The Internet Sales Tax, otherwise known as “The Marketplace Fairness Act”, has passed the Senate and now moves on to the House. There is a real chance this tax will be a law soon. It has been debated on and off for over 20 years. In 1992, the Supreme Court ruled that states could only force retailers to collect the tax if they had a presence in that particular state. For example, Amazon has distribution centers in 9 states, and if you live in one of those, you would need to pay sales tax currently on any purchases you make.
State Governments lose an estimated 12 billion dollars in state sales taxes that are not paid on purchases made online. This new tax would apply to companies with online sales of over 1 million, therefore many small online retailers are figuring out how to get below 1 million so they will not have to pay the sales tax. They say it will be too much of an unfair burden to them as they will have to pay the 46 states that collect state tax, hire computer programmers to reprogram their software in order to collect and pay the tax, and also be burdened by the overwhelming amount of paperwork involved. It is sure to put some of these retailers out of business, many say.
The small brick and mortar store, on the other hand, is in favor of this tax as it helps level the playing field. These folks already have to charge a tax on the items they sell. For example, suppose I am going to purchase a small hand-held camcorder. I can currently buy it online for less because there is no tax. Forcing state tax to be paid on the item makes the price equal to the amount charged in an actual store.
I discussed this sales tax with Win Damon on FM 106.1 and wnbp.com on Tuesday morning (click below to hear the podcast.) Immediately after the show I got an email from my dad who said: “So let’s set up a kitty and earmark all tax collected for a specific purpose, say internet crime protection or something like that.” Good idea, but we are talking about 46 different taxing authorities, and each can elect to do what it wants with the newly collected revenue.
Tune in every Tuesday to wnbp.com to hear Win and I chat about many insightful tax and financial topics.
Stuart Steinberg of Eaglerock Financial, Inc. has worked with families for more than 20 years, helping them work toward their financial goals through a holistic, well rounded approach rooted in objectivity, education, and empowerment. Stu is highly regarded by clients and colleagues for his unique combination of investment, CPA and entrepreneurial experience in the high net worth market.
1) Will I outlive my money? This is the number one concern for seniors and more people are worried about this than actually passing away. As a result, seniors often look for investment options that are safe and produce earnings that are sufficient to cover their living expenses. Folks living on a fixed budget are very aware of how much money they need to draw out of their investments each month to cover their bills. If this earning power is diminished due to market fluctuations than seniors fear that they will run out of money. I had to tell a woman in my office the other day that if our assumptions hold true she will run out of money by age 82. This is not what she wants to hear but it is
information I have to report, and changes will have to be made.
2) Loss of Independence. Seniors often lose their will if they do not maintain their independence. If seniors lose control of their financial lives and decision making process this will surely lead to a loss of independence. No one wants to live with their kids when they are 70 or 80 and as a result the advanced planning becomes even more vital.
3) Beware the unscrupulous financial advisor. This can happen on many levels. First, many advisors are more interested in meeting sales goals or selling a product that has a higher commission. When this happens, seniors can get locked in to investments that were not best for them in the first place. I recommend the senior has a child or personal representative with them when meeting with an advisor and to have all their questions ready ahead of time. They should also interview the advisor him/herself and really learn about their business and where they work best.
Second, the scam artists are in full gear when it comes to internet and seniors. I have 2 clients who have parents who have been scammed sending their personal banking information to someone in Nigeria or Kenya. These cases happen far too often. Seniors can also fall victim to ponzi schemes, or fall victim to abuse of power of attorney to transact business that is not in the seniors best interest.
4) How to battle the rising cost of healthcare. How can seniors get affordable and quality healthcare? Modern medicine has made some tremendous strides and the human race is living longer and longer. As people age we are more likely to need health care. Seniors who have set up their plans in advance often include long term care policies to help protect with the potential cost of in home care, assisted living,
or nursing home care.
Listen below as Stu discusses this topic with Win Damon of WNBP 106.1 FM and wnbp.com
Stuart Steinberg of Eaglerock Financial, Inc. has worked with families for more than 20 years, helping them work toward their financial goals through a holistic, well rounded approach rooted in objectivity, education, and empowerment. Stu is highly regarded by clients and colleagues for his unique combination of investment, CPA and entrepreneurial experience in the high net worth market.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing. There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk. Stock investing involves risk including loss of principal.
Securities offered through LPL Financial, Member FINRA/SIPC.
