Retirement Investment Tips

Investment Tips For Retirement 

Even very experienced investors can find the stock market difficult to navigate AND LEARN THESE investment tips for retirement. There is the chance to see big returns, but you can also see massive losses. Investing your money wisely will be easy thanks to the advice you’ve read here, so get started today!When you do buy stock, establish yourself a stopping point. When your stocks get to that point, sell immediately. However, if you think the stocks will rise again, hang on to them and wait a while. However, selling to minimize your losses is usually the best choice.Participate in an Internet investing forum. This type of forum will let you interact with other investors, and give you different strategies. You can share experiences and provide help for one another. If you join a forum, you’ll gain lots of investment tips that is not available elsewhere. Call Winther & company, Inc today at 805-5832720 to schedule an appointment on how you can plan for retirement with our certified financial advisors.

Retirement Investment Tips

You should invest money in stocks that are damaged, but you should avoid companies that are. While you can get a great price on stocks during a temporary downturn, it is important to ascertain that it is indeed temporary. If a company misses a deadline because of a temporary situation, its stock can plummet as investors flee these investment tips. Some circumstances such as a financial scandal usually mean a company will never recover.Follow dividends of any business from which you purchase stock. This goes double for an investor who needs a steady income and can’t handle large losses, such as a retiree. When a company is profitable it usually pours the money back to the business or offers dividends to shareholders. It’s extremely important to know a dividend’s yield. This can be calculated by just knowing the annual dividends and dividing this number by the stock’s price.

When you start trading stocks, remember this cardinal rule of investment: Never invest money you cannot afford to lose. This is especially important when it comes to high-risk investments. Even if your investment choices are very safe ones, never forget that a total loss is always a possibility. The stock market is no place for money that you need for your everyday life expenses. When you first start out, keep things simple as you invest. It could be tempting to do the things you have learned right away, but if you’re new in investing it is good to focus on one thing that truly works and stick to it. This will reward you with smaller losses, bigger profits and a solid base of experience.

Cash isn’t necessarily profit. The flow of cash is vital to all financial operations, from your life to your investment portfolio. While is it nice to be able to reinvest some cash or spend some of your gains, you have to keep money on had so you can afford paying your bills. Try to retain a six month emergency savings balance, as a “just in case” precaution.There are many options for safe investment when it comes to investing in stocks. Use this advice to make safer and more successful stock market investments. Have you ever noticed that the things you buy every week at the grocery and hardware stores go up a few cents between shopping trips? Not by much…just by a little each week but they continue to creep up and up if you don’t use our investment tips.

All it takes for the price to jump up by a lot is a little hiccup in the world wide market, note the price of gasoline as it relates to world affairs.There is a way that we can keep these price increases from impacting our personal finances so much and that is by buying in quantity and finding the best possible prices for the things we use and will continue to use everyday… things that will keep just as well on the shelves in our homes as it does on the shelves at the grocery store or hardware store.For instance, dog food and cat food costs about 10% less when bought by the case than it does when bought at the single can price and if you wait for close out prices you save a lot more than that. Set aside some space in your home and make a list of things that you use regularly which will not spoil. Any grain or grain products will need to be stored in airtight containers that rats can’t get into so keep that in mind.Then set out to find the best prices you can get on quantity purchases of such things as bathroom items and dry and canned food.

You will be surprised at how much you can save by buying a twenty pound bag of rice as opposed to a one pound bag but don’t forget that it must be kept in a rat proof container. You can buy some clothing items such as men’s socks and underwear because those styles don’t change, avoid buying children’s and women’s clothing, those styles change and sizes change too drastically. Try to acquire and keep a two year supply of these items and you can save hundreds of dollars with these investment tips.

Call Winther & company, Inc today at 805-5832720 to schedule an appointment on how you can plan for retirement with our certified financial advisors

Fiscal Cliff Tax Changes

Fiscal Cliff Has Been Averted – The Tax Implications And Changes

The “Fiscal Cliff” has been averted as Congress passed the American Taxpayer Relief Act of 2012 on January 1, 2013. The Act allows the Bush-era tax rates to sunset after 2012 generally for individuals with income over $400,000 and families with incomes over $450,000, permanently “patches” the alternative minimum tax (AMT), revives many now-expired tax extenders, including the research tax credit and the American Opportunity Tax Credit, and provides for a maximum estate tax rate of 40 percent with a $5 million exclusion, as adjusted for inflation. What are the fiscal cliff tax changes from these implications?

