The longest bull market in history lasted almost 11 years before coronavirus fears and the realities of a seriously disrupted U.S. economy brought it to an end.1 Bear markets are typically defined as declines of 20% or more from the most recent high, and bull markets are sustained increases of 20% or more from the […]
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Mid-Year is a Good Time to Fine-Tune Your Finances
The first part of 2020 was rocky, but there should be better days ahead. Taking a close look at your finances may give you the foundation you need to begin moving forward. Mid-year is an ideal time to do so, because the planning opportunities are potentially greater than if you waited until the end of […]
Tapping Retirement Savings During a Financial Crisis
As the number of COVID-19 cases began to skyrocket in March 2020, Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The legislation may make it easier for Americans to access money in their retirement plans, temporarily waiving the 10% early-withdrawal penalty and increasing the amount they could borrow. Understanding these new guidelines […]
Investor Psychology: Behavioral Biases That Can Lead to Costly Mistakes
The field of behavioral finance focuses on the emotional and cognitive aspects of investing. In recent decades, well-known economists have advanced the theory that investors’ decisions can be driven by human emotions such as greed and fear, which helps explain why asset prices sometimes fluctuate erratically.1 It can be difficult to act rationally when your […]
Will vs. Trust: Know the Difference
Wills and trusts are common documents used in estate planning. While each can help in the distribution of assets at death, there are important differences between the two. What Is a Will? A last will and testament is a legal document that lets you direct how your property will be dispersed (among other things) when you […]
Four Questions on the Roth Five-Year Rule
The Roth “five-year rule” typically refers to when you can take tax-free distributions of earnings from your Roth IRA, Roth 401(k), or other work-based Roth account. The rule states that you must wait five years after making your first contribution, and the distribution must take place after age 59½, when you become disabled, or when […]
Paycheck Protection Program Flexibility Act
If you applied or are planning to apply for a Paycheck Protection Program (PPP) loan, we want to share some good news with you. On June 5, 2020, the Paycheck Protection Program Flexibility Act (PPPFA) was signed into law. The PPPFA modifies the PPP to allow businesses whose PPP loans are forgiven to continue to […]
ATTENTION! HARFORD COUNTY COVID-19 BUSINESS & FARM RELIEF GRANTS
Q&A: Are PPP Loan Forgiveness Expenses Deductible?
Question If I obtain Paycheck Protection Program (PPP) loan forgiveness, can I still deduct the business expenses I paid with the loan forgiveness proceeds? Answer We have bad news—the IRS just released Notice 2020-32 telling us the answer is no. Quick Review As we discuss in COVID-19: New SBA Loans for Small Businesses – Maybe […]
COVID-19 Crisis Creates Silver Lining for Roth IRA Conversions
For years, financial and tax advisors have lectured about the wonderfulness of Roth IRAs and why you should convert traditional IRAs into Roth accounts. But, of course, you didn’t get around to it. In hindsight, maybe that was a good thing. For many, the financial fallout from the COVID-19 crisis creates a once-in-a-lifetime opportunity to […]
