Posted on February 16, 2022
How to Avoid a Tax Bomb When Selling Your Home
Low interest rates have spiked demand for housing over the last two decades. Sale prices have more than doubled. But like all capital assets that have increased in value, taxing authorities look to collect when it’s time to sale. You can, however, lessen the hit, to your bottom line.
Posted on January 18, 2022
Why a January Market Correction Might be Good
Are market corrections healthy? In a word, “yes”. Are market pullbacks common? Very. Corrections prevent bubbles, which occur when market valuations are no longer supported by underlying earnings. Investors become speculators. When a bubble bursts, it can send shock waves throughout the market and economy. On the other hand, a correction, while at times disconcerting, is simply a value re-set. And, yes, that is healthy.
Why a January Market Correction Might be Good
Source: Financial Media Exchange
Posted on January 18, 2022
2022 Outlook: Long-Term Perspective on Markets and Economies
Over the past ten-plus years, we have witnessed unprecedented growth in equity markets, as Central Banks around the world lowered interest rates and boosted bond purchases. Rising inflation is now expected to force these bankers to curtail stimulus, amidst a back-drop of geo-political concerns–slowing growth in China, Russian troops amassing on the Ukraine border, and mid-term elections stateside. Economic growth is expected to continue, sustaining advancements in equity valuations. Still increased volatility may become the norm as markets grapple with uncertainty. While investors should prepare for some instability, they should also prepare to stay the course; a long-term perspective is the best defense. Allocation and fundamental selection will be critical, as investors embrace a changing horizon.
Long-Term Perspective on Markets and Economies
source: Capital Group Outlook 2022 Edition
Posted on January 17, 2022
Charitable Giving and Your Financial Plan
Generosity is great. But should it be spontaneous? Rarely, if ever. Giving has two components—where you give and how your give. First, there is the legacy you want to leave, the values you want to impart to future generations. Second, determining the best way to give. We have been privileged to help many families and individuals implement a strategy. Attached is a short video, a conversation starter. Let’s talk.
Posted on December 10, 2021
2022 Benefit Plan Limits & Thresholds Chart
Contribution limits to benefit plans have grown significantly over the years. But the growth is largely the result of inflation. Did you know that in 1986, an employee could contribute only $7,000.00 to his/her 401k plan? What’s more, there was no Catch-up provision for those 50 and older.
This year (2021) employees can contribute up to $19,500. Those 50 and older can contribute an additional $6,500. Employee and employer contributions are capped at $58,000.
Once again in 2022, both the 401k employee contribution and the total contribution limit will increase. But 401ks are not alone. The Internal Revenue Code requires contribution caps to be adjusted annually for retirement plans, IRAs, pension benefits, HSAs, and even how much of your benefits will be subject to the Social Security Tax.
The Society of Human Resource Management (SHRM) has compiled the attached chart detailing the new contribution limits for 2022. We will soon be reaching out to our clients, encouraging them to take full advantage of this opportunity for increased deferrals and tax savings.
2022 Benefit Plan Limits and Thresholds Chart
Posted on December 10, 2021
Breath is Life. Life is Breath.
At some point, we have all been admonished to ‘take a breath’. As we rush from one commitment to the next, often our breath is the first to go–at least the deep, cleansing, stress-releasing breath our bodies really need that is.
There are many benefits to breathing properly. So take a breath. Your future will be better for it!
Posted on December 2, 2021
US Debt-Ceiling Debate Heats Up Again
Raising the National Debt ceiling may seem routine, however, increasing political bias in both parties has made the process anything but simple. Arguments over which party has contributed more to the deficit, through tax cuts or entitlement packages, are passionately articulated, while anxiety grows around the world.
But does raising the debt ceiling really matter? In a word, “yes”. Default would be unthinkable and for that reason history has shown that legislators on both sides of the aisle eventually come together, but not without a fight that can and often does disrupt financial markets. So, should we be concerned? Perhaps, but the question is to what degree. Continue reading for a thoughtful analysis of the impact and implications.
Posted on November 9, 2021
The World in 2030: 10 Predictions for Long-Term Investors
Do you ever wonder how rapid advancements in science and technology could change our lives, economy and the way we invest in the relatively near future?
Some of the sharpest minds in the world of investing attempt to shed light on new developments that could change the course of history. The advancements highlighted may have profound impacts, heightening expectations in some sectors, while prompting concern in others. As always, the one and only constant is change.
Posted on November 9, 2021
Sharing the Wealth: How Lifetime Gift Tax Exemption Works
As Congress continues to debate a reduction in the estate and gift tax exemption–slated to rise to $12.06 million in 2022–now may be a perfect time to consider some lifetime gifts.
Many people plan for bequests at the end of their lives. Gifts made during your lifetime may be more meaningful, while lowering the value of your estate should Congress implement a reduction. The gift and estate tax exemption is an important planning consideration.
Click here for a quick, easy-to-read summary of how it works.
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Posted on January 18, 2022
2022 Financial Planning Outlook: 3 Trends and Implications
by J. Eric Rice, CFP(R), ChFC(R)
As we enter what may well be a period of transition, effective planning will become increasingly important. As highlighted in the attached piece from Schwab, one of our two recommended custodians, three planning trends will likely dominate the near term—rising inflation, taxes, and the changing landscape of a post-COVID world. In sum, Schwab’s position, and ours—successful investors always start with a plan.
2021 has been a boom year for equity markets, while inflation expectations have shifted, and many workers in the emerging post-COVID world have reconsidered what their work, finances, time, and health mean to them. As always, we believe that successful investors start with a plan—whether it’s to start saving and investing, or to manage, protect, and use wealth they already have. Heading into 2022, we see three trends that could have implications for financial planning and wealth management:
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