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12 Common Tax Errors to Avoid

Filing taxes can be a tedious process. If you plan to do it yourself, either online or with an old-fashioned pen and paper, it can be all too easy to make mistakes. If you aren’t familiar enough with the tax code to take advantages of available tax breaks, you could lose money. Clerical errors and math mistakes can lead to tax audits, late fees and even jail time for tax fraud. Avoid the following common mistakes to ensure that you get through tax season unscathed. 

1.    Choosing the wrong filing status: Choosing the correct filing status is important because tax brackets, deductions and credits vary for each status. You may fare better filing separately even if you’re married, so make sure to calculate both scenarios before choosing a status. You should also consider filing as Head of Household if you’re single and have a dependent living with you. Your filing status is based on your status as of Dec. 31 of the filing year. 

2.    Not claiming all available deductions and credits: You could end up with a smaller refund or a larger tax liability than necessary if you fail to take advantage of the tax breaks available to you. Do your research and consider getting help from a tax preparer or software to make sure you’re not missing anything in your return.

3.    Not claiming all dependents: You probably won’t forget to claim your children as dependents, but did you know you could claim your parents, too? Anyone you support financially (adult children, elderly parents or other relatives) more than they support themselves, may be claimed as a dependent as long as they meet the requirements. Even if your parents don’t live with you, you may be able to claim them.

4.    Forgetting to claim carryover items: Some tax credits must be taken over the course of several years if they exceed certain thresholds. Common examples include charitable donations, capital losses and business write-offs. If you weren’t able to claim the entire credit in years past, make sure you’re claiming it this year.

5.    Neglecting to calculate the AMT: The Alternative Minimum Tax is a parallel tax code with its own set of rules. Taxpayers are expected to calculate their tax burden two ways, once under the regular tax code and once under the AMT’s rules. Whichever outcome is higher is the tax they owe. Many taxpayers don’t calculate their taxes under the AMT because they assume they aren’t eligible, but the number of people required to file under the AMT is increasing. If you pick the wrong tax code, the IRS could come looking for the remaining balance.

6.    Claiming the wrong credits and deductions: Make sure you actually qualify for the credits and deductions you claim. If the IRS catches on, you could face a tax audit, recalculation of your tax burden, or in extreme cases—jail time for tax evasion.

7.    Not including all sources of income: If you worked at more than one job during the year, you should have a Form W-2 for each job. You should also include applicable Form 1099 for other income sources. Missing forms or leaving out income can lead to tax audits or a delayed refund. If you inadvertently leave something out of your return, you can file a Form 1040X Amended Return.

8.    Math errors: It’s easy to make math mistakes when you’re doing your taxes by hand and flipping back and forth between forms. Double-check your math before filing, because a mistake could lose you money or get you in trouble with the IRS.

9.    Direct deposit mistakes: You can now elect to receive your tax refunds via direct deposit to your checking or saving accounts. This election can help you save money and speed the process along, but it’s also another opportunity for error. If you input the wrong routing number, your return could go to someone else or be sent back to the IRS.

10.    Forgetting to include your social security number: You must include your correct social security number in order to file a return. Failing to do so can hold up your return and subject you to late filing fees. You must also include your spouse’s social security number if you file jointly, as well as the numbers of any dependents you claim.

11.    Forgetting to sign and date your return: Your return is not valid if you don’t sign and date it. Failing to do so could also subject you to late fees and delayed refunds. To remedy this, the IRS will send out a signature card for you to sign. Speed up the process by double-checking that your signatures are present.

12.    Not including your payment: If you owe the IRS money, make sure to include what you owe when you file. If you forget, you may end up owing interest and late fees even though you had the return filed on time.


Remember that past performance may not indicate future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, strategy, or product referenced directly or indirectly in this newsletter will be profitable, equal any corresponding historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. You should not assume that any information contained in this newsletter serves as the receipt of personalized investment advice. If a reader has questions regarding the applicability of any specific issue discussed to their individual situation, they are encouraged to consult with a professional adviser.

