Fee-Only Financial Planning Advice

Tax Proposals in Congress Not as Bad as Feared

Sep 30 2021

The latest tax bill advanced in Congress is notable in its absence of provisions that were expected to be “game changers” (see below). And that’s a good thing for taxpayers.

On Saturday, September 25, 2021, the Congressional House Budget Committee voted to advance a $3.5 trillion spending package to the House floor for debate. The House Ways and Means Committee and the Joint Committee on Taxation had previously released summaries of proposed tax changes intended to help fund the spending package. Many of these provisions focus specifically on businesses and high-income households.

Expect these proposals to be modified; some will …

Financial Planning is Both Defense and Offense

Sep 21 2021

Are you concerned about your family’s future in light of so much uncertainty? While we have been dealing with COVID-19 for a while now and have adapted in some ways, the virus has also adapted, so we cannot be sure about what is ahead. As the saying goes, ‘the best defense is a good offense”.

Yahoo! Finance offers “8 tactics to defend your family finances from whatever comes next“. The tips range from things you can do to lower daily expenses to loan refinancing and getting additional insurance.

Look at how your budget “leaks” money on a regular …

No, You Can’t Contribute Stocks to Your IRA

Sep 20 2021

Have you ever wondered – “Hey, I have this taxable stock account with my favorite stock (or mutual fund, or bond, or CD, or what-have-you). Can I just transfer the stock over to my IRA as an annual contribution?”

In a word, NO. Contributions to IRAs are only allowed in cash. In order to complete the contribution, you’d have to liquidate the security holding, paying any tax on capital gains, and then use the cash proceeds to make your contribution.

The reason for this is simple – if you contribute the actual stock to an IRA from an account that …

Grandparents Offer Great Amounts of Financial Assistance

Sep 14 2021

September 12, which just passed, is National Grandparents Day. In addition to the love and emotional support that grandparents provide, many also offer financial support. And, in some cases, grandparents are actually raising their grandchildren. There is food for thought for all family members when it comes to the financial assistance that grandparents provide and the financial help that some grandparents might need.

A 2019 article from AARP said that a survey the organization conducted found that despite the fact that close to 94% of grandparents give money to help grandchildren, “Today’s grandparents do not consider themselves financial supporters of …

Avoiding Taxation of 401(k) Loan

Sep 13 2021

Hopefully you already know this – if you have a loan from your 401(k) plan and you leave employment, either on your own or if you’re terminated, the loan is considered a distribution from your plan, and therefore taxable. It’s important to note – this only applies when you leave employment.

Here’s an example: you have a 401(k) plan with a balance of $200,000. You wish to take a loan from the plan in order to pay for your child’s college tuition – and so you take a total of $20,000 from the plan. It’s your intent to pay …

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