Last week, Bob and Myra, young physicians from Sacramento, called about recent U.S. markets’ performance. Various headline-seeking media pundits had again used the questionable words “jittery”, “uncertainty”, “risky”, and “crash” (heard last week in my gym class). Is it possible that there is a parallel between Lewis Carroll’s most famous nonsensical poem included in Through the Looking Glass, and current media hyperinflammatory markets’ headlines?Read More
With Baby Boomers retiring at a record pace, we have been busy meeting with prospects and clients alike to discuss retirement planning. We have found that once people get within five years of retirement, they become more interested in the finer details.Read More
Susan and Larry, dependent upon their investments for retirement income, called from their gated community in San Jose, California. They asked, “With the recent amount of volatility, shouldn’t we dramatically change our strategy, move to only bonds, or leave the stock markets entirely?”Read More
Many investors want to know how this may affect their finances and ultimately their retirement. With interest rates on the rise, how they might you be affected?Read More
On Beyond Investments, featured on KNCO, Seth Leishman and Rick Fisher discuss stock market volatility.Read More
Last week, we received a call from Santa Rosa, from a widow who is feeling the holiday spirit. She is financially secure, will have significant capital gains this year, is worried about those in her community, and her immediate family. She had a sum of money in mind to help, and asked us for our 5 best ideas.Read More
By Frederick “Rick” A. Fisher, MS, CFP®
As the holiday season approaches, many of us are planning for all the events that the season brings. This is always a very busy for all of us. In the midst of it all we often do not set aside time for one of the most important tasks of the year. One that if we made a higher priority, could potentially save us hundreds if not thousands of dollars each and every year. What I am referring to is year end tax and investment planning! Now is the time we should be taking a look at where we are year to date in our investment and tax goals.
The items we need to check on are many, but I will focus on three: Retirement Plan Contributions, Charitable Deductions and Payroll Withholding Options.
To illustrate, we will take the hypothetical case of the Smiths. Greg is a self-employed consultant, and his wife Jan is a nurse at the local hospital. Greg and Jan each make around $80k per year. They are both 52 years old, want to minimize their tax liability and maximize their retirement funding.
Greg currently has as SEP IRA that he has funded for many years. However, some years he has not had the cash necessary to fully fund his SEP. Since the limits to fund the SEP are based on his self-employed income, which fluctuates year to year, the amount changes year to year. This year, he decided to track his income each month and then save 20% of that number, put it in savings so he would have enough to fully fund this year and subsequent years till retirement.
In order to prepare for their year-end tax planning meeting with their CPA, they gathered information on year to date retirement plan funding and reviewed what they had given so far to charity. Greg had invested $15k in his SEP so far, and has another $5k in savings that is earmarked for additional investment if possible. Jan has been deferring 5% of her income into the hospital’s 401k in order to receive the full match of 5%. They have a goal of contributing 5-10% of their take home to a list of local charities. Upon review, they had to date donated $3k in cash and approximately $1k in furniture, clothing and books to a local Thrift Store. That calculates to 4%, so they made a list of donations they planned to make before the year end. Finally, Jan reviewed her latest pay stub, to see if her YTD withholding was just right per income projection. Their goal was to have the withholding cover her income, and to avoid having the government holding her money for the year. They reviewed these items with their tax professional and left the meeting confident that they were on track for the year and that they would not have any tax surprises come April. If you are not certain of where you stand regarding your financial and tax goals, contact your financial professionals for a year end planning review.
Frederick Fisher is a Certified Financial Planning Practitioner, and Insurance Agent with Ostrofe Financial Consultants, Inc. managing over $208 million in assets, with clients in 29 states. Advisory services provided by Ostrofe Financial Consultants, Inc., a registered investment advisor. Separate advisory and securities services may be provided by National Planning Corporation (NPC), Member FINRA/SIPC, and a S.E.C registered investment advisor. Ostrofe Financial Consultants, Inc. and NPC are independent and unrelated companies. Please consult with your representative to confirm on which company’s behalf services are being provided. For questions or suggestions, contact Rick Fisher at (530) 273-4425, or firstname.lastname@example.org, or visit ostrofefinancial.com. Branch address: 565 Brunswick Road, Ste. 15, Grass Valley.
This item is historical and based on information that was current at the time of initial print. It contains information that has changed. Staff and business names may have changed.
In this episode of Beyond Investments, Seth Leishman talked with Nathan Leishman about his experiences with international investing.
Most recently, in June, we had the British European Union Exit (BREXIT) vote that pushed their concerns over the edge and decided it was time to take action.Read More