This article was written by Advicent Solutions, an entity unrelated to Guidestream Financial, Inc.. The information contained in this article is not intended to be tax, investment, or legal advice, and it may not be relied on for the purpose of avoiding any tax penalties. Guidestream Financial, Inc. does not provide tax or legal advice. You are encouraged to consult with your tax advisor or attorney regarding specific tax issues. © 2014-2017 Advicent Solutions. All rights reserved.

Concerning Income Mobility

According to a recent study led by Stanford economist Raj Chetty, when adjusted for inflation, approximately half of Americans born in 1984 earned more at age 30 than their parents did at the same age. This represents a stark decline from earlier generations, as Americans born in 1940 had a 90 percent chance of earning more than their parents. For many, the “American Dream” means climbing the economic ladder and making a better life for themselves and their families. However, over the past 30 years, this goal is becoming increasingly difficult to achieve. Though the study by the Stanford economists does not directly investigate reasons behind the decline in wage growth over the years, here are a few factors to examine that may shed some light on this alarming trend.

Reasons for the decline
Wage growth in the United States has slowed over the past few decades, and the wage growth that our economy has experienced is not being evenly distributed between classes. Approximately 30 years ago, the median net worth of an upper-income family was about 350 percent larger than that of an average middle-income family. However, in 2013, this disparity nearly doubled to 660 percent. Based on these findings, it seems that wage growth is primarily benefitting the 21 percent of Americans in the upper-income class, as opposed to the 50 percent of those in the middle-income class. Since wage growth isn’t aiding middle-income families proportionately, there is a correlating decrease in the likelihood of a 30-year-old out-earning his or her parents. Children whose parents are in the top 10 percentile of income have a 70 percent chance of out-earning their parents, while those whose parents fall in the top 50 percentile have just a 45 percent chance.

Regions impacted the most
Though the percentage of Americans earning more than their parents has been steadily declining nationwide, particular areas of the country are being negatively affected harder than others. 

Of all the regions in the United States, the Midwest has experienced the most concentrated decline in income mobility.

Half of a century ago, the Midwest was known for its prominence of manufacturing job opportunities. But since the manufacturing sector reached its job total peak in 1977, the amount of nonfarm manufacturing jobs in the U.S. has fallen by nearly 40 percent. Sixty years ago, about one in four Americans held a manufacturing job; now, just about one in eight Americans work in manufacturing. When considering these figures, there appears to be a strong correlation between manufacturing opportunities and income mobility. The likelihood of a child earning more than their parent was at an all-time high throughout the 1970s. 

However, when manufacturing jobs started to decrease, the likelihood of upward income mobility declined at a rate that was nearly equal. In fact, when manufacturing jobs slightly increased in the mid-to-late 1990s, the likelihood of upward income mobility for children born in the late 60s and early 70s experienced its steadiest growth in nearly 30 years. It can be deduced that income mobility in the Midwest has been similarly impacted by the loss of manufacturing jobs, mainly due to the emphasis of importing goods, as well as the automation of domestic manufacturing jobs.

What the future holds
Though the picture looks bleak, there may be brighter days ahead for the middle class. The U.S. Census Bureau recently reported that last year marked largest single-year gain for middle-class earnings in a half-century. Additionally, joblessness is among its lowest in decades, coming in well under the historical average. Even though the middle and lower classes may be struggling to out-earn their parents, they are able to find work and make a living for themselves— even if it may not be the idealistic version of the American Dream.

Remember that past performance may not indicate future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, strategy, or product referenced directly or indirectly in this newsletter will be profitable, equal any corresponding historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. You should not assume that any information contained in this newsletter serves as the receipt of personalized investment advice. If a reader has questions regarding the applicability of any specific issue discussed to their individual situation, they are encouraged to consult with a professional adviser.

This article was written by Advicent Solutions, an entity unrelated to Guidestream Financial, Inc.. The information contained in this article is not intended to be tax, investment, or legal advice, and it may not be relied on for the purpose of avoiding any tax penalties. Guidestream Financial, Inc. does not provide tax or legal advice. You are encouraged to consult with your tax advisor or attorney regarding specific tax issues. © 2014-2017 Advicent Solutions. All rights reserved.

