The Classic Story of a Spender and a Saver

The untypical financial planning blog! Yes, my wife came up with the title as I get teased a bit for being a little frugal. However, we do try to find some humor in it. Hopefully some of these random thoughts will help you in your financial journey, So enjoy! - James Daniel, CFP®, CFA, CMT, EA Now for the DISCLAIMER: This blog is not intended as financial advice. We encourage you to consult with your personal advisor before acting on anything you read here.

Conflict of Interest

Written on June 25th, 2019 by Jamesno shouts

If your advisor is selling you an investment that he/she makes a commission on, there will always be an inherent conflict of interest.  Is the investment good for the client or better for the advisor’s wallet?  This is a more extreme case where investors lost a lot of money, but I’m sure that the advisors were attracted to the 9% commission payout:

https://www.investmentnews.com/article/20190624/FREE/190629964/gpb-paid-b-ds-and-reps-steep-commissions-to-sell-troubled-private

Do you really want that big house in retirement?

Written on June 19th, 2019 by Jamesno shouts

Interesting article from the WSJ:

https://www.wsj.com/articles/a-growing-problem-in-real-estate-too-many-too-big-houses-11553181782?mod=e2tw

It just never seems to change

Written on June 11th, 2019 by Jamesno shouts

You would think that folks would learn that there is no free lunch and that no investment person can guarantee returns.  However, folks still learn the hard way.

ps.  No regulated investment professional can accept your investment money via Venmo!

SEC Seeks Emergency Relief to Halt Ponzi Scheme Run From College Fraternity House

 

 

Congress voting on retirement changes

Written on May 21st, 2019 by Jamesno shouts

A link on Yahoo regarding the upcoming vote:

https://www.yahoo.com/finance/news/4-ways-that-washington-may-soon-change-how-you-save-for-retirement-154824097.html

Should you apply for medicare at 65?

Written on May 12th, 2019 by Jamesno shouts

The folks at Medicare.gov have put out a good question and answer PDF with different scenarios to help clear up the confusion about when to apply for medicare.

Do I apply for both A and B medicare at 65?

Where are the Atlanta offices for SS and Medicare?

 

What’s the real story with 2018 taxes?

Written on February 26th, 2019 by Jamesno shouts

The media has been all over the fact that many are not getting a refund this year and actually owe taxes this year.  Actually from what I’m seeing, they are correct.  However, it has nothing to do with the 2018 Tax Cuts.

Employers lowered the amount they were withholding from employee paychecks in 2018 and now it is coming back to haunt those taxpayers.  Overall, what I’m seeing is that most are in a lower tax bracket (a few percent), but unfortunately did not withhold enough throughout 2018, so they owe.  Especially those with higher incomes (limit on state/local tax deduction is also hurting).

Go ahead and adjust your W4 so that this doesn’t become a reoccurring problem next year:  https://www.irs.gov/individuals/irs-withholding-calculator

Understanding the new tax deduction for self employed/ rental income

Written on February 15th, 2019 by Jamesno shouts

Just posted a newsletter that gives examples and explains the new 199A deduction.  Download the newsletter here:  Tax Newsletter Feb 2019

bank consolidation

Written on February 7th, 2019 by Jamesno shouts

Today BB&T and Suntrust announced a merger.  I guess to survive and compete with the mega financial institutions they had to, but dang look at this graphic from 1996 to 2009 of how the last few standing have gobbled up everyone: (click on image and it will enlarge for viewing)

20% pass through deduction for Rental property income

Written on January 30th, 2019 by Jamesno shouts

The IRS has clarified the new tax law and its impact on rental properties.  Originally the wording stated that small businesses and REIT’s would get the 20% pass through but for owners of residential rental properties it was unclear.  They have now issued guidance and if you treat your properties like a business and spend over 250 hours annually on them (client service, collecting rent, repairs, etc) then you meet the safe harbor test to deduct 20% of net rental income from passing through to your tax return.

More info here:  https://www.irs.gov/pub/irs-drop/n-19-07.pdf