Good to Know

Conventional wisdom says that sole proprietorships, partnerships, Sub-S Corporations and certain LLCs (“pass-through” business structures) should strongly consider converting from their present business form into a C Corporation (C Corp). Why? The 21% C Corp income tax rate from the Tax Cuts and Jobs Act can be seductive, especially when personal income tax rates can…

The Financial Planning profession is expected to grow dramatically in the near term according to a recent CFP Board newsletter. The Board expects the need for personal financial advisors to shoot up by some 41% in the near term and continue leading the average occupation growth through 2020. If you are currently practicing as a…

It would be a mistake to consider the Roth IRA (or Designated Roth account) merely for the income tax-free qualified distributions. There’s more, much more, to the Roth and we’ll reveal a condensed thumbnail of just three commonly overlooked benefits. 1) Minimize the 3.8% Net Investment Income Tax (NIIT) Because the NIIT is based in…

A financial planner’s work is never done. The administration’s proposed 2014 budget takes aim squarely at the “permanent” estate tax reforms passed in January 2013.  The current $5,250,000 estate tax exemption would plummet $1,750,000 to only $3,500,000. The estate tax rate would jump to 45% from the current 40%. But that’s not all. The proposal…

What’s in your Last Will and Testament? Estate planning practice in the last two generations frequently included a Testamentary Trust for benefit of a couple’s children at the death of a parent.  This trust was known by a variety of names, including “Bypass Trust”, “Family Trust”, or “Credit Shelter Trust”.  Rather than specify the exact…

A CERTIFIED FINANCIAL PLANNERTM can help clients save thousands of dollars by helping clients manage this new tax.  Medicare tax has historically been assessed only against earned income. Effective January 1, 2013, a new 3.8% Medicare Tax (the 3.8% tax) will also be levied against unearned income of taxpayers with adjusted gross income (AGI) above thresholds. How…

“Some gotta win, some gotta lose” is more than a line in an Elvis Presley song – it’s the government’s rendition of the Fiscal Cliff Deal. What exactly is the fiscal cliff? Is the fiscal cliff sheer media hype or a real crisis? The fiscal cliff refers to a perfect storm of tax increases and…

According to CNN Money being a financial advisor is the 6thbest job in the United States.  That is no surprise to people already in the industry, but may come as a surprise to those who aren’t familiar with the normal duties of a financial advisor.  So what makes it such a great job?  Primarily, it’s the satisfaction…

We are very excited to announce the re-launch of our CFP® Certification Education Programs blog.  The goal of this new look and feel is to make the blog more relevant to you, the student.  To that end, we have come up with a number of categories under which we will post information.  We will also…

We often feel guilty when we make an expensive purchase. After all, conventional wisdom dictates that every penny must be saved or invested. Scott Rick, a University of Michigan marketing professor, together with other researchers, conducted a study to quantify how people feel about what they buy. During the course of the study, they discovered something…