Perlin Estate Planning

Review Your Tax Returns for Ideas on Improving Your Finances in South Florida

“When it comes to ideas for improving finances, your latest tax return can be a gold mine.”

You can use the details on Form 1040 to spark discussions about much more than tax planning with your estate planning attorney, says CNBC, in “Use your tax return for more than paying taxes.”

Lines 1-5 (Filing status). If you need to check a different box for your filing status, you should review your estate plan. If you get married or divorced, you'll need to update your will and the beneficiaries for life insurance and retirement plans.

Line 6c (Dependents). An increase in the number of dependents is a good reason to update your estate plan. This might mean a change to your cash flow for college savings and insurance needs.

Line 7 (Wages, salaries, tips, etc.). Take a look at your W-2s to see if you're making the most of workplace benefits. For instance, employees can benefit from boosting pre-tax retirement contributions, and those with children may be missing the opportunity to contribute to a pre-tax account for dependent care expenses.

Line 11 (Alimony). This is considered earned income, so consider using some of it to bolster retirement savings by contributing to an IRA.

Line 12 (Business income). If your business has become more profitable, look at whether a sole proprietorship is still the best business structure. There may be significant tax and liability considerations that suit your growing company.

Line 13 (Capital gains). Your capital gains and the details on your Schedule D can say a lot about how you are investing. If the numbers are too high or too low, it could mean you need to reexamine whether the investments and diversification are appropriate for your age and acceptable risk levels. You may have some missed opportunities to offset capital gains with capital losses.

Line 17 (Rental real estate). If you're buying property, think about the best way to hold ownership.

Line 28 (Self-employed SEP, SIMPLE and more). If you're a Schedule C or F worker, a zero on line 28 may be a missed opportunity to increase your retirement savings.

Line 40 (Itemized deductions). A look at these line items may help determine if you need to make any changes to maximize deductions.

Do you live in South Florida? Now is a perfect time to look at your completed 2015 Federal tax returns to determine how you can improve your finances-- now, in retirement and potentially for your estate! Call me (305-443-3104) right away for peace of mind. I can help!

• I'm an exceptionally experienced Florida Bar Board Certified Estate Planning Attorney,
• I'm a Florida Bar Board Certified Elder Law Attorney, focusing on ALL legal issues related to aging,
• have prepared over 4,000 estate plans in 30+ years in practice,
• have administered over 600 estates through Probate, and
• am a Certified Financial Planner Professional™, plus
• I am also a Florida Certified Public Accountant (CPA).

Of course, if you would like more information about General Estate Planning in South Florida, I have a very informative website you are welcome to visit for more information.

Reference: CNBC (September 28, 2016) “Use your tax return for more than paying taxes”

Don't Postpone Your South Florida Retirement because of These Mistakes

"As older Americans approach retirement, many may be realizing their financial planning isn't what it should have been."

If we don't do a bang-up job with our financial planning, it could mean postponing retirement—or abandoning the idea altogether. That's what the CPA Practice Advisor says, and gives some examples of avoidable errors in the article, "3 Retirement Errors to Avoid."

Unfortunately, many folks don't spend a lot of time even thinking about retirement because they think it's a far-off time when money will have magically accumulated. That means no money to buy the condo in Cozumel, pay for the grandkids' education, or live a life of leisure. Someone in this situation might have to find a part-time job to make ends meet—and it's not out of the question that they could outlive their money. Don't end up without the money you need for retirement. Avoid these common mistakes.

1. Not understanding taxes. We know that most of the time our money is taxable right away, like earnings from employment or interest on savings. But with individual retirement accounts, the taxes can be deferred. There's also tax-free money, like municipal bonds, life insurance proceeds, and 529 education savings plans. You should try to move as much taxable money as you can to the tax-deferred or tax-free categories.

2. Acting without specialized advice. Don't think that one person can be an expert in all areas of planning. A financial advisor may handle your investment needs, but you should also work in concert with an eldercare and estate-planning attorney, especially if you are 60 or older.

