Understanding the importance of life insurance is one thing. Understanding the tax rules is quite another. As insurance products have evolved and become more sophisticated, the line separating insurance vehicles from investment vehicles has grown blurry. To differentiate between the two, a mix of complex rules and exceptions now governs the taxation of insurance products. If you have neither the time nor the inclination to decipher the IRS regulations, here are some life insurance tax tips and background information to help you make sense of it all. Life insurance contracts must meet IRS requirements For federal income tax purposes, an ...

Financial markets lived up to their reputation during the month of August, which has a record for being difficult. On the first day of August, markets had to contend with a downgrade of U.S. long-term debt by the rating agency, Fitch. They attributed the adjustment to the “expected fiscal deterioration over the next three years, a high and growing general debt burden, and the erosion of governance.” Many financial leaders characterized the downgrade as “ridiculous,” but the stock and bond markets still felt the effects. Another setback for markets came from Moody’s, an important credit agency. They issued a credit ...

Custodial accounts differ from other types of accounts in that an individual controls the account for the benefit of a minor, who is the beneficiary. It’s important to note that the individual managing the custodial account acts as a fiduciary and is legally bound to act in an ethical manner and in the best interest of the beneficiary. Here are some things to know about custodial accounts: · Custodial accounts are held at financial institutions, mutual fund companies, brokerage firms, and other financial organizations. · Custodial accounts do not require distribution at set times. · There are no income or ...

Every year, around 3 million Americans are required to evacuate their homes due to a natural disaster.1 What’s more, this figure does not include the millions of other individuals who are temporarily displaced as a result of fire, flood, or other damage to their homes. Do you have the documents you need if you find yourself required to vacate your residence suddenly? Do you know how to get in touch with your financial providers? Do you know how to get a new driver’s license? Do you have a way to access lines of credit? These and other questions may be ...