Blog

Updated: September 10th, 2017 by Kara Downing, CFP®

Back in 2017, one of the three largest credit reporting bureaus, Equifax, was hacked. The breach lasted more than a month, from mid-May until July and hackers gained access to names, Social Security numbers, birth dates, addresses, and even some driver’s license numbers of 143 million Americans—or nearly 50% of the country. Credit card numbers for 209,000 consumers were stolen, while documents with personal information used in disputes for 182,000 people were also taken. The breach was not reported to the public until early September.

If you have a credit report, as most of us do, your data was likely exposed. Here are some steps you can take to determine whether your information was compromised and what you can do about it:

Updated: June 19th, 2017 by Kara Downing, CFP® 

You’re 25 and feeling alive. You’re settling into life after college, paying off your debts, and slowly figuring how to “adult”. But with the responsibility of bills, rent, and even keeping up social appearances, prioritizing financial planning is something far too often pushed to the side. Of course, the nagging idea that maybe starting a 401-K might not be the worst thing, however it’s hard to fully take control of your financial future when the reality of everyday life is living paycheck to paycheck.

Updated: April 9th, 2017 by Kara Downing, CFP® 

Without fail as Tax Day approaches every year, the mind whirls while you check boxes and fill in numbers about everything you could have, should have, would have done to save more money on taxes. Could you have saved more? Invested better? Been smarter at charitable giving? Probably. It’s too late for some money-saving measures in the last minute lead up to the deadline for filing your taxes, but one you can take on simple measure to maximize your tax advantages (perhaps now, and certainly later)—set up a Roth IRA account.

Updated: April 25th, 2017 by Kara Downing, CFP® 

The term "beneficiary" crops up every now and again. Usually you’ll see it on an insurance form or hear about it in relation to a will, but despite the nonchalance we toss the term around with, beneficiary designations are incredibly important. Let’s break down the details on how and why beneficiaries matter.

Updated: March 19th, 2017 by Kara Downing, CFP® 

Updated: February 15th, 2017 by Kara Downing, CFP® 

Remeber the early days in life when it seemed like everything in the candy aisle was free if you begged your parents long enough? There’s something beautifully unburdened in the way which children experience the world: recklessly present and innocently ambivalent. Teaching your children lessons about money from a young age won’t crush that. What it will do is to set them on a path to future financial freedom and success. Children’s monetary habits are formed as young as age seven, according to a report published by University of Cambridge researchers. That means your children are going to learn about how to treat their money from someone, and it’s better for that person to be you.

Updated: November 22nd, 2016 by Kara Downing, CFP®
 

We received the following question from a prospective client last week, and we thought the context of it was appropriate for anyone questioning the merit of bonds these days. Read on for our response.

Updated: November 7th, 2016 by Kara Downing, CFP®

As the end of this particularly polarizing election season draws to a close, there is no question that the election and its impact on the stock market is top of mind for most investors. As was the case in prior elections, invariable stock market correlations seeking to predict election results or forecast the market’s direction have been plentiful. On one hand, the performance of the stock market during the three months leading up to the election has been somewhat of a predictor of who will win the race. On the other hand, we try to predict the direction of the market based on who wins the election. As much as we would all like to glean even a small amount of investment insight from the election year follies, it would be important to note that the stock market is essentially non-partisan, and Presidents have very little impact on the direction of the markets. As those who follow our investment philosophy already know, the markets are random, but they do work regardless of which party is in office.  Principled and disciplined, long-term investors don’t invest for an election cycle, they invest for a lifetime.

Updated: October 8, 2016 by Kara Downing, CFP®​

Normally, transferring qualified retirement funds into an individual, joint or trust account triggers ordinary income tax on the total amount that was transferred. But, when it comes to transferring employer stock, the IRS allows special tax treatment called Net Unrealized Appreciation, or “NUA” for short.  The amount you paid for the stock, also known as “cost basis,” is taxed at your ordinary income tax rates in the year of distribution. The difference between your cost basis and the current market value of the stock is taxed at the long-term capital gains rate in effect at the time the stock is sold. If the stock continues to appreciate before you sell, you will pay long or short-term capital gains rates depending on the holding period. The higher your income tax bracket and the more the stock has appreciated, the bigger the tax benefit you will receive.

Updated: October 3, 2016 by Kara Downing, CFP®​

There is common misconception that only the wealthy die with an "estate." In reality, we are subject to the same probate laws that guide the wealthiest of estates regardless of our net worth. The bottom line is if you don’t have a valid will, your state will create one for you, and it’s highly likely that it doesn’t share your same interests, desires, and intent for your family and property. Sadly, more than 55% of Americans die each year without a will; and while it’s understandable why the subject of death is one that people prefer not to contemplate, if they understood what happens to their estate when they die “intestate” (without a will), they might reconsider their reluctance. Dying intestate, even with a small estate can create tremendous and unnecessary hardships – financial and emotional – on the people you want to protect.