Large-scale data breaches are in the news again, but that's hardly surprising. Breaches have become more frequent — a byproduct of living in an increasingly digital world. Although you can't stop wide-scale data breaches, you can take steps to protect yourself.
The IRS continues to encourage taxpayers to review the amount of tax they have withheld to avoid an unexpected tax surprise when they file their 2019 tax returns next year. Preliminary 2018 tax filing data seems to show the need for taxpayers to review their withholding in order to make sure the appropriate amount of tax is being withheld from their paychecks to reflect recent tax law changes.
While U.S. consumers and businesses may bear the brunt of the tariffs in the short term, the United States is better positioned to outlast China in an extended trade war. Despite headwinds from trade concerns, the U.S. economy remains strong.
Diversification, in the sense that we are interested, is defined by the NASDAQ Online Glossary as “Investing in different asset classes and in securities of many issuers in an attempt to reduce overall investment risk and to avoid damaging a portfolio's performance by the poor performance of a single security, industry, or country”. Sounds reasonable, but surely, we are not expected to believe that an indiscriminate amorphous blob of diversification is the right amount.
After years of keeping the benchmark federal funds rate at historic lows, the Federal Reserve has been raising it gradually. Near-zero rates were an emergency measure, and gradual increases reflect greater confidence in the U.S. economy. However, rising rates can affect you as a consumer and investor.
Charitable gift planning has increased in importance due to the current tax landscape. Donor Advised Funds are one of several strategies you can work with your advisor to explore and create opportunities for increasing effectiveness of your giving while minimizing income taxes.
When it comes to important financial decisions, it always feels like we should do something, but as Charlie Munger said: “The big money is not in the buying and selling … but in the waiting.” By designing repeatable processes, controlling our emotions, and putting the wind of time to the back of our sails, we maximize our potential to reach and surpass our goals.
When making charitable gifts at the end of a year, it is generally useful to include them as part of your year-end tax planning. Changes to the tax code in 2018 may impact traditional charitable giving scenarios.
If you converted a traditional IRA to a Roth IRA in 2017 and your Roth IRA has sustained losses, you may want to consider whether it makes sense to undo (recharacterize) your conversion. You have until October 15, 2018, to undo your 2017 conversion.
The IRS has released proposed regulations that would shut down some suggested workarounds for the new $10,000 limit on the deductibility of state and local taxes (SALT). The new guidance would close the door on a strategy offered by some states to circumvent the deduction limit by attempting to turn the taxes paid into charitable contributions not subject to the same cap.