There seems this growing feeling that the market is on shaky ground. As an investor, you may feel it too: the presidential election is unique to the point of being wild, Europe appears to be in disarray, corporate profits have seen better days, GDP growth in the U.S. has been lower than average. Perhaps that is why a recent Bloomberg survey of forecasters said they expect the S&P 500 to finish the year 1% lower. They cited some of the concerns mentioned above, but also pointed to negative sentiment tied to rising interest rates, elevated stock valuations, and the aging business cycle.1 The question for investors is: is it time to rethink portfolio strategy, perhaps favoring a defensive posture? [+] Read More

Monitoring the performance of an investment portfolio is a tricky task. On one hand, many investors would benefit from not becoming overly focused on performance. Doing so tends to lead to an unhealthy focus on short-term volatility/price movements, which can easily lead to an investor making a knee-jerk, emotional decision that runs counter to their long-term goals. [+] Read More

For readers unfamiliar with the generation skipping transfer tax (GSTT), in its simplest form it is what it sounds like – a transfer tax that is triggered when an individual (transferor) bequeaths all or a portion of an estate to a person (skip person) that is two or more generations below them, with an age difference of 37 ½ years or more. The simplest and perhaps most common example would be a grandparent leaving assets to a grandchild.1 [+] Read More

Two strategies designed to maximize Social Security retirement benefits just got cut, but it doesn’t mean your benefits have to shrink too (more on that later). Effective May 1, the U.S. government adopted rules that will bar the "file and suspend strategy" for people born after April 30, 1950, putting an end to a unique strategy for drawing Social Security that helped many retirees boost their lifetime benefits significantly. [+] Read More

Two years ago we wrote an article about how high income earners—who are generally excluded from Roth IRAs because of income levels—could still technically contribute to Roth IRAs if they used the right methods. We wrote that “high income earners could make non-deductible contributions to a Traditional IRA (non-deductible IRA), then take that money and move it into a Roth IRA.” This method allowed income earners access to the benefits of the Roth IRA, which notably are: the ability to grow your money tax-free and also make tax-free withdrawals. [+] Read More

When it comes to investing and retirement planning, there’s one certainty everyone must address as part of their planning: there are a lot of uncertainties. Of course, as an investor you’ve known that all along. Market returns are unpredictable in any given year. But it doesn’t end there – investors sometimes miss the other, lesser emphasized variables that create different kinds of uncertainties over time. We’re talking about factors like: you and your spouses’ life expectancies, the inflation rate over time, and the levels of cash flows you expect to take over your lifetime. All of these factors impact how your portfolio value will change over time. [+] Read More

Here’s a fact about financial advisors (NOT Investment Advisors) that may surprise you: they do not necessarily have to act with your best interests in mind. Please, take a moment to shake your head in disbelief. It’s ok. Actually, it’s not ok! The way the law exists today, advisors and brokers can be classified in one of two ways. Either they give you investment advice according to the fiduciary standard, or they adhere to what's known as the suitability standard. It’s the latter one that can be problematic, and it’s also the growing subject of legal debate as the White House and Department of Labor consider new rules. Below, we broke down what you need to know now and what to look for ahead. [+] Read More

A new year is a fresh slate in many ways, including the way you manage your taxes. There are numerous tax deductions and tax credits available to taxpayers who know about them and use them. The problem is that many taxpayers either don’t pay attention to them or don’t prepare to use them. Most of these deductions and credits require that you track expenses and keep receipts. These are easy things to do if you create a strategy and system for tracking expenses. Make a goal in 2016 to take advantage of tax deductions and tax credits. You may be able to lower your overall taxes by doing so. The following tax deductions and tax credits are often overlooked. See if you qualify for any of them. By making a plan now for the coming year, you may be able to take advantage of more tax deductions and credits. Long Term Care Insurance Premiums You may be able to deduct premiums paid for qualified Long Term Care (LTC) insurance policies from you 2016 taxes. Some LTC policies qualify as “medical expenses” according to the IRS itemization definition. Talk with your tax adviser about the possibility of deducting these expenses; in many cases you can deduct them to the extent that your total medical expenses exceed 10% of your adjusted gross income. [+] Read More

Charitable giving reached an all-time high in 2014,1 with Americans giving $358.38 billion to charities, according to National Philanthropic Trust.2 Giving feels good, but the benefits of giving don’t end there. You can also reduce your taxable income through charitable giving by making sure you follow the tax guidelines for charitable donations. If you haven’t yet done so, you can join the millions of Americans who donate to charity and receive a reward for themselves: a lower overall tax bill. In order to make a difference in your taxes, follow these 7 guidelines: Choose Qualified Charities. Not all charities qualify for tax deductions. If you’re unsure about a charity’s status, ask to see their letter from the IRS or search online at the IRS Exempt Organization Select Check website. If you’re donating to a church, mosque, synagogue, or temple, keep in mind that religious charities are considered de facto charitable organizations, even if they’re not on the IRS list. [+] Read More