$4,000 per month for the rest of their life or $745,000 now in the form of a lump sum. This was the decision that Dan and Sharon had to make as they approached retirement. The truth is that Dan and…
Blog
Michigan Snowbird: Should You Make Florida Your Primary Residence?
I’m writing this is the midst of another “polar vortex”. The car read negative twelve as I made my way through the icy wonder that is Michigan in February. The conversation with my parents at their Florida home didn’t help…
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How is my Canadian RRSP Taxed in the U.S.?
I have good and bad news for those of you that live in the U.S. but have a Canadian RRSP from when you lived in Canada. The good news is that there is a really good chance your taxation here…
Taxes on Social Security in Michigan
If you earned $50,000 per year in a 35-year career, you would have paid around $110,000 in social security taxes. Also, let’s not forget that your employer would have paid the same amount of taxes on your behalf, which means…
Taxes on 401(k) and IRA Distributions in Michigan
You have saved and saved throughout your working years and now it is time to start taking some money out. You didn’t think the government was going to let you have all of that money tax-free, did you? A lot…
Analyzing The 2019 Proposal to Eliminate the Michigan Pension Tax
Wait, Democrats and Republicans can actually agree on something? Well, every Democrat and Republican running for governor of Michigan at least. The Michigan “Pension Tax”, is so unpopular with Michigan retirees, that it actually brought together people on both sides…
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MESP vs. MET: What’s the Best Michigan College Savings Plan?
According to the University of Michigan website, it costs over $30,000 per year to attend UofM. Michigan State is not much cheaper with a year costing $25,000. Even scarier, if the trend continues it will cost nearly $270,000 for my…
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Social Security Strategies When You Also Have a Canadian Pension
If you worked in both the U.S. and Canada, there is a good chance that you will have both U.S. social security and a Canadian pension. Unfortunately, this brings an added wrinkle regarding when you should turn on each benefit.…
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Taxation of Your RRSP, RRIF, CPP, and OAS in the U.S.
Many retirement accounts, different country pensions, exchange rates, and multiple tax rates. Working both in the U.S and Canada sure does make things complicated. However, if you are retiring here in the U.S., your tax situation is much more favorable…
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CPP, U.S. Social Security and WEP
Sometimes, as a financial planner, I have to deliver bad news. “We may have to look at cheaper homes.” “Sure, you can retire this year, but you may have to sell the boat.” “No, you can’t buy lotto tickets…