3. Not appreciating the longevity risk. Modern medicine lets us live longer. But that can create a problem of outliving your money, and it also can mean increased odds of needing nursing home or other long-term care. These can be expensive. So ask yourself if you have enough money to deal with these expenses for your entire lifetime. The sooner you tackle the longevity risk, the more prepared you'll be to live a rich life.

You still have time to get this going even if you are nearing retirement—it is never too late to make a plan.

Do you live in South Florida? Call me (305-443-3104) right away for peace of mind. I can help!

• I'm an exceptionally experienced Florida Bar Board Certified Estate Planning Attorney,
• I'm a Florida Bar Board Certified Elder Law Attorney, focusing on ALL legal issues related to aging,
• have prepared over 4,000 estate plans in 30+ years in practice,
• have administered over 600 estates through Probate, and
• am a Certified Financial Planner Professional™, plus
• I am also a Florida Certified Public Accountant (CPA).

Of course, if you would like more information about General Estate Planning in South Florida, I have a very informative website you are welcome to visit for more information.

Reference: CPA Practice Advisor (March 22, 2016) "3 Retirement Errors to Avoid"

Middle-Class African Americans are Optimistic but Face Investing Challenges in South Florida

"African Americans face a specific set of challenges when planning for retirement. Here are some suggestions for overcoming them."

Money's article, "The Hidden Retirement Crisis," says that middle-class African Americans are more optimistic about the state of the U.S. economy and are more likely to be invested in the stock market than ever before. However, when it comes to investing for retirement, they still lag white Americans. According to a recent survey, 67% of African Americans are invested in stocks or mutual funds, compared with 86% of whites. Part of the reason for this is that African Americans have different attitudes and challenges around saving for retirement. Here are some of those financial hurdles and some advice on how to overcome them.

A persistent wealth gap. The most recent federal data shows that the difference in net worth between the typical black family and the typical white family at $131,000. Black neighborhoods weren't subject to federally backed mortgages until the late 1960s, so those property values were lower. The wage disparity is still present, with black men making 75 cents on the dollar. To close this wealth gap, the knowledge gap must be closed by discussing investing in the stock market, buying appreciating assets, using homeownership as a wealth creator, and starting businesses that create a legacy for families.

401(k)s. While African Americans have as much access to qualified employer-sponsored plans as whites, not everyone of either race does themselves the favor of taking advantage of the benefit: 74% of blacks currently contribute vs. 85% of whites. Many of those who do contribute do so below the employer match. They claim that their income isn't high enough. However, not getting the employer match is like leaving free money on the table. If your company offers a 401(k) plan, contribute at least up to the matching company funds. 

Overspending. All of us need to try to get a good handle on our debt, live well within our means, and make sacrifices. Spend less and save more!

The first step to a secure retirement is to set a savings goal. People who commit to a financial plan save more than twice as much as those without one. Saving for retirement means putting the proper tools to work as soon as you can.

Do you live in South Florida? Call me (305-443-3104) right away for peace of mind. I can help!

• I'm an exceptionally experienced Florida Bar Board Certified Estate Planning Attorney,
• I'm a Florida Bar Board Certified Elder Law Attorney, focusing on ALL legal issues related to aging,
• have prepared over 4,000 estate plans in 30+ years in practice,
• have administered over 600 estates through Probate, and
• am a Certified Financial Planner Professional™, plus
• I am also a Florida Certified Public Accountant (CPA).

Of course, if you would like more information about General Estate Planning in South Florida, I have a very informative website you are welcome to visit for more information.

Reference: Money (March 16, 2016) "The Hidden Retirement Crisis"

5 Decisions of What NOT to do with Your Financial Future in Miami, Florida

"Some we get right. Some we are left wondering the possibilities of what could and should have been."

Last week we looked at Forbes' recent article, "10 Financial Choices You'll Regret in 10 Years," which lists some financial decisions that you'd kick yourself for in 10 years.

Here are the next five decisions:

6. Trying to be a DIY investor when you haven't a clue what you're doing. Would you try an open heart surgery after watching a few YouTube videos? Of course not. So why would you consider investing by yourself without the help of a professional?

