I rarely write about specific tax rulings, particularly private letter rulings, but this one is just too packed with lessons to pass up. In this situation, a lifetime of accumulation winds up being unnecessarily whacked with taxes simply because of procedural errors and lack of planning or good advice.
Below is a breakdown of some important components to this recent legislation, including what business owners, families, and struggling individuals may need to know.
While this is part of the "Lessons I Learned" category of this blog, this crisis is ongoing so I thought I would do this one in the midst of the event. I have spent the last three weeks reaching out to clients offering perspective, advice, portfolio updates and planning opportunities. Now I'll take a pause to review the big picture and hopefully provide some therapy along the way.
Only two years after Congress gave us sweeping changes with the Tax Cuts and Jobs Act, we now have the "SECURE" Act. Passed and signed just days before Christmas, we find that there are some goodies, as well as some lumps of coal.
I was reminded recently why it’s so important to follow up on transactions to make sure instructions have been properly completed. I’m part of several professional forums where advisors can collaborate with each other, pose questions, etc.
While not the most exhilarating topic to think about, having a detailed list of what to do when a loved one passes can bring great comfort during a time of deep grief and stress. Also, this kind of checklist is also valuable during life as a guide for what things to keep up to date... just in case.
They say the best way to learn is to teach. I've always found this to be true. For over 10 years, I've volunteered with Junior Achievement (JA) as a classroom guest speaker on various topics.
I want to address a common investment strategy (“income/yield investing”) and a related spending rule of thumb (“don’t spend your principal”). Despite the superficial attractiveness and a certain forced discipline, neither of these are good strategies. At the end, I’ll offer improved versions of both of those ideas...