Jennifer's Compass

Nov 2018 Newsletter - Holiday Gift Giving

 

Be creative -- and encourage some financial health

 

 

On Course                    November 27, 2018            Volume 18, #11                         Welcome!  With Thanksgiving behind us, it's time to begin the holiday season in earnest.  Below are some tips that we hope will give you some ideas on creative gifts with a financial slant.   You may have missed our recent series on retirement.  For Retirement, Part 1 - Retirement Savings, click here.  For Retirement, Part 2 - Social Security, click here.  For Retirement, Part 3 - The Retirement Paycheck, click here.    We at Compass Planning wish you all the best of the season.  We hope that your holidays are wonderful and that you know that we appreciate you!     Jennifer Lane, CFP Holiday Gift Giving   With gift giving season upon us we encourage you to think about the gifts you give.  Try to be creative -- and, maybe, encourage some financial health!   Your budget Set your gift giving budget and stick to it! Don't derail your year-long savings plan. For your friends and family          Consider donating to a charitable cause in the person's name. Give a personal finance book, for example, Simple Money by Tim Maurer or Unconventional Success by David F. Swensen Have a financial planner you love?  Gift your friend an introductory meeting. For the kids on your list      Gift them a piggy bank to teach them to start saving money!  We like the Money Savvy Pig. Make a contribution to their 529 plan. For the teenagers who have everything, help them open their first savings account.  Maybe give them a little cash to get started, too. For the younger set, easy reading such as Bunny Money by Rosemary Well or Alexander, Who Used to Be Rich Last Sunday by Judith Viorst. Buy them a game that incorporates money, for example, Monopoly Junior. Just because A meal delivery service, e.g., Plated, Hello Fresh, or Blue Apron. A gift card or voucher to an event.  Families with kids might like a trampoline park; for couples or singles, consider dinner theater tickets.   Q&A   Q:  Our family is growing, and I feel like the gift giving has gotten out of control -- too many things!  I'd like to change our traditions, give fewer gifts, and encourage the grandparents to spend less too.  How can I change a holiday tradition without hurting feelings or ruffling feathers? -- Marissa, Foxboro   A:  Marissa, keep in mind the possibility that others in your family feel the same way.  Start by setting a good example and take small steps.  This year give the family gifts and include an extra note telling them how special they are.  That will help shift the focus off the gift and onto the thoughts.  During the year begin the conversation about changing the way everyone handles gifts.  That said, grandparents will be grandparents.  If you are concerned about the "things," think about asking them to give experiences such as horseback riding lessons, ski lessons, sports or STEM camps.  Research is showing that experiences create better and longer lasting happiness.  And what grandparent doesn't want that.   Jennifer in the Media Below are links to Jennifer's frequent contributions to financial planning articles.  The New York Times featured Jennifer in an article titled, "Balanced Funds Don't Inspire Fear or Greed.  That's Why They Are So Useful."  Click here to read the article. With a contrarian view, Jennifer contributed to an article, "People are enraged by the idea that you should have twice your salary saved by the time you're 35!" published recently by Business Insider.  Click here to read the article. Moving in together?  Click here for the article from Business Insider, "Five questions you and your partner should answer before taking the biggest step in your relationship." Insider asked Jennifer to contribute to an article on old fashioned ways to manage your money, "Six money-saving tips your grandma used that are way more effective than any budgeting app."  Click here for the article. Jennifer contributed to an article on Business Insider.  Click here to read "This is the best way to do your taxes online - according to experts." CNN Money's Money Moves featured Jennifer in an article on how to strike the right balance between retiring early and saving enough.  Click here to read the article. Jennifer contributed to a CNN Money article "When is the Right Time to See a Financial Advisor?"  Click here to read the article. Jennifer contributed to The Wall Street Journal article "The Biggest Money Mistakes We Make -- Decade by Decade."  Click here to read the article. Compass Planning News   AdvisoryHQ named Compass Planning as one of the ten best Boston financial advisors.  Jennifer recently answered NECN viewer questions about open enrollment for healthcare under the Affordable Care Act).  Click here to watch the segment on her blog. Jennifer appears on NECN every other Monday morning at 9:30 am in addition to her Tuesday 7:30 pm appearance. Compass Planning Associates helps families, individuals, and small-business clients achieve financial security, knowledge, and control over their money.  Our fee-only, client-centered approach provides education and guidance for achieving financial goals and dreams. All contents of this newsletter Copyright 2018 Compass Planning    In This Issue Holiday Gift Giving Question & Answer Jennifer in the Media   If grandparents or other family members want to help pay for college or private school, talk to the institution's financial aid office about having them write a check directly to the school. In some circumstances, this direct payment won't affect the student's eligibility for aid, and payments made directly to colleges don't count toward the tax laws limiting gifts.         Get more tips in Jennifer's book   (click here for link )   Helpful Websites       Charity Navigator   Prosperity4Kids

NECN Ask Jennifer: November 27th, 2018

These viewers have questions for Giving Tuesday.

NECN Ask Jennifer: November 13th, 2018

The Social Security benefit cost-of-living is an increase of 2.8% next year. These viewers have questions about how their state pension and Social Security interact.

 

NECN Ask Jennifer: November 6th, 2018

Open enrollment for healthcare under the Affordable Care Act goes until 12/15 and these viewers have questions.

