Understanding The New Tax Law View and download the in-depth .pdf 1/11/2018tax planning A brief summary.. Major tax reform typically only occurs once every decade or so. But after a tumultuous series of negotiations in both the House and Senate, a final reconciled version of the Tax Cuts and Jobs Act of 2017 (TCJA) has just been signed into law. The legislation will result in substantive tax reform for corporations, with the elimination of the Alternative Minimum Tax (AMT) and consolidation down to a single 21% tax rate, all of which are permanent. However, when it comes to individuals, the new legislation is more of a series of cuts and tweaks, which arguably introduce more tax … [Read more...]

How to remodel without wrecking your finances   • More than a third of homeowners struggle to stay on budget for their remodeling project. • 91 percent of homeowners plan to pay for a renovation at least in part with cash. • Almost a quarter will pay for their home improvement with a credit card. Improving your home shouldn't demolish your finances. About half of homeowners are either starting or continuing a home remodeling project this spring, according to a new survey from design and remodeling site Houzz. The site polled 95,920 of its users (who, arguably, may be more inclined than the general population to undertake such projects). How much you can expect to … [Read more...]

5 Countries where you can retire for half the cost of the U.S.   Why not live somewhere tropical and exotic for at least half the year and cut your expenses down considerably? If you're getting close to retirement, but you're planning on working an extra couple of years because you just "don't have the money," think again. Retiring in North America is expensive! Why not live somewhere tropical and exotic for at least half the year and cut your expenses down considerably? In this article I'm going to list five destinations where you can do just that. Note: Costs of food, housing, transportation, and entertainment are compared to New York City using Expatistan's cost of living … [Read more...]

If you are thinking about possibly relocating in retirement, have you ever thought about an international destination? We have come across several interesting and thought provoking articles about retirement outside the United States. The following information may start you thinking, but it will be your Vermillion Financial Advisor who can best help you to make it happen. Let’s talk. Love at First Sight: Retiring in Italy Written for the Wall Street Journal by Pamela Hasterok, professional journalist covering food trends, travel, and politicshttps://www.wsj.com/articles/love-at-first-sight-retiring-in-italy-1492782606 Sometimes life here can be maddening. But for the … [Read more...]

15 Cities where you can get a well-paid finance job...and cheap housing   Mark La Spisa's extended commentary in response to a new article Mark was featured in on CBNC written by Kelly Grant. The article "15 Cities where you can get a well-paid finance job...and cheap housing" addresses the new data from LinkedIn and Zillow which they use to identify the best affordable cities for health care, financial industry, and tech workers. Kelly Grant contacted me from CNBC explaining that she was doing an article on a new joint study by LinkedIn and Zillow.com. The study found that 15 cities are very attractive to those who work in the finance industry, whereby they can earn potentially … [Read more...]

The finances of family caregiving   Caring for an adult child or aging parent can be a blessing, but it can also be a burden. Providing care to a family member may save money, but it may also prove to be financially and professionally damaging to the caregiver. And, as much as caregiving can be empowering and rewarding, it also can be emotionally depleting. In short, caregiving is a complicated issue, particularly when it comes to finances. Research shows that caregivers suffer lost wages and job benefits, while also sacrificing retirement savings and Social Security benefits. For example, 10 million caregivers over the age of 50 who care for their parents sacrifice an … [Read more...]

What You Need to Know if You Get a Letter in the Mail from the IRS   Each year, the IRS mails millions of notices and letters to taxpayers for a variety of reasons. If you receive correspondence from the IRS don’t panic, and call Vermillion immediately. We can usually deal with a notice simply by responding to it. Below are the steps that we go through once you call us: 1. Most IRS notices are about federal tax returns or tax accounts. Each notice has specific instructions, so we will read your notice carefully because it will tell us what needs to be done. 2. Your notice will likely be about changes to your account, taxes you owe or a payment request. However, your notice … [Read more...]

Looking ahead to Social Security Benefits in 2017   Social Security beneficiaries will receive a slight increase in their Social Security checks in 2017. There have also been several recent tweaks to the program that change how married couples can collect benefits. A modest increase in payments... Social Security payments will increase by 0.3 percent beginning in January 2017. This cost-of-living adjustment is estimated to result in the typical Social Security beneficiary receiving an extra $5 per month. The average monthly payment for retired workers is expected to be $1,360 in 2017. Retired couples will receive an average of $2,260 per month in 2017, up from $2,254 in … [Read more...]

One of the basic goals of year-end tax planning is to look at the tax impact on two years at once - the current year, compared to the next tax year. It’s all about the timing of the use of your remaining income and deductions to your tax advantage. Typically, it makes sense to push taxable income into the next year in order to defer payment of tax for at least one more year, if possible. But, if you expect to be in a higher tax bracket next year, you may want to do the opposite!   Similarly, you might want to accelerate deductions in the current year to reduce the income tax bill you must pay by April 15th. In the meantime, review the following Financial To-Do List for … [Read more...]

What can you do? With the year-end fast approaching, you're likely to be bombarded by charitable-giving requests; some of which you may have no interest in supporting. The good news: Psychologists, along with your Vermillion Advisors, say its fine to decline these requests. You may not have a personal connection to a particular cause, or you may already be giving to a charity much closer to your heart.     Stick to your spending plan for charitable giving. You can be flexible in your allocations, but do not over-extend yourself beyond the amount you planned (No extra or impulsive monetary gifts!). Be sure you balance your spending with your ability to meet your … [Read more...]