Like most Americans you are finished preparing your tax return or telling yourself you still have a few weeks left! Now that you know whether you will receive a refund or owe an additional amount, you may be thinking of how you can avoid any surprises next year. See the following article, written by a professional financial journalist of Advisor Products, which provides a list of common examples of circumstances that may affect your amount of tax owed. This is not an all-inclusive list, but a great start to provide ideas you may not have known existed.
You will be best served working closely with your accountant and financial advisor to make changes that are in your best interest. We welcome the opportunity to help you develop a plan and analyze your specific tax situation for any strategies that will benefit you today and in the future. Please call our office today at 847-934-7777 to schedule a free initial consultation.
Even as we approach the midpoint of this year, it’s still not clear whether some favorable tax provisions that officially expired last year will be extended retroactively into 2014. Yet while that uncertainty could affect your tax planning for this year, there’s plenty we do know that you could act upon. Consider these 14 midyear tax strategies for ’14:
1. Sell securities at a gain. Despite recent tax law changes, you still can benefit from rules that give you a tax break on investment sales. The maximum tax rate for long-term capital gains is only 15% (or 20% for those in the top two ordinary income tax brackets). However, some upper-income investors also may have to pay a surtax of 3.8% on capital gains.
2. Harvest capital losses. If you’ve already realized gains—particularly short-term gains taxed at ordinary income rates reaching as high as 39.6%—you might be able to sell losing positions to offset those profits. If your losses exceed your gains, you also can use them to erase up to $3,000 of ordinary income in 2014.
Maybe you’re in the homestretch before retirement or perhaps you’ve already stopped working. If you’ve been diligent in setting aside funds to sustain you through your golden years, congratulations are in order, but you can’t rest on your laurels. As life expectancies continue to increase, it’s more important than ever to address concerns that you might outlast your money. As the rebound in the economy and stocks has demonstrated, you need to take steps to plan for the long haul and stick with that plan through downturns. Although there are no guarantees when it comes to investing, consider these five suggestions for planning for the long term:
1. Be able to ride out stock market downturns. Even if investing in equities helped get you where you are today, you may decide that the inherent volatility of the stock market means you should get out of it altogether during retirement. That might not be the best approach.
Instead, try to stay on a path for sustained growth that factors in your personal tolerance for risk. For instance, a conservative investor embarking on retirement might allocate 30% of a portfolio to equities and 70% to fixed-income investments. A more aggressive investor likely would choose a higher percentage—perhaps 40% or 50%—to keep in stocks. But the important thing is to find a balance between risk and reward that helps you meet your goals and that won’t send you fleeing from stocks when they decline sharply.
If you're ready to detail the income sources you'll have in retirement and set a plan that is unique to you, give us a call today at 847-934-7777.
Has anyone ever said to you, “I wish I would have started when I was your age”? Whether they’ve said this regarding a parenting topic, exercising or beginning their financial plan, it’s not until we are in that same situation years down the road that we realize we should have heeded their regret and started.
We are all aware of the popular, for some dreaded, individual tax deadline of April 15th. Unfortunately there are no deadlines for starting your financial plan or saving for the future. Until something happens where we realize we are in over our head and need to reach out for professional help, do we make it a priority.
Your finances each day help you either move closer to achieving your goals or further from completing them. A plan is a plan, and normally we have to adjust here or there to refine it. Each day you earn income or pay an expense, your plan can change; your financial plan is not a one-time event.
Perhaps other reasons have stopped you from reaching out to a financial advisor. You may think you don’t have enough money or it’s too expensive.
We encourage you to call us today! Let’s get started moving closer toward achieving your financial goals. Even billionaires started somewhere. Contact us at 847-934-7777 to schedule your free consultation.
Do You Prefer a Window or an Aisle Seat?
You know that point in the flight after the pilot says flight attendants please prepare for landing, when everyone starts to look out the window to see the landscape from above, to gain a clearer view? Regardless of whether you’re in a window or aisle seat you’ve probably found yourself trying to get a glimpse of what life looks like from above. This is exactly what you should expect from your financial advisor.
As you are caught in the day-to-day of working hard to prepare for your future, someone should be managing the big picture to keep you on track for whether and when you’ll reach your destination.
Here is a list of what you should expect from your financial advisor:
Your advisor should serve as the pilot guiding you in the direction of your next move. Regardless of turbulence in the world, s/he should still get you to your destination safely. Aware of your goals, you can trust your advisor is on your team.
You should not feel uncomfortable in the middle seat nor should you feel pushed into buying any specific products. Although various insurance or investment products are necessary in your financial plan, your advisor should make recommendations on what you need. S/he should offer to provide any additional resources for where to obtain these products, as needed.
You should know what is going on in your financial plan. It should not seem like a foreign language, but rather something you are a part of and understand. A financial advisor should be able to provide the facts in the following areas:
Insurance Planning Investment Management Tax Planning Financial Planning Estate Planning Education Planning Retirement Planning
When you work with a financial advisor you should feel like you are First Class.
- Just as the entire flight crew is important, so is your advisor’s team. This support is important in completing the journey ahead.
Our team, here at Kabarec Financial Advisors, Ltd., feels it is crucial to provide our clients with quality service they can expect! We strive to give every client a First Class experience. If you or someone you know needs guidance from a professional, please contact us at 847-934-7777 to schedule an appointment today.
We are pleased to announce that Kabarec Financial Advisors, Ltd. has been named as one of the Best Financial Advisers for Doctors in 2013 by Medical Economics. Throughout the years Kabarec Financial Advisors, Ltd. has been recognized in various magazines and articles such as, the top ten of the Most Dependable Wealth Managers of the Great Lakes by Goldline Research, in Worth Magazine as one of the Top 250 Wealth Advisors for a Challenging Economy. We are always grateful and humbled by the support of our clients.
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