Planned Solutions

On this episode of the Planned Solutions Financial Review Podcast we discuss, The stocks and bonds markets have turned decidedly negative in the past few weeks. Stocks have failed to push to new highs while the bond market yield curve is currently inverted: A signal of slower future economic growth. However, the economic data continues to predict that the US economy will remain on good footing signaling growth of between 2% and 3%.

And, Preventing senior financial abuse has become an important topic in the financial industry. However, the potential for abuse goes well beyond the financial world making it important that anyone who cares for or interacts with seniors is knowledgeable about the warning signs and resources that are available to help seniors who may have become a target or a victim.

Also,Medicare Part B and Part D are subject to means testing. This means that higher income households typically pay more in monthly Medicare premiums than lower income households. However, in some cases an individual may have a life-changing event that will cause their income to decline. In these cases, they can submit Social Security Form 44 to request a reassessment of their Medicare premiums to have them reduced to the amount that corresponds with their ongoing income level.

Plus a look at the Planned Solutions Incorporated Office Bulletin Board- Daryl attended the Financial Planning Association Northern California Conference held in San Francisco. The conference is one of the largest financial planning educational events in the country with thousands of financial planners in attendance and many educational breakout classes to choose from.

The Harlan D. Wood Memorial Cancer Charity Golf Tournament is just three months away. We hope you will sign up to attend or support the cause by donating to a cancer charity of your choice.

Date: September 6th, 2019

Location: Rancho Murieta Country Club – North Course

7000 Alameda Drive

Rancho Murieta, CA 95683

Time: 9am shotgun start, 1:30 barbecue

All profits go to cancer research and education. You can help by attending the tournament or donating. Not golfing? Bring friends and attend the BBQ.

To subscribe or unsubscribe to the Personal Finance Review (the written form of all the content we discuss on the podcast) please e-mail [email protected]

The Personal Finance Review is published and distributed on a biweekly basis by Planned Solutions, Inc. for informational purposes only. Please seek the advice of a qualified financial planner before taking any action.

Planned Solutions, Inc.

ADDRESS: PHONE:

1130 Iron Point Road, Suite 170 (916) 361-0100

Folsom, CA 95630 (800) 750-2111

E-MAIL: FAX:

[email protected] (916) 361-0191

WEB SITE:

www.PlannedSolutions.com

#financial #invest #finance #investment

On this episode of the Planned Solutions Financial Review Podcast we discuss, Budget cuts at the Internal Revenue Services (IRS) having a negative impact on many of the agency’s core functions. Among these is a sharp decline in the percentage of individual tax returns that are audited each year which may result in reduced tax collection for the nation. However, other areas, such as customer service and agents dedicated to resolving IRS notices and correspondence, have also been negatively impacted.

And, There is often some confusion about how Required Minimum Distributions (RMDs) from tax-deferred retirement accounts are calculated and when they must be taken. One area of confusion in particular is the date on which the first RMD must be taken: The Required Beginning Date (RBD). In this episode we explain how the RBD is calculated.

Also,Telephone scammers have once again switched tactics. Now, instead of impersonating the IRS, many callers are impersonating the Social Security Administ-ration. These callers claim that the recipient’s Social Security Number has been suspended and they need to pay a fee to correct the error. They promise the fee will be refunded after the mix-up is corrected but instead pocket the money. It is important for individuals to be aware of this scam and hang up on anyone who called claiming to be a representative of the Social Security Administration.

Plus a look at the Planned Solutions Incorporated Office Bulletin Board- Joel’s Book Report: The Checklist Manifesto by Atul Gawande

This book was recommended from a financial blogger who keeps a running list of recommended books to read. The author is a doctor who worked with a surgical team to develop a checklist for the World Health Organization. Their goal was to drastically reduce complication rates by using checklists – the catch being it needed to be detailed enough to be used worldwide (language and economic barriers) while being simple enough to be effective.

To subscribe or unsubscribe to the Personal Finance Review (the written form of all the content we discuss on the podcast) please e-mail [email protected]

The Personal Finance Review is published and distributed on a biweekly basis by Planned Solutions, Inc. for informational purposes only. Please seek the advice of a qualified financial planner before taking any action.

Planned Solutions, Inc.

