01-23-2007 - Elizabeth your husband does not need to sell the stock if he does not wish to do so. When the estate account is settled the executor of the estate will give directions to the firm holding the stock as to who the stock will be delivered to. The stock will then be reissued in your husband's name. He can take physical delivery of the stock, or simply have it placed in an account in his name. The new cost basis will be the value of the stock as of the date of his father's death. The firm holding the stock should be able to give you this value. If you have any other questions please feel free to call me directly. J. Larry Cox   « less

01-23-2007 - Dear Mr. Harter, In the past persons were required to make a choice before beginning their minimum distributions, and you had three options. The first was based on your life expectancy, the second on a joint life expectancy of a person and their spouse, and third was a recalculation of life expectancy method. All three require a cauculation every year to determine the amount of withdrawl. To my knowledge there has never been an option to withdraw a fixed amount every year.   « less

01-23-2007 - Thanks for the Question Carol. AIG is one of the world's largest insurance companies, and offers many types of annuities through different subsidiary insurance companies. They are very strong financially, but the question you ask is a difficult one to answer. There are many different types of annuities that are available with many different benefits. There is no totally risk free annuity, but some are safer than others. I currently use an annuity that has a "Living Benefit" for most of my retired clients, which gives them some extra protection. There are downside risks to ANY investment. Even certificate of deposits carry a risk! I would encourage you to give me a call and tell me a little more about the annuity you are considering so I can tell you the positives and negatives about that one specific annuity. You can reach me at 865-251-0808. Thanks, J. Larry Cox   « less

02-13-2007 - I think the bubble has been letting the air out slowly. The value of your fund will ultimately depend on the savy of the fund manager and where he/she has invested the money. It is my opinion that you should never have more than 10% of your investible assets in a REIT or Real Estate Fund or any sector, and if this is the case you may want to ride this horse a little longer because it is probably paying a nice dividend. But, realize the returns you have received are mainly from principal appreciation and future gains will mostly be from the dividend. You should determine now at what price you will sell out. That will protect the gains you have made.   « less

02-13-2007 - Yes. You can write off a loss dollar for dollar against a gain. Once your loss has exceeded your gain then you will be limited as to how much you can continue to write off depending n the way you file your income taxes. Please consult your CPA to determine that amount.   « less

02-13-2007 - Anyone over the age of 59 1/2 can take all of the money out of an IRA without incurring a penalty form the IRS. However, since the money went into the IRA pre-tax, then all of the amount withdrawn will be subject to ordinary income tax. For further clarification please consult your CPA.   « less

02-22-2007 - This is really a question for your CPA. You are talking about a gift when the quit claim deed was filed. I am not sure how the IRS would treat gifting property to a relative and showing the value less than the purchase price. Please consult a Certified Public Accountant for the answer.   « less

02-22-2007 - Dear Bob, I give you credit for thinking ahead about the problems your wife could encounter. But, simplifying your investments using an index fund will not solve the problem. In the last year I have seen two cases where widows are faced with handling investments that were left to them. In one case the lady has not touched, or changed, the invetsments since her husband died five years ago. The other widow was so confused and discouraged she was about to sell everything and put the money into a certificate of deposit eventhough it would have resulted in a substantial penalty for selling one of the investments. This is a normal response for somone who does not feel comfortable with this responsibility. If you want to improve your investments, prevent losses, and make it easier for your wife I would suggest adopting a good asset allocation plan for your investments, insuring your investments, and establishing a relaitonship with a financial advisor that your wife is comfortable with. In the event of your passing she will have someone she can turn to to help her through the transition and guide her in the years following. If I can be of further service, please give me a call at 251-0808. Larry Cox   « less

02-26-2007 - Jim, I think what you heard is that in 2010 the IRS will allow individuals to convert their IRA into a ROTH IRA regardles of your income. Currently individuals cannot comvert to a ROTH IRA if their annual income is greater than $100,000. When you convert to a ROTH there is not an IRS penalty to do so, however, the money is subject to income tax in the year of the conversion. In 2010 the IRS is waiving the maximum income rule, and they will allow you to spread the taxes over 2011 and 2012. Also, we have developed a strategy for high net worth individuals where we can greatly reduce, and in some cases eliminate, the taxes on the conversion. This may be what you are referring to. If you are interested in learning more about this strategy please give me a call. Larry Cox 251-0808   « less

03-01-2007 - I would love to be able to help you, unfortunately this is not an area of my expertise. I have heard from many clients the same difficulty you are facing, and I wish I could give you some guidance.   « less