The tax consequences of supporting boomerang children

Parents often believe that once their children have graduated from college, their heavy financial responsibilities will ease. But, don’t count on it! The new generation of college graduates has been dubbed the “boomerang generation,” meaning they return back home after leaving the nest or still require financial support.  Others struggle to support themselves with entry-level positions and still turn to the bank of mom and dad for assistance.

In a recent article for US News & World Report, Mike Piershale weighed in on the tax implications for parents whose adult children move back home. While parents might see large sums of financial support in the form of paying for rent a responsibility to their children, the IRS might see it as a gift. Mike offered that, "The IRS doesn't worry about the kid moving back to their old room and eating meals at their home…But if you had a parent that was giving really serious money to their kids for whatever reason, they're going to be interested in that."

The following link will take you to the full article written by contributor Susan Johnston – “The Tax Implications of Supporting Adult Children.”

Mike Piershale on “Mike in a Minute:” Financially protecting your spouse after you’re gone

Welcome to “Mike in a Minute!” Today, Mike shares his outlook on how married couples can properly pass down their assets to a surviving spouse without the hassle of unnecessary taxes or expenses. He also weighs in on strategies that will grant surviving spouses financial security.


Tune into Mike’s YouTube channel  for more “Mike in a Minute.”

Mike Piershale on “Mike in a Minute:” Mid-year tax planning tips

If you’ve been following our “Mike in a Minute” series, you know that Mike Piershale, President of Piershale Financial Group, is answering common personal finance questions in 60 seconds of less.

Today, he’ll offer insight into an important topic everyone should be educated on: tax planning strategies for individuals that guarantee tax savings before April 2014.

In this segment, Mike recommends individuals place all unused income into a retirement plan instead of bank accounts. He specifically mentions the significant tax advantages in contributing to a 401(k) plan and explains how building this fund teaches financial responsibility.


Tune in next week for more “Mike in a Minute!”

Mike Piershale introduces “Mike in a Minute,” a video series answering your questions on personal finance

Mike Piershale, president of Piershale Financial Group, will be featured in his very own Skypecast series, “Mike in a Minute.” The series will address the top questions in personal finance today -- in 60 seconds or less.

In our first segment, Mike offers insight on inherited IRAs and why it serves as a powerful tax shelter for heirs. Weighing in on the differences between inherited IRAs and traditional IRAs, Mike mentions that heirs are forced to take minimum taxable distributions every year with an inherited IRA account. However, he explains that these taxable distributions provide opportunities for heirs to avoid major tax losses.

How taxation impacts cash flow

During a recent podcast, Michael Piershale weighs in on retirement concerns and how individuals and couples can protect their assets during the remainder of their life as a retired person. A major concern among this demographic continues to be the impact of taxation on cash flow and certain assets. 

Michael explains the benefits on converting a traditional IRA into a Roth IRA as a strategy to consider for individuals in specific tax brackets, as it can be a wise tax-saving alternative. Watch the podcast to hear more:

Piershale Financial Group hosting seminar to share IRA strategies

On July 9, 10, and 11, Piershale Financial Group hosted a seminar workshop that reviewed retirement strategies and how to properly protect assets to solidify a secure retirement.  With new tax laws and distribution rules, we understand that clients can have a challenging time in transferring any wealth. With that in mind, our workshop highlighted ways to successfully determine the beneficiary of an IRA, the ins and outs of inherited IRAs, how to reduce income taxes by allowing the beneficiary to stretch distributions, and much more. 

Before clients take any action in passing wealth, we stress the importance of understanding all rules and laws connected with inherited IRAs. While it can be complicated, it’s vital to be knowledgeable in this area so that plans can be streamlined and your heirs will not suffer any financial consequences. 

We host a number of seminar series throughout the year, so check back to the blog soon as we will announce our upcoming workshops.