  • December 16, 2016
  • By admin
  • Comments Off on Important 2016 Tax Reporting Information
  • in tax

Important 2016 Tax Reporting Information

Please note the following important dates related to 2016 tax reporting for your GuideStream Financial account(s) provided by the custodian, Pershing.

  • Retirement Accounts (401k, 403b, Roth IRA, IRA, SEP, etc) - 2016 IRS Form 1099-R will be mailed to clients by January 31, 2017, and will include all the applicable 2016 reportable distribution information through December 31, 2016.
     
  • Taxable Accounts - 2016 IRS Forms 1099 (B, DIV, INT, OID and MISC): 

Your form 1099 B, DIV, INT, OID, etc. will be delivered as early as possible, beginning January 31, 2017. By February 15, you will be mailed either your 1099 form or special Pending 1099 Notice.

  • The Pending 1099 Notice will be sent if issuers of securities you hold have not yet provided their final tax information. It will inform you of the securities that are pending final reporting, and will provide the anticipated mail date of your 1099 form. Your final 1099 will be mailed no later than March 17, 2017.  It is suggested that you wait for your final 1099 before filing your taxes.

Delivery of Tax Information is available via your NetX Investor Online Access.  E-delivery is the convenient way to approach tax season.  If you are enrolled to receive e-delivery of account statements, but not tax documents, simply click on the green ”Go Paperless” icon after you log in.

Electronic delivery of account communications can make managing your financial information easier. With the ability to download your tax documents to your computer, you can easily upload these documents to your favorite tax preparation program or email your tax documents to your accountant.   

Contact Us:
Please feel free to contact us if you have any questions regarding the tax mailing information above or going Paperless and having your tax documents sent electronically. If you need assistance, please contact your GuideStream advisor, or one of our Client Service team members:  Debra Lyon, Laurie Frisbie, or Lori Pelham at 1-800-325-8975.

  • November 8, 2016
  • By admin
  • Comments Off on Middle-Class Earnings Move Forward
  • in financial management

Middle-Class Earnings Move Forward

A recent release from the Census Department reports that, six years into the economic recovery, the middle class has finally seen household earnings increase. Though the reports are generally viewed to show that the middle class is burgeoning, there are those who believe this to be a false positive. Let’s examine the data and what it truly means for the middle class.

Benefiting the Middle Class
The term “middle-class” is used extensively in the media, but the exact parameters of who that applies to may be unclear for some. So first, let’s try to define what makes a family “middle-class.” First and foremost, because different areas have varying standards of living, there are no exact numbers for determining “middle-class” finances. According to Pew Research Center, a family of four must earn $46,960 to $140,900 annually to be considered “middle-class” in the United States. Alternatively, in terms of net worth, $0 to $401,000 is considered “middle-class,” according to NYU Professor Edward Wolff.

Middle-class earnings per household rose by 5.2 percent (inflation-adjusted) from 2014 to 2015. This figure includes increases for families of all ethnic backgrounds and for all major age groups. Last year marked the largest single-year household earnings increase for the middle class in nearly 50 years and is the first annual increase for middle-class families since 2007. Average household income for a middle-class family is now
$56,500.

Between 2014 and 2015, the amount of full-time, year-round workers increased by 2.4 million. This is the highest number of total, full-time working adults since the recession began. Together, the information regarding growing wages and increasing employment paints a positive picture of the current state of the middle class’s working situation.

In addition to increased earnings and higher employment rates, poverty levels and the number of Americans without health insurance also sharply declined between 2014 and 2015. The official poverty rate dropped by the largest amount in a single year since 1999, from 46.6 million to 43.1 million. Similarly, those without insurance declined from 33 million to just 29 million.

Cautious Optimism
Though tentatively interpreted as the middle class recovering from the recession, there may be need for cautious optimism when considering these statistics. It is important to note that the numbers that are consistently being cited by the media are based on “household” earnings, not individual earnings. Individual earnings are increasing at a much lower rate, at just 1.5 percent for men and 2.7 percent for women.

