Blog

You may not have heard about tax diversification – most people have not.  Tax diversification is making sure that investments are placed into three different account types to hedge against future tax increases:  pretax (e.g., traditional IRA or 401K), taxable (e.g., regular brokerage account) and tax-free (e.g., Roth IRA or Roth 401K).  More people should be talking about it, since it is one of the most critical parts of most investment plans and can make a large difference for your after-tax investment returns.

2020 has been a troubling year financially for many people.  However, in speaking with clients, friends, and family it has been comforting to hear that some of you find yourselves in the position of being very fortunate.  You have quickly innovated to meet your clients’ changing needs and find your businesses are positively impacted by broad consumer and business trends emerging this year. 

Last month I mentioned that my husband and I were considering converting a portion of my Traditional IRA to a Roth IRA, otherwise known as a Roth IRA conversion.  After doing the analysis and speaking with our CPA, we decided to convert 1/3 of my Traditional IRA to a Roth IRA. While It wasn’t the full amount in my account, it started the ball rolling and we committed to revisiting the remaining 2/3 in the future.

^{By: Susan Powers}

One of the first questions we ask clients when gathering information for their financial plan is, ‘At what age would you like to retire?’  Those who continue to enjoy their jobs and the challenges it brings, often plan on working well past age 65. For many others, the answer is often tied to the availability of Medicare, Social Security or other pension benefits.  

^{By: Kate Hennessy}

This year my husband and I are considering converting a portion or all of a tax-deferred rollover IRA to a Roth IRA.  We’ve had discussions with our accountant about the benefits of doing the conversion this year and will be assessing the impact of doing so on our taxable income.

^{By: Patrick Cote}

The pandemic has affected all of our lives in many ways.  For some families, the results have been tragic with the loss of loved ones.  For others, they have faced economic hardship with the loss of jobs or businesses.  Even if you have not been impacted economically, but have kids who are teenagers or in their early 20s, you may have seen how difficult it now is to find summer jobs.

^{By: Susan Powers}

July 15 is not a day that we usually associate with a tax deadline.  Like many other things this year, it’s a different date and you don’t want to be caught by surprise. 

^{By: Kate Hennessy}

If I’ve learned anything over the past five months - life is unpredictable.  I’ve come to appreciate the importance of focusing on what’s within your control, because there’s a whole lot of life that is out of our control.  Although I do not take life or my family for granted, it wasn’t until recently that I asked myself “who’s my person?” You may be scratching your head thinking, what is she talking about?  By definition for this article – “a person” is someone that can step in and help wh

^{By: Kate Hennessy}

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 offset taxes on both gains and income.

^{By: Patrick Cote}

While created with good intentions, I have mixed feelings about the recent CARES Act provisions allowing for $100,000 in CRDs (coronavirus-related distributions) from retirement accounts like 401Ks and IRAs. These provisions are designed to help people who are facing a cash shortage now and have savings in 401Ks or IRAs.

^{By: Susan Powers}

In March, the Treasury Department and Internal Revenue Service announced the deadline to file and pay taxes is automatically extended from April 15, 2020, to July 15, 2020 in an effort to give taxpayers more time to deal with their taxes amid the coronavirus outbreak.

^{By: Kate Hennessy}

As schools closed, people around the world began adjusting to a new norm of “social distancing.”  These measures were adopted to stem the spread of the Coronavirus and guard against its economic impact.