Every year I get a call from a client stating that their identity has been stolen. This generally occurs right after they have efiled their tax return. I am not a fan of efiling, here is one reason why: last year the IRS rejected or suspended the processing of 4.8 MILLION suspicion returns. So far, 1.4 million have been confirmed as identity theft returns.
For this one piece of paper, for this one instance, make friends with the post office again. Mail your tax return the old school way – lessen your chances of identity theft.

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Most of you that have investments have recently received your end of year reports. I know that the first thing you look at is your total return. You want to know how did you do, or more correctly, how did we as CFP® professionals, do for you. We know this is important, but we are so much more than that for you.
We want to know how you are living your lives right now. What type of family obligations, celebrations, illnesses, and plans do you have on your plate for which we can help you plan. We want to know what your dream retirement looks like so we can help you plan for that. Recently, I met with a couple that is going through some big lifestyle changes, the husband is now disabled, their oldest son is getting married, and their daughter has two more years of college. All of this takes planning with regular reviews and updates for these lifestyle changes. We hold your hands, we cry with you, and many times we get to celebrate with you.
Financial planning is all encompassing, it is our passion. Yes, we are also concerned with the numbers – but we are more concerned about you, the person.

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As of now, there are 20 states that have approved medical marijuana and8 more that have approved recreational as well as medical use. So, is there an opportunity to profit? There are a number of companies out there that are getting their newsletters out as fast as they can so you can invest in this emerging industry. Do you remember the Y2K panic? How about the Dot-Com bubble? This is another case where you should take a step back. All I have seen available is buying penny stocks in the pot industry and the related companies. In my opinion, this is not a good way to invest. The penny stock business was huge a number of years ago and has virtually been dead until now. There are still a lot of Federal regulations that need to pass in order for income from the pot industry to be deposited legally.
This is a classic case of “if it sounds too good to be true”.

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If you have ever received a letter from the IRS, your first instinct is to throw up. You panic, you wonder what you may have done wrong, and then you wonder if you should hire professional help. Well, the IRS wants to change our opinion of its department.
The IRS wants to change from an attitude of audits and enforcement to one of outreach. Yes, I said outreach. Over the last two years anyone who has tried to call the IRS to ask a question has been put on hold for more than 30 minutes, and only 53% of the questions we asked have been answered. To quote the current thought process, the IRS is thinking about striving “to create an environment that encourages taxpayer trust and confidence, the IRS must change its culture from one that is enforcement-oriented to one that is service-oriented.”
We have a new administration starting in a few days, along with a new congress, so who knows what might happen.

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While many taxpayers have payroll deduction retirement plans, it does not necessarily prevent you from making a deductible IRA contribution. If you are married filing a joint return and your adjusted gross income is between $98,000 – $118,000, you can make a partial or completely deductible IRA contribution for 2016. For single tax filers, their phase-out bracket is $61,000 -$71,000. If you are self-employed, the limits are even broader if you open a SEP IRA. For 2016, you can contribute 25% of your adjusted gross income up to $53,000.
You have until April 18, 2017 to fund a Traditional IRA, and up until the date you file, including extensions, which end October 18,2017, to fund your SEP IRA.
Put the funds in your pocket vs. that of the IRS for 2016.

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Q: I turn 70.5 years old in June of 2017. Can I still transfer funds directly from my retirement account to a charity and have that count for my Required Minimum Distribution?
A: Section 408(d) (8), was made permanent allowing for your Required Minimum Distribution to be paid directly to a qualified charity. Not only that, as the funds go directly from your retirement account to the charity, they are not included in your adjusted gross income for the year. You can transfer as much of your RMD to a qualified charity as you wish and you do not have to have any of the RMD amount paid directly to you if that is your wish.

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A fresh new year is once again upon us. It’s the time to be thankful for the blessings of the past year and to take stock of all our achievements. At the same time, New Year 2017 is a brand new year to start afresh, to start strong, and yet another chance to do everything we want to do this year.

The amazing thing with chances is how we get them every year. So, set positive goals and resolutions. Hang them where you can see them every hour of the new year. And be excited for what you can achieve this 2017.

First, build an emergency fund. We had two hurricanes come through our area in 2016, and my daughter totaled her car – without an emergency fund, we would have been in trouble. Try to save two to three months worth of income for your emergency fund. Do Not touch it unless you have a true emergency.
Second, put more away for your retirement. Using payroll deduction is the easiest way to save. Through payroll deduction, you can save pre-tax dollars and may notice little to no change in your spendable income.
Review your portfolio. I recommend at least twice a year. Things change in the markets; things change in your life – semi-annual review will make sure that you portfolio keeps pace with these changes.

I hope you have a prosperous 2017!

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