Gilbert Wealth Articles

Social Security Child-In-Care Benefits: Key Considerations

While most people think about Social Security as a retirement income source, it can play several other important benefits throughout a lifetime. One of these benefits, the Child-In-Care Benefit, applies to spouses in situations when children are under care. This guide explains who qualifies, how benefits are calculated, what happens if the worker claims early, and how the earnings test applies.In this article, you'll see references to a "Worker" and a "Spouse". The "Worker" benefit is the person whose benefit is being claimed on. The "Spouse" is the one receiving the benefit.  Who Qualifies for Child-In-Care Benefits There are two main requirements…
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Stock Lending: Pros and Cons

Stock lending, also known as securities lending, is a feature offered by some brokerage platforms that allows investors to lend their shares to other market participants, primarily short sellers. In return, investors receive interest payments, offering a way to generate passive income without having to sell their holdings. Think of it like renting out your stock to someone else for a period of time.However, while this might seem like an effortless way to earn extra income, it comes with its own set of complexities and risks that investors should carefully consider. How Stock Lending Works When an investor participates in…
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Guide to the IRMAA Exemption Form (SS-44)

Medicare beneficiaries with higher incomes are subject to an additional charge on their Part B and Part D premiums, known as the Income-Related Monthly Adjustment Amount (IRMAA). This surcharge is based on modified adjusted gross income (MAGI) from past tax returns. Read more about IRMAA here: Understanding IRMAA: What It Is and Its Impact on Medicare Premiums – Gilbert WealthHowever, if you've experienced a significant life-changing event, such as retirement or a reduction in income, you may qualify for a reduction in your IRMAA. Form SSA-44 allows you to report such events and request an adjustment to lower your Medicare…
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Gifting and the Annual Exclusion

Lifetime gifts are a wonderful way to bless your loved ones and make a meaningful impact on their lives. Whether it's helping a child with educational expenses, supporting a family member in need, or simply sharing your wealth to enhance their financial security, gifting allows you to express your generosity while witnessing the benefits of your support firsthand. Beyond the emotional rewards, thoughtful lifetime gifting can also provide financial advantages by reducing the size of your taxable estate and taking advantage of tax-free gifting opportunities. With proper planning and an understanding of the applicable tax rules, you can ensure your gifts provide…
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Smart Ways to Manage Income Increases: Avoiding Lifestyle Creep While Building Wealth

After years of hard work, dedication, and long hours, you finally receive the pay raise or promotion you’ve been striving for. It’s a well-deserved reward that reflects your effort and accomplishments. With more income at your disposal, it’s tempting to celebrate by upgrading parts of your life—nicer meals out, a bigger home, or perhaps a long-overdue vacation.There's nothing wrong with enjoying the fruits of your labor, many people fall into the subtle trap of lifestyle creep: as income grows, so do expenses. What starts as small upgrades can quickly snowball into larger financial commitments that eat away at your ability…
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Annualized Return versus Cumulative Return Explained

When evaluating the performance of an investment, two common metrics often come into play: annualized return and cumulative return. Understanding the differences between these metrics is crucial for accurately interpreting your investment's growth over time and comparing it to other opportunities.What Is Cumulative Return?Cumulative return measures the total percentage change in the value of an investment over a specific period. It represents the overall growth of the investment without considering how long it took to achieve that growth.Formula:Cumulative Return = (Ending Value−Beginning Value) / Beginning ValueExample:If you invest $10,000 and its value grows to $15,000 after five years, the cumulative return is:$15,000−$10,000 =…
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The Differences Between Short-Term and Long-Term Capital Gains

Capital gains occur when you sell an asset for more than its purchase price. The distinction between short-term and long-term capital gains is important for tax purposes, as each is treated differently under U.S. tax law. Short-Term Capital GainsShort-Term Capital Gains are gains from the sale of assets held for one year (365 days) or less are considered short-term.These gains are taxed as ordinary income, meaning the tax rate depends on your marginal tax bracket which is the highest tax rate applicable to you.  Currently, ordinary income rates range from 10% to 37%. For the latest rates, see Latest Ordinary Income…
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Understanding Estimated Capital Gains Distributions

Understanding Estimated Capital Gains Distributions Capital gains distributions are a critical aspect of mutual fund and exchange-traded fund (ETF) investing. They represent the profits a fund makes when selling securities that have appreciated in value. While distributions are a normal part of investing, understanding them and their timing can help investors manage their tax liability and align their portfolios with their goals. How Are Capital Gains Distributions Generated? Capital gains distributions occur when a mutual fund or ETF sells investments within its portfolio for a profit. These gains are classified as either: Short-term capital gains: Generated from securities held for…
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How to Access Student Loan Information

Managing student loans can feel overwhelming, especially when trying to track your progress toward forgiveness programs like Public Service Loan Forgiveness (PSLF) or Income-Driven Repayment (IDR) forgiveness. This guide provides basic instructions and detailed steps to understand your loans, determine your status toward forgiveness, and maximize your repayment options.Basic Instructions for Managing Student LoansIdentify Your Loan TypesLog in to studentaid.gov using your FSA ID and password.Navigate to the “View My Aid” section to see:Loan types (e.g., Direct Subsidized, Direct Unsubsidized, PLUS, Perkins, FFEL).Loan balances and interest rates.Servicer information.Why This Matters: Loan types determine your eligibility for PSLF, IDR, and other…
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