Author: gstc
Retirement Gift Ideas
One of the recent changes in approaching retirement has been a shift from a complete exit of the labor force to a partial one. Retiring for many may mean the freedom to work only the amount of time they want, and for work to become an optional part of their lives. This may be because…
Retirement Readiness
Dear Garden State Trust: I’m old enough to retire, but I’m not sure I’m ready yet. I think I have strong financial resources, but I don’t know if they are enough to make me financially independent for the rest of my life. Retirement seems so terribly uncertain to me. When should I make the jump?…
Can No Tax Liability Suddenly Become Big Tax Liability?
When the Tax Cuts and Jobs Act of 2017 was passed, one of the benefits for wealthier families was the doubling of the federal gift and estate tax exemption. With inflation adjustments, it’s currently $11.58 million per individual, which means a married couple could transfer over $23 million without incurring a federal gift tax in…
RMD Rollovers
Dear Garden State Trust: I turned 70½ in 2019, so I had to take my first required minimum distribution in early 2020, before April 1. I did. Now I’ve heard that I didn’t have to take that RMD after all? —Drawing Down Slowly Dear Drawing: You’ve heard correctly. The waiver of RMDs was included in…
Reaction to Reality: Should I Reassess My Risks?
We all have a renewed sense of just how fragile we are, and are evaluating the steps we can take to reduce that fragility. In terms of family financial security, one could consider: More insurance (life, long-term care, or disability insurance); More savings in tax-preferred retirement accounts to protect against running out money. Portfolio changes…
Estate Settlement
Dear Garden State Trust: How long does it take to settle an estate? —Prospective Testator Dear Prospective: The short answer to your question might be, “It takes much longer to settle an estate than most beneficiaries think is reasonable.” To get to a more helpful and longer answer, we need to answer many more questions…