Our Weekend Word

Teaching Teens Financial Responsibility

We feel confident our kids will be taught reading, writing, and basic math in school. But how will they learn to budget, use a credit card, save for a car or a down payment on a home, and stay out of debt? Just as reading and writing are critical skills for a successful future, so is financial responsibility. Unlike with common academic subjects, however, it often falls on families to teach money-related lessons. Before a teenager leaves the nest, they should know these basic financial concepts to lay a foundation for success in adulthood.

What Does the Silicon Valley Bank Collapse Mean for Investors?

Americans have suddenly witnessed three very large bank failures in only a few days’ time. The first was the collapse last week of Silvergate, also known as “the Crypto bank.” Soon after, we read the news of both SVB and Signature Bank collapsing. These are some of the largest bank failures in U.S. history. What is going on here? Should we be worried? Is another financial crisis on the horizon? The short answer is no.

New RMD Rules

A few weeks ago, a faithful reader pointed out that our financial checklist did not have updated information regarding Secure Act 2.0s changes to the starting age for taking your Required Minimum Distributions. We apologize for this oversight and want to set the record straight this week.

As Goes January, So goes the Year

There are many strange investing myths out there trying to make sense of the chaos of being an equity investor. The most famous of those being Sell in May and go away, which we’ve addressed before. This year, more than any other, I’ve heard pundits kicking around what you see above: “As Goes January, So Goes the Year”. 

Tax Document Schedule 2023

We’re coming to the end of January, so tax documents are starting to become available. Below is a schedule of when various tax documents will become available online.

Inheriting Debt from a Family Member

Thinking about a loved one’s outstanding debt is the last thing on anyone’s mind when a family member passes away. Unfortunately, many people find themselves dealing with creditors and figuring out how to pay their loved one’s debts as they grieve. To avoid this situation, it makes good financial sense to consider these matters ahead of time.

Secure Act 2.0

 On December 29, 2022, President Biden signed into law the Consolidated Appropriations Act, 2023, an omnibus spending bill that includes the SECURE 2.0 measure (a.k.a. the Securing a Strong Retirement Act 2.0). Broadly, SECURE 2.0 is intended to make retirement saving more straightforward and accessible to a wider range of people. As such, it encompasses many aspects of financial planning and retirement saving.

Capital Gains on a Primary Residence

Most property owners know that when they sell a secondary property, they will have to pay capital gains tax on the amount they have made. Most people, however do not really consider this situation when selling their primary residence.

Social Security Inflation Adjustment

This month the Social Security Administration announced the largest jump in payout since the early 80’s providing an 8.7% increase to benefits for 2023.

If you’re already claiming Social Security, this is a very exciting statement. If you aren’t claiming yet, however this could cause some anxiety. Are you missing this raise if you are deferring your benefits?

Kick or Convert

One of the most popular decisions to criticize the coach for anymore is whether or not to go for a two-point conversion or kick the extra point after a touchdown. Modern analytics have made this a hot topic as they look at the stats and what move will pay off the best. But you never really know if you picked right until the end of the game.

Another conversion that many investors may have on their mind at the moment is the Roth Conversion.