May 2013 Newsletter
High-Yield Bonds: The Pros and Cons
Many people who rely on their investments for part or all of their income have sought out various alternatives to rock-bottom yields on U.S. Treasuries, including high-yield bonds, in recent years. But if you're considering incorporating high-yield bonds--sometimes referred to as "junk bonds"--yield shouldn't be the only factor you take into account.
The "SEPP" Exception to the IRA Premature Distribution Tax
In these challenging economic times, you may be considering taking a withdrawal from your traditional IRA. While you're allowed to withdraw funds from your IRAs at any time, for any reason, the question is, should you?
Four Retirement Saving Myths
No matter how many years you are from retirement, it's essential to have some kind of game plan in place for financing it. With today's longer life expectancies, retirement can last 25 years or more, and counting on Social Security or a company pension to cover all your retirement income needs isn't a strategy you really want to rely on. As you put a plan together, watch out for these common myths.
What are health Exchanges and do I have to buy health insurance through them?
A health insurance Exchange is essentially a one-stop health insurance marketplace.
I already have health insurance. Will I have to change my plan because of the new health-care reform law?
For the most part, no, the Patient Protection and Affordable Care Act (ACA) does not require you to change insurance plans, as long as your plan, whether issued privately or through your employer, meets certain minimum requirements.
April 2013 Newsletter
Estate Tax After the Fiscal Cliff
After threatening to go over the fiscal cliff, the gift tax, estate tax, and generation-skipping transfer (GST) tax have come in for a soft landing. The American Taxpayer Relief Act of 2012 (ATRA 2012), enacted on January 2, 2013, permanently extended the $5 million (as indexed) gift tax and estate tax applicable exclusion amount and GST tax exemption. It also permanently extended portability of the gift tax and estate tax applicable exclusion amount between spouses. However, it also increased the top gift, estate, and GST tax rate to 40% starting in 2013. A number of other provisions were also permanently extended.
Understanding the New Medicare Tax on Unearned Income
The health-care reform legislation enacted in 2010 included a new 3.8% Medicare tax on the unearned income of certain high-income individuals. This new tax, known as the unearned income Medicare contribution tax, or the net investment income tax (NIIT), went into effect on January 1, 2013. Here's what you need to know.
A Business Plan is Your Vision of Success
As a business owner, you may instinctively know what makes your organization succeed in today's competitive marketplace. A business plan helps you share that knowledge with important stakeholders--including key employees and potential investors and lenders.
I don't think I'll be able to file my tax return by April 15th. Is there any way to file my return at a later date?
If you aren't able to file your federal income tax return on time, you can file for and obtain an automatic six-month extension by using IRS Form 4868.
After filing my tax return, I found out that I'll be getting a large refund this year. What should I do with it?
Investing towards your retirement/child's college education, paying down debt, and/or adding to your emergency cash reserve are all good ways to make your refund work to improve your overall financial picture.
March 2013 Newsletter
Understanding Sequestration
If you like political drama, you're in luck. It seems like just yesterday the news was filled with references to the fiscal cliff. Now, coming to theaters everywhere, is sequestration. Look for more political confrontation to unfold as sequestration gets under way.
A Business Plan Is Your Vision of Success
As a business owner, you may instinctively know what makes your organization succeed in today's competitive marketplace. A business plan helps you share that knowledge with important stakeholders--including key employees and potential investors and lenders.
Looking Backward and Forward on Entitlement Programs
Last year's presidential election, along with the more recent fiscal cliff and debt ceiling negotiations, have put the spotlight on our nation's tax policy, deficit, and entitlement programs. For some, entitlement programs are necessary--a social compact for America. For others, entitlements are jeopardizing our country's fiscal health and creating an "entitlement lifestyle." No matter where you stand in the debate, do you know the basic facts on entitlements?
I refinanced my mortgage loan last year. Can I deduct any of the costs associated with refinancing the loan?
If you paid points to your lender when you refinanced your loan, you may be able to deduct them.
Chart: The Potential Benefits of Refinancing Your Mortgage
Chart that demonstrates the potential benefits of refinancing a mortgage to a lower interest rate by showing the total loan payments and total interest paid over the life of a mortgage loan
February 2013 Newsletter
Federal Income Tax Filing Season Is Here
t's that time of year again. Here are some things to think about as we enter the 2012 federal income tax filing season.
Estate Planning Strategies in a Low-Interest-Rate Environment
Low interest rates favor certain estate planning strategies over others, and the interest rates used by the IRS are at or near historic lows.
