Good Money: Your guide to financial planning & socially responsible investing

RETIREMENT PLANNING OPPORTUNITIES & CHANGES for 2009-2010

By: Judith L. Seid, CFP ®
President, Blue Summit Financial Group

Below is a brief discussion of some of the major opportunities available for you now and in 2010.  A check-up with your tax professional, and/or financial advisor is wise to ensure that you are taking advantage of all great tax and retirement planning strategies given your individual situation.

Good Money: Your guide to financial planning & socially responsible investing
 

ESTATE TAXES – WHICH WAY WILL THEY GO?

By Judith L. Seid, CFP ®
President, Blue Summit Financial Group

Estate Tax Reform

President George W. Bush's 10-year, $1.35 trillion across-the-board tax cut, passed in 2001, included a slow-but-steady reduction of the amount of wealth that is subject to "the death tax." Under the law, the value of an inheritance exempt from estate taxation increased from $1 million in 2001 to $3.5 million in 2009. In addition, the tax rate on inheritances larger than that decreased from 55% to 45%. And currently with a $3.5m exemption amount, this allows a couple who have done proper estate planning to leave a $7m estate completely free of federal estate taxes to their heirs.
 

But this tax is scheduled to revert to the 2001 pre-Bush levels (55% rate on estates over $1 million); unless Congress takes action this year and passes new legislation.

Editor's  Note:  Our columnist, Judith Seid, has been a featured guest on NBC and San Diego News Network recently, for those who want more of her "Good Money" advice.

GOOD MONEY: Your guide to profitable & socially responsible investing

By Judith L. Seid, CFP ®
President, Blue Summit Financial Group

August 15, 2009 (La Mesa) -- It doesn’t get much better than this for first-time home buyers. Low interest rates. Home prices at a five-year low--and free government money for your purchase!

Your Guide to Socially Responsible Investing
 
What Is a Certified Financial Planner™?
 
By Judith L. Seid, CFP ®
President, Blue Summit Financial Group
 
July, 2009 (La Mesa)--The public is sometimes confused by the alphabet soup of credentials out there in the financial planning and investment industry. A Certified Financial PlannerTM (CFP®) has the most highly regarded credentials and is a financial professional who meets the requirements established by the Certified Financial Planner Board of Standards, Inc. Creating comprehensive planning solutions when given varied and often complex personal situations requires knowledge and experience in all of the following topic areas:

Your guide to profitable and socially responsible investing
By Judith L. Seid, CFP ®

Groundbreaking Report Released
Environmental risk in mutual funds

TruCost, an environmental research firm, just released a groundbreaking report that ranks mutual funds by their carbon footprint.  The report assesses 75 of the largest US equity funds and 16 socially responsible / SRI funds identifying the greenhouse gas emissions associated with their combined almost 3,000 stock holdings.

Your guide to profitable and socially responsible investing
By Judith L. Seid, CFP ®

April 1, 2009 (La Mesa)--I thought you would all appreciate this “armchair quarterback" analysis, done by a colleague in Cincinnati, OH, charting the mood swings during the 4th quarter of 2008 and its remarkably awful, three-month market run, which has continued into the first quarter of 2009.

Your guide to profitable and socially responsible investing
By Judith L. Seid, CFP ®

If your retirement assets took a beating in the recent stock market decline, converting an IRA to a Roth IRA may be one of the best tax strategies this year and could save you a fortune in taxes. But you need to understand the rules and play the game right.

Your guide to profitable and socially responsible investing
By Judith L. Seid, CFP ®

It's your worst nightmare. You come into work thinking it's just like any other day and you leave with your stomach in knots. Fears of how you will take care of yourself and your family's spin your head around. Here are some tips to help calm your anxiety and start you on the path to recovery from such a blow.

Your guide to profitable and socially responsible investing
By Judith L. Seid, CFP ®

This is the time to make sure you are contributing the maximum amount the IRS allows to your retirement plans.

For those of you who automatically contribute to your retirement accounts every month, you may need to increase your monthly amounts to meet the 2009 limits going forward, as this will not happen automatically.

Your guide to profitable and socially responsible investing
By Judith L. Seid, CFP ®

By now you've probably heard about the $50 billion Ponzi scheme perpetrated by Bernard Madoff, a New York City broker, former head of the NASDAQ stock exchange. 
 
What did he do?  He allegedly collected money to invest from clients, made up false statements to show that they were doing well, and used new clients' money to pay interest and withdrawals to existing clients.  This is known as a Ponzi scheme and is estimated to involve more than a $50 billion loss for his investors.  This is one of several recent high-profile cases of advisors and/or managers absconding with funds entrusted to them by their clients.  Maddof held his clients' assets, managed them, and priced them, too.  See the conflicts of interest?  Investment performance can look better if the prices reported to clients are manipulated, which is allegedly how Madoff showed winning year after winning year despite market turmoil. 

Your guide to profitable and socially responsible investing

By Judith L. Seid, CFP ®

This financial crisis has its own unique characteristics unlike any in our history. For twenty-five years individual Americans, and their government, have been on a binge of borrowing and excess spending.  That could not continue forever. 

The first down-payment on a retrenchment was the crash of the tech boom in 2000.  The next down-payments are the current crashes in the value of our stock investments and our homes, occurring right now.  As the financial markets restructure, we’re seeing some positive shifts toward a more sustainable economy.

GOOD MONEY:
Your guide to profitable and socially responsible investing

By Judith L. Seid, CFP ®

October 1, 2008 (La Mesa) -- The crisis on Wall Street caused by the bursting of the real-estate bubble has now lasted 13 months and has caused far more damage than analysts initially forecast.

By Judith L. Seid, CFP ®

When you invest, your money works towards achieving two objectives. By aligning your investments with your values, your money can work to create a secure future for yourself and your family, while also encouraging the development of a better future for our world.