In addition to an extension for most taxpayers of the lower individual income and capital gains tax rates, marriage penalty relief and more than 50 other tax benefits popularly referred to as the “Bush Tax Cuts,” the legislation makes over 100 changes to the Internal Revenue Code.

Highlights of the American Taxpayer Relief Act of 2012 include:

  • 39.6% tax rate for incomes above $400,000 ($450,000 for families)
  • 20% Maximum Capital Gains/Dividend Tax Rate
  • All other Bush-Era Tax Rates extended
  • Permanent AMT Patch
  • Five-Year Extension of American Opportunity Tax Credit
  • Two-Year Extension of Business Tax Extenders

Fiscal Cliff Tax Changes

Major Fiscal Cliff Tax Changes:

The major theme for 2013 is “reflation,” or a continued recovery for personal and financial assets.  Investors are still concerned with policymaker decisions to address fiscal concerns, and this poses some short term headline risk (headline risk being these short term reactions in the markets to the latest news).  Still, 2012 proved to be a good year for equity investors in spite of the general disbelief that we are in a recession.

The National Association of Homebuilders reports a recovery in the housing market.  The changing demographics of our country will aid with this recovery, as we saw a lull in household formations over the past few years.  This is tied to people between 30-35 years old, which is a key demographic for household formation.  The children of the 80s (Gen Y or the “Echo Boomers”) are hitting that key demographic.

Also, the personal debt to income ratio for our country improved from 130% to 100%.  Personal balance sheets have improved from debt reduction and some recovery in home values as well as their investment accounts.  Brian also cited pent up demand for cars as the average vehicle on the road these days is about 11 years old.  We could also see spending for other durable goods which should aid consumption and further fuel the economy.

Overseas, Europe continues to struggle, but European financial failure could have been much worse and devastating to the global economy.  European Central Bank actions to maintain the Euro has worked well.  Even Draghi’s words even had a positive effect on the European markets (that they would do “whatever it takes” to maintain financial stability).

Emerging markets or developing countries have seen significant growth, and there is much positivity to cite for the consumer in those countries who now have more free cash flow than they ever have in the past.  Oppenheimer never believed in a hard landing for China as they have trillions in reserves.  Even if they cannot achieve double digit growth, a modest 7% growth creates the equivalent economic production of a Saudi Arabia or Poland.

Brian expressed Oppenheimer’s clear favor for equities.  They are concerned about interest rate sensitive securities (bonds), and when it comes to bonds they recommend a barbell strategy.  Many investors are overweight to high quality US BarCap Agg type allocations.  They may be better served by this barbell which might be heavy in shorter duration, good credit quality on one side and high yield, senior floating rates on the other side.

Oppenheimer recommends a “new 60/40” which essentially is more global portfolio.  Equity exposure should include a significant amount of international and emerging markets, and bond exposure should also do that as well.  Brian shared the example that 10-year sovereign debt securities from Brazil yields close to 10%.

 

What does that mean to us?   Investors need to find a way to return to their long term strategic asset allocations, using a well-diversified, global, and professionally managed strategy.

 

