While on a mid-week visit to Michigan’s Leelenau Peninsula my wife and I received a frantic call from our son. The emergency? He had signed for not one, but two certified letters from the IRS.
 
Upon cutting short our break and arriving home and opening the letters we found they were identical (why send one when you can send two) notifying us we were delinquent in a matter related to our disputed 2015 return, and owed significant penalties and interest, blah, blah, blah.
 
I really didn’t waste much time reading them because we had reluctantly settled the matter and paid the IRS in full some eight months ago and have the cashed checks to prove it.
 
Has anyone else had a similar experience they’d care to share? And does anyone have any suggestions as to how we should proceed?

Frankly between Paypal and daughter's bank account, we've done just fine for the last 3 years. But some many things would just be easier on us, with her 100 miles away - just for her to have a credit card.
 
1) We don't want this to be under or on one of our current cards.
2) See 1 above, it will be her card, but we will "back" it if necessary.
3) Want a credit card, not a debit card.
4) Some kind of limit. $500 or $1000 or something quite low.
 
I have not even shopped yet, so I am freely admitting I am asking here first. 
 
TIA

Some of what is being proposed is seriously different than current taxation.
It would have some far reaching implications from what I see.
It does seem to put younger people into heavier tax burdens.
 
Here's what I'll start with:
 
Highlights of the bill in current form.

Individual tax rates will change
The plan establishes three tax brackets, 12, 25 and 35 percent, and also keeps a top rate of 39.6 percent for the highest-earners, collapsing the total number of brackets from seven. The brackets fall along the following lines:
 
Those making up to $24,000 will pay no income tax. For married taxpayers filing jointly, those earning up to $90,000 will be in the 12 percent bracket; those earning up to $260,000 will in the 25 percent bracket and those earning up to $1 million would fall in the 35 percent bracket. Those making above $1 million will be in the 39.6 percent bracket, which is currently the top rate for millionaires. For unmarried individuals and those filing separately, the bracket thresholds would be half of these amounts, other than the 35 percent bracket, which would be $200,000 for unmarried individuals.
 
Changes for the middle class
The proposal roughly doubles the standard deduction for middle-class families, expanding it to $24,000 for married couples, from $12,700, and setting it at $12,000 for individuals, from $6,530 today. Republicans also plan to expand the child tax credit to $1,600 from $1,000 and add a $300 credit for each parent and non-child dependent, such as older family members.
 
Some tax credits are eliminated
The bill includes a host of changes that will impact taxpayers in different ways. For instance, it repeals certain tax credits, including a 15 percent credit for individuals age 65 or older or who are retired on disability. Right now, those individuals can claim up to $7,500 for a joint return, $5,000 for a single individual, or $3,750 for a married individual filing a joint return.
 
The House bill would entirely repeal that tax credit. It would also repeal the adoption tax credit, no longer allow deductions for tax preparation and repeal credits for alimony payments. And deductions for moving expenses would no longer be allowed.

No changes to 401(k) retirement plans

After much nail-biting debate,  the House will not make any changes to the pretax treatment of 401(k) plans. “Americans will be able to continuing making both traditional, pretax contributions and ‘Roth’ contributions in the way that works best for them,” the talking points say.

 

Changing the mortgage interest deduction

One of the biggest flash points will be proposed changes to the popular mortgage interest deduction. Under the Republican plan, existing homeowners can keep the deduction, but future purchases will be capped at $500,000.

 

The National Association of Realtors came out swinging against the bill, suggesting a huge fight awaits over how real estate is treated.

 

“Eliminating or nullifying the tax incentives for homeownership puts home values and middle-class homeowners at risk, and from a cursory examination this legislation appears to do just that,” said William E. Brown, president of the National Association of Realtors. “We will have additional details upon a more thorough reading of the bill.”

 

Jerry Howard, chief executive of the National Association of Homebuilders, said he was very disappointed in the Republican tax plan and warned that it could create a recession in the housing market.

 
“It puts such severe limitations on home buyers ability to use the mortgage interest deduction that home values will fall,” Mr. Howard said in an interview. “If a home seller takes a loss, that’s money they were counting on for retirement.”

