Submitted by Pat Cote on December 7, 2019
That time of year again! While we are in the midst of holiday season, the last thing many of us want to do is sit down and think about taxes. However, taking a few minutes to focus on some specific areas can make a big difference.
With that in mind, we prepared a list of 10 key items to focus on before 12/31:
1. Donate appreciated assets
It’s a great question. Cash balance plans continue to be the fastest growing
Submitted by Pat Cote on November 11, 2019
If you are a small business owner making $400K - $600K, there is a large potential tax savings that you have likely not heard about. It involves combining the new 20% QBI deduction with a cash balance/defined benefit plan.
Last week I hosted a gathering of clients and friends to talk about the process of a year end check up. I know, you’re probably thinking more about football, weekend gatherings and getting ready for the holidays, and so were they. But a little time invested now, can payoff in multiple ways.
3 Key Takeaways:
Mortgage rates are the lowest they have been since 2016 and applications to refinance are up. The national average for a 30 year fixed mortgage has fallen to 3.6% as of August 14, 2019, down almost 1% from the average rate of 4.54% in 2018. A good rule of thumb – refinancing makes sense if rates are at least ½% to 1% lower than your current rate. If your current rate is more than 4.375%, and it likely is if you purchased your house in the last 3 years, you may be a prime candidate to benefit from refinancing.
The topic of being a fiduciary came up again with a recent SEC ruling. Fiduciaries are legally required to act in their clients’ best interests. One would think that anyone calling themselves a financial advisor would be a fiduciary, however, that is not the case.
As I get older, I’ve become more curious about Social Security. I’m in my mid 40s and I have been paying into the system since high school. Hopefully, I’m 20+ years out from claiming benefits but given how fast life goes by, it’s never too early to start thinking about and planning for Social Security. It’s a topic that many people shy away from, but in planning for your financial future, it’s an income stream that needs to be accounted for in a financial plan.
To kick off our series of articles on this topic, I am starting with 5 myths about Social Security:
Politics aside, it was tragic to hear that many government workers ran into trouble paying their bills when they did not have a paycheck for a month. Unfortunately, this cash shortfall is not unusual, as a Federal Reserve survey last year showed that 40% of American adults would not be able to cover a $400 emergency expense or would do so by borrowing or selling something.