Posts made in July, 2013

Federal Budget Deficit Plummets

Posted by on Jul 17, 2013 in Financial Focus

The big news over the last week was the U.S. Treasury Office’s release of the federal budget. A trend has formed in the federal budget since the recovery from the Great Recession. Federal tax receipts are way up, and federal spending is way down. The combination of these factors has cut the U.S. budget deficit in half. In fact, the Treasury showed a budget surplus for the month of June. This was the first monthly budget surplus in over five years. This comes in the face of reports that the current Congress could be the least productive Congress in modern history. To date, the 113th Congress...

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Location Optimization: What Does it Mean?

Posted by on Jul 16, 2013 in Financial Focus

A debate has surfaced in our industry over the last few years on what’s being called “location optimization.” Location optimization, or as some call it, “asset location,” is the practice of buying and holding investments based on the tax consequence the asset generates by holding it. For example, an average household’s portfolio may consist of a Traditional IRA, Roth IRA, and a taxable account (joint, trust, etc.). Each of these account types produces far different tax implications. Additionally, each investment in a diversified portfolio produces different tax consequences on a year-to-year...

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Retirement Planning : Social Security Optimization

Posted by on Jul 16, 2013 in Financial Focus, Retirement Planning, Social Security

Retirement age has finally come for many within the baby boom generation. Whether that be a young boomer retiring early at 58, a 62 year old retiring simply because she is finally eligible for Social Security, a 66 year old “hanging it up” because he is eligible for his work pension, or a 69 year old who is simply ready to call it quits. All of these retirees have a very important decision to make, and a decision that many are making without enough thought. That is: when to start Social Security benefits? Contrary to what many believe, retirement age and Social Security age should not always...

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The U.S. Manufacturing Renaissance

Posted by on Jul 12, 2013 in Financial Focus

In developments that are not being widely covered in the press, the manufacturing industry in the United States is in a rebirthing stage. For decades, factory jobs have been disappearing in the U.S. as companies found it more cost effective to “off-shore.” Japan and China were the main benefactors as many workers lost their jobs to overseas factories. A 2012 study by The Boston Consulting Group titled, “U.S. Manufacturing Nears the Tipping Point,” summarizes: “The United States has been losing factory jobs for so long that many observers have all but written off manufacturing as a meaningful...

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Health Insurance Mandate Pushed Back

Posted by on Jul 3, 2013 in Financial Focus, Healthcare

One of the more crucial parts of the new healthcare law for 2014 is being pushed back to 2015. Employers with greater than 50 employees were being required to provide health insurance beginning 2014, but the Obama Administration changed that requirement to 2015 instead. This should ease the minds of many business owners who were scrambling to put a plan in place before year-end. You can read the details here.

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