Questions and Answers about Social Security
Whether you're close to retirement or years away from receiving Social Security benefits, you may not know much about the intricacies of this important program. Here are some questions and answers that can help you learn more.
I'm going on a cruise--do I need to purchase travel insurance?
Whether you should purchase travel insurance comes down to whether the financial benefit outweighs the cost of the policy premium.
My laptop was stolen and my personal financial information was stored on it. How can I protect myself against identity theft?
Identity thieves can use your personal financial information to access bank accounts and credit cards, and make unauthorized transactions in your name. As a result, it's important to act fast in order to protect yourself from any potential attempts at misusing your financial information.
January 2013 Newsletter
High-Yield Bonds: The Pros and Cons
Many people who rely on their investments for part or all of their income have sought out various alternatives to rock-bottom yields on U.S. Treasuries, including high-yield bonds, in recent years. But if you're considering incorporating high-yield bonds--sometimes referred to as "junk bonds"--yield shouldn't be the only factor you take into account.
Compounding Can Add Fuel to Your Portfolio
It is said that Albert Einstein once called compounding the "greatest mathematical discovery of all time." Compounding can add fuel to your portfolio's growth, but the key is to allow enough time to let it work.
Real-life Financial Tips for Different Generations
Do you remember The Game of Life®? In the game, players progress through life stages making decisions that affect their overall prosperity. Like those players, today's generations face financial decisions with lasting impacts. Here are some tips for staying focused despite life's ups and downs.
Is winter storm damage covered by my homeowners insurance policy?
Whether or not winter storm damage is covered by your homeowners insurance policy will depend on the type of policy you have and the type of damage that occurs.
I just installed a new furnace in my home. Is the energy tax credit still available?
Unfortunately, most of the tax credits for making energy-efficient improvements to your home, such as installing a new furnace, are no longer available.
December 2012 Newsletter
Estate Planning Issues for Unmarried Couples
There are several laws that are potentially beneficial for married couples that are not available to unmarried partners. That's why it's important to recognize the risks faced by unmarried partners and some alternatives to help deal with them.
Should You Make Large Gifts in 2012?
Currently, the exemptions for federal gift tax, estate tax, and generation-skipping transfer (GST) tax are at historic highs, and the gift, estate, and GST tax rates are at historic lows. But, in 2013, the exemptions are scheduled to substantially decrease, and the tax rates are scheduled to substantially increase. This raises the question of whether 2012 might be a good time to make large gifts that take advantage of the current exemptions while they are still available.
Natural Disaster Planning for Small Businesses
Whether your small business survives a natural disaster may depend as much (if not more) on the plans you put in place now, before a disaster occurs, as on what you do after a disaster strikes. Here are some disaster preparedness ideas for you to consider for your small business.
What health-care provisions are effective in 2013?
With the Supreme Court's favorable ruling on the constitutionality of the Patient Protection and Affordable Care Act (ACA), more of the law's provisions will become effective in 2013.
How does health-care reform affect women?
The Patient Protection and Affordable Care Act (ACA) potentially expands women's access to health insurance and adds several reforms to the existing health-care system that are beneficial to women.
November 2012 Newsletter
As a business owner, what should I know about using temporary workers?
Use of temporary workers (sometimes referred to as temps) may provide you with some flexibility to handle employee absences due to illness, vacation, or maternity leave. They may also help you handle special projects, busy times, or seasonal work.
On the Precipice: the "Fiscal Cliff"
The phrase "fiscal cliff" has been used to describe the unique combination of financial realities scheduled to take effect in 2013: expiring tax breaks; the imposition of new taxes on high-income individuals; and automatic deficit-reduction spending cuts.
Should You Make Large Gifts in 2012?
Currently, the exemptions for federal gift tax, estate tax, and generation-skipping transfer (GST) tax are at historic highs, and the gift, estate, and GST tax rates are at historic lows. But, in 2013, the exemptions are scheduled to substantially decrease, and the tax rates are scheduled to substantially increase. This raises the question of whether 2012 might be a good time to make large gifts that take advantage of the current exemptions while they are still available.
Two Social Security Strategies for Married Couples
Deciding when to begin receiving Social Security benefits can be especially complicated when you're married because you and your spouse will need to plan together. Fortunately, there are a couple of strategies that are available to married couples that you can use to boost both your Social Security retirement income and income for your surviving spouse.
As a business owner, what should I know about using remote employees?
Interest in the use of remote employees has greatly increased along with growth in the number of service jobs and developments in technology that enable some workers to work almost anywhere. You might be able to use a remote employee in your business if the employee does not need to be at a specific location in order to do the work required.
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