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ESTATE PLANNING—Part 1

April 4, 2015 By

After almost twenty years in the financial services industry, I can tell you firsthand as an attorney that estate planning is the most overlooked, misunderstood and procrastinated piece of the financial plan for most families. I can also tell you from experience why that’s usually the case: most people think putting together an estate plan is a lot more complex, costly and time-consuming than it almost always turns out to be. In fact, with just a little focus of time and resources, a family can save itself thousands of dollars and countless hours of time wasted in picking up the pieces after the death of a loved one because a viable estate plan was never put in place.

This article is part one in a short series on the aspects of estate planning. Today, we’ll touch on the very basics and will feature two important documents – the will and the trust. In a few follow-up articles, we’ll take a deeper dive into issues regarding taxes, gifting, beneficiaries, and we’ll look at which ancillary documents, in addition to wills and trusts, round out the “basic set” of estate planning documents for most families.

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Getting Divorced? Should You File Joint or Separate Tax Returns?

March 25, 2015 By

Getting divorced?  Should you file Joint or Separate Returns? Your marital status on December 31 determines your filing status for the entire preceding year.  If you are still married on December 31, you have a choice.  You can file jointly with your soon-to-be ex-spouse or file using married filing separately status.  You might qualify to

Filed Under: Life Events Tagged With: , ,

ISR - What is it and is it for you?

March 17, 2015 By

Recently, I have been working with a USPFA member discussing and evaluating one of these transition times for many of us in regard to our retirement planning. The top of mind topic for these members was the In-Service Rollover (or ISR). Many people are not aware that once you reach the age of 59 ½, you have the ability to transfer a portion of your retirement plan assets (401k, 403b or similar retirement plan vehicle) into a self-directed IRA. This transfer can be completed while you are still working for your employer and while you continue to participate in your employer provided retirement plan. Each retirement plan has specific rules and processes but typically, this transfer can be up to 80% of your 401k balance.

Filed Under: Financial Know How, Retirement Tagged With: , ,

February 2015 Recap

March 4, 2015 By

In January, U.S. stocks posted their biggest monthly losses in a year while bond prices traded higher and market volatility surged mostly due to concerns about the lack of global growth. February experienced almost the exact opposite with U.S. stock markets hitting new highs. The S&P 500 gained 5.49%, the Dow Jones Industrial Average (DJIA) jumped 5.64%, the world’s developed stock markets gained more than 6% (EFA), and emerging markets posted solid returns as well, climbing more than 4% (EEM).

Filed Under: Market Comments Tagged With:

January 2015 Recap

February 3, 2015 By

Deflate-gate and Mixed Signals

A “deflate-gate” of sorts hit Wall Street during the final week of January. On Tuesday, January 27th, the U.S. Census Bureau reported durable goods orders, core capital goods orders, and inventories; and overall, the information disappointed. Durable goods were down -3.4%. Capital goods orders were down -0.6%. Inventories increased +0.5%. The following day, the Federal Open Market Committee (the “Fed”) released a statement which pointed out that inflation is “anticipated to decline further in the near term,” and indicated they can be “patient” regarding a federal funds rate increase, but could move quickly if economic data improves sooner than anticipated. On Friday, January 30th, economic growth was reported at 2.6%, which was below estimates. On the same day, Eurostat reported the largest decline in consumer prices in the Eurozone since July of 2009. Equity markets across the globe responded by selling off.

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Why Delta Air Lines Is Set To Outperform This Year

January 28, 2015 By

Summary Delta has a strong domestic market presence. The company's low cost strategy allows it to operate with higher margins than its competitors. The airline industry's growth rate is consistent and growing. By Kelvin Li of Queen's Capital With the recent drop in oil prices, investors are seeking for opportunities that can capitalize on the

Filed Under: Airline News/Articles

Behavioral Finance - Part III

January 23, 2015 By

From the Outside Looking In (part 3)

“If I had a million dollars…” is a refrain often spoken and contemplated. From song lyrics to day dreams, we spend time fantasizing about what we would do with such a large sum of money. For many, accumulating a million dollars seems unattainable, but in reality, it can be achieved. The keys are: utilizing a predetermined and dedicated savings/investment program, sticking with good financial management, and making smart choices.

Of the three items listed above, the piece that is often ignored is “making smart choices.” In fact, what we think are smart choices may be the exact opposite, they could be emotional reactions to something going on in our world at the time. This paper, part three of a series, uses the tenets of behavioral finance* to examine how and why our actions often impede smart financial decision making.

Filed Under: Financial Know How Tagged With: , , , ,

Zacks Bull Of The Day: United Continental Holdings

January 12, 2015 By

The drum beats of low oil prices continue, and therefore United Continental Holdings (UAL) is the Zacks Bull of the day! Estimates for the airline company have been steadily increasing due to the decline in oil prices, improving customer service, and the launch of new routes. This Zacks Rank #1 (Strong Buy) stock is the

Filed Under: Airline News/Articles

2014 Market Recap

January 6, 2015 By

Happy New Year! A new year offers us all the opportunity to look back and make some sense of the year behind us.

In many ways, 2014 was a year dominated by headlines. Early in the year, a polar vortex swept across the U.S., and as a result, many expected slower economic growth. For the first time, a woman was appointed as chair of the Federal Reserve. Russia engaged in conflict with Ukraine and later annexed the region of Crimea. General Motors recalled millions of vehicles in order to fix faulty ignition switches. Home Depot got hacked. Ebola killed thousands in Africa. Ebola then found its way to the U.S., and markets panicked in response. Oil prices began a steep decline on Thanksgiving. Over the course of the year, U.S. unemployment went down to pre-recession levels. The Federal Reserve’s program, known as Quantitative Easing, officially came to a close. Sony then got hacked. North Korea’s internet went down. Somehow amidst it all, U.S. equity markets reached new highs on over 50 trading days throughout the year.

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Who is the beneficiary of your 401k or IRA?

January 2, 2015 By

This oversight could cost your loved ones dearly.

Something seemingly so easy as to declare the beneficiary of your 401k has caused heartache for many unsuspecting heirs, who are unintentionally left with nothing.

Take the case of Ben Langford, who worked at a privately owned company for 25 years. He named his wife of 38 years the beneficiary of his 401k account in the event he died before her. As it turned out, however, she died first.

Consequently, Ben smartly updated his account, naming his three grown children as the co-beneficiaries of his account.

Filed Under: Estate Planning, Financial Know How, Life Events Tagged With: , , , ,