I wish I had a dime for every time someone called me with a hot tip or a new investment idea. Boy I certainly would be a rich man. I am glad I did not take all that advice for sure. Every single investor is different and has varying needs, wants, and desires. Here are some common myths about money and investing:
1) You need a lot of money to invest. It is actually the opposite. The sooner you start with a disciplined, long term, financial strategy, the better. I always say: “Start with $50/month for a while. As life progresses, and your career advances, your monthly savings will increase as well. Your long term plan will be off and running!
2) You need to find a more complex investment strategy to beat the market. While some portfolios need to be more complex and further diversified because of the large size of the investment, although no strategy assures success or protects against loss, often times it is the simple buy monthly and hold, value oriented strategy that does the best over time. Yes, I know this is boring. But some of the best long term strategies I have seen over the years are the simplest, even if the personal or business assets get into the millions! Sometimes it is best to remain simple, and truly understand the investments you are making.
3) You need to shoot for aggressive “home run” investments to get to where you want to be. Again the goal here is really the opposite. Let’s say your friend at work has a great tip on an investment. You decide to invest $100,000, the entire amount of your bank account! Of course, the investment does not work out and you lose ½ and sell the asset netting $50,000. A loss of 50%! What will it take now to get back to where you started? A 100% gain! This of course will be very challenging to reach in many situations. So instead of trying to hit a home run, it is often best to hit many quality singles and build for the long term.
4) You need to study the market constantly in order to beat the market. It is best to have a basic understanding of the various markets you are investing in, and to know what they are doing. But it is often best to stop there. At this point, I would rather you study yourself, and what makes you tick. Study your needs and wants and desires and see how they all fit in with your big picture financial plan. It is important to not get swallowed up in the latest stock or tip or what the media says. With the help of a trusted advisor you may able to take some or all of the emotion out of the actual investment and really benefit from the understanding of the process.
5) You need to do what your friends, family, and co-workers dowith their money. Believe it or not, this is what many people do. They follow the herd and do whatever everyone else is doing. It is obviously not the recommended path for anyone to take. It is the foundation of emotional investing, and it is also commonly seen in certain consumer behavior as well as in politics. In dealing with the public and their money for over 23 years, I can truly say that no 2 clients are the same. Even the best of friends or brothers and sisters!
6) You NEED to own a home because renting is like throwing money away. Rent is like other household money you spend like gas, food, and utilities that gets used up over time but is necessary for basic living. You would not consider those expenses as throw away, would you? Buying a home to live in is certainly an investment, but I like to think of it as my home as opposed to a certain investment that needs to make money. Besides, with a traditional 30 year fixed rate at 4% on a $300,000 mortgage. After 5 years you will have made ~$86,000 in payments yet still owe ~$271,000 on the mortgage. Many would consider that throwing away ~$57,000 in interest.
Listen below to hear Win Damon and I review this very topic on WNBP Radio 1450 and wnbp.com. Win and I have educational financial chats every Tuesaday morning at 8:30!
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing. There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk. Stock investing involves risk including loss of principal.
Securities Offered through LPL Financial, Member FINRA/SIPC
STUART STEINBERG OF EAGLEROCK FINANCIAL IS PROUD TO INTRODUCE A SPECIAL PRESENTATION:
“Five Tips for Surviving Market Volatility Presentation”
Thursday October 4, 2012 at 1 p.m.
There are many factors that contribute to market volatility including consumer confidence, inflation, credit rates, oil prices, and even corporate earnings. How severe will these factors be? How long will they last? How much of an impact will this have in your financial planning? In this presentation you will:
** Learn about the factors that contribute to market fluctuations and to put the volatility in better perspective
** Learn the importance of taking a long-term approach to your financial plan
** Implement a diversified investment strategy
** Maintain realistic expectations regarding your investments and your plan
Stuart Steinberg of Eaglerock Financial, Inc. has worked with families for more than 20 years, helping them work toward their financial goals through a holistic, well rounded approach rooted in objectivity, education, and empowerment. Stu is highly regarded by clients and colleagues for his unique combination of investment, CPA and entrepreneurial specialist in the high net worth market.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing.