Chad Smith CFP®, ChFC®, CLU
Our elected leaders started the New Year by passing the American Taxpayer Relief Act of 2012. This new legislation solves the tax side of the fiscal cliff and delays the mandatory across the board spending cuts that where scheduled to take place on January 1. For most Americans the new legislation permanently extends the lower income tax rates that they have paid for the last 10 years. However, high-income taxpayers, earning above $450,000 ($400,000 if single), tax rates will increase in several categories. In addition, working Americans will be affected by the expiration of the Payroll Tax Holiday. In 2011 the payroll tax was reduced from 6.2% to 4.2% and the American Taxpayer Relief Act failed to extend the 2% reduction. In addition, Americans earning $250,000 ($200,000 if single) will also be impacted by the new tax increases from the Affordable Care Act. While elected leaders still have to address the mandatory spending cuts and the federal debt ceiling in the coming months, most Americans now have some certainty as to how tax policy will affect the 8 Wealth Management Issues®.
2013 Tax Overview
With the newly approved legislation in place, Americans can expect:
• Expiration of the Payroll Tax Holiday – Payroll taxes will increase from 4.2% to 6.2% affecting working Americans.
• Income Tax Rates – Income tax will stay the same for most taxpayers that earn below the threshold of $450,000 ($400,000 if single). Taxes will increase for those that make above $450,000 ($400,000 if single) reverting to the top tax rate under the Clinton administration of 39.6%.
• Capital Gains and Qualified Dividend Rates – For taxpayers with income above $450,000 ($400,000 if single) capital gains rates and qualified dividend rates have been increased to 20%. For all other taxpayers the rates remain the same at either 15% or 0%. For taxpayers with income above $250,000 ($200,000 if single) the new 3.8% Medicare surtax will be added to the base rate.
• Permanent AMT Relief – The American Taxpayer Relief Act increased the 2012 AMT exemption to $78,750 ($50,600 if single). This legislation also created a yearly inflation adjustment so that Congress will not have to pass “AMT patches” on an annual basis.
• Personal Exemption and Itemized Deduction Phase Out – Both personal exemption and itemized deductions will be phased out for taxpayers with income above $300,000 ($250,000 if single). (Since 2010, neither personal exemptions or itemized deductions have been phased out based on income.)
• Federal Estate and Gift Tax – The American Taxpayer Relief Act made permanent the $5,000,000 (adjusted for inflation) gift and estate tax exclusion beginning in 2013. This legislation also increased the estate tax rate from 35% to 40%. The bill made “portability” permanent allowing a spouse to utilize a deceased spouse’s unused exemption amount. The annual gift tax exclusion has been indexed for inflation to $14,000 per year.
The American Taxpayer Relief Act of 2012
The Affordable Care Act
Effective now, the employee portion of the Medicare payroll tax will be 1.45% for the first $250,000 ($200,000 if single) and 2.35% for income over $250,000 ($200,000 if single). In addition there will be a new Medicare Excise Tax of 3.8% on investment income for taxpayers above $250,000 ($200,000 if single). This tax will be levied on interest, dividends, and distributions from non-qualified annuities, royalties and rental income.
Planning Considerations Steps to take:
• Evaluate Personal Spending – With the expiration of the Payroll Tax Holiday, Americans earning a paycheck will see them decrease by 2%. For workers living paycheck to paycheck the 2% decrease in take home pay could stretch monthly budgets.
• Look to Maximize Qualified Planning Opportunities – With income taxes increasing for some, taxpayers should look to vehicles like 401(k) and defined benefit plans to reduce taxable income.
• Evaluate Portfolio Construction to avoid the Medicare Surtax – Consider tax-advantaged vehicles like municipal securities. Look to place certain asset classes in qualified accounts while maintaining more tax efficient asset classes in taxable accounts.
• Consider AMT Favorable Investments – For taxpayers subject to AMT, consider looking at AMT free municipal securities and tax advantaged vehicles.
• Create a Written Plan – It is hard to know where you are going without knowing where you are. The process of creating a written plan can assist a family in knowing if they are on track to meet their personal goals and objectives. In conclusion, Many Americans have delayed their personal planning waiting to see what would occur inside the Washington Beltway. While there are many things yet to be resolved on Capitol Hill, we now have certainty concerning the tax side of the fiscal cliff. Over the next few months, politicians will move on to the next crisis. At the same time American families should begin implementing their personal planning strategies by meeting with their Advisors to create a written plan. This begins with an investment and cash flow plan which looks at a family’s specific goals and objectives. The second step also takes into account a family’s cash flow, liquidity needs, risk tolerance, and family dynamics. The planning process is dynamic and needs to be monitored to ensure that the plan stays current with changes in tax law and personal dynamics.

