Dear Readers: The following comment was prompted by my response to the letter from a couple in their 70s asking if they had made a mistake moving their $2-million portfolio, including $340,000 in a taxable account, to a new advisor. The advisor recommended investment sales that resulted in a $50,000 capital gain tax bill, and their […]
Recent Blog Posts
Q&A: Are IRS quarterly payments mandatory?
Dear Liz: I live totally on my investment income. I receive the majority of my income at the end of the year, mostly dividends from my brokerage account. A couple of years ago, when talking to an IRS agent about another matter, I asked when I should make my estimated tax payment. I was told that […]
Q&A: How to find an estate planning attorney
Dear Liz: Is there a specific website to research estate planning attorneys in Southern California? Our attorney has retired and I elected not to have my file transferred to her successor attorney. Our trust documents are only six years old and there have been no material changes to our financial situation or beneficiaries. Answer: The internet is […]
Q&A: How do I find out if an advisor is a fiduciary?
Dear Liz: You often emphasize the importance of using a financial planner or advisor who is a fiduciary. But how does one know whether a given planner or advisor is a fiduciary? Is it just the planner or advisor claiming to be one? Are there any licensing laws or professional organizations that grant such a designation? […]
Q&A: How do I avoid a Medicare surcharge?
Dear Liz: I will be applying for Medicare next year. Last year I received an inheritance, and also sold a second home which increased our taxable income for the year. I once read that there is a form that needs to be completed to let Medicare know that this is only a one-time occurrence. However, my […]
Q&A: Why tell the IRS if you sell gold coins?
Dear Liz: Regarding the inherited gold coins question, why would anybody tell the IRS they inherited coins and subject themselves to a 28% capital gains tax? That seems very illogical. Answer: To clarify, the original reader was asking about selling gold coins which had risen dramatically in value since she inherited them. Coins are considered collectibles so […]