Securities Offered through LPL Financial, Member FINRA/SIPC
STUART STEINBERG OF EAGLEROCK FINANCIAL IS PROUD TO INTRODUCE A SPECIAL PRESENTATION:
Wealth Management Strategies Presentation (Tracking #540179)
Thursday September 27, 2012
Learn how to talk to your advisor about planning and savings, and potentially turn the money you have into the money you will need. In this seminar you will:
** Identify potential sources of income in retirement
** Help you identify your estate planning needs
** Get an overall snapshot of your net worth and planning
Stuart Steinberg of Eaglerock Financial, Inc. has worked with families for more than 20 years, helping them work toward their financial goals through a holistic, well rounded approach rooted in objectivity, education, and empowerment. Stu is highly regarded by clients and colleagues for his unique combination of investment, CPA and entrepreneurial expertise in the high net worth market
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing. Investing in mutual funds involves risk, including possible loss of principal
Investors should consider the investment objectives, risks, charges and expenses of the investment company carefully before investing. The prospectus contains this and other important information about the investment company. You can obtain a prospectus from your financial representative. Read carefully before investing.
Stuart Steinberg is a registered representative with and Securities Offered through LPL Financial, Member FINRA/SIPC (www.finra.org, www.sipc.org)
Eaglerock Financial, Inc. and LPL Financial are unaffiliated entities.
The following commentary exresses the political view of the author and in no way represents the views of LPL Financial. The assumptions made are based on the proposed 2013 budget and tax provisions, which have yet to be approved by Congress and are subject to change.
The Supreme Court of the United States of America has upheld the health care law. The provision in the law that requires people without insurance to purchase insurance or pay a fee was deemed constitutional under the power of Congress. I hear a ton of fallacies from the American public, mostly because people do not understand the complexities of the law or how it will impact them specifically. Also, many folks are simply moaning about the liberal president and how this awful law will destroy America. Well, of course it will not, despite the efforts of Republicans who have voted 33 times to repeal the law, wasting some $50 million (and counting) of taxpayer funds. I am fairly certain that many low income taxpayers who are against Obamacare do not even realize that they will be helped by the provisions of the law.
But what does this all mean for you? Let’s review some of the key provisions of the Affordable Care Act, and its effect on your particular situation:
1) Some changes already went into effect in 2011 and 2012, most importantly that children can now stay on their parents plan until they are 26 and that insurance companies can no longer deny insurance to children who have pre-existing conditions. Tax credits are available to small businesses to help cover the cost of the premiums.
2) In 2013 many of the big changes will take effect. Upper income earners will be the ones hit the hardest. If you are single and make more than $200,000 or married and make more than $250,000, you will pay a .9% additional Medicare surtax. That translates into $1800 for the single taxpayer and $2250 for the married taxpayer. If your income doubles, than the tax is doubled. Self-employed taxpayers will take the hit here too. A couple making $500,000 will pay $4500 extra in tax for 2013.
3) A 3.8% Medicare surtax on unearned income will be imposed in 2013. Income includes interest, dividends, capital gains, annuities, and passive income from rental properties. The same income limits apply, $200,000 for singles and $250,000 for married tax payers. So for example, let’s say a married couple with $400,000 modified Income has a dividend form general Electric stock totaling $20,000. This family will pay an extra $760 in the Medicare surtax.
4) Other items which will take effect in 2013 include the limitation on the deduction for medical expenses for filers under 65 years old, a 2.3% tax on certain medical devices, payins to flexible spending accounts will be capped at $2500/year, and the retiree drug plan that is federally subsidized will not be tax deductible
5) In 2014, Medicaid will expand to cover those families that are at the 133% poverty line, equal to a salary of $30,657 for a family of four. This is sure to help out these families in need in a tremendous way. Insurance companies will have to cover everyone in 2014, regardless of race, color, creed, health history, or religious preference. Also, every citizen is required to have insurance or pay a fine. The penalty will be capped for families in 2014 at $285, although the cap does rise sharply by 2016 to $2085/family. Families making less than $88,000 will get some tax credits to help them offset the cost of the insurance. Employers take a hit in 2014 also, especially the ones with more than 50 employees and no health plan. The fine is $2000/employee
6) By 2018, a 40% excise tax will be levied on the insurer on policies with premiums over $10,200 for individuals or $27,500 for family coverage (indexed for inflation).
The bottom line here is this: The IRS’s role in health care is only going to get larger. The government will attempt to pay for the reform by potential savings in Medicare and Medicaid, and future taxes and fees that are yet to be determined. But one thing still holds true: prevention is the key. If we can get people to be healthier and to see a doctor more frequently, we can hopefully prevent the chronic care that is so costly. In 2009, 7 out of 10 deaths were caused by chronic conditions such as obesity, poor diet, physical inactivity, and tobacco use. If we can help these individuals proactively, we can potentially help them live a happy and healthy life, and lower our long term health care costs as a nation along the way!