All The Fiscal Cliff Tax Changes As A Result

Fiscal Cliff Tax Changes

 

 

 

 

 

 

 

 
The views and opinions presented in this article are those of Chad Smith and not of H.D. Vest Financial Services® or its subsidiaries.
Investments are subject to market risks including the potential loss of principal invested.
This information does not constitute tax advice. Please consult your tax adviser for complete information.
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Winther CPA Los Angeles firm manages over 3,000 personal tax preparation clients and 500 business tax returns and accounting a year in the Los Angeles area. Winther & Comapny, Inc. has been serving the Los Anageles area for over 30 years. We have highly qualified  CPA’s that handle handle your personal or business tax needs. Winther & Company, Inc. is based out of Simi Valley which is just a few miles North of Los Angeles. Our professional CPA staff in Los Angeles will take care of all your accounting needs in a timely and punctual manner. Give us a call at 805-583-2720 and we will be happy to set up an appointment that fits your needs. Now is the time to get the best, most professional, and qualified accountant in Los Anglees. If you are seeking business tax accountant needs, Winther & Company, Inc. specializes in business accounting, tax preparation  audit representation, and bookkeeping for your business in Los Anglees.  Give us a call and our courteous staff will help you get an appointment with the required accountant.
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CPAs, or Certified Public Accountants, will help you with your particular person or small business accounting and tax planning in lots of approaches. Using the regulations surrounding accountancy such as generally accepted accounting practices for businesses, and tax legal guidelines that alter annually for people, choosing a CPA to perform your accounting providers requirements is definitely the very best method to make sure that your accounting is error free just in case of IRS or any other audit. Winther And Company CPAs are Licensed General public Accountants, certified from the Board of Accountancy in Los Angeles, the state of California and 10 plus more states. These CPAs and accountants in Los Angeles  can accomplish a variety of services to smaller organizations, substantial businesses, or people today. They are really accountable to authorities companies for his or her ethics and company methods, which guarantees you the consumer are protected from fraudulent activity by CPAs, and giving you security in being aware of that your accounting is in excellent arms. Winther And Company CPAs can carry out common accounting, audits, or tax expert services. CPAs in Los Angeles  need to possess a school education and learning in accounting, and an examination well prepared by American Institute of Qualified Community Accountants (AICPA).  Winther And Company CPA Firm in Los Angeles has the best reputation and has built its book of business for over 25 years by referrals only.

Accountant In Los Angeles Helps Tax Payers Get More Money Back on Tax Preperation 

 

Acquiring a CPA in Los Angeles prepare your enterprise or individual revenue tax return is a great way to avoid faults, not to mention the prying eyes of the IRS and an audit.  Winther And Company  CPA in Los Anglees  must endure persevering with schooling as accounting and tax legal guidelines improve from calendar year to 12 months. Hence, only a CPA in Los Angeles can make certain that your tax return is completely precise. Not just is accuracy crucial with the IRS and in case of an audit, however it is vital in your rapid economic upcoming at the same time. Simply because a CPA has intimate information about tax regulations and out there exemptions, a CPA in Los Angeles might make absolutely sure you will get the largest refund achievable at Winther & company, Inc.

Winther & Company, Inc. CPA in Los Angeles is as acquainted with tax regulation to be the IRS consultant performing the audit. Because of this, the our CPA’s in Los Angeles can negotiate a decreased penalty, assist you to keep away from penalties, and make it easier to declare the deductions you are worthy of. You must make contact with a CPA the moment you may have acquired an audit notice through the IRS, as the CPA can help you prepare on your audit and collect the mandatory information. Then, the CPA can stroll in to the audit interview by your facet, thoroughly in cost and assured from the result of one’s audit.

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Regardless of what the financial support needed, a CPA or accountant  in Los Angeles is your very best wager for your tax preparation needs. Having a CPA, you might have the safety of a licensed, monitored skilled coupled with the reassurance that every one of the accounting is accurate and ready for every achievable audit. Do yourself a favor and choose the best CPA in Los Angeles, and give Winther & Company, Inc. a call today at 805-583-2720 and we will help you with all of your accounting needs.