About once a week a client asks me about the latest prognostication from some famous so called “financial expert/alarmist.” They are either predicting the demise of the world as we know it or predicting a triple digit increase in the stock market. Maybe I am exaggerating, just a little, but we’ve all experienced those who think they can forecast the future and lead us to “Financial Paradise.” I remind my clients of two things with regard to these “miraculous forecasters.” The first is that most of the TV hosts, radio shows, magazines, and financial authors are in the business of …Read More
When a worker is receiving retirement benefits and/or members of his family are also receiving benefits based upon the retirement benefits, such as via spousal benefits, benefits for children, or other family members benefits, there is a maximum amount of benefit that can be distributed in total. (There is a separate maximum benefit computation for disability benefits, which we’ll cover in another article.)
How the Family Maximum Benefit is Computed
When computing the Family Maximum Benefit (FMB), the Social Security Administration falls back to it’s old habits of using a very convoluted formula, similar to the formula for computing the …Read More
One of the primary responsibilities of operating a retirement plan is the selection and monitoring of the investment options. Unfortunately there is great diversity in how well these processes are executed.
Plan sponsor does not understand the fiduciary responsibilities of selecting and monitoring.
- Result: If plan sponsors do not know their duties, they will most likely fail to carry them out, which would be a fiduciary breach. The fiduciary duty is very high. Donovan v. Bierwirth, 680 F.2d 263 (2nd Cir. 1982), cert denied, 459 U.S. 1069 (1982) (given that a fiduciary’s duties are the highest known to the law,
Facts About Your Appeal RightsThe IRS has put together a list of seven facts that they want you to be aware of with regard to your appeal rights (Tax Tip 2010-65):
- When the IRS makes an adjustment to your tax return, you will receive a report or