Planned Solutions

In this episode of the Planned Solutions Incorporated Podcast, Mortgage rates have declined recently from very high levels. This has caused some homeowners who purchased a new home last year during the higher interest rate environment to consider refinancing their mortgage to capture the lower rates. While mortgage interest rates are a big factor in determining whether it

makes sense to refinance a mortgage other factors should be considered as well.

Also, US Consumer Sentiment surged to end 2023 as yet another positive sign that US consumers will continue to support US economic growth. Consumer Sentiment is an inverse indicator

meaning that investors often want to buy when it is low and reduce risk when it is high. Now, the Consumer Sentiment is no longer at bargain price levels but still is well below its peak from past economic and market cycles.

And, 529 educational savings plans now offer several options for plan owners who have funds left over after higher education expenses for the beneficiary are paid. These include transferring the funds to another beneficiary, using the money to fund a Roth IRA for the beneficiary, or using the money to pay off up to $10,000 in student loans for the beneficiary and/or their siblings.

Plus a look at the Planned Solutions Incorporated Office Bulletin Board - The Internal Revenue Service announced that Monday, January 29, 2024, will be the beginning of the 2024 tax season (the day when tax returns may be submitted and processed for the 2023 tax year.) In addition, the deadline to file personal tax returns this year will be on Monday, April 15th, 2024, unlike past years when the deadline was extended by a few days to accommodate a holiday recognized by the District of Columbia. This is the date to file a return or apply for an extension to October 16th to file returns. However, any tax owed is due by the April 15th deadline.

As always, if you have any questions about investment tax forms or the forms that will be needed to prepare your tax returns in general, feel free to give us a call or send an e-mail so we can make sure you file a complete and accurate tax return.

Chase Armer's book- Financial Planning Insights is now available at:

https://www.amazon.com/Financial-Planning-Insights-Decades-Planner/dp/1098306279?ref_=ast_author_mpb

To subscribe 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 biweekly by Planned Solutions, Inc. for informational purposes only. Please seek the advice of a qualified financial planner before taking any action.

Planned Solutions, Inc.

In this episode of the Planned Solutions Incorporated Podcast, The Magnificent Seven (the seven most valuable companies included in the S&P 500 index) increased in value by 75% in 2023, whereas the remaining 493 stocks in the index increased by 12%. This has captured the attention of investors and the financial press. However, what is often ignored is the large losses these stocks reported in 2022. In fact, over two years these seven stocks have had an overall performance very similar to the S&P 500 index as a whole.

Also, The US stock market dipped to start 2024. However, the decline was just a small fraction of the gains realized over the final two months of 2023. In addition, the dip may just be the result of the normal ups and downs of the market, investment risk management activities, or tax planning.

And, The new electric vehicle tax credits offer taxpayers up to

$7,500 in tax savings. However, this credit is very complicated

when it comes to determining which vehicles will qualify for

the credit. In addition, there are new income limitations that will

exclude certain high-income taxpayers from qualifying for the

tax credit. Finally, in some cases, the credit may be assigned to the dealer in exchange for a lower price to allow taxpayers to

benefit at the time of purchase rather than waiting until tax time.

Plus a look at the Planned Solutions Incorporated Office Bulletin Board - Before preparing your 2023 income tax return(s) it is important to make sure that you have all tax forms and other tax information that you need. In some cases, this may mean being patient until all your investment forms have been issued. In other cases, it may mean being careful to thoroughly go through your mail looking for tax forms. For example, mortgage companies often send out Form 1098, which reports the interest paid during the year, with the monthly mortgage statement. So, it is important to sort through all the pages in the mailing to see if your tax forms

were included with the most recent statement. Also, more and more companies are posting tax forms online rather than mailing them. Our tax organizer, or your tax return from the previous

year, may be used to compare the information that was reported in the prior year with the tax forms that have been received to see if anything is missing.

As always, if you have any questions about investment tax forms or the forms that will be needed to prepare your tax returns in general, feel free to give us a call or send an e-mail so we can make sure you file a complete and accurate tax return.

Chase Armer's book- Financial Planning Insights is now available at:

https://www.amazon.com/Financial-Planning-Insights-Decades-Planner/dp/1098306279?ref_=ast_author_mpb

To subscribe 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 biweekly by Planned Solutions, Inc. for informational purposes only. Please seek the advice of a qualified financial planner before taking any action.

