I’m retired. How much do I have to pay in state taxes?

Q. I turn 62 in March 2020. My pension before taxes and health insurance is $1,509 per month. I will be collecting $1,500 a month from Social Security when I turn 62. How much in state taxes am I required to pay? I think I’m eligible for the pension exclusion. I have no other income. — Retired A. Happy early birthday to you! Taxpayers who are eligible for the pension exclusion wonder if they have to pre-pay estimated taxes. To give you an answer, we’re annualizing your income and assuming you’re single. We’re also considering you as being 62 for the entire year. Want more personal finance news? Enter your email address to be the first to know: Your pension of $1,509 per month is $18,108 per

New bill could eliminate home sale taxes for some, help seniors save for retirement

When you sell a home, you may face capital gains taxes on any profit from the sale. A new bill would eliminate those taxes completely if the homeowner invests the proceeds in a Roth IRA. The Senior Housing Improvement and Retirement Accounts (IRA) Act would do away with the $7,000 Roth IRA contribution limit for those nearing retirement as long as homeowners shift their home sale profits into a Roth. Homeowners who are 55 and older and who have owned their homes for at least 20 years would qualify for this one-time transaction. Sales of second homes, vacation homes and investment properties are not eligible for the deal. Want more personal finance news? Enter your email address to be the fir

Are there investing opportunities because of new trade deals?

Q. Are there investing opportunities because of the new trade deals? Mexico and Canada, China, whatever is happening with the EU? — Investor A. Investing internationally is a great diversifier for your portfolio. We don’t suggest you make bets based on what you hear in the news. Instead, you should come up with a long-term plan with an asset allocation that will help you reach your goals. When you invest in non-U.S. companies, you have several options: You can pick individual stocks yourself, you can pick country specific mutual funds or you can use an international fund and let the manager pick the investments. The first rule of investing is to be properly diversified, said Bernie Kiely, a

I’m 74 with no kids. Could a reverse mortgage be right for me?

Q. I am a 74-year-old retired widow with no children. I own a modest home worth approximately $120,000. Can I get some basic information about reverse mortgages and if it might be beneficial for me to consider? — Senior A. Let’s go over the basics and how a reverse mortgage differs from a traditional mortgage. For a traditional mortgage, a bank lends you money to buy your home. You repay the loan by making monthly payments for 10, 20 or 30 years. At first, your monthly payments cover mostly interest. As the loan is repaid and your balance is less, your payments start to cover mostly principal, said Bernie Kiely, a certified financial planner and certified public accountant with Kiely Capital

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Phone: 973-455-1894 | 51 Dumont Place, Morristown, NJ 07960 | Get directions!

Kiely Capital Management offers financial planning and investment advice. Serving Central and Northern New Jersey, Yvonne and Bernard (Bernie) Kiely provide over 25 years of experience offering discretionary asset management, retirement planning and income tax preparation. KCM is registered with the State of New Jersey as a Registered Investment Advisor.

 

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