The GameStop Saga, or a Cautionary Tale
Over the past few months, the largest financial story has been GameStop. In January 2021 the brick-and-mortar retailer GameStop was on the brink of bankruptcy when it was caught up in a trading frenzy. Massive bets (I lack a better word for this level of speculative investing) were placed on the stock. Hedge fund managers bet that the stock value would go down and smaller retail traders bet that the stock would increase in value. Normally retail investors are quickly and easily dispatched in these battles, but the retail traders were...
read moreRed or Blue White House? Market Returns by Political Party
This brief post takes a look at the market returns by political party in control of the White House and answers the question, should investors be concerned by the recent change in control? This is not a political post. In fact, one of my New Year’s resolutions for 2021 is to read and talk about politics less, unless it directly relates to taxes or investment regulations. Political discussions right now in the US generate too much passion from both sides, and honestly I don’t find them productive in any way. Most people are not about to...
read moreOverview of the Consolidated Appropriations Act, 2021
If you think you have had busy workdays, imagine the day the US Congress had on December 21, 2020, when the new stimulus and omnibus spending bill, the Consolidated Appropriations Act, 2021, was released. That same day, it was voted on and passed by both Houses of Congress. At more than 5,500 pages, it is the longest bill ever passed by Congress. Given that average person reads 2 pages a minute, it is unlikely any members of Congress read the entire bill before voting on it. But the bill was passed and signed into law 6 days later, and its...
read moreIntroducing Sean Lovison CPA, Joining WJL Financial Advisors
I am using this blog to announce some exciting news. Sean Lovison is joining the firm. I have known Sean for about a year and am excited that he has decided to sign on. Sean is based in Moorestown, in southern New Jersey. Here he introduces himself and talks about why he chose this path. Financial planning and economics are my passions. Using math and logic to help achieve future goals brings me joy. It always has. I grew up in Center City Philadelphia surrounded by both vast amounts of wealth and abject poverty. I witnessed firsthand how...
read moreYour Health Insurance Options if Your Coverage is Impacted by the Coronavirus
(This blog is essentially a repeat of one I sent last year, but given that so many have lost employer-based health coverage recently I thought it would be timely for those impacted.) When you lose your employer-based coverage you essentially have two options for health insurance, COBRA and the health insurance exchange. In this blog I discuss things to consider when trying to decide between the two options. COBRA Most people are familiar with COBRA coverage. When someone loses their employer-based group health coverage, the company is...
read moreCARES Act (Coronavirus Aid, Relief, and Economic Security Act)
Provided below is a summary of the CARES Act that was recently signed into lawAct is intended to provide relief to individuals and businesses impacted by the COVID-19 virusEffective date is March 27, 2020 Recovery Rebates Payments will be made to people who qualify based upon income levelIndividuals = $1,200Married couples = $2,400Additional $500 per child under the age of 17Income is “Adjusted Gross Income” (AGI)AGI is line 8b on 2019 1040 tax returnAGI is line 7 on 2018 1040 tax returnIncome levels to qualify for payments are the...
read moreThe “Setting Every Community Up for Retirement Enhancement” (SECURE) Act and What It Means to You
Over the past 20 to 30 years, more and more companies have eliminated pension plans. This has shifted more responsibility of saving for retirement to employees. As a result, lacking pension income to supplement other retirement income and savings, working people have to more closely manage their finances, ensuring they contribute to their 401(k) plans and put additional monies into personal investment accounts. To enhance people’s ability to prepare for retirement, Congress passed the SECURE Act in December 2019, which the President has...
read morePaying for Your Health Insurance through COBRA? Consider Switching to an Exchange Plan Before December 15
In our financial planning practice, we spend a fair amount of time with people in a job transition. In the past we have spoken with several people who pay for their health insurance through COBRA and don’t realize that they could potentially save hundreds of dollars a month in premiums because of subsidies available when they purchase their health insurance from the government’s health care exchange. This blog looks at this potential opportunity and provides an overview for anyone considering using the government health care exchange....
read moreOriginal Medicare vs. Medicare Advantage
There are two basic options for those on Medicare: Original Medicare and Medicare Advantage. In this blog I’ll walk through the pros and cons of each. I’ll first discuss the components of Original Medicare and then the alternative, which is called Medicare Advantage. Original Medicare Medicare, the medical insurance program for seniors, was introduced in 1965. There are various parts to the program. Part A. The first component is Part A, which covers hospitalization and nursing home care. Most Medicare beneficiaries do not pay a premium for...
read moreEvaluating Your Pension Benefit: Monthly Annuity or Lump Sum Payout?
Retirement has changed considerably over the last thirty years. People are living longer, and retirees face greater challenges funding their retirement spending. Years ago, many people were able to rely on a pension along with Social Security income to fund most of their living expenses. However, many companies have been eliminating pensions over the last thirty years, which has shifted more of the responsibility to save for retirement to individuals. If you are one of the fortunate ones who still has a pension benefit, you may face the...
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