LWM Insights

Understand & Create Your Wealth Plan

Know Your Budget Start simply. Begin to understand what you have. What money is coming in and what is going out. You’ll hear words like income and expenses, assets and liabilities, but it’s not that complicated. The obvious is: less should go out than comes in. Sources of what comes in can be paychecks, social… Read more »

Estate Planning Essentials

As is often said, everyone has an estate plan. It’s just a question of whether or not you created it or settled for the one provided for you under the intestacy laws of your state of residence. Most folks don’t realize this, nor are they aware that, no matter how large or small, they do,… Read more »

College Planning: The Funding Years

The annual cost of college continues to rise, leaving many families uncertain of how they will pay for it. Sallie Mae’s recent report, “How America Saves for College 2015,” showed 59% of parents expressed some apprehension about saving for college.1 The first step in addressing this issue is to understand the different savings options available… Read more »

College Planning: Understanding Loans & Grants & Taxes

Last August LWM published an Insights focused on different vehicles to save for college. A reasonable follow up is to focus on how to pay for college. College is expensive and less than .03% of college students receive enough grants and scholarships to cover all the costs.1 Assistance for covering the cost of a college… Read more »

Cybersecurity – How to Protect Yourself

As the world changes with ever advancing technology, our personal identity is increasingly vulnerable to cyber attacks. Fraudsters are getting more and more creative on ways to steal your identity through your computer.

Long-Term Care – How Will You Address It?

The discussion of Long-Term care should begin by saying it is not about medicine but rather it is about life. People are living longer today. Unfortunately, as we age, we will face more challenges in our daily living. Overview You can expect to need care if you are unable to function or live without assistance… Read more »

Capital Gains and Losses – Timing is Everything?

“The hardest thing in the world to understand is the Income Tax.” Albert Einstein Accordingly, do your best to understand tax laws and have them work FOR you whenever possible. We believe you can minimize portfolio taxes without compromising the essence of your investment strategy. Unlike most forms of income, the timing of taxation on… Read more »

Reversing a Roth IRA Conversion

There are many sound reasons for converting funds in a Traditional (tax-deferred) IRA to a Roth (taxexempt) IRA. For instance, you anticipate being in a much higher marginal tax bracket in the future or you currently have favorable tax attributes, (charitable contribution carryovers or large business losses – NOLs), that can help offset the majority… Read more »

A Story of Our Own

Our Lexington Family Every firm has important milestones throughout its life. Most milestones represent a significant firm-wide accomplishment such as growth goals, revenue goals, client satisfaction standards and other industry recognized benchmarks. For us at Lexington Wealth, is important to also celebrate the milestones of our LWM family. Who we are, ultimately defines what we… Read more »

Caring for an Aging Parent with Love and Dignity

Unplanned Journeys We both have had the privilege of and responsibility for walking beside our mothers during the last miles of their lives. Each  step demanded that we create new strategies. Along our journeys we created new, unexpected and cherished relationship  with our moms during our time as caregivers Kristine’s Story My mom Carole was… Read more »

Considering Downsizing?

You may be considering downsizing your current home for many reasons. Maybe you are an “empty nester” and it’s just too big. Perhaps you need equity from the home to support your retirement lifestyle. You might like more time to travel and attack your bucket list but the time (and stress!) required to maintain the… Read more »

A Story from our Family Office

About a year ago, I lost one of my dearest clients when he passed away suddenly as a result of health-related complications. A wonderful man with a reputation for always treating others with kindness, Edward had, over the course of many years, amassed significant wealth for his family and his favorite causes by investing both… Read more »

The Benefits of a Donor Advised Fund

What is a Donor Advised Fund? A Donor Advised Fund, DAF, is an account to which an individual can make an irrevocable, charitable contribution of assets and realize immediate tax benefits. The donation can be cash or appreciated securities. The assets in the DAF can be invested and appreciate tax-free. (Investment options depend on the… Read more »

Tax Loss Harvesting: Why & How We Do It

A relatively new client of Lexington Wealth Management called and told us her tax preparer had reviewed her account statements and warned her that her portfolio was “losing money.” She nervously asked what was happening, and we explained she hadn’t actually lost money. In fact, she had made money, but in the course of doing… Read more »

Special Edition – Insights Follow Up

After our February Insights, “Caring for an Aging Parent with Love and Dignity,” came out we got some great feedback. One of our friends suggested we share some information about Aging Life Care™ specialists and how they work with families to solve problems. She was kind enough to share the following information from aginglifecare.org so… Read more »

Social Security – The Claiming Decision

The 37-page Social Security Act was signed into law by President Franklin D. Roosevelt on August 14, 1935. Retirement benefits paid from Social Security are part of the retirement plan of almost every American worker. Studies have shown that Social Security benefits replace about 40% of the pre-retirement income for the average worker.

Getting Started with Medicare

President Johnson signed the Medicare bill into law in 1965 and the program began eleven months later on July 1, 1966. Today, Medicare provides federal health insurance to over 55 million senior and disabled Americans. In fiscal year 2014, the Federal Budget was $3.5 trillion. $505 billion, or 14%, of that budget went to Medicare… Read more »

Breaking the 4% Rule

In October 1994, William P. Bengen published an article for the Journal of Financial Planning entitled “Determining Withdrawal Rates Using Historical Data.” He wrote, “Assuming a minimum requirement of 30 years of portfolio longevity, a first-year withdrawal of 4 percent, followed by inflation-adjusted withdrawals in subsequent years, should be safe.”

2015 LWM Insights

LWM Insights from 2015: Planning Perspectives, January 2015 Can Anyone Time the Market? February 2015 Asset Allocation – The Long Term View, March 2015 Three Questions that Predict Future Quality of Life, April 2015 The Forest and the Trees, May 2015 Charitable Remainder Trusts, June 2015 Loss of a Loved One, July 2015 Summer Savings:… Read more »

Year-End Tax Planning

Year-End Tax Planning The leaves are falling and the Holidays are upon us.  As you turn your attention to family gatherings and good cheer, it is also the season to review your tax situation for the year.  A check-in with your tax advisor to prepare a year-end tax projection is a good place to start. … Read more »