Planned Solutions, Inc.

In this episode of the Planned Solutions Incorporated Podcast, There is a discrepancy between the official government price data for shelter (rents) and the data reported by multiple private data providers. The US government numbers show rents increasing 6.5% over the past year while private data reports a 2.1% decrease in rents. Many economists and investors believe the private data to be more accurate and up to date causing them to price in a sharp decrease in inflation in the next three to six months.

Also, Early signs show that consumers continued to increase their spending during the holiday season, albeit at a slower pace than the prior year. This is a good sign for the economy as consumer

spending represents approximately 70% of US economic output. However, there are indications that US consumers are becoming more price-conscious.

And, The IRS has announced that it will not enforce penalties on

owners of inherited IRAs that fail to take Required Minimum Distributions (RMDs) in 2023. However, the IRS will still require that the RMD amount be distributed even if it is done in the following year which can create some tax planning challenges. Therefore, owners of an inherited IRA may still benefit from taking taxable income from the account in 2023 to reduce their overall tax burden.

Plus a look at the Planned Solutions Incorporated Office Bulletin Board - The New Year is a great time to set or update goals including financial goals. When making

financial goals it is best to set SMART goals. These are the goals that are:

Specific (S) – Instead of making general or broad goals be specific about what you want to

achieve.

Measurable (M) – Determine how you will measure the goal and know whether or not you have

achieved it ahead of time.

Achievable (A) – Make sure your goals are realistic taking into account real-life challenges and

constraints. Achievable goals can be motivating. Unachievable goals can be demotivating.

Relevant (R) – Make sure your goals will put you on track for success. Ask yourself: Will the

achievement of these goals lead to the desired result?

Time-Bound (T) – Make sure to give each goal a deadline as to when you want to achieve your

objective.

Chase Armer's book- Financial Planning Insights is now available at:

https://www.amazon.com/Financial-Planning-Insights-Decades-Planner/dp/1098306279?ref_=ast_author_mpb

To subscribe 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 biweekly by Planned Solutions, Inc. for informational purposes only. Please seek the advice of a qualified financial planner before taking any action.

Planned Solutions, Inc.

In this episode of the Planned Solutions Incorporated Podcast, The federal tax code offers several tax credits for the purchase and/or installation of energy-efficient property. These credits generally fall into three categories: Residential Clean Energy Credits (credits for clean energy generation), Clean Energy and Vehicle Credits (credits for buying electric or fuel cell vehicles),

and Energy Efficient Home Improvement Credits (credits for improving the energy efficiency of home heating or cooling).

Also, The S&P 500 has rallied recently and is now at a new high for the year. The index needs to increase less than 5% to reach a new all-time high. However, several other market indexes have further to go to achieve a full recovery. Yet the overall market momentum has been positive causing some to speculate that a full market recovery may be just around the corner.

And, The amount that can be contributed to a Health Savings

Account will increase in 2024. To contribute to a Health Savings

Account an individual must be enrolled in a Health Savings Account (HSA) eligible High Deductible Health Plan which

typically have a lower cost but require the insured to contribute

more toward the cost of their care, up to a certain limit. However, money saved in an HSA can be used to pay these higher costs tax-free.

Plus a look at the Planned Solutions Incorporated Office Bulletin Board - As we near the end of the year we have been busy making sure all Required Minimum Distributions (RMDs) are processed before the deadline. In addition, we have been reviewing taxable investment accounts to see if there are any opportunities for tax loss harvesting or other tax strategies that could save taxes on upcoming 2023 income tax returns.

We are currently in the process of getting our tax software set up for the upcoming 2023 tax filing season. We will be sending out our annual tax packets at the beginning of January. This year we plan to send the tax packet digitally to save on paper and postage costs. However, if you prefer to receive a paper tax packet in the mail, please give us a call or send us an e-mail and we will be happy to mail the information in addition to sending it digitally.

Chase Armer's book- Financial Planning Insights is now available at:

https://www.amazon.com/Financial-Planning-Insights-Decades-Planner/dp/1098306279?ref_=ast_author_mpb

To subscribe 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 biweekly by Planned Solutions, Inc. for informational purposes only. Please seek the advice of a qualified financial planner before taking any action.

Planned Solutions, Inc.