7. Viewing important insurance policies as being lame. If you passed away today, what kind of shape would you leave your family in? You may need life insurance or disability insurance—and perhaps long-term care insurance if you're over 55 years old. Don't avoid a review of insurance policies that will protect you from financial ruin.

8. Treating your retirement like a distant second cousin. Saving for retirement is crucial. If you're depending only on Social Security for income, think again and think much harder! You won't be able to maintain the lifestyle you want in retirement with Social Security alone unless you're the most frugal person in the country. Perhaps not the most desirable title to have when trying to enjoy your golden years.

9. Neglecting important money conversations with your spouse. Want to blow it big time? Go ahead and try to handle all of your financial goals without the input of your spouse. These money decisions should be discussed and agreed upon. It will be worth it, now and in the future.

10. Being blind to your recurring expenses. These expenses can put a hole in your wallet. Examine your recurring expenses and decide which ones you absolutely have to have and which are discretionary. For example, if you have a high cable bill, ask about a discount. There are many ways to save on recurring expenses.

Do you live in South Florida? Call me (305-443-3104) right away for peace of mind. I can help!

• I'm an exceptionally experienced Florida Bar Board Certified Estate Planning Attorney,
• I'm a Florida Bar Board Certified Elder Law Attorney, focusing on ALL legal issues related to aging,
• have prepared over 4,000 estate plans in 30+ years in practice,
• have administered over 600 estates through Probate, and
• am a Certified Financial Planner Professional™, plus
• I am also a Florida Certified Public Accountant (CPA).

Of course, if you would like more information about General Estate Planning in South Florida, I have a very informative website you are welcome to visit for more information.

Reference: Forbes (February 15, 2016) "10 Financial Choices You'll Regret in 10 Years"

Don't Kick Yourself Over Financial Mistakes You Make in Miami or Coral Gables!

"All I had to do was turn in the form to my HR department."

Turning in financial forms is a pretty easy thing to do, but it easily can be shoved aside when other, seemingly important things are thrown at us. If this is a 401k enrollment form, and we decide to "take care of it later," some of us will wonder what could have been had we just enrolled when it first became available.

We've all faced similar decisions, and some we get right—but others leave us wondering the possibilities of what could and should have been. Forbes' article, "10 Financial Choices You'll Regret in 10 Years," discusses some financial decisions that you'll kick yourself for in 10 years. Let's take a look at five of these now:

1. Starting your budget way too late. Most people think that budgeting means not being able to spend money on the things they really want, but it's really a freeing exercise. You can recognize the areas of your life where you're wasting money on things that aren't important to you. Look at where you can use some money for something that is more desirable. As a result, instead of an expense that you could care less about, you will put your money to better use. If you've been putting off beginning to budget, start today and discover its amazing benefits.

2. Not paying off credit cards each month. Some of us grab credit cards left and right and keep telling ourselves that we can make the payments later. "Later" can become never, and credit card debt can start to pile on to the point of suffocation. Try to pay off your credit cards quickly to keep more money in your wallet instead of giving it over to some large credit card company. If you aren't able to control your credit card spending, stay away from credit cards altogether. You'll be better off.

3. Purchasing a financial product without investigating. It's not that hard to do a quick search online, so don't put your money into investment products you don't understand. Do your homework, get a second opinion, and make sure you understand how the investment works and what the real costs are.

4. Putting the emergency fund on the back burner. Things will happen—that's why we have emergency funds. A good rule of thumb is to have at least six months' worth of living expenses in your fund. Your emergency fund money should be stashed where you can retrieve it quickly without much risk to your capital, such as an online savings account.

5. Buying a new car that you can't afford. Vehicles are important for many of us, but they are a discretionary purchase. It's transportation, remember, and a big car payment can wreak havoc with your retirement goals. Do you know the differences between a car that's three to five years old and a brand new car? Not many, in most cases. So why spend the extra money?

Work on these items, and you'll be less likely to kick yourself in the future.

Do you live in South Florida? Call me (305-443-3104) right away for peace of mind. I can help!

