Dear Liz: I work for a local government and my job offers a pension as well as a 457 deferred compensation plan. If I delay starting my pension, will it have the same 8% growth that Social Security offers? Is my 457(b) plan much better than 401(k)? Answer: Government pensions and Social Security both offer guaranteed income […]
Recent Blog Posts
Q&A: How disability income affects survivor benefits
Dear Liz: My wife and I are essentially the same age (62), high school sweethearts married 44 years. She had a severe stroke at 57 and I became her full-time caregiver. She began receiving Social Security disability benefits about nine months later, at 58. I began taking my Social Security retirement benefits this year. I had […]
Q&A: Was it a mistake to incur a large tax bill?
Dear Liz: We are a retired couple in our late 70s. I worked as a carpenter and my wife worked as a nurse. We saved and invested for the long haul with a well-known discount brokerage. Last summer, we were wooed by another financial services firm with a “much better idea.” Our combined portfolio at the […]
Q&A: Is there a way to avoid taxes on RMDs?
Dear Liz: I have read advice on how to minimize taxes for people who potentially could have higher incomes and taxes after age 70 when they have pensions, Social Security payments and retirement account RMDs. The most common strategy seems to be doing Roth conversions during the later stages of employment, particularly if one spouse retires […]
Q&A: How do I get tax forms from my online bank?
Dear Liz: I have a savings account and a revocable trust money market account with an online bank. They provide the 1099-INT tax form for the savings account as a downloadable file. However, they do not provide a downloadable form for the trust account money market. They insist that it can only be mailed after Jan. […]
Q&A: Broker made mistake calculating RMDS
Dear Liz: While preparing our 2025 taxes, I noticed that our brokerage doubled the required minimum distributions for my husband and me for 2025. I called, and they said they were “running two systems” and sent a notice to investors to look for any problems. I do not recall ever receiving such a notice. Also, I […]