Kevin Wadle Financial Decisions Group

10/24/2024

Many taxpayers have endured the anxiety and frustration of tax return identity theft. When that has occurred in the past, the IRS has assigned an IP PIN (Identity Protection Personal Identification Number) that must be entered on the tax return each year for the IRS to accept the filing.

Starting in the 2025 filing season, anyone may apply for, and use, an IP PIN for filing their income tax returns without having to prove any potential identity theft. This six-digit number prevents someone else from using a taxpayer's Social Security number to file a false return. I've been hoping for this program to evolve for many years, and I highly encourage people to take advantage of this opportunity. This is simply another level of security that may be used to protect your personal data, and a new IP PIN is assigned every year.

If you are interested, please enroll before November 23, 2024. After that date, a system maintenance program will run until early January 2025.

Get an Identity Protection PIN (IP PIN) to protect your tax account.

09/06/2023

This was particularly interesting to me since I'm in the author's age sweet spot.

Research has pinpointed the prime years for making smart financial decisions.

08/02/2023

This has been a very interesting subject since the Roth IRA’s inception in 1998. Everyone’s situation is different, and opinions towards paying taxes now versus later vary as much as those situations.

Stop contributing to IRAs and 401(k)s? Yes, because adding these balances only increases your future tax bill in retirement.

09/01/2021

Many of you reading this post are already aware of the news that I sold my CPA practice last month. The decision to sell was one of the most difficult steps I've made in my professional career because I am voluntarily giving up control of the ship. However, I've been driving two ships for the past twenty years, and the time had come to where I could no longer effectively steer both ships without risk to passengers and crew.

I found this article through a friend's post on LinkedIn. The author brilliantly spells out what a great problem we've created for ourselves in the sense of time, or lack thereof. It's as if she were in my head over the past several years and organized those thoughts. If you take some time to read her words, you may find we're all very similar these days.

For those of you who are curious, I am still employed by the new practice owner. We've begun our transitions with data, software, and operational practices. Tax season will be a bit different, but I'm not sure yet in what way. After that, we'll see what the future brings.

Thanks for reading. Let me know your thoughts if you care to share them.

By identifying which of these is consuming your minutes and hours, you can start carving out more happy and meaningful moments for yourself, says time and happiness researcher Ashley Whillans.

12/28/2020

I saw a social media meme recently that made me sad, yet I also chuckled: "Does anyone else feel troubled by the fact that the name of next year is literally 2020 won?"

2020 was definitely the most difficult year in my life from a personal standpoint. Specifically, the month of November brought a ton of difficult life experiences my way. But, my life experiences have taught me that my greatest growth comes from difficult life events, not successes.

I'll concede that 2020 did win. So what? I choose to stick with the notion that 2020 won the battle, but it's not going to win the war. (I know that it truly did win the war against many, and I am saddened by that fact.)

2021 brings a bit more uncertainty than we maybe expected in past years. How we handle these new opportunities is entirely up to us. Let's all forge something new in 2021 and beyond.

08/28/2020

I'm sure you've seen the ads where a company is telling you they can help you achieve your number for retirement. Fantastic! What are you going to do when you reach that number? You may discover circumstances have changed along the way and find yourself not knowing what to do next.

What if we made plans based on what we wanted to do later in life? Some people have no plans on retiring because they love what they do for a living. Other people can't wait to move on. They each may have similar numbers based on that company's ad, but will each of them view that number in the same way?

Do me a favor. Think about this notion for a few days. I'm willing to believe you'll uncover an idea or a dream you forgot about somewhere along the way. Consider what you really want to do when your working career is over, and adjust your route accordingly.

Have a great weekend. Spread some joy if you can. I guarantee we're short on that emotion these days.

Kevin

08/24/2020

Reminder: If you took your required minimum distribution (RMD) for 2020 before the ruling that removed the mandate for this year, you have until one week from today - August 31, 2020 - to return the funds to the IRA and have it count as an allowable rollover in 2020 even if more than 60 days have passed.

08/14/2020

A few words about patience, noise, and staying invested:

In 1985, my great aunt passed away and left $1,000 to me in her will. My parents invested that money in an equity mutual fund (the fund name isn't important here).

On October 19, 1987 (Black Monday), I was sitting in history class, and we learned of the one-day drop in the Dow of over 22%. I panicked, and when I got home that day, I told my parents we needed to sell the investment before we lost it all. Thankfully, they told me two things: 1 - You won't need any of this money for a long time, so we're not selling. 2 - This decline, while a bit scary, is likely temporary. I received my first investment lesson at the age of 16, and I've never forgotten it.

Moving ahead in years, I was able to do the following from that investment:

1994 - $2,000 distribution to fully fund an IRA contribution
1995 - $2,000 distribution to fully fund an IRA contribution
1995 - $1,500 distribution for a down payment on a home
1996 - $1,600 (remaining balance) distribution to fund an IRA contribution

Imagine that! $7,100 returned from a $1,000 investment because I left it alone. Had my parents allowed me to act on the panic moment, none of that could have happened.

If you find yourself about to make a decision out of fear or reaction to a shocking event, take a breath, let it out, and consider the consequences of that decision. That short break may allow a better option to present itself. Consulting your financial advisor is always a great option as well.

Thank you for reading, let me know if you have questions, and please remember: Don't Listen to the Noise.

Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Past performance is no guarantee of future results. Please note that individual situations can vary. Therefore, the information presented here should only be relied upon when coordinated with individual professional advice.

06/29/2020

Did you take your required minimum distribution (RMD) for 2020 from your IRA or an inherited IRA while the markets were down? Thanks to some changes at the IRS in following the CARES Act, you can roll your distributions back in to the account even if 60 days have passed. This is a great opportunity for those who wish to postpone the income to later years, but you are limited on the time allowed to get it done. I've provided a link to the IRS statement, but feel free to e-mail me at [email protected] if you have questions.

https://www.irs.gov/newsroom/irs-announces-rollover-relief-for-required-minimum-distributions-from-retirement-accounts-that-were-waived-under-the-cares-act

05/18/2020

The S&P 500 Index closed at 2,237.40 on March 22, 2020, roughly 1,149 points below its high just one month earlier. On May 14, 2020, it closed at 2,852.50, over 27% higher than the March 22 close, but still below the February highs.

What does that mean? Possibly nothing.

Or, we could use our history lessons to remind us that decisions made under great stress often lead to unwanted results.

Back in 2008-2009, when nearly every investment declined temporarily, many investors panicked and sold their investments in the name of safety. At one point, the S&P 500 Index closed below 800. Not 2800. Not 1800. 800. Even after the March decline this year, the index value has tripled since then.

We can't predict when, or if, we'll reach the February highs again. But the optimist in me says we'll see better days ahead, just like we did from later 2009 through 2019.

Keep investing. Keep saving. Keep living.

And when the time is right for you, let's sit down and create a plan to get you where you want to go.

05/06/2020

If you have student loans outstanding, check with your employer about whether or not it offers an employer-assisted student loan repayment plan.

Under the CARES Act, employers may pay up to $5,250 toward an employee's student loans in 2020, and those payments are not included in the employee's income. Since the interest rate on federal student loans is zero through September 30, 2020, this could be a very powerful debt reduction tool.

This provision is only guaranteed through the end of 2020, so if you're interested, inquire as soon as possible.