So here we are again. Loathe to comment for fear of legitimizing a non-event yet silence brings accusations of laxity. Woe is us! By now we’re all aware of a two-day slide that knocked 1,300 points off the Dow. Big Media loves it. Article after article. Talking head after talking head. Lots of folks rewriting [...]
The prevailing narrative is that the Trump tax cuts (which cut the corporate rate from 35% to 21%) have been a boon for shareholders. Companies flush with cash have showered riches on their shareholders through increased dividends and stock repurchases. Is this true? Maybe. In dollar terms it’s certainly true. Spending by S&P 500 companies [...]
The problem with bulls? It's the bulls**t! Be careful where you step. Now that the fiduciary rule is dead Merrill Lynch has confirmed it's business as usual. Customers be damned. Best interest? Forget about it. When it appeared regulators would require a fiduciary obligation Merrill jumped at the chance to be head cheerleader. See here, [...]
You meet the man/woman of your dreams. You marry. You name your spouse beneficiary of your IRA, life insurance, 401(k), etc. Fast forward a few years. Your marriage is one of the almost half that end in divorce. You forget to change the beneficiary of your IRA, life insurance, 401(k), etc. Fast forward a few [...]
One of the items getting little attention in the recent round of tax reform is the kiddie tax. Passed by Congress in 1986 to prevent taxpayers from shifting income to their kids (presumably in a lower bracket) the tax raises more than $1 billion per year for Treasury. What is it? The kiddie tax is [...]
Rather than reforming its fiscal policy to incentivize job creation and stem the tide of wealth leaving the state NJ seems intent on covering bullet holes with Band-Aids. Governor Murphy’s latest move to raise taxes will likely prove counterproductive. Contained in the recent budget deal is an increase in the state’s personal income tax from [...]
Let’s travel back in time to 2016. The Department of Labor rolls out the fiduciary rule. Firms providing retirement advice must act in the best interests of clients. Wall St firms scramble. The days of pushing products and soaking clients with commissions are over. Merrill Lynch rushes to act. They ban commissions on IRAs. Their [...]
Yesterday in a press release the IRS commented on efforts by NY and follow-on efforts by NJ to avoid the new cap on state and local tax (“SALT”) deductions. "Taxpayers should be mindful that federal law controls the proper characterization of payments for federal income tax purposes." Tax reform created a cap of $10,000 for [...]
NJ Governor Phil Murphy signed legislation allowing homeowners to declare property taxes as charitable donations. Local governments can now establish charitable organizations to accept property tax payments. The response is a workaround of the Trump tax cuts that capped the deduction for state and local taxes at $10,000/yr seen by many “blue staters” in NY, [...]
In response to new federal law limiting the deductibility of state and local income and property taxes at a maximum of $10,000 NY has approved a fiscal year 2019 budget containing provisions to lessen the impact. It is important to note these changes do not reduce taxes for NY taxpayers. Instead they shift the burden [...]