In this episode of the Planned Solutions Incorporated Podcast, As the last several months have demonstrated, the future path of interest rates is unknown. However, the expected path of interest rates can be discerned by examining the futures markets where investor thinking is reflected in prices and expectations for rate changes. Currently, the market is predicting that the current

interest rate cycle has peaked and the Federal Reserve will start to lower interest rates by May 2024.

Also, The federal standard deduction for income taxes will increase for all tax filers in 2024. However, many of the itemized deductions may have also increased due to increased mortgage rates and property taxes. Therefore, it is important for taxpayers to review their filing options, especially when it comes to state taxes, which often have a lower standard deduction than the federal level.

Plus, The amount that an individual can gift to another individual in a given tax year without owing gift taxes, or being required to file a gift tax return, will increase from $17,000 to $18,000 in 2024. In some cases, gifting can be an important part of a long-term

estate planning strategy. In addition, it is important to plan any gifts carefully to make sure they do not put retirement planning goals at risk and are structured properly to reduce any costs and tax filing obligations.

Plus a look at the Planned Solutions Incorporated Office Bulletin Board - With the holidays quickly approaching, we want to make sure you are aware of our holiday schedule for this year.

December 25th 2023 Closed

January 1st 2024 Closed

Given the above holiday schedule, as well as the holiday schedule of many of the companies that we work with, we ask that any forms or other requests that must be completed before year-end be submitted as soon as possible. If any paperwork or requests come in close to the end of the year, we will use our best efforts to process the forms or fulfill the requests but cannot guarantee that it will be completed in time due to factors beyond our control.

Chase Armer's book- Financial Planning Insights is now available at:

https://www.amazon.com/Financial-Planning-Insights-Decades-Planner/dp/1098306279?ref_=ast_author_mpb

To subscribe 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 biweekly by Planned Solutions, Inc. for informational purposes only. Please seek the advice of a qualified financial planner before taking any action.

Planned Solutions, Inc.

In this episode of the Planned Solutions Incorporated Podcast, The official inflation rate ticked down to 3.2%, the same level as the July report, and the lowest inflation rate in several years. All the major categories, including food, energy, and shelter declined over the past twelve months creating hope that inflation will now continue its downward trend that started over a year ago. This is

also positive news for the Federal Reserve which now may be able to hold interest rates steady next meeting.

Also, The Social Security Administration announced good news for people collecting benefits and bad news for some people still paying into the system. The good news is that the Social Security benefit will increase by 3.2% in 2024. The bad news is that the wage limit which is subject to Social Security taxes on earned income will increase by 5.24% in 2024.

Plus, In the past, the Free Application for Federal Student Aid (FAFSA) used a parent or guardian’s gross wage income to

determine a student’s eligibility for federal financial aid. Now,

the FAFSA will use taxable income, which is the income after any tax-deferred retirement contributions are subtracted from the gross income. This will provide some flexibility in planning for retirement and education funding going forward.

Plus a look at the Planned Solutions Incorporated Office Bulletin Board - the annual contribution limit for employees who participate in 401k, 403b, and 457 type plans will increase to $23,000 in 2024, which is a $500 increase from 2023.

In addition, the catch-up provision that employees aged 50 and over can contribute will be an additional $7,500 (no change from the prior year), bringing the total employee deferrals to $30,500 for 2024.

The limit on annual contributions to an IRA or ROTH IRA will increase to $7,000 in 2024, up from $6,500 in 2023. The catch-up contribution for those aged 50 and older remains the same at $1,000, bringing the total to $8,000.

Limits on other small business retirement plans have also increased along with the income phase-outs for ROTH IRA eligibility. With the larger increases coming in 2024, especially with the ROTH IRA eligibility, taxpayers may want to review their overall finances to determine if they need to make any adjustments, including increasing their salary deferrals or incorporating direct ROTH contributions, if they are eligible based on the higher income thresholds.

Chase Armer's book- Financial Planning Insights is now available at:

https://www.amazon.com/Financial-Planning-Insights-Decades-Planner/dp/1098306279?ref_=ast_author_mpb

To subscribe 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 biweekly by Planned Solutions, Inc. for informational purposes only. Please seek the advice of a qualified financial planner before taking any action.

Planned Solutions, Inc.

In this episode of the Planned Solutions Incorporated Podcast, The US Treasury is becoming a larger and larger focus of Wall Street as the US Government has been borrowing very large amounts from the private sector. With the current large federal deficit, the need to roll over short-term borrowing, higher interest rate costs, and reduced lending from foreign entities have caused the US Government to borrow more and more from the domestic markets. This creates a risk that there will be too little debt available to fund the private sector.

