During our WealthScan Reviews with clients we do a “lifeboat Drill” – a vision exercise where we ask tough questions regarding the vulnerability of the client’s current plan against the potential effects of life’s unexpected events on their financial well-being.

Add this exercise to the long list of “things we hate to do, but must do before it’s too late. Some critical questions;

• Should you have Flood Insurance?
• Does your homeowner’s policy provide for full replacement value?
• Is your liability insurance and umbrella policy in line with your current net-worth?
• Are your assets, both real and personal, titled with asset protection in mind?
• Do you need and have an asset protection strategy in place?  And more.

Consider: Do you have a plan if you are sued by an injured housekeeper, an injured party because the car driven by your minor child is in your name?  Isn’t it time to get sound, unbiased advice to safeguard your hard-earned wealth?

Because we are all in this together. Rick

Securities and advisory services offered through LPL Financial, a Registered Investment Advisor, Member FINRA/SIPC. 

The LPL Financial Registered Representatives associated with this site may only discuss and/or transact securities business with residents of the following states: CA, CO, CT, FL, GA, MA, MD, ME, NC, NH, NJ, NY, OH, PA.

Taxpayers will be able to set aside an extra $500 in 401(k) plans and benefit from an additional $120,000 estate tax exemption in 2012, under cost-of-living adjustments announced by the Internal Revenue Service.

The 401(k) contribution cap will be $17,000 in 2012, up from $16,500 this year. The 401(k) limits also affect contributions to similar accounts, including the 403(b) plans for school employees and nonprofit workers and the Thrift Savings Plan for federal employees.

The estate tax exemption for 2012 will be $5.12 million, up from $5 million this year. The higher threshold is scheduled to expire at the end of 2012, and the $1 million limit under previous law is set to return. The annual exclusion for the gift tax will be $13,000, unchanged from 2011.

The IRS announcement on cost-of-living adjustments for 2012 also affects the standard deduction, the personal exemption, income thresholds for various tax benefits and the size of the tax brackets.

The personal exemption will be $3,800, up from $3,700 this year. The standard deduction for married couples will be $11,900, up from $11,600 for 2011.

Top Tax Bracket

The top income tax bracket of 35 percent will apply to taxable income exceeding $388,350 for married couples and individuals filers, up from $379,150 this year.

Inflation adjustments apply to provisions across the tax code. For example, the excise tax on some arrow shafts for archery and hunting will be 46 cents each, up from 45 cents. Also, married couples with modified adjusted gross income exceeding $155,000 will receive no benefit from the tax deduction for student loan interest, up from $150,000 in 2011.

This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.

Securities and advisory services offered through LPL Financial, a Registered Investment Advisor, Member FINRA/SIPC. 

The LPL Financial Registered Representatives associated with this site may only discuss and/or transact securities business with residents of the following states: CA, CO, CT, FL, GA, MA, MD, ME, NC, NH, NJ, NY, OH, PA.

My wife Joni and I are about to embark on that great adventure– the search for the “right” schools for our twins (!!) Leah and Will.

This will be the third time we’re going through this exhausting, painful (and wonderful) exercise.

Two observations:

1. Whether you are the parents or grandparents, making the extra effort, doing your homework, really does pay off; and
2. Somehow kids KNOW where they belong when they actually see it.

Here are some of the websites to help you*:

Please share any other sites you’ve found helpful –because we are in this together.

All the Best, Rick

• Only 13% of workers are “very confident” they will have a comfortable retirement.
• Only 27% of workers are “not at all confident about saving enough money for a comfortable retirement.
• 42% of workers determine their “retirement number” by GUESSING!?!

What these numbers prove to me is that our government, the media, the financial services industry and employers have all failed miserably in educating the public about the main challenge—achieving retirement income they cannot outlive.

For those approaching retirement, the essential first step is to start the planning process.  Check out the “lifeboat drill” on page 5 of our report- “The Secret Key:  Lessons of the Masters.”   If you feel there are gaps in your plan that worry you, seek help.