ADDRESS: PHONE:

1130 Iron Point Road, Suite 170 (916) 361-0100

Folsom, CA 95630 (800) 750-2111

E-MAIL: FAX:

[email protected] (916) 361-0191

WEB SITE:

www.PlannedSolutions.com

#financial #invest #finance #investment

On this episode of the Planned Solutions Financial Review Podcast we discuss, The Federal Reserve. They've held the target for its key interest rate steady in May citing balanced economic risks which included an expected resolution to the US-China trade war. The President responded by threatening to increase tariffs on China causing the trade talks to break down. Is the President pushing for a better deal with China or increasing economic uncertainty in an effort to coax the Fed into lowering interest rates?

And, The potential cost of long-term care can be a major risk for many retirees. Some address this risk by creating a plan to fund long-term care expenses from their retirement income or assets while others choose to purchase insurance to reduce their risk. The decision of whether to buy insurance is specific to an individual’s financial situation and should be discussed with a qualified professional.

Also,Before sending your children off to college you may want to create the legal documents that will allow a parent to act on the child’s behalf. Once a child reaches age 18 they are an adult according to the law. Therefore, a parent’s ability to help manage their child’s financial and heath care matters may be diminished. However, this risk may be mitigated by creating a financial and health care power of attorney that will give the parent the legal authority to act on their child’s behalf in case of an emergency.

Plus a look at the Planned Solutions Incorporated Office Bulletin Board- Creating or updating an estate plan can be an easy thing to put off. An estate plan is usually not something that is needed until someone passes away or becomes incapacitated, but it can be a very important part of the efficient management and dispositions of an individual’s financial resources in the future. Unfortunately, no one knows when they may die or become incapacitated so waiting too long to address this financial risk can prove costly.

To subscribe or unsubscribe to the Personal Finance Review (the written form of all the content we discuss on the podcast) please e-mail [email protected]

The Personal Finance Review is published and distributed on a biweekly basis by Planned Solutions, Inc. for informational purposes only. Please seek the advice of a qualified financial planner before taking any action.

Planned Solutions, Inc.

ADDRESS: PHONE:

1130 Iron Point Road, Suite 170 (916) 361-0100

Folsom, CA 95630 (800) 750-2111

E-MAIL: FAX:

[email protected] (916) 361-0191

WEB SITE:

www.PlannedSolutions.com

#financial #invest #finance #investment

On this episode of the Planned Solutions Financial Review Podcast we discuss, Oil prices increased sharply in 2019 largely due to supply constraints that hit the market. However, oil prices are now approaching the level where higher cost producers, such as many oil producers in the US, are likely to restart production or increase supply. This may help oil prices find an equilibrium in the $50-$70 range. In the meantime there are a number of steps that consumers can take to limit the impact that higher gasoline prices have on their budgets.

And, Beneficiary designations are a common feature of many different types of accounts. However, many people often overlook the importance that beneficiary designations play in a properly crafted estate plan or they fail to update their beneficiary designations after a major life event. Therefore, it is good policy to review beneficiary designations on a regular basis to ensure that they still reflect your wishes.

Also,A recent report by the trustees of the Social Security system highlights the program’s un-sustainability under its current rules. The Social Security program is expected to run a deficit (benefits exceed income from Social Security taxes) for the first time since the 1980s in 2020. The program will then dip into its nearly $3 trillion in reserves which will extend benefits until 2035. If no action is taken in the next 16 years the program will be insolvent in 2035. What do you need to know?

Plus a look at the Planned Solutions Incorporated Office Bulletin Board- Spring is high school graduation season for some. This means Spring is also college funding planning season for many parents. We discuss key factors you need to think about in your college fund planning.

To subscribe or unsubscribe to the Personal Finance Review (the written form of all the content we discuss on the podcast) please e-mail [email protected]

The Personal Finance Review is published and distributed on a biweekly basis by Planned Solutions, Inc. for informational purposes only. Please seek the advice of a qualified financial planner before taking any action.

Planned Solutions, Inc.

ADDRESS: PHONE:

1130 Iron Point Road, Suite 170 (916) 361-0100

Folsom, CA 95630 (800) 750-2111

E-MAIL: FAX:

[email protected] (916) 361-0191

WEB SITE:

www.PlannedSolutions.com

On this episode of the Planned Solutions Financial Review Podcast we discuss, Property and casualty insurance (home, auto, and liability insurance) is often an afterthought until there is a claim. Then the coverage limits become very important as it may determine whether the policyholder(s) will incur large out of pocket expenses or can rely on their insurance to cover the loss. Therefore, it is important to review insurance coverage and limits every few years to make sure they are sufficient. What Do you need to know?