Listen below to WIn Damon and Stu review this very topic on radio 1450 AM Newburyport and WNBP.com every Tuesday morning at 8:30 AM.
Stuart Steinberg, CPA, MBA has been dealing with families and their money issues since 1988. He can be reached at 55 Pleasant Street Newburyport and at (978)864-9581 and stu@eaglerockfinancial.net
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing.
This information is not intended to be a substitute for specific individualized tax advice. We suggest you discuss your specific tax issues with a qualified tax advisor.
Securities Offered through LPL Financial, Member FINRA/SIPC
For me it has always been slow and steady wins the race. When it comes to financial planning that is. What do I mean by that? I mean over the years I have seen people make all sorts of mistakes with their money in many different types of investments. In this day and age, everybody is an expert and has access to an incredible amount of information.
So what gives? Why do many people fail when it comes to long term investing? For the same reason many fail when it comes to any kind of investing. They either get greedy, they get emotional, or they are uneducated about the actual products they are buying. They make decisions at warp speed with the advice of their top 20 people and websites or gurus and they don’t remain focused and change plans without really knowing what to do! Or they ask everyone in the cubes working near them or all their neighbors what they do with their finances. This is not the way to go!
Here are 4 top ideas to help you remain slow and steady in your investment program:
1) Understand what you are doing. Get educated. Choose your advisor from a trusted referral if possible. Ask him/her as many questions you may have about fees or prepayment penalties or any investment related ideas. While this may sound simple it really isn’t for many folks. They actually often say they are too busy to understand this now. I never can believe this when I hear this. The bottom line is that you are in control of the entire process, so if you choose education, and you take your time, you will plan more efficiently and you will do it with potentially less stress and anxiety. Please don’t overanalyze too much either, just get the facts and make a good, educated decision.
2) Don’t get emotional about your investing. Easier said than done. Just because your neighbor or person who works near your cube at work has a hot new tip doesn’t mean you have to jump on board. You are chasing a dream when you invest that way. Is the investment really right for you just because it is right for them? Is it even right for them in the first place? You emotions should not get in the way of what your long term focus needs to be. So dont get over excited and buy high just to become an investor who asks himself “ How could I let this happen to me” when the investment falters
3) How much risk are you willing to take to get to where you want to be? This is a key factor in any planning situation. You must understand that risk is inherent in any situation. Look, you are not going to get to where you need to be by stuffing the money in the mattress. And there’s risk there too that someone could steal the cash! But you must understand fully how much risk you need to take on to accomplish your goals, and set the plan in motion accordingly. Any extra risk is not recommended
4) Choose an advisor who understands the emotional mindset of the average person and who also looks at the long term himself. There can be no better tip than this!
Listen below to hear Win Damon and I review this very topic on WNBP Radio 1450 and wnbp.com. Win and I have educational financial chats every Tuesaday morning at 8:30!
Stuart Steinberg, CPA, MBA has been dealing with families and their money issues since 1988. He can be reached at 55 Pleasant Street Newburyport and at (978)864-9581 and stu@eaglerockfinancial.net
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing.
Advisory Services offered through LPL Financial, a Registered Investment Advisor.
Securities Offered through LPL Financial, Member FINRA/SIPC
STUART STEINBERG OF EAGLEROCK FINANCIAL IS PROUD TO INTRODUCE A SPECIAL PRESENTATION:
Invest in Your Child’s Future Presentation (Tracking #634953)
Thursday September 20, 2012 at 1 p.m.
Many Americans feel that sending their kids to college is an essential part of the American dream. However, the cost of this education is spiraling out of control. There is a need to create awareness of the various college savings vehicles available to parents, and even grandparents!
** Understand how college planning is similar to retirement planning
** Learn the importance of taking a long-term approach to your college plan
** Review the various investments that may apply to your particular situation
** Learn to maintain realistic expectations regarding your college plan
Stuart Steinberg of Eaglerock Financial, Inc. has worked with families for more than 20 years, helping them work toward their financial goals through a holistic, well rounded approach rooted in objectivity, education, and empowerment. Stu is highly regarded by clients and colleagues for his unique combination of investment, CPA and entrepreneurial specialist in the high net worth market.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing.
Securities Offered through LPL Financial, Member FINRA/SIPC
Here are 5 top tips for choosing the right person to help you manage your financial life:
1) Ask Questions. When you’re looking for a financial advisor, you want to know how they do their business. Your questions will help start some important conversations.
How long have they have been in practice? What are their credentials?