While the nominal value for household income is the highest it has been in nearly 20 years, purchasing power for the middle class’s median income is lower than its peak in 1999. Even given the recent earnings increase, the middle class is still earning less than it was in 1999 when considering inflation.

Though the increase in earnings was significant in relation to 2014 numbers, this is the first time that such an increase has happened since the recession. Therefore, some analysts suggest that 2015 should be considered an outlier and not necessarily indicative of an improving middle class.

While the recent data regarding middle class earnings is generally positive, it is important to take the report with a grain of salt. Though household incomes are on the rise, purchasing power in the middle class has yet to regain the high point set back in 1999. Similarly, while poverty levels are the lowest that they have been since the recession, they are still higher than before the recession began. Whether the increase of earnings will continue to rise remains to be seen, but for now, the recent bump is some of the best news the middle class has gotten in the past decade.

Remember that past performance may not indicate future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, strategy, or product referenced directly or indirectly in this newsletter will be profitable, equal any corresponding historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. You should not assume that any information contained in this newsletter serves as the receipt of personalized investment advice. If a reader has questions regarding the applicability of any specific issue discussed to their individual situation, they are encouraged to consult with a professional adviser.

This article was written by Advicent Solutions, an entity unrelated to Guidestream Financial, Inc.. The information contained in this article is not intended to be tax, investment, or legal advice, and it may not be relied on for the purpose of avoiding any tax penalties. Guidestream Financial, Inc. does not provide tax or legal advice. You are encouraged to consult with your tax advisor or attorney regarding specific tax issues. © 2014-2015 Advicent Solutions. All rights reserved.

Year-End Financial Checklist

As we near the end of the year, it’s time to look back at what’s happened and how it will affect your financial future. Check off these important items so that you can start the new year’s finances with peace of mind.

INCOME TAX
Review your tax withholdings.
Have you had a major life change (employment change, marriage/divorce, a new child) that affects your income tax? Check to make sure your tax withholdings have been properly adjusted. Having low withholdings can lead to tax penalties, while having too high of withholdings prevents you from accessing your money until your tax return is filed.

Estimate your AGI.
Determine your adjusted gross income (AGI) with the help of your tax advisor. Your AGI will help determine your tax bracket, which you’ll need for investment and retirement planning.

Estimate your AMT.
Determine whether you will be subject to the Alternative Minimum Tax (AMT) and if there are ways to mitigate your AMT liability.

INVESTMENTS
Assure that your investment portfolios align with your long-term plan. 
If you don’t have a plan or have questions about the alignment, contact your GuideStream Financial advisor. 

Systematically review your portfolios and rebalance when appropriate.
As a client of GuideStream Financial, we handle this step for you. We systematically review each portfolio and periodically rebalance to make any necessary adjustments. We just completed a rebalance in early November. 

RETIREMENT ACCOUNTS
If you are retired, make sure you’ve taken all necessary required minimum distributions (RMDs).
RMDs may be one of the most important items to review when going over your finances at the end of the year. Standard IRAs require these distributions be taken annually after the year you turn 70 ½; standard 401(k)s require them annually after you retire or turn 70 ½ (whichever is earlier). Failure to take an RMD will trigger a 50 percent excise tax on the value of the RMD.

Max contributions to an IRA and employer retirement plan for the year.
Both IRAs and 401(k)s have annual contribution limits. If you find you have excess savings and have not reached your annual limit, it may be a good idea to make additional contributions. Similarly, you may also consider making greater monthly contributions to your accounts next year, spreading out the cost of contribution. The deadline for IRA contributions is usually April 15 of the following year; 401(k) deadlines may be restricted to the calendar year, depending on your employer.

Consider converting a traditional IRA to a Roth IRA.
Did you have a good tax year? It may be an opportune time to convert a portion (or all) of your traditional IRA to a Roth IRA and pay your taxes at a lower rate. It is important to understand, however, that Roth accounts have contribution limits placed on them, so keeping a traditional IRA might be beneficial. Before making any changes, consider seeking the help of a professional   accountant who can help you with the conversion and calculate your new tax liability.