And, The International Monetary Fund (IMF) recently updated its global economic growth forecast by reducing its estimated growth rate to 3.3% for 2019. The IMF cites a number of economic factors including trade, business confidence, and government policies as heightened risks to economic growth going forward. What does this mean for the economy?

Also,There is speculation that the US and China are nearing a trade agreement that will at least create a ceasefire in the trade war. The belief is that both sides will make some concessions and agree to stop the tit for tat escalation. However, the US has now turned its focus to the European Union with threats of a fresh round of tariffs on European goods. The EU has responded with plans to retaliate against US goods. So it appears the trade war focus may just be shifting.

Plus a look at the Planned Solutions Incorporated Office Bulletin Board- It is important to remember that a request for an extension to file individual tax returns is not an extension of time to pay any tax due. What do you need to understand about filing a tax extension? And, All of us at Planned Solutions want to thank our clients for the many referrals that we have received so far this year. Planned Solutions spends very little on marketing so we rely on word-of-mouth referrals to continue to grow. Therefore, we are very thankful when our clients think highly enough of us to pass along our information to their friends, family, co-workers, ect

To subscribe to the written form of all the content we discuss email [email protected]

On this episode of the Planned Solutions Financial Review Podcast we discuss, Long-term interest rates recently declined to the point where they are now lower than short-term interest rates. This is called an inverted yield curve as it differs from the normal state of the curve in which long-term interest rates are higher than short-term rates. An inverted yield curve is often used as a recession indicator as historically a recession has occurred six to twelve months after the yield curve inverts. What impact can this have on the economy?

And, The IRS released its 2019 list of the “Dirty Dozen” tax scams that are most common. This year the list focuses on taxpayers who falsely claim deductions for medical expenses, charitable contributions, and business expenses that cannot be substantiated. The Earned Income Tax Credit also continues to be a problem. The IRS reiterates the penalties that taxpayers may face should they file false tax returns. What do you need to know?

Also,There has been a lot of press about change in the tax withholding tables in February 2018 causing many taxpayers’ tax withholding to decrease so that they received smaller refunds or owe tax. Taxpayers who found themselves in this situation should take action now to adjust their withholding's in order to avoid a repeat of the same outcome next year. This is especially important because the IRS may be more aggressive in enforcing tax underpayment penalties for the 2019 tax year.

Plus a look at the Planned Solutions Incorporated Office Bulletin Board- The IRS has issued a warning to taxpayers regarding identity theft and tax scams. What do you need to look out for?

To subscribe to the written form of all the content we discuss email [email protected]

On this episode of the Planned Solutions Financial Review Podcast we discuss, The fourth quarter US economic data and shed some light on the areas of strength and weakness in the US economy. US households continued to spend in the fourth quarter but at a slower pace than the second and third quarter. Business investment was strong but the trade deficit detracted from growth once again and government spending has slowed as the fiscal stimulus passed in late 2017 and early 2018 has run its course.. What impact can this have on the economy?

And, The US goods trade deficit increased by 12% in 2018 despite the tariffs placed on a variety of foreign produced goods. In general, the tariffs and other trade barriers that were imposed by the US caused the global economic growth rate to slow leading to reduced demand for US goods. Meanwhile, US economic growth has proved more resilient with US consumers continuing to purchase foreign made goods. What do you need to know?

Also,There is a misconception that home mortgage interest is no longer deductible or is capped. In fact home mortgage interest is still deductible with no cap on the amount of interest paid. However, the limit on the home equity indebtedness that qualifies for a mortgage interest deduction was reduced for mortgages originated after 12/15/17. In addition, interest paid on home equity debt in which the money borrowed was not used to buy, build, or improve the home is no longer tax deductible.

Plus a look at the Planned Solutions Incorporated Office Bulletin Board- We are often asked how long an individual should keep their income tax records. We tell you what you need to know.

To subscribe to the written form of all the content we discuss email [email protected]

On this episode of the Planned Solutions Financial Review Podcast we discuss, Economic data shows that consumer spending weakened late in 2018. This coincides with data showing that consumer sentiment has declined in recent months and household debt has leveled off as consumers may have been focused more on savings

or paying down debt rather than making new purchases. What impact can this have on the economy?

