The Tax Cut and Jobs Act signed into law in December made an important modification to 529 college savings plans, a widely used college savings vehicle.  529 plans can now be used for qualified K-12 educational expenses. 

The U.S. House and Senate have each separately passed a bill that will create sweeping tax reforms. There are substantial differences in the two bills. A joint group of Republicans from the House and Senate are working to incorporate their differences into one bill. Unlike the last major tax reform that took place in 1986, this bill is not retroactive to the beginning of tax year 2017, but will be implemented in 2018. One tax provision that will be enacted may impact many of our clients negatively. Beginning in 2018, a cap of $10,000 on state and local tax deductions will be enacted.

At this special time of year when we give thanks and gratitude for all that we have in our lives, please take a moment to give the same thanks and gratitude to yourself. We are living in an age where life is moving very fast and the expectation to be constantly in motion makes it difficult to keep up or feel that you are not falling behind. Too often, we do not give ourselves credit for what we have accomplished.

People are asking me lately whether the stock market is at or near a peak. Of course, I was also getting this same question at the beginning of the year.

The media report daily on the results of investment indexes.  When you hear that the S&P 500 is up, do you know if that means your investments are doing well?  Let’s review a few types of indices and what they represent.

One of the best gifts you can give children is to teach them the basics about managing money.  If they can learn the discipline and wisdom involved in making wise choices at an early age, they could benefit tremendously in future years.

The prime time for a child to begin learning good financial habits usually occurs during the “tween to teen” years of adolescence according to Wealth Management studies.  At this age, they are old enough to grasp basic concepts, but young enough to still listen to parents and other adults.

The S&P 500 is generally used as a gauge of the overall stock market. It also has some rather unique qualities. It consists of 505 stocks, which are weighted so that the top 40 stocks make up approximately 45% of the value of the index. In and of itself, that is not so bad considering the Dow Jones Industrial average has only 30 stocks and is also considered a key measure of how large stocks are doing.

The thought of estate planning can be overwhelming, but it doesn’t have to be. Anyone can take basic steps to put their accounts and assets in order.  The cost is minimal and the process is often simple.  Certain types of accounts or policies, such as life insurance, annuities, IRAs, and many other retirement type accounts, can pass directly to your heirs by simply naming your beneficiary on a form. 

On February 5, many of us were able to witness the biggest comeback in Super Bowl history, as the New England Patriots came back from a 25-point deficit to beat the Atlanta Falcons. To never give up is the lesson that resonates in my mind. Sometimes the outlook is bleak, and factors may seem against a positive result, but if you keep on track, with minor adjustments, you can overcome.

Developing the right state of mind and the right mental habits can lay the groundwork for financial stability. While not a guarantee, acquiring the proper mindset improves your chances of succeeding financially. Following are some thoughts and habits you might want to cultivate.

Prepare for tough times.  Set aside a portion of your monthly income for emergencies.  Make this a mandatory bill that you pay to yourself.  You will have peace of mind knowing that you have funds to fall back on when the unexpected happens.