Bank Failures Shine Light on Interest Rate Risks Financial markets reacted turbulently to the collapse of Silicon Valley Bank (SVB) on March 10, 2023, followed two days later by the failure of Signature Bank of New York. With $209 billion in assets and $175 billion in deposits, SVB was the nation’s 16th largest bank and…
3 Simple Steps to Building Wealth By THE INVESTOPEDIA TEAM Building wealth is a topic that can spark heated debate, promote quirky get-rich-quick schemes, or drive people to pursue transactions that they might otherwise never consider. But is “three simple steps to building wealth” a misleading concept? The simple answer is no. Basically, to accumulate…
Daniel Mangena Nov. 4, 2022 “You can’t take it with you” — how often have you heard that? It’s an oft-abused phrase employed, usually within the context of a person amassing wealth or assets beyond their needs. What it speaks to is intent, and that’s what building multi-generational wealth is all about:…
The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (the 2010 Tax Act) included new gift, estate, and generation-skipping transfer (GST) tax provisions. The 2010 Tax Act provided that in 2011 and 2012, the gift and estate tax basic exclusion amount was $5 million (indexed for inflation in 2012), the GST tax…
Here are some key numbers associated with estate planning, as well as the federal gift tax and estate tax rate schedules for 2022 and 2023. 2022 2023 Annual gift tax exclusion: $16,000 $17,000 Gift tax and estate tax applicable exclusion amount: $12,060,000 1 + DSUEA 2 $12,920,000 1 + DSUEA 2 Noncitizen spouse annual gift tax exclusion: $164,000 $175,000 Generation-skipping…
Alternative minimum tax (AMT) 2022 2023 Maximum AMT exemption amount $118,100 (MFJ), $75,900 (Single/HOH), $59,050 (MFS) $126,500 (MFJ), $81,300 (Single/HOH), $63,250 (MFS) Exemption phaseout threshold $1,079,800 (MFJ), $539,900 (Single/HOH/MFS) $1,156,300 (MFJ), $578,150 (Single/HOH/MFS) 26% rate applies to AMT income (AMTI) at or below this amount (28% rate applies to AMTI above this amount) 206,100 (MFJ/Single/HOH),…
By Ashlea Ebeling Oct. 27, 2022 Many Americans will see their tax burden drop next year because of inflation adjustments made by the Internal Revenue Service. Some will benefit more than others. The inflation adjustments affect tax deductions for workplace benefits such as 401(k) retirement accounts and commuter accounts./PHOTO: GETTY IMAGES The IRS makes annual…
Catherine Brock, Contributor Aug. 15, 2022 Do you need a financial advisor? The answer depends on different factors — the complexity of your finances, how comfortable you are managing investments, where you are in your wealth journey, and where you’d like to be. The advisor’s mission is to close the gap between where you are…
Should I choose a single life annuity for my pension or a joint and survivor annuity that makes payments to my spouse when I die?
By ANDREW SCHWARTZ | Reviewed by MARGARET JAMES | Fact checked by SUZANNE KVILHAUGDec. 30, 2022 It is important for everyone to reset their personal finances and their goals for the New Year. Did you make any resolutions concerning your personal finances last January? If so, how did you do? Did you attain your goals or…