Losing a parent is emotional. It can also be overwhelming for adult children when they’re the executor of the estate. Settling an estate is a process that takes time — months not days. When a parent dies and you’re the executor, make sure you understand your duties. Here’s a checklist to help you manage the process as executor of your parents estate. What to do when a parent dies and you’re the executor The executor (also called personal representative) is responsible for settling the estate. If your parent had a trust, the individual(s) named in the trust documents as successor trustee will c ..read more

What to Do With a Sudden Cash Windfall Wondering what to do with a sudden financial windfall? The first step is to hold off on making any major purchases or decisions until you’ve had time to consider your options. Whether the windfall was expected, perhaps from the sale of a business, or unexpected, you’ll want to make a plan for the future. Deciding what to do with a cash windfall always comes down to your personal goals and financial situation. And ultimately, how to invest a windfall will depend on a number of factors, including your risk tolerance, time horizon, and spending plans. First ..read more

It goes by many different names: semi-retirement, partial or phased retirement, second career, and so on. But typically, it means the same thing: working in some capacity after retiring early. According to the 2024 State of Retirement Planning Study by Fidelity Investments, the rise of remote and hybrid work has shifted retirement preferences for working Americans under age 42. The study found that 66% of Gen Z and Millennials prefer a phased retirement and 57% of all respondents plan to work part-time in retirement. As more workers consider the growing appeal of semi-retirement, some ask — is ..read more

6 tax strategies for incentive stock options and AMT Triggering the alternative minimum tax isn’t the end of the world, but you don’t want to do it by accident. Here are six tax planning strategies to consider when exercising and selling ISOs in 2024: Exercise early in the year Exercise late in the year Exercise unvested ISOs Tax planning around AMT exemptions, phase outs, and tax deductions Ways to accelerate AMT credits Exercise ISOs when regular income is already high 1. Exercise ISOs early in the year to manage or avoid AMT To get long-term capital gains tax treatment, you need to hold I ..read more

A securities-backed line of credit is like a home equity line of credit in many ways, though with this type of loan, the collateral is your investment account, not a home. A securities-backed line of credit (SBLOC) allows investors to get cash by borrowing against their investable assets versus liquidating their portfolio. Although it may not be a good long-term strategy for most investors, it can be a compelling short-term solution while awaiting liquidity from selling your current house. Should you use a securities-backed line of credit to buy a home? In the right situation, a line of credit ..read more

Investors can wind up with a concentrated stock position in different ways. But it’s most often from an inheritance, founder, or employee with company stock. Or a long-term investor bought shares years ago, the stock did well, and the investor simply never took profits. But because stocks don’t only go up, it’s important to have proper risk mitigation and diversification strategies once a concentrated stock holding is identified. Here are five ways to manage a concentrated stock position. Why diversify? Individual stocks vs the index Historically, on average, the S&P 500 has been positive ..read more

With so many misconceptions around trusts, it’s easy to understand the confusion about the benefits of a revocable living trust. A living trust (also called a revocable trust or revocable living trust) can be beneficial to a much broader group of Americans than most people expect. During life, a living trust is essentially an extension of yourself (and a spouse if you decide on a joint trust). There are no tax benefits during life nor are there any adverse tax implications. However, at death, a living trust can provide two key benefits compared to owning assets not held in trust. What happens ..read more

It’s hard to come up with good gift ideas, especially over the holidays if you have a lot of people to shop for. Unfortunately, giving money is often viewed less favorably compared to tangible gifts. It’s time to change that. These days, many children, adults, and grandparents don’t really need more stuff. And with a little creativity, it’s possible to give a financial gift that will make a lasting impression for the recipient. If you’re looking for gift ideas for a child, adult, parent, or relative for a holiday, birthday, or special occasion, consider one of these financial or investment gif ..read more

If you think retirement planning moves stop at retirement, think again. For high earners, converting an IRA to a Roth IRA while you’re still working could be the worst time of all. Although it won’t make sense in every situation, retirement can be a unique opportunity for Roth conversions for some investors. Particularly for individuals who are holding a lot of cash or have proceeds from a windfall such as the sale of a business, a multi-year Roth conversion strategy is worth considering. Considering Roth conversions in retirement When you convert pre-tax money from an IRA to an after-tax Roth ..read more

The IRS has released the 2024 contribution limits for retirement plans and other cost-of-living adjustments. Contribution Limits for 401(k)s, IRAs and More in 2024   Income Limits for Tax-Deductible IRA Contributions   Roth IRA Contribution Eligibility   The post 2024 IRS Contribution Limits For IRAs, 401(k)s, and More appeared first on Darrow Wealth Management ..read more