Annuity Income Taxation

As more baby boomers consider fixed annuities to protect retirement income, the issue of taxation of annuity income becomes an important factor. Because immediate annuity strategies are something we will be studying for our retirement, I thought now would be a good time to look at the tax issues. Read more

Taxes and Your Retirement Planning Agenda

Most pre-retirees assume that their tax burdens will decrease in retirement.  Baby boomers no doubt have the same concept.  Not so fast.

First, a review of where federal income taxes are coming from, pre-Obama.  This interesting data is from a 2008 staff report from the Congressional Joint Committee on Taxation: Read more

New Rules for Capital Gains Taxation of Second Homes

The IRS has targeted vacation homes, second homes, and even rental homes with new rules that govern taxation of capital gains. These new rules go into effect January 1, 2009.  Because ownership (or desire of ownership) of vacation homes is most common among baby boomers, it is an important issue to consider. Read more

Striving for a Mortgage-Free Life

If you read much in the area of personal finance you will frequently come across heated debates about the merits of living in a paid-for house as compared to having a mortgage.  Some folks will argue that mortgage money is cheap and that taking into account the tax benefits, it makes more sense to keep the mortgage and use the extra cash to invest.  I get that.  Other folks point to the emotional benefits of being debt-free and actually owning your home free and clear of any mortgage obligations.  I get that too. Read more