Categories for Financial Planning

  • Last Minute Financial Moves for Year’s End

    Posted Date December 1, 2020 Posted Time 12:00 pm Published in

    There are certain year-end financial transactions that must clear by Dec. 31 to be reported on the 2020 tax return. It’s important to take a good look at your financial portfolio in light of the plethora of unusual events that occurred this year. Now is a good time to see if you have fallen off track and reposition your portfolio for better opportunities in 2021. Investment Portfolio Despite the dramatic stock market drop that accompanied the outbreak of COVID-19 on our shores, markets have recovered remarkably well. This means the traditional strategy of harvesting gains and losses at year-end could... View Article

  • A Realistic Picture: Will You Be Able to Afford In-Home Elder Care?

    Posted Date November 1, 2020 Posted Time 12:00 pm Published in

    By the end of September, the nation had recorded over a quarter million cases of COVID-19 and nearly 60,000 deaths in nursing homes that were attributed to the disease. The recent pandemic offers yet another reason why more than 90 percent of seniors say they want to grow old in their homes rather than move into a senior housing facility. But just how feasible is that goal, from a financial perspective? Much depends on how independently you can live for the rest of your life. That is something we cannot plan. Even elderly people with an excellent gene pool and... View Article

  • Long-Term Financial Impact of COVID-19

    Posted Date October 1, 2020 Posted Time 12:00 pm Published in

    As bad as the economy is right now due to the COVID outbreak in the United States, many economists are predicting that the long-term outlook is much bleaker. Alas, Congress and the Federal Reserve’s efforts at stimulus and interest rate management have done much to keep the economy and stock market afloat. However, small businesses – the backbone of America’s employment growth – are closing every day. As consumer spending reduces further, the impact will likely affect Wall Street. Consequently, share prices may soon begin correcting to reflect the future more so than the present. It should come as no... View Article

  • Tips for Retiring in the Next 10 Years

    Posted Date September 1, 2020 Posted Time 12:00 pm Published in

    The stock market continues to perform with relative resilience, despite the current economic decline. But to be clear, without 100 percent participation in the economy – in terms of small business job creation, consumer spending, and company growth and expansion – the stock market is apt to reposition prices to reflect slower growth. With no containment or control of the pandemic on the horizon, there is plenty of uncertainty associated with future financial planning. Anyone looking to retire in the next 10 years or so may want to take a fresh look at their current retirement income plan. In fact,... View Article

  • Borrowing From Your Retirement Plan: New CARES Act Rules

    Posted Date August 1, 2020 Posted Time 12:00 pm Published in

    It’s been nearly half a year since Americans first became widely aware of the coronavirus contagion within the United States. While for a brief month it looked as if we had the virus in hand, since then it has spread wildly out of control in many areas. People who did not suffer dramatic financial consequences in the early stages of the pandemic could see some hard days ahead. For this reason, it’s a good idea to become familiar with the new relaxed rules associated with withdrawals from tax-advantaged retirement plans. In late March, Congress passed the Coronavirus Aid, Relief and... View Article

  • How To Use Qualified Charitable Distributions For Charitable Giving

    Posted Date July 1, 2020 Posted Time 12:00 pm Published in

    Each year, millions of Americans make donations to charitable organizations and receive something in return – a tax break. However, the 2017 Tax Cuts and Jobs Act curbed this tax advantage because it reduced the number of people eligible to claim a charitable deduction by raising the standard deduction. For 2020, the standard deduction is $12,400 for individuals and $24,800 for married couples filing jointly. If your list of deductions is not greater than those amounts, there is no tax benefit to itemizing – which means you might not be able to claim your charitable donation. Without the ability to... View Article

  • Why Sequence of Returns Risk Matters Now

    Posted Date June 1, 2020 Posted Time 12:00 pm Published in

    That year or two when you are closing in on your retirement date, followed by a year or two after you retire, are the worst times for a sustained market decline. Market analysts call this scenario the sequence of returns (SOR) risk – because once your principal has been significantly reduced, there’s not enough time in the market left for you to recover those losses. Two things will likely happen. First, the amount of retirement income you can withdraw each year is irrevocably reduced. For example, if you were planning to withdraw 4 percent a year from a $350,000 portfolio,... View Article

  • Prospects for Investing in the 2020s

    Posted Date May 1, 2020 Posted Time 12:00 pm Published in

    The third decade of the 21st century started out with a vigorous economy, record low unemployment levels, and benign inflation. But late in the first quarter over the span of two weeks, investors faced the fastest stock market correction in history. With an unpredictable assailant like a global virus, short-term actions by Congress and the Federal Reserve will need time to see if they are effective. Ultimately, the fate of the U.S. and global economies, which in turn will impact the investment markets, is dependent on how long the COVID-19 outbreak continues and if there is a second wave. Clearly,... View Article

  • The Economic Impact of Coronavirus

    Posted Date April 1, 2020 Posted Time 12:00 pm Published in

    In the days ahead, the COVID-19 pandemic will likely be described in economic terms as a Black Swan. This phrase is used to describe an event that: 1) was unpredictable; 2) causes severe and widespread consequences; and 3) in hindsight was determined to be wholly predictable. What will be interesting going forward is how much the virus, and its impact on the economy and financial markets, ultimately affects individual portfolios. It’s worth noting that many economists spent the whole of 2019 cautioning that a recession and market correction was imminent. To what extent investors took heed and repositioned their portfolios... View Article

  • SECURE Act Seeks to Help Americans Save More for the Golden Years

    Posted Date March 1, 2020 Posted Time 12:00 pm Published in

    At the end of 2019, Congress passed the Setting Every Community Up for Retirement Enhancement (SECURE) Act as part of a year-end appropriations package. This bill is designed to address specific issues related to retirement savings plans in an effort to help Americans save more for retirement. Retirement Plan Contributions People are living longer, and a decrease in employer-sponsored pensions has resulted in retirees relying more on Social Security benefits than in the past. So first, the SECURE Act eliminated the age limit on traditional IRA contributions so that people who work into their 70s and beyond may continue to... View Article

Copyrights @ 2019. James O. Taylor