GIVING
Donate to charity.  
In additional to the joy received by assisting causes your care about, you can lower taxable income by 50 or 30 percent with a gift to a public charity or by 30 or 20 percent with a gift to a private foundation. If your gift exceeds these limits, you can roll over the excess deduction for up to five years.

Reduce your estate through gifts.
You are permitted to give up to $14,000 ($28,000 for married couples) a year per recipient as an untaxed gift. Gifts above this value will consume part of your lifetime gift/estate tax exemption amount ($5,430,000 in 2015). If a gift directly funds education tuition or pays for qualified medical expenses, it will go untaxed no matter what the value.

FAMILY FUNDING
Check your flexible savings account (FSA).
The government only permits a $500 annual rollover in an FSA; any excess funds disappear if unused by the end of the year. If you have extra money in your FSA, you may want to schedule necessary medical or dental procedures before the end of the year.

Check your health savings account (HSA).
HSA funds don’t disappear at the end of each year like with an FSA; however, many with few medical needs discover money accumulating in their HSAs much faster than they are using it. Consider reducing your contributions to your HSA if your account has reached a comfortable amount and you know of better uses for your money.

Consider contributions to a 529 plan to fund your children’s/grandchildren’s education. 529 Plans allow for you to make contributions to a tax-free account that may be used to pay for qualifying secondary education expenses. (Investors should consider investment objectives, risks, charges and expenses associated with 529 plans before using them. Information about 529 plans is available in their issuers’ official statements.)

Remember that past performance may not indicate future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, strategy, or product referenced directly or indirectly in this newsletter will be profitable, equal any corresponding historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. You should not assume that any information contained in this newsletter serves as the receipt of personalized investment advice. If a reader has questions regarding the applicability of any specific issue discussed to their individual situation, they are encouraged to consult with a professional adviser.

This article was written by Advicent Solutions, an entity unrelated to Guidestream Financial, Inc.. The information contained in this article is not intended to be tax, investment, or legal advice, and it may not be relied on for the purpose of avoiding any tax penalties. Guidestream Financial, Inc. does not provide tax or legal advice. You are encouraged to consult with your tax advisor or attorney regarding specific tax issues. © 2014-2015 Advicent Solutions. All rights reserved.

  • September 23, 2016
  • By admin
  • Comments Off on 30 and Successful?
  • in Uncategorized

30 and Successful?

by Caitlin Koppelman
September 2016

What’s the deal with being 30? Why does culture seem to press in on us to “have our lives together” by the time we reach this milestone? We’re told that college is the appropriate time to “find yourself”. There even seems to be a few years’ post-college where we’re allowed a “grace-period” to wrap up some last-minute things, but once we blow out those 30 candles: our Success-O-Meter had better be well on it’s way to 100%.

But, what does it mean to be successful? Somewhere along the way, most of us begin to look at the people and forces around us to tell us what success looks like: money, prestige, power… But what if we redefined success? What if we set goals for growth in different segments of our lives and let those things define our movement, instead of being pushed around by every wind and whim of culture?

I would never conclude that any of the aforementioned goals are bad. Money is simply a tool – not bad or good in its own right, but it’s all about what you do with it. Prestige (respect) and Power aren’t negatives either, but there are certainly two ways to carry these things. Our world seems to value arrogance and pride even though that’s not the only way to convey respect and power. For example: what if the most prestigious leaders led in humility and as public servants? Wouldn’t that be a lofty goal for a 30-something person!

I will say that some in this 18-30 age range seem to take pride in a lack of development. To that mindset, I would point out that your life is what you make of it. No one is obligated to create your life for you. Don’t wait for someone else to move first so you can follow them.

To those in my generation, looking to make their mark on the world, may I offer a bit of advice? Set Goals. Not cliché goals, but rather the kind that really shape your decisions. Think about who you want to be, what you want to do, what you want to offer society, and set goals accordingly. Let the things you value speak through your goals. Put some time frames on them and then set some simple steps to get there. Reaching for specific goals gives purpose and focus to where you point your resources: time, money, energy – the world tells us how we should spend those, but what if you let your values and your dreams point you in a direction and then pressed your resources into those purposes?

