Tax reform is here and 2018 brings many changes to the tax code. One of the major changes is a near doubling of the standard deduction. What is a standard deduction? Every taxpayer gets to deduct from income a certain amount of money which lowers their tax bill. Taxpayers can subtract a flat "standard" deduction, OR "itemized" deductions. Examples of itemized deductions in 2017 include medical expenses (subject to a 7.5% of income threshold), state income taxes, real estate taxes, auto excise taxes, mortgage interest, charitable contributions and certain miscellaneous …
Thou Shalt Diversify – A Commandment For All Investors
Having a diversified portfolio is easy to understand. As illustrated nearby it essentially means "Don't put all your eggs in one basket!" I set aside my deep dislike of chickens to use this illustration. Being diversified means that at any given time there is something in your portfolio that is lagging and something in your portfolio that is doing well. This is where the emotions can get in the way. It is human nature to look at whatever is on fire and think "I gotta get more of that!" Conversely it's natural to look at the laggards and think "I gotta get rid of that!" But …
Donor Advised Funds – a Tax Efficient Way to Give to Charity.
What is a Donor Advised Fund? (DAF) A Donor Advised Fund is like a charitable investment account, for the sole purpose of supporting charitable organizations you care about. Step 1: Contribute to a Donor Advised Fund You can contribute cash, shares of stocks or mutual funds, or other kinds of assets to a DAF and get an immediate tax deduction for the whole amount. Under the new tax law, far fewer people will be itemizing their deductions. But if you contribute a large amount (say several years of your usual charitable donations) to a Donor Advised Fund you might still itemize your …
