IRS Form 1099-K – The New Reporting Rule
Unless Congress acts this year to change the rule it enacted with the adoption of the American Rescue Plan Act of 2021, more information reporting will be required of certain third-party payment networks. Beginning this year, payment card companies, payment apps and online marketplaces such as PayPal, Amazon, Venmo and eBay, must file IRS Form […]
Is Leverage Good?
Leverage is a powerful force that is deeply rooted in our society. It has facilitated the build-out of communities, contributed to the expansion of businesses, and led to countless booms and busts in the economy. While there are many places where leverage has done good, that doesn’t tell the full story. What Does Leverage Mean? […]
The Flexibility of 529 Accounts
Section 529 accounts, also referred to as qualified tuition programs (QTPs), have adapted over the years to become the “go-to” savings vehicle for education. The 2017 Tax Cuts and Jobs Act (TCJA) provided a significant change – allowing parents to take tax-free withdrawals from a 529 plan to pay for tuition at K-12 schools (capped […]
Average Returns are Anything but Average
Today, we will deconstruct a common myth about market returns. Before I get started, I recently addressed some common investor mistakes and how to avoid them. If you missed them or would like to reread them, you can do that by simply clicking here, here, and here. Do you know what the average price return […]
Financial Habits and Lifestyle Creep
In our last blog, we encouraged you to start the new year off right by setting a few financial goals for yourself. Setting personal financial goals is so important, but, just like fitness goals, they can get pushed to the back burner of life. Time moves quickly. In the blink of an eye, you have […]
Common Investor Mistakes – Part 3: Put Your Money to Work!
In Part 1 of this series, we discussed Emotional Trading and the behavior and cognitive biases displayed when making this mistake. In Part 2, we expanded on that discussion, going through Risk Tolerance, which is the foundation of portfolio construction and can help you avoid making emotional trading decisions. In Part 3 of this series, […]
Save on Taxes in a Negative Calendar Year
With both the stock market and fixed income market well into the red for the year, the capital loss deduction should be heavily utilized this upcoming tax season. How it works A net capital loss occurs when realized capital losses exceed realized capital gains for the year. The key here is that a position has […]
Value vs Growth: What is the Difference?
Value vs Growth is a common theme in the investing world. Commonly investors will bucket a stock into either growth or value. The problem with this practice is that value and growth are not mutually exclusive. Growth and valuation are two separate considerations in evaluating a company or a stock. If a company exhibits high […]
Maximizing the Savings Power of your 401(k)
If you contribute to a 401(k), it is likely that you are familiar with the benefits of saving to a workplace savings plan and are at least somewhat aware of your salary deferral limit. What most do not realize is that you may be able to sock away more, and even more strategically, than you […]
Common Investor Mistakes – Pt. 2: Risk Tolerance
This is Part 2 of my series on common investor mistakes. In Part 1, I went into detail about the common investor mistake of Emotional Trading. This blog expands on that topic by talking about risk tolerance and portfolio construction which can influence people making emotional trading decisions. First, let us start by defining […]