Blog

BY: Patrick R. Cote, CFA, CFP®

The SECURE 2.0 Act of 2022, the most recent tax legislation, covers a lot of areas. While most provisions are relatively minor, the changes worth noting are extending ages for RMDs (required minimum distributions), new additional Roth choices and increasing the ability to both contribute and withdraw from retirement plans.

Effective 1/1/2023, the changes for the RMDs are:

BY: Kate Hennessy, CFP®

A 529 plan is a tax-advantaged account that enables you to save money for education expenses. Do you have unused money in your 529 plan that won’t be needed for education purposes? If so, effective in 2024 you may be able to transfer the money out of the 529 Plan to the beneficiaries’ tax-exempt Roth IRA without incurring any penalties.  This would allow money that was earmarked for education to be used for the beneficiaries’ retirement savings.

Check out AssetGrade’s review of the markets in 2022. Cheers to a new year of health, happiness and prosperity!

Read Market Review

BY: Kate Hennessy, CFP®

Having extra cash on hand may be rare with the holidays around the corner and the rise in inflation.  However, if you do happen to have extra cash in a bank account earning a low interest rate, you may want to consider your options for capturing more yield (interest from an investment).  As you explore these options and your personal situation, it’s important to remember to keep

BY: PATRICK COTE

Tax loss harvesting is the practice of selling an asset in your taxable investment account that has experienced a loss and replacing it with a similar asset to maintain the overall allocation within your portfolio. By realizing, or “harvesting,” the loss you are able to reduce taxes by offsetting capital gains.

BY: SUSAN POWERS, CFA, CPA, CFP®, CPFA®

A solo 401(k) plan is a great retirement savings vehicle for self-employed business owners with no employees, other than their spouse.  Unfortunately, most folks have never heard about this opportunity and instead are steered toward a SEP IRA.  To take full advantage of a solo 401(k) the deadline to establish a plan is December 31st.

How is a solo 401(k) different from a SEP IRA?

By: Kate Hennessy, CFP®

When investors are weathering market volatility, high inflation, and rising interest rates it can be challenging to look out and continue supporting non-profit organizations. If your retirement plans have not changed, it’s important to keep a long-term perspective – stay the course, keep saving for your long-term goals, and keep donating to charities.

By: SUSAN POWERS, CFA, CPA, CFP®, CPFA

Using an IRA to make a charitable donation can help a worthy cause and help lower your tax bill as well.  As we approach the year end, you may be reviewing your charitable giving strategies with a financial and tax advisor as part of your year-end planning.  While some tax efficient giving strategies can be a bit complex, qualified charitable distributions (QCDs) are as easy as writing a check to your favorite charities!

What is a QCD?

By: Patrick R. Cote CFA, CFP®

One of the most important decisions investors make is their asset allocation – the split between stocks, bonds, cash and the asset classes within each type (US large cap stocks, emerging market stocks, short-term bonds, high yield bonds, etc.).  Research shows that trying to time the market hurts investors, which means you should avoid making rapid and drastic changes to stock allocations if your personal circumstances have not changed.  Dialing up or down the allocation to stocks means trying to time the market.

By: Kate Hennessy, CFP®

This time of year, it’s hard not to think about college.  From young adults packing up their cars to Saturday football games, college is in the air.  In this month’s newsletter are two articles about saving for college, one from the perspective of a parent whose children are one to three years out from starting college, and the second from a parent who is six to nine years out from beginning college.

By: Patrick Cote

Student loans are a hot topic these days, with the recent announcement that the US government is forgiving $10K - $20K of federal student loans for borrowers with incomes below $125K (single) or $250K (married).

By: Susan Powers

Looking for fresh ways to save money so that you can live life on your own terms?  Did you know that:

• 21% of self-storage units are rented for 3-10 years, a cumulative cost of $7,000 to $23,000
• Most people underestimate how much they spend on subscriptions by $1,600 a year