Not long ago a prospective client inquired about Apollo’s views of the fixed income markets and, specifically, muni bonds. It was a simple discussion – one we’ve had with our clients a number of times since the ‘market meltdown’ of 2007-2009. We explained that with ‘risk-free’ 10-year Treasuries yielding 2% and the questionable balance sheets [...]
In Tuesday’s State of the Union the Orator in Chief proposed cutting back on the tax break afforded to §529 college savings plans. His reasoning? §529s are used primarily by the ‘wealthy.’ We’ll get to that in a moment. By way of review §529s were established in 1996 as a means for people to save [...]
Do you know how much income tax you pay? Whatever the amount it surely feels like too much, right? And what of this 'fair share' nonsense? Just who is paying America’s tax bill? The latest figures from the IRS (based on data from 2012 tax returns) show that 136 million tax returns were filed. That [...]
In economics we define a transfer payment as a payment made without reciprocity of goods or services. In layman’s terms they’re handouts. The nature of transfer payments is why most Americans abhor programs such as welfare and unemployment. We’re a caring people but we also believe in fairness. We work hard for what we have [...]
In many ways technology has lowered the cost of service delivery. For a nominal cost the friendly automated voice of the credit card company allows us to “press 1” to find out our balance. Similarly we can contact a customer service rep halfway around the world when we need to speak with someone. The question [...]
Most of us know charitable contributions are (usually) an itemized deduction for income tax purposes. Less commonly known is that out-of-pocket costs may be deductible. Unreimbursed expenses incurred that are incidental to volunteer work are deductible. Examples are transportation to the place where services are rendered, postage, stationary/supplies, phone calls, etc. Substantiating documentation is required [...]
Can someone selling a product be looking out for the best interests of his/her customer? One’s individual intentions are irrelevant. What’s inherent in the business model is what drives behavior. MorningstarAdvisor provides this article explaining rather clearly how consumers of financial advice must take caution in determining where they get their information and the motives/incentives [...]
The following is a summary of the most common items relevant to the majority of American taxpayers. Complete information written in the IRS tax speak we know and love may be found here. 2015 income tax brackets STANDARD DEDUCTION: Singles and married persons filing separate returns may clam a deduction of $6,300 (up from $6,200 [...]
It’s always interesting to note how excited we can get over trivial things. Scotchguard the seats in my new car? Only $500? Sign me up! (Note: As of this writing a can of Scotchguard will set you back $8 on Amazon.) Taxes present the same trapping. Jump through hoops to save $5? It’s a deal! [...]
Beginning January 2015 an employee will be able to contribute up to $18,000 pre-tax into his or her 401(k). This article details the change plus provides additional information regarding COLA adjustments to IRAs, etc.