Yesterday one of our clients asked us for the cost basis for a corporate bond that had been in her portfolio. It matured last year (2017) and the principal was returned to our client. Her CPA was working on her taxes and needed to know what our client originally paid for the bond – the […]
Avoiding mistakes when dividing retirement accounts in divorce
The dissolution of a marriage is often a very stressful and challenging process, and decisions on dividing retirement assets can often exacerbate things, as this nest egg usually represents the couple’s largest resource base. And making mistakes when splitting these accounts can result in taxes, penalties and, potentially, an unintended portion of the money going […]
Retirement Distribution Planning
So, you’ve managed to save enough to retire and spend the rest of your life doing things that really matter to you. If you’re like most Americans, and did not work in the public sector, you probably don’t have a pension from your prior employer(s). Instead, you saved in your employer-sponsored retirement plan. You probably […]
The Administration Roils the Stock Market
Economists tell us that there are a few things that can derail a strong economy. The government can raise taxes. The central bank (i.e. Federal Reserve) can raise interest rates. Prices can jump (i.e. inflation). War can break out. The U.S. economy has been performing very well for the past several quarters. Inflation is low. […]
Do you know what you’re paying your “advisor”?
The long-running battle for the interests of American investors continues. Imagine that your doctor writes you a prescription for a certain medication – even though a better, less expensive option is available – and receives a commission from the drug company for the prescription. If caught for doing so, the doctor would risk losing their […]
Oregon says “no” to 529 plan use for private schools
A few weeks ago we noted that Congress, though the 2017 Tax Cuts and Jobs Act, allowed owners of 529 education plan accounts to pay for private school tuition for kindergarten through 12th grade. Funds taken from a 529 plan to pay for private school will not be subject to federal income taxes. However, we […]
Losing the Deduction for Professional Fees Probably Won’t Hurt You
Until Congress passed the Tax Cuts and Jobs Act last December, investors were able to deduct the fees associated with the professional management of their investments. These fees were deductible to the extent that the taxpayer’s total miscellaneous itemized deductions exceeded 2% of their adjusted gross income. For example, assume your that adjusted gross income […]
The Oregon College Savings Plan and Tax Reform
As we mentioned in an earlier post, Congress made changes to 529 education plans when it passed The Tax Cuts and Jobs Act in December 2017. It is now possible to use a 529 plan to pay up to $10,000 per year, per student for private school tuition for kindergarten through 12th grade. This is […]
What is a bond’s duration, and why does it matter?
With the Federal Reserve planning to continue gradually increasing short-term interest rates, investors should be familiar with the concept of “duration” for fixed income investments. Most investors will understand that a bond’s “maturity” measures how long a fixed income investment lasts, i.e. when they will receive their principal back from the bond issuer. What is […]
A tax-efficient way to donate to charity
Owners of individual retirement accounts who are at least age 70 1/2 can contribute some or all of their IRAs directly to charity. The motivation to do so is that it can be advantageous from a tax perspective in some cases. If you have a traditional IRA, you must begin taking required minimum distributions (RMDs) […]