Oct 2018 Newsletter - Year-end Tax Planning with the New Tax Law

On Course                    October 30, 2018            Volume 18, #10                        Welcome!  It's that time of year to think about year-end tax planning!  This year, it's particularly important as the tax laws have changed!  Read on for some strategies on how to optimize your filings under the new tax laws.   You may have missed our recent series on retirement.  For Retirement, Part 1 - Retirement Savings, click here.  For Retirement, Part 2 - Social Security, click here.  For Retirement, Part 3 - The Retirement Paycheck, click here.    Don't wait until January to begin your tax planning.  If you need assistance, we are here to help you stay On Course!       -Jennifer Lane, CFP Year-end Tax Planning with the New Tax Law   Paycheck withholding   Check to see if you need to make any adjustments to your paycheck withholding. Use the IRS paycheck calculator (updated with the new tax law!).  Click here. Make any adjustments you can while you still have a few paychecks left for the year. Save Save Save         Make the most of your 401(k) savings plan offered through work. If your budget allows, put the max in this year of $18,500 (or $24,500 if you're 50 or over). If you are behind for this year, make adjustments to have more put in the 401(k) between now and the end of the year. Rebalance     Review your investment accounts to see if you need to rebalance. Are there any losses to take advantage of?  You can deduct up to $3,000 per year (unless you file Married, Filing Separate). Are there gains to take that can be offset by any losses to reduce your capital gain liability? Optimize your FSA (Flexible Spending Account) Use up the money in your FSA before the end of the year so you don't lose any money in the account! Get those doctor appointments scheduled or buy new glasses. Manage your itemized deductions Compare your itemized deductions to the new standard deduction -- $12,000 for single filers and $24,000 for joint. What you can take as an itemized deduction has changed -- you might not benefit from increasing your itemized deductions. Your state and local tax deduction is capped at $10,000 now, including real estate taxes. Interest on HELOCs (home equity line of credit) will not be deductible unless used specifically for home improvement. Interest on a mortgage taken out after 2017 will be deductible only on the first $750,000. Click here for more detailed information. Charitable deductions The pressure to get the year-end charitable gifts might not make sense with the new standard deduction. Explore grouping your charitable deductions in one year into a Donor-advised Fund (DAF), and then do your gifting from there. If you are 70 1/2 and need to start taking your RMD (required minimum distribution), consider a Qualified Charitable Distribution (QCD) to help reduce your RMD for the year.  Click here for a more detailed explanation. For additional information, click here and here. 529 Plans If you have a child or grandchild attending private elementary or middle school, you can now use a 529 plan to pay for those costs. Check to see if you should be increasing your savings into a 529 plan.   Q&A   Q:  I'm not sure how long I should keep my tax returns and records.  Can you help? -- Joe, Everett   A:  Joe, keep your tax returns indefinitely -- you never know when you might need them.  That doesn't mean that you need to keep all the supporting documents for more than three years.  The IRS won't audit a return that is older than three years unless they suspect fraud.  By keeping the return itself, you will have access to important information down the road.  Your annual income can prove your social security benefit due; your reinvested dividends support your investment basis; and you'll need a record of your IRA contributions when you calculate your taxes in retirement.  You can also make digital copies of your tax returns to save space -- just make sure you have them backed up safely.     Jennifer in the Media Below are links to Jennifer's frequent contributions to financial planning articles.  The New York Times featured Jennifer in an article titled, "Balanced Funds Don't Inspire Fear or Greed.  That's Why They Are So Useful."  Click here to read the article. With a contrarian view, Jennifer contributed to an article, "People are enraged by the idea that you should have twice your salary saved by the time you're 35!" published recently by Business Insider.  Click here to read the article. Moving in together?  Click here for the article from Business Insider, "Five questions you and your partner should answer before taking the biggest step in your relationship." Insider asked Jennifer to contribute to an article on old fashioned ways to manage your money, "Six money-saving tips your grandma used that are way more effective than any budgeting app."  Click here for the article. Jennifer contributed to an article on Business Insider.  Click here to read "This is the best way to do your taxes online - according to experts." CNN Money's Money Moves featured Jennifer in an article on how to strike the right balance between retiring early and saving enough.  Click here to read the article. Jennifer contributed to a CNN Money article "When is the Right Time to See a Financial Advisor?"  Click here to read the article. Jennifer contributed to The Wall Street Journal article "The Biggest Money Mistakes We Make -- Decade by Decade."  Click here to read the article. Compass Planning News   AdvisoryHQ named Compass Planning as one of the ten best Boston financial advisors.  Jennifer recently answered NECN viewer questions about Medicare premiums and IRMAA (income-related monthly adjustment amount).  Click here to watch the segment on her blog. Jennifer appears on NECN every other Monday morning at 9:30 am in addition to her Tuesday 7:30 pm appearance. Compass Planning Associates helps families, individuals, and small-business clients achieve financial security, knowledge, and control over their money.  Our fee-only, client-centered approach provides education and guidance for achieving financial goals and dreams. All contents of this newsletter Copyright 2018 Compass Planning    In This Issue Year-End Tax Planning Question & Answer Jennifer in the Media    Making sure your taxes are paid -- and not a penny overpaid -- is very important.  If you're making great money, good tax planning will make sure your nest egg benefits you more than it does Uncle Sam.  If you're in a life transition, careful planning will help you get the most from limited resources.         Get more tips in  Jennifer's book   (click here for link )   Helpful Websites       Certified Financial Planners     IRS - Tax Reform   IRS - Withholding

NECN Ask Jennifer: October 30th, 2018

 

In celebration of Halloween, these viewers have questions about tricky financial products.