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Important IRS Update: Significant Interest Penalty Increase for Tax Underpayments
The Internal Revenue Service (IRS) has recently announced a critical change that could significantly impact taxpayers who underpay their taxes. This update is particularly relevant as we approach the next tax filing season. Previously, the IRS charged a 3% interest penalty on estimated tax underpayments. However, this rate has now been increased to a substantial
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Will Inflation Hurt Stock Returns? Not Necessarily
Investors may wonder whether stock returns will suffer if inflation keeps rising. Here’s some good news: Inflation isn’t necessarily bad news for stocks. A look at equity performance in the past three decades does not show any reliable connection between periods of high (or low) inflation and US stock returns. Since 1993, one-year returns on
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Maximize Your Charitable Impact with These Four Strategies
As the year draws to a close, it’s a perfect opportunity to rethink how you give to charity. This is important for managing how much tax you pay and how much help reaches those in need. Here are four effective strategies: Need Guidance? Reach Out to Us! These strategies are just a starting point. There
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Lost Your Spouse? Be Aware of Major Financial Changes
Losing your spouse can take a devastating toll on you personally. It’s a new schedule, grieving a loss, and trying to figure out what life looks like for you now. It’s also easy to fall into a new relationship with time since grief looks different for every person. As time goes by, there’s also the risk of financial challenges if you don’t take the effort to work with your financial team. If life now looks different, you might need a new financial plan, too.
Seemingly minor things that are overlooked in the immediate aftermath could turn into big problems if ignored long enough. The average age of a widow is 59, meaning that important planning opportunities must be put into place right away since women may live many years beyond this.
Here are some major changes for widows to be aware of right after losing a spouse:
- You may be filing as a single under a higher tax rate
- If you were both retired, you’ll go from two Social Security payments to one
- Credit cards in only your spouse’s name will go away
- If your spouse was still working, you might lose access to a stable income source
- You may not have immediate access or any access to retirement accounts if the beneficiary forms weren’t completed properly.
- You might need to hire someone to help with home maintenance or financial management
- Receiving a big inheritance or new property through probate or estate administration, raising questions about how to handle it
These are just a few examples, but they are telling of the many changes that can influence the life of a widow. If you’re struggling to figure out your next step, you need to speak with an experienced financial professional to help revisit or rewrite your plans.