Taxes are on my mind this month as tax season is in full swing. Also you may have heard there is a Presidential election later this year. I probably follow tax policy discussions more closely than the average bear, but I suspect everyone will be hearing a lot about who does or does not pay their fair share of taxes during the campaign. What’s more, several provisions of the 2017 Tax Cut and Jobs Act, including lowered individual tax rates are set to expire on December 31st, 2025. We will also be hearing a lot about whether these cuts should be extended. Which bring me to the topic of today’s newsletter. How much Federal income tax do you *actually* pay? I believe …
Facts about IRMAA … and some editorializing.
It is that time of year when Social Security/Medicare recipients receive letters outlining their 2024 benefits. About 7% of Americans will see an ‘IRMAA’ surcharge on their Medicare premiums. Read on to learn more about IRMAA. What is IRMAA? IRMAA stands for Income-Related Monthly Adjustment Amount. It is an additional fee levied on top of the basic Medicare Part B and D premiums for those above certain annual income thresholds. How is IRMAA determined? Your IRMAA amount depends on your tax filing status and income. These charts from Medicareresources.org show the IRMAA amounts at various income levels (called tiers) for Medicare Part B and D premiums in 2024. Medicare uses your …
Five Years Later – Micro Investing with Acorns
Five years ago, I wrote about my lifelong passion (some would say obsession) for spare change. This dates back to counting the spare change and “egg money” in my grandmother’s chipped gravy boat in the 70’s. Today, this is the spare change stash in my office: But here in the 21st century, I don’t have too many cash transactions, and therefore not a lot of physical spare change. Enter the micro investing app Acorns* which invests your digital spare change. Five years ago, I signed up for Acorns and linked my checking account. The checking account is my “funding source”. Then I linked my credit card. You can link more than one card including debit …
Is Your Home A Good Investment?
The inspiration for today’s missive comes from Nick Murray’s incomparable industry newsletter. Last month, the Wall Street Journal’s Luxury Homes Section ran an interesting article: “Groucho Marx’s Onetime Long Island Home Hits the Market for $2.3 Million” The star paid $27,000 for the property in Great Neck on New York’s Long Island, in 1926. He lived there until 1931. Marx, previously a city dweller, had difficulty adjusting to the suburbs. He said, “I am becoming well versed in the four topics of conversation, which are of paramount importance in a small community, i.e., domestic help, golf, bridge, and the trappings of mice.” Sounds kind of …
The Road to ‘Average is Bumpy.
After two posts about spending, specifically spending for joy, I’m back to my regularly scheduled programming: Save, Invest, Repeat. Today, we talk about stock market ‘averages’. Stocks, also known as equities, are the growth engines of investment portfolios. The S&P 500 is a group of stocks from the 500 largest publicly traded companies in the United States. It includes companies you’ve surely heard of such as Apple, Amazon, Tesla, and Berkshire Hathaway (aka Warren Buffett). It also includes companies you’ve likely never heard of such as Cummins, Inc. a company that makes “diesel, natural gas, electric and hybrid powertrains and powertrain-related components” …
