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1
Growing Risk of a Stock Crash
2
Oil Price Decline Triggers Junk Bond Crash
3
Inversion Is The Latest Corporate Tax-Cutting Strategy
4
Your Year-End Bonus
5
7 Reasons to Avoid 401(k) Loans

Growing Risk of a Stock Crash

Investments have taken a strikingly bearish tone this month with most global risk-on assets except the SP500 are down in price. The SP500’s 200 day moving average is only 2% below today’s price, so it could be broken in two days, leading to more selling. Oil is down much further than anyone expected, as are interest rates. Perhaps the extra consumption from low oil prices will create more low paying retail jobs for unskilled unemployed people and make the economy look better but eventually the reduction of purchase orders from businesses owned indirectly by OPEC countries such as Dubai real …

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Oil Price Decline Triggers Junk Bond Crash

Declining oil prices will enrich consumers causing more demand for petty consumables sold by minimum wage restaurant workers and clothing stores but may risk reducing the jobs in manufacturing. The manufacturing industry could have used high oil prices as a selling point to persuade businesses to buy more sophisticated energy efficient equipment, but now they can’t. And high oil prices created massive amounts of good paying jobs. The oil industry growth was the best job creating thing for blue collar people to replace the broken housing bubble and now it will be in layoff mode.

If a country was governed …

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Inversion Is The Latest Corporate Tax-Cutting Strategy

Inversion Is The Latest Corporate Tax-Cutting Strategy

Tax inversion (also known as corporate inversion) is a largely American phenomenon.

It is when a corporation moves its headquarters to a lower-tax nation even while it retains some or most of its operations in the United States.

Studies have found that foreign companies in countries with economic freedom can outperform companies in the United States over long periods of time. And even corporations who retain their roots in the United States can export their profits to countries with a lower tax burden.

It turns out where your roots are planted matters greatly for a corporation to thrive.

Robert …

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Your Year-End Bonus

As the end of the year approaches many employers will pay and many employees will receive year-end bonuses. While often the icing on the cake for a productive year employee should be aware of the tax consequences of their bonus.

Percent vs. Aggregate Method

When it comes to taxing the bonus an employer may choose the percentage method versus the aggregate method. Under the aggregate or wage holding bracket method the employer will use the withholding tables generally used for the employee normal paycheck. Then, the supplemental wages are aggregated with the employee’s normal pay and taxes are withheld accordingly.…

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7 Reasons to Avoid 401(k) Loans

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One of the features of many 401(k) plans is the ability for participants to take a loan against their balance.  There are rules governing what the loans can be used for, the number of loans that can be outstanding at one time, and the percentage of your account balance that can be borrowed.  Additionally there is a time limit by which these loans need to be repaid.

It is the decision of the organization sponsoring the plan whether or not to allow loans and also as to what they can be used for.  Typical reasons allowed are for college expenses …

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