And, A recent report by the Commerce Department shows that U.S. retail sales declined unexpectedly in December. The official data

shows that retail sales declined 1.2% for the month, the worst report since 2009. In addition, the report showed a decline in nearly every major retail category possibly signaling that U.S. consumers are tightening the purse strings going into 2019.. What do you need to know?

Also,Occasionally taxpayers may have more deductions than they

do income in a given year, resulting in negative taxable income reported on their tax return. This can create an opportunity where the taxpayer could pull additional income into the tax year to use the

excess deductions to shelter the income from taxation. Therefore, it can be beneficial to engage in tax planning before the end of the tax year in order to take full advantage of all tax deductions. What do you need to know?

Plus a look at the Planned Solutions Incorporated Office Bulletin Board- Daryl attended a monthly meeting for the Financial Planning Association of Northern California. What did the program include? And, Despite previous concerns about the IRS issuing delayed refund checks due to the government shutdown it appears that early refund checks are being issued within a few weeks.

To subscribe to the written form of all the content we discuss email [email protected]

On this episode of the Planned Solutions Financial Review Podcast we discuss, This time of year millions of Americans prepare their income taxes, sign the e-file forms, and then transmit their financial information to the IRS. Where does the information go? What does the IRS do with it? How does this impact the chances of an audit or notice being generated by the IRS? These are all questions that few people think about but they represent the real inner workings of our tax system.

And, The global economy is more interlinked than ever. Following decades of globalization supply chains now stretch across the globe so that the trade deficits and surpluses around the world link trading partners with each other. The mechanism by which trade activity influences economic growth takes time to become apparent in the economic data but the impact can be quite large due to the second-order spillover effects that may occur. What do you need to know?

Also,The Tax Cuts and Jobs Act of 2017 expanded the definition of “qualified higher education expenses.” In the past this definition required enrollment in a qualified post-secondary educational program that qualifies for federal financial aid. The new law expands the definition to include $10,000 in annual expenses for tuition in connection with enrollment in elementary or secondary school..

Plus a look at the Planned Solutions Incorporated Office Bulletin Board- January and early February seems to be time of year when many organizations host their economic update events. Chase participated in two presentations and recently attended a third. While three economic updates in less than 30 days may seem like overkill it was useful to compare and contrast the economic outlook from different organizations which emphasized different sources of economic data. However, all of the presentations seem to have similar themes: The rate of economic growth is slowing but it may not slow enough to result in a recession in the near term. Shannon, Candice, and Michele attended a conference in San Francisco hosted by Black Diamond, the software that we use to generate account reports, manage client data, and exchange information with clients through the secure portal. The conference was focused on the more advanced features that Black Diamond’s software offers which may allow us to work more efficiently by gaining faster and easier access to data.

To subscribe to the written form of all the content we discuss email [email protected]

On this episode of the Planned Solutions Financial Review Podcast we discuss, The fourth quarter 2018 earnings season is expected

to reflect strong year-over-year earnings growth as the corporate tax cuts spark an increase in corporate earnings. However, the expectations for the rate of earnings growth have been declining through most of 2018 and into 2019 as analysts digest weaker than

expected earnings reports and negative earnings guidance from many companies. This has increased the uncertainty about the rate of earnings growth in 2019.

And, Due to the increase in the Standard Deduction

many taxpayers will no longer itemize their deductions in 2018 for federal tax purposes. However, many states did not conform to the

federal changes so their Standard Deduction amounts remain much lower. Therefore, many taxpayers may still benefit from gathering their Itemized Deductions in order to claim the deduction on their state income tax returns.. What do you need to know?

Also,The tax cuts and changes to the tax withholding tables that took

effect in 2018 has some worried that many taxpayers will owe

more than expected when they file their income taxes this year.

To ease the tension the IRS announced that it will lower the

threshold for tax underpayment penalties for 2018. Now, as long

as a taxpayer has paid in at least 85% of their total tax liability

the underpayment penalty should be waived. Historically,

the threshold was 90% of the total tax for the year.

Plus a look at the Planned Solutions Incorporated Office Bulletin Board- A few things to be aware of as tax time nears it is important to remember that tax forms may be mailed on different schedules depending on the type of account and the information the tax forms report. In addition, if an account was transferred during the year there will likely be multiple tax documents for the account as each custodian will issue their own form to report the income for the period in which they held the account.

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