• I'm an exceptionally experienced Florida Bar Board Certified Estate Planning Attorney,
• I'm a Florida Bar Board Certified Elder Law Attorney, focusing on ALL legal issues related to aging,
• have prepared over 4,000 estate plans in 30+ years in practice,
• have administered over 600 estates through Probate, and
• am a Certified Financial Planner Professional™, plus
• I am also a Florida Certified Public Accountant (CPA).

Of course, if you would like more information about General Estate Planning in South Florida, I have a very informative website you are welcome to visit for more information.

Reference: Forbes (February 15, 2016) "10 Financial Choices You'll Regret in 10 Years"

Make Math Work for You as a South Florida, Miami Young Professional, Employee & Saver

"It's amazing how the power of math can boost wealth."

The way to make investment math work for you in most instances is to save more and spend less. Duh!

But a recent Forbes article, "The Most Potent 401(k) Booster," says that if you have the self-discipline and the ability to plan, you can shrink your debts and add to your emergency, college, or retirement funds.

Saving is essential. A recent Wells Fargo survey says that 71% of those over 40 who are consistent savers believe they will have enough for retirement. The more you save, the more confident you will become in your ability to live the life you want.

Start saving when you hit the workforce. But if you're in your 50s, you can start to save more aggressively. Contribute the maximum amount allowed to the 401(k) plan—$18,000 in pre-tax dollars in 2015 and make catch-up contributions to help make up some ground. You can also save an additional $6,000 if you're over 50 as a "catch-up" contribution and deduct these amounts from your federal income tax (unless they are made to a Roth IRA or Roth 401(k), which tax contributions but not withdrawals).

If you aren't saving on your own or through a 401(k), set up an automatic savings plan that contributes money to your 401(k) or IRA. Most employers have this. Then look at your savings rate—this number makes a big difference in how much you can save.

By increasing your contribution, you can boost your nest egg dramatically. For example, let's say you're 30 and you make $50,000 a year. If you receive an annual raise of 2%, and your employer matches half of your 3% contribution, after 35 years, you'd have just over $400,000 at 6% annual rate of return. That's with a starting balance of only $10,000.

But what if you double your contribution rate to 6% and all other factors remain the same? You'll have more than $730,000 with a modest rate of return and low starting balance.

This works only if you save more and take your employer's match. Why not? It's free money. If you set it up on an automatic plan, you'll save even more because when you get a raise, your contribution amount will also increase.

The math works all the time!

Do you live in South Florida? I can help! Call me (305-443-3104) right away for peace of mind.

• I'm an exceptionally experienced Florida Bar Board Certified Estate Planning Attorney,
• I'm a Florida Bar Board Certified Elder Law Attorney, focusing on ALL legal issues related to aging,
• have prepared over 4,000 estate plans in 30+ years in practice,
• have administered over 600 estates through Probate, and
• am a Certified Financial Planner Professional™, plus
• I am also a Florida Certified Public Accountant (CPA).

Of course, if you would like more information about General Estate Planning in South Florida, I have a very informative website you are welcome to visit for more information.

Reference: Forbes (December 7, 2015) "The Most Potent 401(k) Booster"

Six Savvy Saving Things to Do Before the New Year in Miami, Coral Gables, FL

"If you don't have a 401(k), there is no better time to start one than today!"

We all make resolutions for the New Year. But before the New Year, there are some things we need to do before the old year is through.

US News reminds us in "6 Financial Tasks You Need to Complete Before the End of the Year" that there are several opportunities for smart financial moves and some last chances to take advantage of financial benefits. The article lists six things to consider crossing off your 2015 list in the next few weeks:

Make a Charitable Donation. Your donation to a charity is tax deductible. Why not do this and take the deduction on your 2015 tax filings? Charitable donations are nice for homeowners who itemize because they get the full benefit of the deduction.

Make a Retirement Contribution. Max out your annual contributions to retirement accounts to make certain that their tax benefits help you in 2015—and so those contributions count against your 2015 contribution cap.

Draw Down any Remaining Cash in Your FSA. If you have a flexible spending account, you may want to spend that money before December 31 or lose it.