Also, When an employee leaves their employer, they often have the option to keep their money invested in the employer’s retirement plan. However, employees with small balances may be “forced out” of the plan by having their money transferred to an IRA. The definition of a small balance will be increasing from $5,000 currently to $7,000 in 2024 making it so the “force out” may impact more employees in the future.

Plus, Credit cards can be a valuable tool for processing payments

while earning rewards. However, the negative side of credit cards

comes when balances accumulate and are rolled over from month

to month resulting in high-interest charges. Therefore, it is important to have a plan to limit the impact of credit card debt as

quickly as possible. This includes finding the reason the debt accumulated in the first place and taking action to reduce the likelihood that it will continue.

Plus a look at the Planned Solutions Incorporated Office Bulletin Board - Chase and Daryl recently attended the Financial Planning Association of Northern California’s Fall Symposium. The event was held at California State University, Sacramento in an effort to

engage with students working toward a degree in Financial Planning.

Planned Solutions sponsored a golf tournament supporting the Assistance League of Sacramento. The Sacramento Chapter is one of 120 Assistance League chapters nationwide in which volunteers work to improve their local communities.

Chase Armer's book- Financial Planning Insights is now available at:

https://www.amazon.com/Financial-Planning-Insights-Decades-Planner/dp/1098306279?ref_=ast_author_mpb

To subscribe 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 biweekly by Planned Solutions, Inc. for informational purposes only. Please seek the advice of a qualified financial planner before taking any action.

Planned Solutions, Inc.

In this episode of the Planned Solutions Incorporated Podcast, Trend following is often used by investors in an attempt to profit by predicting market price trends. The effectiveness of this is unproven at best. However, trend following may be used as an effective risk management tool by highlighting time periods when investors may benefit from reducing investment risk or investing more cautiously during periods of heightened market risk.

Also, the likelihood of a recession in the US appears to be decreasing. The Weekly Economic Index (WEI) has been increasing, signaling a higher rate of economic growth in the future rather than a decline in growth. In addition, the yield curve has flattened signaling slow economic growth ahead rather than a decrease in economic activity.

Also, Subscriptions have become a popular way for businesses to

charge for their products or services. Businesses prefer this pricing method because it can create a more stable and consistent cash flow and, once signed up, consumers often overlook the expenses even if they are not getting the value they expected from the arrangement. Therefore, it is important to do a periodic audit of subscriptions to eliminate or reduce the cost of those that are no longer needed or are not fully utilized.

Plus a look at the Planned Solutions Incorporated Office Bulletin Board-We give an update on the Harlan D. Wood and Debbie Druivenga Memorial Cancer Charity Golf Tournament was once again a big success. We would like to thank everyone who supported the event this year and in years past by attending the tournament, bidding on auction items, and contributing to cancer

charities. We look forward to next year when hopefully we will be able to continue to grow the tournament and the donations raised for cancer charities.

Just in case this tax season was not crazy enough, the IRS and Franchise Tax Board (California tax authority) announced on October 16th, the day taxes were due to be filed, that the deadline has been extended to November 16th for people living in the California counties included in the federal disaster declaration. So, the tax season that never ends will continue for one more month.

Chase Armer's book- Financial Planning Insights is now available at:

https://www.amazon.com/Financial-Planning-Insights-Decades-Planner/dp/1098306279?ref_=ast_author_mpb

To subscribe 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 biweekly by Planned Solutions, Inc. for informational purposes only. Please seek the advice of a qualified financial planner before taking any action.

Planned Solutions, Inc.

In this episode of the Planned Solutions Incorporated Podcast, Interest rates have increased sharply in the past 18 months as the Fed attempts to slow the economy and bring inflation down to its 2% target. However, several areas of the economy have reacted in unusual ways as the job market has remained strong and single-family home prices remain elevated, while commercial real estate prices have dropped. In addition, the level of household debt, commercial business debt, and even government debt have all increased despite higher interest rates.

