The Silver Lining to Market Declines: Tax-Loss Harvesting
Business Concept It may sound crazy, but there can be some benefit to market declines. While no one is ever hoping to lose money, market volatility is inevitable. If you work with a Wealth Management firm like us, we can help you implement a Tax-Loss Harvesting strategy. You may be able to use the decline to your benefit by reducing your tax liability. What is Tax-Loss Harvesting? A Tax-Loss occurs when a security such as a stock or a mutual fund is sold for less than its purchase price. We harvest those losses to intentionally create a tax...
Considering a Roth Conversion?
financial analysis concept What is a Roth Conversion? A Roth conversion is a way of transferring funds from a retirement account, such as a Traditional IRA or SIMPLE IRA, to a Roth IRA. In most cases, the amount transferred is taxed in the year of the conversion. Typically, taxes are paid on funds when transferred to the Roth account, but once withdrawn, neither the principle nor the gains are taxed. This allows you years of tax-free gains during your retirement. How to Do a Roth Conversion The easiest way to do a conversion is through a trustee to...
Coronavirus Relief for Small Business Owners
Recent legislation like the Families First Coronavirus Response Act and the Coronavirus, Aid, Relief, and Economic Security (CARES) Act have been signed into action to encourage business owners to maintain their staff and keep paying wages through tough economic times. As a small business owner, here’s what you need to know: Payroll tax credit Payroll credit for required paid family leave The Emergency Family and Medical Leave Expansion Act (EFMLEA) requires employers with fewer than 500 employees to give leave to employees who need to take care of a family member experiencing Coronavirus symptoms or take care of a child...
What the CARES Act Could Do For You
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is an economic relief bill that is pumping $2.2 trillion into the economy to counter act the affects the pandemic has had on our economy. The intent is to help individuals and businesses who have economic hardships due to the virus. There are three main ways the CARES act could give you and your family economic relief. You May Receive a Stimulus Check Approximately $300 billion will be distributed to citizens through checks of up to $1,200. How much you will receive depends on your Adjusted Gross Income (AGI) from 2019....
Five Tips for Getting Through this Hard Time with your Sanity Intact
This crisis has hit everyone hard. Fortunately, we live in an advanced society where we can connect online to continue working and studying, and even keep up a social life. While things are far from ideal, we will get through it. Here are five tips for getting through this hard time with your sanity intact. 1. Turn Panic into Purpose Fear tends to paralyze us and improves nothing. In fact, it leads to making bad decisions at the time we need to be making good decisions for ourselves, our loved ones, and those who live around us. Purpose leads to...
Feeling insecure about the SECURE Act? Here’s what you need to know
What is the SECURE Act? The SECURE Act was put into action on January 1st, 2020. SECURE stands for ‘Setting Every Community Up for Retirement Enhancement’. One of the main goals of this act is to encourage more employers to set up retirement plans and encourage more employees to participate, so that Americans are more prepared for their retirement. Let’s break it down into the important changes: Benefits for long-term part-time workers Because of requirements for how many hours an employee must work in a year, most part-time workers were not able to participate in their employer’s retirement plan. The...
Money and marriage – financial tips for newlyweds
Mixing your finances with your romances can be tricky. It doesn’t feel romantic to talk about money when it’s so much more fun to dream about a beautiful future together. However, it’s important to remember that somehow you have to finance that future. Talking about money doesn’t kill dreams – it makes them come true. Comprehensive financial discussions about marriage finances are especially important for newlyweds because studies show that money fights are the second leading cause of divorce. Couples financial planning can help ensure you and your spouse are on the same page about this vital issue. Start by...
New job? Bring your coffee mug and your 401(k)
Your 401(k) is probably a big chunk of your retirement savings, so it’s important to weigh all your options and pick the one that makes sense. For the most part, your first option is to rollover your 401(k) savings into an IRA; this gives you maximum control of your money while offering more investments choices than you would typically find within a qualified retirement plan. One of the main differences between an IRA and a 401(k) is that with a 401(k), the employer chooses the investment options and establishes the rules, which typically vary from plan to plan. With an...
Financial Strategies Tips – After Parkinson’s Diagnosis
According to a recent study, nearly 60% of Americans feel they have not done enough financial planning and 34% have done nothing at all. I have been in the financial planning profession for 30 years, and I am not surprised. It seems to me that very few people have done a thorough job planning for their financial future. Even if you are the exception, and have done extensive financial planning, changing life situations can play havoc on your plan. What happens if a job changes, or a loved one passes away, or if you are diagnosed with Parkinson disease? How...
Our observation: Going gracefully into retirement depends on your generation
Being fee-only financial planners, we at Financial Strategies Inc act in your best interests by removing the incentive of commissions from our compensation model. We work for you and you alone. But we’ve noticed lately a few trends in retirement planning. Based on our experience and some research, we have been able to make some generalizations about how each of the generations in the workforce today— Millennials, Gen Xers (Ys, too) and Baby Boomers — are preparing for retirement. It’s eye-opening and might help you understand your retirement planning. Millennials: born between 1980 and 1996; currently age 23-39 Yoo-hoo, are...