2011 Tax Changes
- The tax law enacted in late December 2010 allows the federal income tax and federal capital gains tax (15% for most people) to remain the same through 2012.
- The estate tax exemption for 2012 increases to $5.12 million, with an estate tax rate of 35%. Any unused portion of the $5.12 million exclusion amount is portable and can be used by the surviving spouse. The current exemption amount is scheduled to expire at the end of 2012, and the $1 million limit under previous law is set to return.
- The annual gift tax exclusion remains at $13,000. However, the lifetime gift tax exemption also increases to $5.12 million.
- The employee portion of the Social Security tax will return to 6.2% and the maximum taxable earnings amount for Social Security increases to $110,100.
- Roth IRA contribution limit of $5,000 per person remains for people under age 50. However, people age 50 or older may contribute an additional $1,000. AGI phase-out increases to $110,000 for singles and increases to $173,000 for couples filing jointly.
- On 1/1/2010, the AGI restriction to convert a traditional IRA to a Roth IRA was lifted. When converting an IRA to a Roth IRA, you will pay taxes on all pre-tax contributions and earnings. As multiple IRAs and non-deductible contributions can affect the taxation, you will want to consult your CPA prior to conversion.
- For 2012, the 401(k) and 403(b) maximum employee contribution amount increases to $17,000 with a $5,500 make-up provision for individuals 50 and older.
- Employers can continue to offer a Roth 401(k)/403(b) in conjunction with their traditional 401(k). No AGI restrictions!
Susan Is Quoted in These Articles
The Gold Frenzy: Why Investors Should Resist
Ben Steverman (Bloomberg Businessweek) May 13, 2010
The price of gold is at a record high, attracting the attention of many retail investors. But this precious metal is no safe haven.
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Risks of Gold Investment By Elser Financial Planners Indianapolis
Constantine Njeru (http://archivestrader.com/) May 15, 2010
In a Business week interview Susan C. Elser, of Elser Financial Planning Indianapolis gave a good detailed analysis on the risk of gold investment,. Unlike other commodities, gold has few industrial uses. Unlike businesses owned through...
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Grats are great grab, but clock is ticking
Lisa Shidler (Investment News) August 18, 2008
"Even if the GRAT doesn't appreciate more than the interest rate, investors don't lose anything....It just means that no gifts go to children or family members."
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Commodities: The Tipping Point?
Ben Steverman ( Business Week) June 30, 2008
It's impossible to predict how much longer the commodities boom will continue. But for investors, this superheated investment class may be getting too hot to handle.
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Tax Diversification for Retirement Accounts
Ellen Hoffman (Business Week ) January 31, 2008
Successful retirement planning, of course, requires developing a vision of the retirement lifestyle you want, coming up with a multifaceted plan, and then taking specific steps to implement it.
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Flying Solo in the Golden Years
Ellen Hoffman (Business Week) August 20, 2007
And therein lies the attraction of solo retirement. Financial planner Elser points out that there's "a lot more flexibility. Finances are always at the top of the list that a couple argues about. As a single, you have full control over the spending as well as the flexibility" to choose the lifestyle that suits you, with no compromises required.
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When Your Paycheck Stops
Jane Bryant Quinn (Newsweek) April 18, 2006
These policies aren't for people with modest incomes (you can't afford them) or the superrich. They're for people in between, says planner Dean Harmon of The Woodlands, Texas, who recommends them to clients with assets ranging from $500,000 to $4 million.
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Parents' Day in the Sun
Marc Hogan (BusinessWeek) May 10, 2006
Many planners also suggest keeping a cash account for emergency expenses. It should contain at least three months of living expenses, they say.
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Think cash is good only as a safe haven
Timothy Middleton (Courtesy of http://moneycentral.msn.com) June 26, 2006
My colleague Jim Jubak is expecting the market to revive after September. I don't see any relief before November's elections. But elections aside, steadily rising interest rates are taking the stuffing out of equities.
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Setting -- and Achieving -- Financial Goals
Ben Steverman (BusinessWeek) September 4, 2007
-- Get started. Sometimes people get discouraged by the immensity of their goals. So instead they do nothing. "At least start something," Rylance says. Even if it will only get you "halfway to the goal, start it."
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Taking a Bath on Your Pool
Brett Arends (The Wall Street Journal) August 11, 2010
Susan Elser, a certified financial planner in Indianapolis ("and a former pool owner," she adds), suggests the ongoing costs can easily run to $3,000 a year, or about 10% of the initial cost. If you hire a pool service company, she says, make that 15%.
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Pool could be a burden for selling a house
Chris Clackum, NBC (WMBF News) August 13, 2010
"Not only in terms of not increasing the value and getting back the money you spent but having a limited audience to who you can sell your home for, somebody who really wants to maintain that pool," explained financial adviser and former pool owner Susan Elser.
more>Other Noteworthy Articles
Basic Truths
Roy Diliberto (Financial Advisor Magazine) February 2010
Businesses, like people, have personalities. And like people, they are shaped by values and truths. Living these truths is what integrity is all about.
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5 Ways to Avoid a Ponzi Scheme
Katy Marquardt (Article in U.S. News & World Report) December 16, 2008
Oh, and one bonus tip: If someone promises an investment return that is unnaturally high or steady, the warning alarm should start sounding.
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Money Guide: How to Pick a Planner
Jane Bryant Quinn (Newsweek ) Feb. 13, 2006
This peeves real advisers, who think some investors have been misled. Brokers have no legal obligation to look out for your interests, nor do they have to provide you with their histories or disclose commissions. The FPA is suing the SEC over this broker loophole.
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5 worst investment ideas of the year
Tim Middleton (MSN Money ) November 28, 2006
The problem is this: American Funds are sold by brokers, and customers get price breaks as more and more assets are invested with the same company. So customers are pressured into American Funds for what is seemingly the best possible reason -- to save on commissions.
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Why Can't Americans Save a Dime
Marilyn Gardner (staff writer of The Christian Science Monitor) March 3, 2006
Bilker offers his philosophy: "Living modestly and being happy with what you have -- therein lies the success of saving.
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The worst retirement investment you can make
Liz Pulliam Weston (MSN Money) January 4, 2008
Understand the surrender charges, early withdrawal penalties and annual fees you’ll be charged. Shop around and compare different annuities’ features and costs. Vanguard, T. Rowe Price and TIAA-CREF all offer low-cost annuities.
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So you want to be a millionaire
Liz Pulliam Weston (MSN Money) April 14, 2006
Finally, and maybe most importantly: My husband and I don't live just for tomorrow. Our long-term goals are important to us, but we also want to enjoy life today.
more>Video / Television
| Wealth Manager: "What does it mean to be a FIVE STAR Wealth Manager?" 2010 Crescendo Business Services, published in Indianapolis Monthly |
6 News: "Experts: Patience Paid Off in Recession" 3/9/10 WRTV News |