When it comes to financial planning, taxes are always a top concern. They can become even more tricky when someone lives in one state but works in another. Do you need to file a state return? What income gets reported where? If you're one of the many who live in NH but work in MA, make sure to report your income correctly so you're not overpaying this year.
It was inevitable to hear the terms Robinhood and IPO in the same sentence. Robinhood, the investing app, has had its name all over the place in recent years. And with the company still privately held, Robinhood and IPO seemed destined to touch the headlines of financial newspapers. What may not have been foreseen was that Robinhood would not only be going through an IPO itself but would be offering its customers the opportunity to invest in other IPO offerings.
If you need to buy a house or a car in this market of rapidly rising prices, what do you do? Interest rates are low, inflation is high, every month that goes by the cost of what you want to buy increases. The amount home prices, and car prices, have grown over the past year is not the point (it’s a lot), but understanding the reason behind it can help you decide what the best path is for you.
By putting solar panels on your property, you are in effect installing a power plant that generates free energy; doesn’t require fuel; is silent and pollution free; has little or no maintenance and lasts for 25 years or more. In return, you receive free electricity to reduce or eliminate your electric bill; you increase the value of your home; you get a subsidy from the government; and you help combat climate change.
“We caution you against investing in our Class A common stock, unless you are prepared to incur the risk of losing all or a substantial portion of your investment.” Not exactly the words that you want to hear come from the CEO of a publicly traded company. Yet, that is a quote from a regulatory filing that AMC Entertainment (NASDAQ: AMC) placed with the SEC on June 3rd, 2021. The filing went on to say, “Within the last seven business days, the market price of our Class A common stock has fluctuated from an intra-day low of $12.18 on May 24, 2021 to an intra-day high of $72.62 on June 2, 2021, and we have made no disclosure regarding a change to our underlying business during that period, other than with respect to an additional financing.”
The silent killer of many financial plans is the gradual increase of the price of goods and services over time, otherwise known as inflation. This mysterious villain is often neglected because these price increases are so gradual, they are hardly noticed day by day, until you reflect on what things used to cost 10, 20, or 30+ years ago. This has been especially true over the past decade when inflation has been so much less than in the past.
At more than $1.7 trillion, student loans have become the second largest source of debt in the United States, behind only mortgage debt. The average student debt borrower, as of 2019, owed more than $29,000 and had a monthly payment more than $300/month1. The figures are even worse for students in New England, with New Hampshire averaging the highest amount of student loan debt out of any state with $39,400/student. Connecticut, Rhode Island, and Massachusetts are also in the top 102. With debt levels on the rise, and the cost of college increasing, student loans are one of the top financial issues facing many young professionals.
From fraudulent transactions to identity theft, securing online accounts is a hot topic in financial planning discussions in today’s cyber-connected world. There are some things you can do to protect yourself. Just like locking your doors and installing a security alarm and security cameras can protect your physical assets, there are similar approaches that can protect your online accounts.
On April 28th President Biden pitched his American Families Plan to select group of members of Congress. Near the end of the proposal was a section entitled “End capital income tax breaks and other loopholes for the very top.” The first part of this section covered changes to capital gains tax rates that we covered in a previous blog article. The second part covered closing the “step-up” loophole (see text below) which is what we’re going to cover in this week’s blog.
Kids aren't cheap. Between providing for their food, clothes, childcare, activities, toys, possibly college, and countless other things, the financial cost of raising children can be quite high. However, most parents will admit that the joys and wonders of having children far outweigh the financial costs (at least until their adolescent years). Luckily for those who have qualifying children, many will receive an expanded tax benefit in the form of a tax credit from the recently passed American Rescue Plan. This credit is in addition to the enhancements of the Child and Dependent Care Tax Credit that was discussed in a previous blog. Here's what you should know about the Child Tax Credit, and what expanded benefits may apply to you.
President Biden is planning on previewing his American Families Plan (AFP) at his first address to a joint session of Congress on April 28th. Some of the expected parts of the plan include extending the enhanced child tax credit, 12 weeks of family leave paid for by the federal government, free community college, access to free childcare, and universal pre-K. To pay for all of these new programs, the President is expected to propose tax increases in various forms. One of the most talked-about changes is with long-term capital gains rates, reportedly increasing dramatically for those Americans with more than $1 million in taxable income.
It is not surprising that Bitcoin has captivated people’s attention over the last year given its dramatic increase in price and abundant press coverage. You can’t go a day without hearing someone start a sentence with “The price of Bitcoin...” or “An investment in Bitcoin in 2010 would be worth…”. It is puzzling to hear Bitcoin framed as an investment. Wasn’t Bitcoin started as an easier way to exchange payments between two parties? Shouldn’t you want a currency to be fairly stable in value so you can be certain that when you accept a payment the value will not fluctuate wildly while you hold it until you need to use it for spending?