Do work for Amazon, or are you considering a career at Amazon?
Navigating the different benefit options can feel overwhelming. That’s why Merriman has created a new resource for Amazonians that has everything you need to know about what’s available to you.
You can find tips and advice on how to get the most out of Amazon’s 401(k), learn about health insurance options and guidance on how to handle the Amazon restricted stock units. We encourage you to take a look and if you have any questions or if you want to discuss in detail how Merriman can help put together a personalized plan, please feel free to reach out.
The Washington Guaranteed Education Trust (GET) is a prepaid college tuition plan that is guaranteed to keep pace with the cost of college tuition. The GET account is measured and purchased in units, where 100 units equals the cost of one year of resident, undergraduate tuition and state-mandated fees at Washington’s most expensive public university. It can be used nationwide, and those who sign up for GET can purchase current units at a premium, to lock in the guarantee. GET units today cost $113, and their current value is $104. (more…)
Many U.S. citizens live abroad for a period during their schooling, career or retirement. Foreign countries, even ones sharing borders with the United States, have different currencies than the U.S. dollar. When you exchange or otherwise convert U.S. dollars into a foreign currency, you may be able to buy more or fewer dollars in the local currency, depending on that day’s exchange rate movements. These currency fluctuations in relation to the U.S. dollar can be substantial. As a result, it’s important that you develop a plan when converting large sums of money from one currency to another to reduce your chances of losing a lot of value. (more…)
In this article, we discuss the Smiths’ and the Jones’ different lifestyle spending needs, and the annual savings necessary to maintain their lifestyle in retirement. Let’s walk through the steps these families should take each year to help them stay on track to achieve their goals.
1. Determine the cost of your annual lifestyle spending needs, and how much of that will continue into retirement.
Smiths – They currently earn $150,000 a year. After excluding retirement savings and expenses that wouldn’t continue into retirement, such as the cost of commuting to work, they determine that their annual spending is $90,000.
Joneses – They currently earn $500,000 a year. After backing out retirement savings and expenses that wouldn’t continue into retirement, this couple finds their annual spending is $250,000. This higher spending need is in part due to living in an expensive city and having a mortgage on their home and vacation property. About 10 years ago, this couple’s income was $175,000, with spending needs of $115,000.
Take-away: To determine your lifestyle spending needs, you need to exclude retirement savings and expenses that wouldn’t continue into retirement. Expenses that remain include utilities, taxes, food, entertainment, travel, etc. Many households carry a mortgage for the first 10-15 years into retirement. If you don’t think you’ll pay off your mortgage by the time you retire, make sure to include this housing cost in your spending estimate. You need to be aware of how much your lifestyle spending changes over time to make sure it’s sustainable in retirement. It’s far easier to spend more money than to cut back on your lifestyle. (more…)
Do you wish you could have done more to lower your tax bill or increase your refund for 2017? The Tax Cuts and Jobs Act of 2017 will have a major impact on many families, so it’s especially important to re-evaluate your tax strategies this year.
With all the recent changes to the U.S. tax code, it’s a good time to revisit different tax planning strategies. One strategy I’m often asked about is whether a Roth conversion is a good idea. The universal answer to that question is “maybe.” Unfortunately, there isn’t a simple rule of thumb that applies to everyone. There are many factors that need to be examined, and my goal is to tell you the most common reasons you might want to do a Roth conversion.
Before I do that, it’s important to note a particular change in our tax code with the passage of the Tax Cuts and Jobs Act (TCJA) of 2017. In the past, a recharacterization was done if you needed to “undo” the Roth conversion. You can still recharacterize any Roth conversions done in 2017, but starting in 2018 and beyond, this is no longer allowed for Roth conversions. An exception is if you make a Roth contribution, and then learn that you earned too much income during that year. A recharacterization will still be allowed in this case so that you’re not subject to the excess contribution penalty tax. (more…)