Financial Matters

Tips and news from the financial experts at Attentive Investment Managers.
Jul
17

Withholding Changes

tax-withholding

The new tax law made it hard to know how much to withhold from your paycheck every few weeks. As a result, many people withheld less than they might otherwise have, and either received a smaller rebate than expected or had to pay additional taxes in April.

Continue reading
  438 Hits
0 Comments
438 Hits
  0 Comments
Feb
08

2019 Contribution Limits and Deadlines

saving-for-retirement

How do the new contribution limits affect you? Retirement contribution maximums have increased across the board for 2019. Here are some of the biggest changes to be aware of this year.

Continue reading
  1158 Hits
0 Comments
1158 Hits
  0 Comments
Jan
16

Tax Law Changes and the Government Shutdown

tax-changes

As the shutdown continues, we would like to urge you to continue to monitor your own tax situation and how it relates to your financials, being prepared for when the shutdown ends as well as continuing to look toward your future. 

Continue reading
  1714 Hits
0 Comments
1714 Hits
  0 Comments
Dec
03

Harvesting Losses

tax-loss-harvesting

Recently, we have experienced a downturn in the markets and while that is frustrating and, at times, downright scary, there are ways that you can take advantage of these tough times. Tax-loss harvestingnot only can decrease your tax liability exposure by offsetting taxable income, it also allows you to indirectly increase your overall return or have the ability to reap the gains from some of your other investments.

Continue reading
  576 Hits
0 Comments
576 Hits
  0 Comments
Sep
11

Charitable Contributions Using RMD’s

charitable-contributions

With the new tax law changes from the 2017 Tax Cut & Jobs act, many Americans will be utilizing the increased standard deduction rather than itemizing. Those of you who are subject to the Required Minimum Distribution (RMD) rules can make distributions to your favorite charities from your IRA.

Continue reading
  582 Hits
0 Comments
582 Hits
  0 Comments
Dec
04

’Tis the Season

busy-season

The period between Thanksgiving and the end-of-year holiday season would seem like a sleepy time for financial planners, but in fact it is anything but. You might be surprised at how much activity takes place on behalf of you and your investments in the final month of the year.

For instance? Even though this has been a good year in the markets, not all investments will have gained value. This is the last opportunity to harvest any losses we find in taxable accounts, by selling investments that have gone down and “booking” the loss. Then we can look for investments that have gained value, sell some of those to offset the losses, and thereby save capital gains taxes in the future. Up to $3,000 of ordinary income can be offset by investment losses as well.

This is also the time of year when mutual fund companies post, in advance, the amount of ordinary income and capital gain distributions they will make to their shareholders. Since the value of the shares drops by the amount that is distributed, this would seem like a non-event performance-wise. But in fact some mutual funds are poised to make 20% or even 30% distributions, and this cash is immediately taxable, unlike gains in the share values, which are only realized when you decide to sell. By selling funds before the distributions, and buying them back later, we can reduce your tax bill this year.

Continue reading
  920 Hits
0 Comments
920 Hits
  0 Comments
Nov
15

Tax Proposal: What does it mean for you?

tax-proposal

There is a lot of discussion happening regarding the recently released GOP Tax Proposal. With pages and pages of proposed changes the most important thing to note is that this is a proposal, certainly not a finished product and the tax overhaul is far from certain. For you, our clients, not much has changed in the kind of preparation we believe you should be doing. As in every year, we want you to review your expenses, income and last year’s returns and of course, look at any what-if scenarios that may be on your horizon.

Continue reading
  2133 Hits
0 Comments
2133 Hits
  0 Comments
Jun
12

Tax Reduction Strategies

tax-cut

​1. Pay Yourself First

The utilization of company retirement plans (401-k's and Simple IRA's) are the easiest way to build up tax advantaged assets for your retirement goals. Verify that you are contributing the amount required in order to maximize the employer's match. Above that amount it would usually be prudent to try to contribute the maximum amount possible in order to minimize your income tax liability.

Continue reading
  4223 Hits
0 Comments
4223 Hits
  0 Comments
Mar
24

A Brief Guide to Social Security

A Brief Guide to Social Security

If you're starting to plan for retirement, Social Security may be an important source of retirement income. Millions of Americans depend on Social Security today. For some, it is their primary source of retirement income, and for others, it is supplemental income.

Benefits of Social Security

Continue reading
  1367 Hits
0 Comments
1367 Hits
  0 Comments
Nov
28

Year-End Gifting

Year-End Gifting
A "gift" is any transfer of an asset for less than full consideration (usually no consideration). The annual exclusion (both per donor and per donee) is currently $14,000 per calendar year. There is no limit to the number of donee's that you can gift. While the gift is not taxable to the recipient, it is also not deductible (other than charitable gifts) by the donor. The recipient will take the "tax basis" of the donor for income tax purposes. If the $14,000 per year done rule is exceeded during the calendar year, a gift tax return (Form 709) should be filed by April 15 th of the following year. No actual gift tax will be paid to the I.R.S. until the taxable portion of the gift(s) exceeds $1,000,000 per donor. Needless to say, this is a complex area and I recommend consulting a tax professional if contemplating gifts that exceed the $14,000 per year limit. 
  1131 Hits
0 Comments
1131 Hits
  0 Comments
Oct
27

Year-End Tax Planning

Year-End Tax Planning
​A s we near the end of another year, it's a good time to see if there are any actions to implement in order to lower your tax bill next April. Portfolio review for capital losses A review of your non-retirement accounts in order to liquidate any holdings that would produce capital losses. If your losses exceed your capital gains, you can deduct up to $3,000 against ordinary income. Any excess losses above the amount are carried forward to future years. Establishing a 401(k) plan If you're self-employed you have a 12/31 dead-line to establish a 401(k) plan. Other types of retirement accounts (SEP-IRA's, traditional IRA's) can be set up after year end and still be timely funded in 2017 to produce a 2016 write-off. Roth Conversions If your income is down in the current year (hopefully it is not), a Roth Conversion can make lemonade out of lemons. Converting an IRA to Roth IRA may be something to consider. You should talk this over with your tax preparer ahead of ...
Continue reading
  1391 Hits
0 Comments
1391 Hits
  0 Comments
Jan
28

Tax Preparation Tips

Tax Preparation Tips

​As you get ready for your 2015 tax preparation, we have a few helpful tips so that you can quickly and efficiently ready yourself for your tax appointment. First and foremost – BE ORGANIZED! Remember that Time is Money. Most firms provide 'Organizers' for you to fill out, take a few moments and compare your current year data to your prior year – this will allow you to determine if there is anything that you may have inadvertently forgotten.

You will need to gather all of your W-2's, 1099's, K-1's, to name a few. If you are self-employed be sure that your books are up to date and it is helpful to have all your financials available (i.e. Balance Sheet & Income Statement).

Continue reading
  1483 Hits
0 Comments
1483 Hits
  0 Comments