Make 529 Plan Contributions for Your Kids. Don't forget about your grandchildren or yourself. This strategy is a great way to save for college expenses, and it's a great gift too, with tax-free growth for college savings. The article points out that 529 plan contributions are not federally tax deductible but that many states offer state tax deductions or tax credits on that state's 529 plan.

Give Financial Gifts to Family Members. The federal government allows each person to make cash gifts up to $14,000 to another person without tax liability.

Look at Your Investments. Have you lost money on some investments to balance out financial gains? Did you sell anything this year that earned capital gains? If so, and you also own investments that will be sold at a loss, you may want to go ahead and take that loss now by selling those items.

Take advantage of these opportunities for your own financial benefit before you ring in 2016.

Do you live in South Florida? I can help! Call me (305-443-3104) right away for peace of mind.

• I'm an exceptionally experienced Florida Bar Board Certified Estate Planning Attorney,
• I'm a Florida Bar Board Certified Elder Law Attorney, focusing on ALL legal issues related to aging,
• have prepared over 4,000 estate plans in 30+ years in practice,
• have administered over 600 estates through Probate, and
• am a Certified Financial Planner Professional™, plus
• I am also a Florida Certified Public Accountant (CPA).

Of course, if you would like more information about General Estate Planning in South Florida, I have a very informative website you are welcome to visit for more information.

Reference: US News (December 1, 2015) "6 Financial Tasks You Need to Complete Before the End of the Year"

Get the South Florida Retirement Planning Rocking in the New Year!

"Grow your nest egg faster!"

Contributing to a retirement account qualifies you for tax breaks and employer contributions, both of which will grow your retirement much more quickly.

US News explains how to take full advantage of the 401(k) and individual retirement account perks you're eligible for in 2016 in "How to Maximize Your Retirement Accounts in 2016."

Max out your 401(k). You can contribute up to $18,000 to your 401(k) plan in 2016, which means saving $1,500 per month. Income tax isn't due on this money until it is withdrawn from the account.

Make catch-up contributions. Workers age 50 and older can contribute an additional $6,000 to a 401(k) plan in 2016, for a total contribution of $24,000. Hitting this 401(k) limit means you need to save $2,000 per month. If you do that, you'll reduce your tax bill by $6,000 if you are in the 25% tax bracket, and $8,400 if you pay a 35% federal income tax rate.

The employer match. If your company provides a 401(k) match up to 6% of pay, set up withholding for that amount. If you get a raise next year, increase your savings rate now so your take home pay is identical. Place the extra money in your company retirement plan. You won't even notice the difference!

Take advantage of IRAs. In addition to saving in a 401(k), you can defer income tax on another $5,500 that you contribute to an IRA next year. Remember that if you're 50 or older, you can contribute an extra $1,000 for a total of $6,500.

Consider a Roth. Roth IRAs have the same contribution limits as traditional IRAs, but they are treated differently for taxes, as there's no tax deduction for Roth IRA contributions. Investment earnings in the account aren't taxed, and withdrawals after age 59 1/2 are tax-free.

Claim the Saver's Credit. If you save in a retirement account and your adjusted gross income is less than $30,750 for individuals, $46,125 for heads of household, or $61,500 for married couples, you may be able to claim the saver's credit. Contributions of up to $2,000 ($4,000 for couples) could earn you a tax credit worth between 10% and 50% of your retirement account deposit.

Do you live in South Florida? I can help! Call me (305-443-3104) right away for peace of mind.

• I'm an exceptionally experienced Florida Bar Board Certified Estate Planning Attorney,
• I'm a Florida Bar Board Certified Elder Law Attorney, focusing on ALL legal issues related to aging,
• have prepared over 4,000 estate plans in 30+ years in practice,
• have administered over 600 estates through Probate, and
• am a Certified Financial Planner Professional™, plus
• I am also a Florida Certified Public Accountant (CPA).

Of course, if you would like more information about General Estate Planning in South Florida, I have a very informative website you are welcome to visit for more information.

Reference: US News (November 23, 2015) "How to Maximize Your Retirement Accounts in 2016"