It is possible to be 30 and successful, but it won’t happen on accident, and what culture thinks is successful won’t fulfill you. Your life is what you make of it. Start building! 

HOW TO KNOW YOU’RE INVESTED IN THE RIGHT PORTFOLIO

From time to time we come across lists and articles on investing. And we’ve taken a few of the items we’ve seen over the years and written a little commentary based on how we serve you.

A year from now, you plan to own similar investments.

We believe ‘winning’ in the market begins with understanding ‘why’ you are allocated as you are.  Timing and changing strategies rarely produce the long term results investors need to fund their retirements.  Sticking with an allocation that is rebalanced and invested with purpose is the best way to ‘Win’ in retirement.

You’re so well-diversified that you always own at least one disappointing investment.

This is probably one of the hardest lessons in investing and represents the value in diversification.  A properly diversified portfolio is always going to have some asset classes (i.e. investments) out of favor with others being the bright spots.  The key is to own them both since timing them consistently is impossible.

When the stock market is volatile, or even decreasing, you are not uncomfortable.

You realize that the stock market is volatile and the temporary declines of 14% inter-year and greater than 20% every 5 years are normal. That’s precisely why stocks return more over the long term than other less volatile investments.

For every dollar you’ve saved, you have an eventual use in mind — and you are invested accordingly.

Dollars that you have saved, but aren’t needed for many years in the future, should be invested accordingly.  The dollars needed soon should be in less volatile (i.e. lower return) investments.  However, don’t shortchange your resources the ability to outpace inflation when they are needed far into the future.

You can remember the last time you rebalanced.

Well, you might not be able to recall if you have, but the good news is that as a client of GuideStream Financial, you have your portfolio(s) rebalanced at least annually.  We help you stay true to your long term investment and retirement objectives.

You never say to yourself, “Wow, I didn’t expect that.”

This is our goal.  Through preparation and education, you understand that year to year, your portfolio will fluctuate depending on contributions, withdrawals and returns – but that in the end, you have a good working knowledge of how your cash flow will work over time.  We know you don’t like surprises and neither do we.  Some years, things may be fruitful and other years they may not be. What’s most important is that we both know the long term goals and that is where we focus.

We appreciate your continued trust and are honored to assist you on your stewardship journey. 

  • July 15, 2016
  • By admin
  • Comments Off on Across the Pond
  • in economic

Across the Pond

If you’ve turned on the news in the last month, you have heard the term “Brexit.” The portmanteau has been splashed all over international headlines since early June, when Britain prepared for a referendum on whether it would exit from the European Union (EU). When the U.K. shocked the world on June 23 by actually voting to leave, “Brexit” cemented its place as one of the most important words of the year. 

(Unsurprising) Panic
The impact of the U.K.’s decision to leave the EU was felt immediately by the global stock market. Analysts all over the world had believed the U.K. would remain and were pushing share prices higher in the hours before the vote. When the results were announced, the reaction was a rapid—but not catastrophic—downturn across nearly every stock exchange.

As it became clear that Brexit probably wouldn’t result in the end of the EU, panic dissipated and stocks returned to normal. For Americans, the disruption seemed to have passed; Brexit would be nothing more than a temporary political problem between distant countries. After all, didn’t we start a war 240 years ago so that British decisions wouldn’t affect us anymore? 

Quid Pro Quo
Brexit still has important implications for the U.S. economy because of the British pound. The pound has a long history and is considered one of the most reliable currencies in the world. Its value has helped make London the financial capital of Europe and ensures the Bank of England is a key player in global interest rates. 

But Brexit means the U.K. will be disrupting its access to the EU’s massive economic power and banking needs. This could shrink the U.K.’s economy and may ruin the stability of its banks, costing the pound its place next to the U.S. dollar, Japanese yen and the euro as a top-tier currency. And that would make all the difference.

