What Is in the $2 Trillion Relief Package?

The United States has more cases of the coronavirus than any other country, and in an attempt to stop the spread of this disease, states have closed schools and businesses throughout the country. These unprecedented shutdowns have pushed many people out of work, hurt businesses, and brought much of the economy to a screeching halt.  … Read more

Fed Is All In

The Federal Reserve (Fed) surprised markets over the weekend by holding its March 17-scheduled meeting a few days early and introducing a wide range of provisions. Those provisions are intended to add liquidity, increase credit availability, lower the cost of borrowing, and eventually support the economy’s recovery from the impact of COVID-19. Usually, Fed actions … Read more

Weekly Market Update

Markets remain volatile on coronavirus uncertainty. Despite a strong day for the S&P 500 Index yesterday on stimulus prospects and greater election clarity, we expect market volatility to continue. The overnight news cycle pulled S&P 500 futures meaningfully lower as containment efforts intensified. Until we have a clearer picture of the course of the virus, market volatility will likely persist and … Read more

Closer Look at February

A late month selloff in January saw the S&P 500 Index close marginally lower for the month. But stocks have taken off in February, with the S&P 500 up nearly 4% this month, as US economic data remains strong and fears over the worst-case scenarios for the coronavirus appear overblown. Historically, February has been a … Read more

Tax Consequences of Gifting Money

The Gift Tax Exemption Explained. The IRS collects taxes on estates valued at $11.4 million or more per individual. Gift taxes exist to ensure that estates can’t evade taxes by giving money away to reduce or eliminate the estate tax bill. You can, however, use annual and lifetime gift tax exemptions to legally reduce your … Read more

Categories Tax

Using Your IRA to Give from the Heart

Qualified Charitable Distributions: Using Your IRA to Gift. The Tax Cuts and Jobs Act roughly doubled the standard deduction ($12,200 for single filers and $24,400 for married taxpayers filing jointly in 2019) and indexed it for inflation through 2025. As a result, far fewer taxpayers will itemize deductions on their tax returns, and some people … Read more

Categories Tax

Taxation of Investments

It’s nice to own stocks, bonds, and other investments. Nice, that is, until it’s time to fill out your federal income tax return. At that point, you may be left scratching your head. Just how do you report your investments and how are they taxed? Is it ordinary income or a capital gain? To determine … Read more

Categories Tax

Basis of Investment Property

I have investment property. What does basis mean and how do I determine the basis of my property? To determine your basis in an asset for purposes of calculating capital gain or loss upon the sale or other disposition of the property, you need to understand two terms — initial basis and adjusted basis. Often, … Read more

Five Strategies for Tax-efficient Investing

Savvy investors have long realized that what their investments earn after taxes is what really counts. After factoring in federal income and capital gains taxes, the alternative minimum tax, and potential state and local taxes, your investments’ returns in any given year may be reduced by 40% or more. For example, if you earned an … Read more

Not All Risk Is Created Equal

When it comes to portfolio construction and asset allocation – not all risk is equal. You’ll often hear different standard allocations – for example 60/40, 80/20 etc., but even in a set investment mix – the risk doesn’t remain constant. Nor is the risk of similar allocations (for example, two different 60/40s) equal, simply because … Read more