News & Articles
Keeping market volatility in perspective
When markets are volatile, sticking to a long-term investing strategy can be a challenge. Though past performance is no guarantee of future results, it might help you keep the ups and downs in perspective to see how recent market action compares to previous market cycles. Bears versus bulls Corrections of 10% or more and bear markets of at least 20% are a regular occurrence. Since 1929, there have been 18 previous 20%-plus bear markets (not including 2011 market action). Losses on the S&P 500 in those markets ranged from almost 21% in...
read moreThe spousal IRA rule
Generally, you can contribute up to $5,000 to an IRA in 2011 ($6,000 if you’ll be age 50 or older by the end of the year), as long as you have taxable compensation at least equal to the amount of your IRA contribution. But what if you have little or no taxable compensation for the year? The spousal IRA rule may help. If you’re married, file a joint federal income tax return, and earn less than your spouse, the amount you can contribute to an IRA is based on the combined compensation of you and your spouse. How it works The rule is...
read moreDo you need flood or earthquake insurance?
We’d like to believe that disasters caused by floods or earthquakes are rare. But as we have seen with the recent natural disasters in the United States and abroad, the impact can be financially devastating. If you were to fall victim to a natural disaster, could you pay for the damages out-of-pocket? Will your homeowners insurance provide adequate coverage? Could any of us depend on the government for assistance? Standard homeowners insurance generally does not cover damage directly caused by either floods or earthquakes. Federal...
read morePortability of Basic Exclusion Amount between Spouses
Transfers of property during life or at death are generally subject to federal gift or estate taxes. Each taxpayer has an applicable exclusion amount, which is the amount of property that can be sheltered from federal gift and estate taxes by the unified credit. Prior to 2011, each spouse was entitled to his or her own applicable exclusion amount, and any amount that a spouse did not use was lost, absent special planning. But, thanks to legislation passed in 2010, the estate of the first spouse to die can now elect to transfer any basic...
read moreCould You Handle a Financial Windfall?
Receiving a financial windfall is often a life-changing event. It’s a relatively common one, too. You might never win the lottery, but the odds are that at some point you’ll receive a significant amount of money, perhaps from an inheritance, bonus, insurance settlement, or the sale of a home or business. If so, would you be prepared for the financial decisions you might suddenly face? Proceed with caution The first thing you’ll want to do after receiving a large sum of money is to take a deep breath. You may feel the urge to...
read moreIn-Service Withdrawals from 401(k) Plans
You may be familiar with the rules for putting money into a 401(k) plan. But are you familiar with the rules for taking your money out? Federal law limits the withdrawal options that a 401(k) plan can offer. But a 401(k) plan may offer fewer withdrawal options than the law allows, and may even provide that you can’t take any money out at all until you leave employment. However, many 401(k) plans are more flexible. First, consider a plan loan Many 401(k) plans allow you to borrow money from your own account. A loan may be attractive if...
read moreMaking Financial Resolutions? Look Back at Last Year
Each new year brings the chance for a fresh start, and the opportunity to improve your financial picture. As you make financial resolutions for 2012, looking back at what happened last year can help you make some positive changes this year. Automate your retirement savings In 2011: The economic slowdown took its toll on retirement savings. In 2012: While the economy–and its impact on financial markets–may be out of your hands, you can still look for ways to increase your retirement savings. First, determine whether you’re...
read moreImportant regulatory notice: disclosure brochure and privacy statement
Frisco Financial Planning LLC is legally required to offer a regulatory disclosure (Form ADV Part Two or “disclosure brochure”) to clients annually. So, here it is: FFP’s disclosure brochure FFP’s privacy statement: Frisco Financial Planning LLC Privacy Statement We respect your privacy. This statement details how we obtain information, what information we share and with whom, and measures we take to ensure your privacy. This statement applies to current and past clients and prospective clients. Sources of...
read moreHappy New Year!
Here’s to a prosperous 2012; Have a fun, happy, and safe new year holiday!
read moreThe problem with do-it-yourself estate planning
As the number of Internet websites and software packages have quickly multiplied, along with the many books and stationery store kits that have always been available, do-it-yourself (DIY) estate planning is on the rise. The one-size-fits-all fill-in-the-blank forms that these sources provide may be attractive to some individuals because they cost a fraction of what attorneys typically charge. But is saving a few dollars worth the risk and potentially high cost of doing things incorrectly? Cheap, easy, and better than nothing? Proponents of...
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