Also, The interest rate applied to tax balances that were not paid within the quarter that the income was earned was 7% for the third quarter and increased to 8% for the fourth quarter. These high interest rates may lead to substantial tax underpayment penalties for taxpayers who do not monitor their taxable income and tax withholdings during the year, making it more important to engage in tax planning during the tax year

Also, Collectibles can be an attractive investment opportunity for those who enjoy collecting items that may appreciate in value and have the time to invest in becoming an expert in the field. However, investing in collectibles comes with its own risks such as the risk that the collectible items will be lost or destroyed. In addition, when a collectible is sold at again, the tax code applies a

higher tax rate to the gain than it does for other investments that are sold after they appreciate in value.

Plus a look at the Planned Solutions Incorporated Office Bulletin Board- Our Podcast moderator, Jason LaChance, has a day job working for a non-profit called Parents and Addicts in Need (PAIN) located in Fresno, California. This organization focuses on providing support to their community in the areas of addiction recovery by providing resources to both addicts and their families. It goes without says that this is important work given the impact that drug overdoses are having in communities across America.

PAIN is largely funded through individual donations. On Friday, October 13th they will be hosting their big annual fundraiser, the Oh So Thankful Dinner & Fundraiser, in Fresno, CA.

However, most of their funding comes from individual donations, not necessarily from those who can attend the event. We understand that everyone has a limited budget when it comes to

charitable giving but if helping to fund addiction and recovery services is on your list of charitable causes, we would strongly recommend considering PAIN: https://painnonprofit.org/.

Chase Armer's book- Financial Planning Insights is now available at:

https://www.amazon.com/Financial-Planning-Insights-Decades-Planner/dp/1098306279?ref_=ast_author_mpb

To subscribe 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 biweekly by Planned Solutions, Inc. for informational purposes only. Please seek the advice of a qualified financial planner before taking any action.

Planned Solutions, Inc.

In this episode of the Planned Solutions Incorporated Podcast, The annual inflation rate ticked up to 3.7% in August which is a 0.5% increase from the 3.2% in July and up 0.7% from the 3.0% reading in June. The primary cause of the increase in prices in August was that energy deflation appeared to be subsiding while shelter prices declined but at too slow of a rate to offset the monthly increase in energy prices. In total, the inflation report is a mixed bag with some positive signs for the future but also some areas that should raise some concern that inflation may be more stubborn than expected.

Also, The Personal Residence Exemption allows a taxpayer to exclude up to $250,000 of gain on the sale of their personal residence. A married couple may combine their exemptions to exclude a total of $500,000 in gain. However, there are several requirements that must be met to benefit from this generous tax provision. In addition, in limited cases, a taxpayer may qualify for a partial exemption even if the requirements are not met.

As well, At its core, Social Security benefits are fairly straightforward for workers who pay into the system and meet the requirements to claim retirement benefits. However, there are several additional provisions that may impact the benefits that spouses or dependents may be eligible to claim on a worker’s record. Therefore, it is important to explore the different options and claiming strategies before filing for Social Security benefits.

Plus a look at the Planned Solutions Incorporated Office Bulletin Board- This is an update/correction to our previous newsletter:

Workers aged 50 and over earning more than $145,000 now have two more years to continue making pre-tax Catch-Up Contributions to their 401k type plans.

Prior to the latest IRS announcement, The Secure Act 2.0 mandated everyone Aged 50 and over to have Catch-Up Contributions directed to a ROTH post-tax account effective January 2024 for higher earners. This created not only an administrative burden at the plan level but also could have created adverse tax implications for each participant.

This two-year delay allows plans and participants to make the necessary adjustments so that they can comply with the new rules and also engage in tax planning strategies.

It is official, We recently sent out the registration forms for our annual charity golf tournament. We are busy ordering the giveaways for the tournament and gathering donations for the silent

auction. We hope you will be able to attend (either golf or attend the dinner) or donate to a cancer charity to support our efforts.

The Planned Solutions Cancer Memorial Charity Golf Tournament

Date: October 13, 2023

Location: Rancho Murieta Country Club – North Course

7000 Alameda Drive

Rancho Murieta, CA 95683

Time: 1:00 pm shotgun start, 5:30 pm dinner

All profits go to cancer research and education. You can help by attending the tournament or

donating. Not golfing? Bring friends and attend the dinner.

Chase Armer's book- Financial Planning Insights is now available at:

https://www.amazon.com/Financial-Planning-Insights-Decades-Planner/dp/1098306279?ref_=ast_author_mpb

To subscribe 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 biweekly by Planned Solutions, Inc. for informational purposes only. Please seek the advice of a qualified financial planner before taking any action.

Planned Solutions, Inc.