Insights

What's Inside: What Do Americans Do with Their Tax Refunds?; How AI Is Helping Modernize the IRS; Be Storm Smart: How to Prepare for Extreme Weather; The Evolution of Retirement Savings; Don't Overlook the Value of Social Security Survivor Benefits; and Federal Student Loans: How Much Do Borrowers Owe?

For pre-retirees in their 50s and 60s, a higher tax bill is sometimes the smartest move you can make. Here is why the conventional wisdom of always minimizing taxes may be working against you.

Stocks continued to rally for the most part last week, fueled by cautious investor optimism that U.S. involvement in the Middle East may be nearing an end. In addition, cooler inflation data (see below) along with the start of what is hoped to be a resilient earnings season also contributed to the rally.

One of the most common surprises retirees face is learning that their Social Security benefits may be taxable. Many clients come to me with the assumption that Social Security is simply a return on a lifetime of contributions, money they already paid taxes on, and therefore should be tax-free. Unfortunately, that is not how the IRS sees it.

Stocks surged last week with the easing of geopolitical tensions that had weighed on equities for weeks. The S&P 500 crossed the 7,000 point barrier, while the NASDAQ achieved its longest winning streak (12 straight sessions) since 1992.