Family Milestones Kristi Ellington
Welcome to Ellington Financial, LLC

Providing Meaningful Advice for Milestone Moments!

 

 


 

Milestones are marked by many different events; some obvious, others not; some expected, others not; some welcomed, others – well, maybe not really.  Regardless, milestones are one measure of our lives; those events that shape us and determine much of what each of us is all about.

Milestone moments can impact on our lives in many different ways. They may signal a change in lifestyle, a change in where we work or live, a change in our health, and typically they will effect some level of change in our financial situations.

Some milestones are passages in life…

Birth or Adoption of a Child… High School Graduation… College Graduation... Empty Nester... Move to a New City... Purchasing your First Home… Marriage… Divorce... Suddenly Single... Retirement… Inheritance... New Job… Job Promotion... Job Loss... New business... Sale of a Business...

Many milestones are passages in aging, such as 18, 21, 30, and subsequent decades; those of us who are on the other side of it well remember the Big 50!

Some milestones are perhaps not major, but significant: most folks have memories of buying their first car, or first new car; of adopting a new pet, or embarking on a special vacation.  

Other milestones are major and significant: disability or serious illness; the need to provide additional levels of support for a loved one; and most heartbreaking of all, the loss of a loved one.

Financial aging generates another set of milestones… for example, reaching age 59 ½ or 60. The following is a brief outline of what you may want to review at different ages:

Birth

Consider starting a college savings plan.

Age 18

Contributions may no longer be made to Coverdell ESA.
Investment income no longer taxed at parent’s tax rate under "kiddie tax" rules unless child is a full time student.

Age 19-24

Children may no longer be covered by parent’s health insurance unless in school. Check the laws in your state
and the individual health plan. Kiddie tax still in effect for full time students under age 24.

Age 30

Coverdell beneficiaries must withdraw assets within 30 days unless considered a special-needs beneficiary.
Account may be extended if owner changes beneficiary or rolls assets to a different beneficiary’s ESA.

Age 50

Catch-up contributions may be made to IRAs and qualified retirement plans.

Age 55

Penalty-free distributions may be taken from 401(k) plans if retired.
Catch-up contributions may be made to HSAs.

Age  59 ½

Penalty-free distributions may be taken from IRAs and qualified plans, and from Roth IRAs if the account has been open
at least five years. May be eligible for an in-service distribution from 401(k) plans.

Age 60

Application may be made for early Social Security benefits by widows or widowers claiming benefits und spouse’s
earnings record.

Age 62

Application may be made for early Social Security benefits under own earnings record; amount will be reduced.

Age 65

Application should be made for Medicare benefits.

Age 66

If not already receiving Social Security, application should be made for Medicare.
First-wave baby boomers (those born from 1943-1955) are now eligible for full Social Security benefits.

Age 70

Maximum Social Security benefit begins.

Age 70 ½

Required minimum distributions (RMDs) from IRAs begin. Avoid potential 50% tax penalty.

As you can see, there are many milestones that can trigger a financial occurrence or change in your circumstances.  Our goal is to help you make well informed decisions as you maneuver through these events.

This website has been designed with you in mind.  Please take a few minutes to look around at the resources provided for you; from a variety of financial calculators, to tax planning assistance, to online account view, and more.

As with many things in life, the website is a work in progress and your feedback is of great value; we welcome any and all comments, complaints, and especially compliments!

Should you have any questions or need more information, please email This email address is being protected from spambots. You need JavaScript enabled to view it. or call 408-848-0874 (Gilroy) or 831-634-1144 (Hollister)

Looking forward to helping you successfully meet the Milestone Moments in your life!



*This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.

 


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