Business & Finance   

One of the most challenging financial aspects of retirement, especially for people who have been diligent savers throughout their working years, is taking required minimum distributions (RMDs) from their tax-deferred retirement savings accounts (e.g., 401(k)s/403(b)s, TSP, SEP, Traditional IRA) beginning at age 72. RMDs can have a significant impact on a retiree’s income tax liability. New RMD tables went into effect in 2022. This workshop will discuss basic facts about RMDs, the new IRS life expectancy tables, tax implications, tax withholding for RMDs, tax penalties for incorrect RMDs, ways to reduce the tax impact of RMDs, and options for using money that is withdrawn from tax-deferred retirement savings accounts.

The late New York City mayor Ed Koch was known for his trademark query "How am I doing?" as he asked people for feedback on his progress at the helm of America's largest city. Some people feel the same way about their finances and are looking for personalized assessments of their strengths and weaknesses and/or comparisons to other people in similar circumstances as themselves. This class will discuss 25 resources, techniques, and metrics to assess clients’ individual/household financial health. It covers a wide variety of personal finance topics that are linked together because they are all associated with some type of financial progress assessment or measurement of financial health. 

A "good ending" to one's life can be described as dying in peace, sharing important financial data with trusted surrogates, and leaving little or no confusion upon your death. Twelve financial planning strategies to get "affairs in order," beyond standard legal documents prepared by an attorney, will be discussed.

The twelve strategies are:
1. simplification and downsizing of both personal possessions and financial accounts
2. a net worth calculation
3. emergency contact cards
4. a financial “notebook” (an actual notebook or digital equivalents)
5. a digital assets inventory
6. a list of insurance policy and retirement account beneficiaries and personal representatives named in legal documents
7. Untitled property planning (i.e., who gets a person’s “stuff”)
8. a letter of last instruction
9. a personally authored obituary
10. a pre-planned and/or pre-paid funeral
11. lifetime gifts, testamentary gifts, and philanthropy
12. communication with surrogates and heirs. 

Most people today, especially young adults, have an active “digital life” with dozens, sometimes hundreds, of electronic records that include URLs, usernames, passwords, PINs, and other authentication protocols. What happens if their computer crashes, gets destroyed in a fire or natural disaster, or they pass away without leaving any instructions about how to access their accounts? This class will define digital assets and discuss key questions to consider about them. It will also describe different types of digital assets, review strategies to inventory and protect digital assets, and outline a five-step digital asset planning process. In addition, it will briefly describe RUFADAA, the Revised Uniform Fiduciary Access to Digital Assets Act, and digital asset planning resources.

There are many financial transitions that people face in later life. This class will discuss 15 common financial transitions. Examples of later life financial transitions include switching from saving to spending mode, creating a retirement "paycheck" to pay monthly expenses, required minimum distributions (RMDs), later life investing, increased interest in philanthropy and estate planning, changes in spending patterns and income taxes, health care and Medicare transitions, downsizing and financial simplification, and being a target for financial fraud.

Many older couples avoid talking about “the elephant in the room;” i.e., death and widowhood. In some situations, one spouse “handles the bills” and the other knows little about family finances. As couples get older, the likelihood of widowhood increases. However, many surviving spouses are unprepared for financial challenges that lie ahead. This class will discuss steps that couples can take to prepare financially for the inevitable first death and steps to take afterward. Topics to be covered include financial record-keeping, estate tax portability, communication about finances and changes in income and income taxes.

At the end of each calendar (tax) year, taxpayers lose most opportunities to reduce their taxable income and lower their tax bill. Thus, time is of the essence to take action to save money on taxes before each year ends. This class will describe over a dozen actions that people can take before December 31 including early RMD withdrawals during financial "gap years," preparing a draft tax return to estimate potential taxes, comparing current and prior year income and expenses, tax loss harvesting, qualified charitable deductions (QCDs), Roth conversions, bunching deductions, donor advised funds, safe harbor rules for tax withholding, deferring income and capital gains, and contributing to tax-deferred savings plans if still working.

This presentation will be taught by a financial educator who holds the certified financial planner® designation but does not sell consumer financial products or services. The session will discuss special financial considerations for women and a wide variety of personal finance topics including values and goals, managing cash flow, calculating net worth, credit, insurance, investing, and estate planning. The last 20-30 minutes will be devoted to answering general personal finance questions posed by participants.

Many Master the Possibilities students are in their 70s (or will be soon), so this class will come at a “teachable moment” for spending decisions, income taxes, and philanthropy. New issues and challenges arise when people reach their 70s. Examples include a higher risk of widowhood, illness, disability, and need for long-term care assistance and increased concern about outliving assets. There are also financial planning issues such as required minimum distributions (RMDs) and opportunities such as qualified charitable contributions (QCDs). Financial topics that septuagenarians need to know are the focus of this class.

Risk mitigation is an important concept for retirees to consider. The goal is to be able to weather various life events without suffering major adverse effects. Retirees face a number of risks that need to be planned for including longevity risk (i.e., an unknown life expectancy), market risk, sequence of return risk, and a variety of potential spending shocks including rising health care costs, long-term care needs, inflation, death of a spouse, "gray divorce," unexpected family responsibilities, and frailty. This class will cover these topics and more.

Every year, new trends, events, financial products, and government policies and legislation affect our personal finances. This presentation will recap 2024 through a personal finance “lens” by reporting noteworthy personal finance news items and their implication for personal financial planning. The session will also include results of important 2024 research studies about financial topics and a preview of announced changes related to income and estate taxes and Social Security for 2025.