A volatile pound will drive some investors to other currencies. Since the EU and its euro are also shaken by Brexit, choices for low-risk currencies are limited and purchases of U.S. dollars and Treasury's increase. 

While this further cements the United States as the economic center of the world, it does cause some problems. Although trade with the U.K. makes up less than half a percent of U.S. GDP, the appreciation of the dollar’s value makes U.S. goods more expensive all over the world, hurting our ability to export. Additionally, U.K. products that directly compete with American products (e.g. luxury cars) gain a huge price advantage in foreign markets.
Brexit’s bigger impact, however, may be on interest rates. The market disruption caused by the U.K. will make the Federal Reserve wary of raising short-term interest rates this summer as it had planned. High demand for Treasuries will push down long-term borrowing rates in major economies. 

This effect was immediately evident following the Brexit vote as U.S. mortgage rates approached historic lows. If interest rates remain this low, they could inflate home prices and make it more difficult for people to buy their first home.

The full effects of Brexit are still unknown, both economically and politically. No independent county has ever left the EU and analysts are unsure when and how (or even if) it will take place. The move could fundamentally alter trade agreements, trigger recessions in emerging economies or open space for another major country to take Europe’s center stage. Regardless of what happens, it’s clear that economic changes don’t stay confined to a single country. Even with 3,000 miles of ocean between us, the consequences of the U.K.’s decision have already begun arriving on our shores.


_________________________

Remember that past performance may not indicate future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, strategy, or product referenced directly or indirectly in this newsletter will be profitable, equal any corresponding historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. You should not assume that any information contained in this newsletter serves as the receipt of personalized investment advice. If a reader has questions regarding the applicability of any specific issue discussed to their individual situation, they are encouraged to consult with a professional adviser. 

This article was written by Advicent Solutions, an entity unrelated to Guidestream Financial, Inc.. The information contained in this article is not intended to be tax, investment, or legal advice, and it may not be relied on for the purpose of avoiding any tax penalties. Guidestream Financial, Inc. does not provide tax or legal advice. You are encouraged to consult with your tax advisor or attorney regarding specific tax issues. © 2014 Advicent Solutions. All rights reserved.

The Importance of Having A Will

According to a 2014 survey, 51 percent of Americans age 55-64 (and 62 percent of Americans age 45-54) don’t have a will. The reasons for not maintaining a will can range from a lack of urgency to a paralyzing fear of death. Not only is having a will necessary, the effects of dying without having a will—called dying “intestate”—may be worse than you expect.

The Dangers of Dying Intestate
Estate Shrinkage
It is normal for estates to lose some of their value to final costs, such as burial/funeral expenses and outstanding debts. However, lengthy court procedures and legal fees attributed to resolving inheritance disbursement can quickly erode a large part of an estate’s net worth. Wills are created for the benefit of survivors; not having one reduces the amount that passes to the heirs.

Family Disputes and Disagreements
Disagreements regarding an estate can easily cause rifts in families. Arguments over who deserves specific heirlooms or property can be exacerbated when the wishes of the decedent are not directly known. In extreme circumstances, these kinds of disputes can last for decades, making a will essential—especially when families are large or relationships are strained.

Drafting a Will
Inexpensive and Quick Process
Creating a will is not expensive, with some estimates putting the cost at just a few hundred dollars if done through a lawyer. Additionally, there are legal websites that allow individuals to draft their own wills at a fraction of that cost. Whichever method is used, creating a will typically takes less time to complete than most people think.

Benefits of a Will
Control over Assets
The decedent may have specific desires regarding which of their family members get their possessions. Instead of the distribution of assets being decided by another family member or possibly the legal system, having a will allows the decedent to fully control where all assets will be distributed.

Choose Executor of Will
If there is no will, and subsequently no executor named, the individual that is chosen by the probate court may not act according to the decedent’s desires. Choosing the executor of a will ensures that the individual that the decedent thinks will best serve his or her wishes will be in charge of key decisions, handling conflicts and proper care of 
the estate. 