What type of clients have they had?
As an advisor, do they have a specialty? Insurance or tax planning? Estate and retirement planning?
How do they keep up with the changing financial landscape?
What services do they offer?
You can never ask enough questions.
2) Get the Right Fit. Your financial advisor plays a significant role in your life. It’s important that you feel good about them.
I suggest you align yourself with an advisor who tends to think the way you do. For example, if you’re deliberate in your decision making, advice from an aggressive planner might often sound rash to you. Avoid this kind of situation by taking time now to get to know this person.
I’ve been working as a financial advisor for more than 20 years and I feel very comfortable having this conversation. I like when prospective clients ask me what I specialize in. I tell them about the array of services I offer, how they range from tax preparation on a very basic level to sophisticated retirement planning for the affluent. I’m confident that I can rise to the challenge that comes with any client who contacts me. If, however, we aren’t a good fit, I will let them know.
3) Ask For a Referral. Ask a friend, business associate, or a family member. Who do they use? I’m happy to say that I’ve built my entire practice on referrals from satisfied clients.
4) Compensation. Independent advisors have different pricing structures. It’s important to understand how the advisor is paid.
For example, most of my work is fee based. That means I receive a monthly fee for managing money and for planning with my clients. For some of my work, I get paid a commission based on the type of investment and total money invested.
When interviewing a prospective financial advisor, you want to ask about their fees and commissions.
5) Trust the process. It’s important to do your homework. But eventually you need to make a decision. I encourage my clients to do relevant research online, but after a time this can be overwhelming. At some point you must stop and trust your team and make the decision. Move on with your life. Don’t be a victim of paralysis by analysis.
Listen below to Stu and Win damon of WNBP.com review this topic on radio 1450 AM Newburyport
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing.
Advisory services offered through LPL Financial, a Registered Investment Advisor. Securities Offered through LPL Financial, Member FINRA/SIPC
According to the Forest Institute of Professional Psychology in Springfield, MO, 50% percent of first marriages, 67% of second marriages, and 74% of third marriages end in divorce.
That means people – a lot of people, unfortunately — are dicing up their money and assets in every conceivable way. Divorce often means that homes are sold, boats are sold, 401k accounts are split. There are new tax situations to understand, child custody disputes, and other legal implications that hover over the experience.
It can be much cheaper (though far more psychologically painful) to stay together than get divorced.
I once went through divorce myself, and though it was an unhappy time it has given me some insight to pass onto clients who are going through it now. Here are 5 tips for people who are planning the finances of their divorce.
1) Have a great team in place. I’m not just talking about the lawyer who’s going to “win big” for you. I’m talking about the person who can make a financial plan for you and or your children going forward. How will you pay the bills monthly? After you pay your debts, will you have enough retire? How many more years do you have to work? What about affording college for the kids? These are some of the key questions a financial advisor can help you with.
2) Get educated. The Internet is full of information, and I ask my clients to use it wisely. Before a monthly or quarterly meeting, I’ll give them some popular terms — $401k rollover,annuity,529 college savings plan,alternative investments, and others – to research online. Our meetings are always more productive when a client takes on the homework. Getting educated in this area of your life will help you make good decisions for your family.
3) Consult a qualified tax advisor. Hire a professional who really knows his or her stuff. They can help you wade through all the many filing options. Also, it’s good to find an advisor who has a good CPA to refer you to. With all the annual tax code changes it helps to have a top notch person in this area.
4) Get organized. Many women have never had to handle the financial side of their lives. Now, amidst divorce, they must learn on the fly. Avoid getting overwhelmed by staying organized. It might be as ordinary as writing checks to pay the bills, or keeping track of debt online. You’ll thank yourself for staying on top of it all.
5) Try something new. No matter your situation, it always pays to take the high road and do the best you can. Personally, I was divorced in 1997 and learned a yoga practice that has continually grown and expanded me physically and mentally. In every disappointment in life there lies an opportunity, and in this case yoga was mine. In this difficult time, you might find something that will change your outlook forever.
Click below to hear Win Damon and I chat about financial planning and divorce on at wnbp.com and 1450 am WNBP Newburyport every Tuesday at 8:30 am
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing. This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor.
Stuart Steinberg is a Financial Advisor with, and Securities and Financial Planning is offered through LPL Financial. A Registered Investment Advisor, member FINRA/SIPC. You can reach him at Eaglerock Financial, Inc. 55 Pleasant Street, #206, Newburyport, MA 01950 (978) 864-9581.