I'm a retiree, nearly 70, and would like some opinions regarding reverse mortgages.  The rules have recently changed and I'm trying to determine the suitability to augment my retirement benefits.  We have no children and our current home is appraised at $1.2 million.

For the last 30 years I have been focused for the most part on accumulating wealth and growing my portfolio.  My recent conversation with my Fidelity rep sort of shook the cobwebs from by brain. She said I have want I need to reach my goals and my portfolio with little risk will get me where I want to go. A 3% return will give me way more money than I need to travel, live off of and donate. I guess in essence I have won the game as they say. She said I shouldn't let markets take back all this hard earned wealth and that capital preservation should be something I need to consider first with growth second.

So all you financial vets out there. What are your time honored tips for capital preservation? I am not going cash, so leave that one out.  My allocation currently stands at 56/43/1   RPM of 134

I've tried to keep a balanced portfolio over the years. Made a feint at 60-40-10 a few years ago, but those pesky equities kept going up, especially finance and tech. So, now I find myself at 71-24-5, which some might find sporty for a 69-year-old. I'm beginning to think the old 'subtract your age' from X (100, 110. you pick) is bunk. Looking at specific issues that drove growth, from BRK/B, V, $GLW to the FENG Stocks, I continue to like them, while bond funds are, well, meh. What are y'all thinking on this subject.

I am seeing a lot of folks on this forum who have actually retired. Some have had a lot of retirement years under their belt. However, I have not come across a single incident of a retirees who faced actual financial hardship after retirement - at least on this forum. It is not that we have not had market problems in the recent past.
 
Is it that if you have a reasonable sense of how your finances work, you are able to adjust here and there and be comfortable?
OR / AND
Are all of us who are close to retirement just frozen scared by the so called exerts and their calculations?
 
Would like to hear your opinion on why no one in this forum seems to have faced real hardship - where they had to cut down on essential or even discretionary expenses. I plan to retire in three years and wonder if I am feeling concerned for no reason.
 
How did you guys overcome this concern?

I am not collecting yet, but interacted with them this month. I thought I woudl share the experience.
 
My wife and I had the same issue.  For 2016, we each recieved two W2's with Social Security earnings.  In each case, only one of the two was entered into the social security system record of earnings (Remember to check https://www.ssa.gov/myaccount/)

I first called them (1-800-772-1213) early in the month, before the goverment shutdown.  I was not given the chance to speak with anyone.  The recording essentailly said they were too busy and to try again later (later in the week and later in the month are better).

 
I called for myself in the morning one day earlier this week.  I was told the wait time would be about 40 minutes, but that I could leave a number and they would call back.  They did call back and the woman took some time to enter my information into their system.  In the end, I still had to write to the local office to confirm the information.

 
My wife had to call them separately and did so around lunch time the same day.  They said the wait time would be about 55 minutes (it was) and this time they did not give the option to have them call us back.  My wife provided some information to the man with whom she spoke, but we got the sense that he did not enter anything into the system.  Rather, he told her to provide similar - but not exactly the same - information to the local office as I had.

 
(In my case, the corrected information I provided will have no impact on future benefits under current law, as my 2016 earnings were not one of the 35 highest years.  In my wife's case, it probably will make a difference as she did not pay into the social security system for each of 35 years).

 
It all seems a bit inconsistent.  One would think there would be standard processes/procedures/  Just wondering how others' experiences have been?

All the gurus recommend if healthy ,and can afford it ,wait to 70 1/2 years old before taking S.S.This is based on the 8% extra each year one waits to start.With increasing federal deficit and aging population (ie less young people available to contribute and more getting benefits) it seems to me with current projections that the S.S./Medicare funds will run out sooner than expected ,that  "means" testing seems a certainty.This would argue for starting sooner rather than later before funds dry up, or they "move the goal post" and change the rules in the middle of retirement.What says this august crew?Get it while you can,or wait?

Of course it's not easy, and of course many people have lost nearly everything trying, but who knows of, or is a professional day/swing trader?
 
Really appreciate honest feedback.
 
Hope you're having a great trading day.
 
For stable minded, focused, hard working people, seems like it would be a good life verses working 10 to 12 hours a day in an office or jobs we don't like...
 
Thoughts?