Custody of Children
If the decedent has children, but has not named a new guardian in a will, the courts will decide who gets custody of their children. Although judges consider living situations and familial relations while trying to act in the best interest of children, they can’t possibly know every detail about each family’s unique situation and there is no guarantee that a court-appointed guardian will be the same person the decedent’s would have wanted.

Now is the Time
Peace of Mind
Thinking about death may be frightening, but the thought of leaving confusion, lack of clarity and potential disputes behind can be even more unsettling. Creating a will allows individuals to know that, when they pass away, all of their wishes will be honored and their loved ones will be free from the burden of figuring out the details of an estate.

Keep it Updated
If you already have a will, consider revisiting and, if necessary, updating it. There may have been financial, legal or personal life changes that are not yet reflected by the current version of your will. Not having a will can create confusion, but having an outdated will that gives rights to a former spouse or estranged family members can be disastrous for intended heirs.
 

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Remember that past performance may not indicate future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, strategy, or product referenced directly or indirectly in this newsletter will be profitable, equal any corresponding historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. You should not assume that any information contained in this newsletter serves as the receipt of personalized investment advice. If a reader has questions regarding the applicability of any specific issue discussed to their individual situation, they are encouraged to consult with a professional adviser. 

This article was written by Advicent Solutions, an entity unrelated to Guidestream Financial, Inc.. The information contained in this article is not intended to be tax, investment, or legal advice, and it may not be relied on for the purpose of avoiding any tax penalties. Guidestream Financial, Inc. does not provide tax or legal advice. You are encouraged to consult with your tax advisor or attorney regarding specific tax issues. © 2014 Advicent Solutions. All rights reserved.

  • July 6, 2016
  • By admin
  • Comments Off on Financial Planning: Not Just for Men!
  • in financial management

Financial Planning: Not Just for Men!

Financial Planning: Not Just for Men!

-by Debra Lyon, Caitlin Koppelman, and Lori Pelham-

Lisa is 35. She’s a mother to 2 beautiful children and a recent divorcee. She just returned to part time work last year when her youngest started school. Up until now, she’s largely left the management of family finances to her husband. Now that he’s her ex-husband, she’s faced with limited financial knowledge, heaped on top of an already stressful balance between work and family.

Lisa needs an advisor who knows her needs; someone she can trust completely. Someone who can clearly communicate financial principles to help her not only succeed, but grow in her financial literacy. In short, she needs a coach who can teach her and help her look out for her family’s financial future.

Susan is 72 and recently widowed. Her children are grown, and she’s pleased to say that she devoted her life to raising them well. She hasn’t worked since before the kids were born, and she’s always been thankful for her husband’s careful attention to their family finances. Now that he’s gone, she’s not sure who to turn to. She knows the basics of paying bills - her husband shared that much with her – but what about taxes? Long-term care needs? How does her husband’s death affect their estate plan?

­­­­Susan needs an advisor who recognizes her situation and knows the unique needs that come with it. The ideal advisor for Susan would be able to look at the whole picture of her financial situation – appreciate and honor what her husband has put in place - and help Susan move forward toward the future with confidence.

These are just two examples of women and their unique financial needs. Even if you’re currently married and/or part of a dual-income household, as a woman you have specific financial thoughts and convictions that may be different from your husband’s. While you’re working together toward a shared future, it’s important you continue to take an active role in the management of family finances.

Women are earning more and spending more than ever. They control more dollars in the US economy today than in any other time in history. Any financial advisor worth their fee should recognize this fact and (more importantly!) recognize the unique needs of the women in his/her client base.

Find yourself a financial coach. Maybe you already have one, but you don’t usually go to the annual review meetings with your spouse. We encourage you to go: build a relationship with your advisor. If you have shared finances, that coach should be looking out for you, too.

If you’re on your own, like Lisa or Susan, seek out the counsel of an advisor. If it helps, look for a woman whose professional opinion you trust. Even if her personal situation is different from yours, you still have some major things in common.

Don’t leave your financial future to chance. Find an advisor you can trust, a coach who can help you navigate the twists and turns of life. That relationship will prove fruitful now and in the future.  

 

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Name: GuideStream Financial, Inc.
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