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How Does the Reconciliation Bill Change Tax Law?

2010-03-26T21:30:00Z

Part 1

One of the most significant changes to the tax law is the new 3.8% Medicare tax on “net investment income” of those earning more than $200k (single) or $250k (married filing jointly). The term “net investment income” is rather far reaching and encompasses rents, royalties, dividends, interest, and other passive activity income (partnerships, etc).

We’ll be looking at this and many of the other changes in more detail in future blogs and articles. Stay tuned!

Loss

2010-03-22T15:12:00Z

Goals and Dreams

March 22 – “What if you lost everyone and everything in your life right now… and then somehow got them back?” Kobi Yamada

Too often we take the things, and even the people, closest to us for granted. We would be devastated by the loss of them, but we neglect to acknowledge just how important they are to us. What people or things might you have been taking for granted? Maybe it’s your spouse or your health or even your puppy.

What can you do to be more aware and appreciative of them?

Food

2010-03-15T15:22:00Z

Goals and Dreams

March 15 – “There is no love sincerer than the love of food.” George Bernard Shaw

Have you ever wanted to take a cooking class or try a new restaurant? Or maybe you just want to try an exotic fruit you’ve seen at the market recently. Go do it. Share your love of food with a new friend by hosting a dinner or going to that new restaurant.

Enjoy your food! Enjoy your life!

Values

2010-03-08T22:42:00Z

Goals and Dreams

March 8 – “Values are personal choices we make about what’s most important to us. Being guided by your highest values can bring immense satisfaction and meaning to life. Identifying your top values is a shortcut for identifying your top goals. Examples of lifetime values include: family, friendship, health, wealth, learning, career, community, faith, integrity, creativity, adventure and love.” Anonymous

What is most important in your life? Those are your values. Do your current goals reflect those values? Or, do you need to revise your goals? Today is a good day to start.

Fun

2010-03-01T16:22:00Z

Goals and Dreams

March 1

“Fun is fundamental.” Doug Hall

If we don’t make time to meet or get to know people we meet (see last week’s blog), do we make time to have fun? Or if we could make time to have fun doing things we enjoy, might we not meet more people who enjoy the same things we do?

Remember when you were a kid and fun was running in the rain or making mud pies or….? What makes you happy today? What makes you smile? How do you create more fun in your life - now?

Have fun this week and play in the rain!!

Bridges

2010-02-22T16:22:00Z

Goals and Dreams

February 22

"What a world this would be if we just built bridges instead of walls." Carlos Ramirez

Too often we don’t make the time to get to know people we meet. Or maybe we don’t make time to even meet new people. Who have I met that I would like to get to know better? How can I make that happen? Is it over a cup of coffee or maybe taking a walk? Or how can I meet new people? Where do I go or what do I need to do? Work on building a bridge to someone else instead of hiding behind your own walls.

Who Knew You When

2010-02-15T17:40:00Z

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Goals and Dreams

February 15

Who knew you way back when? Who believed in you before you believed in yourself? Who gave you your first break, or your first order, or bet on your future, or told you how really good you could be? These people meant the world to you at one time or another. Today, a heartfelt "Thanks" from you, out of the blue, would mean the world to them.
Dan Zadra

Did you have a teacher or coach or mentor who helped you along the way? Was your biggest supporter a family member? Who, from your past, distant or recent, would you most like to thank? Why not send them a note or email now? Remember, don't procrastinate!

Simplify

2010-02-09T17:59:00Z

Goals and Dreams

February 8

Our life is frittered away by detail. Simplify. Simplify.
Henry David Thoreau

Our lives have become much too hectic and overwhelmed with the detail. We are inundated with information from many source - so much so that it becomes difficult to move forward because we are bogged down in minutiae.

What are some ways you can simplify your life and move forward?

Procrastination

2010-02-01T18:14:00Z

In an effort to help all of you with your goals and dreams – and, in particular, identifying those goals and dreams from your past – we will be sending a weekly quote and question for you to ponder and, hopefully, answer. The questions and quotes are designed to help you identify what is truly important in your life and the things you want to make happen.

Respond to the thoughts either privately or share them on the blog. This is your opportunity to take a few minutes to think about you and what is important to you. Enjoy!

February 1 – “Action is eloquence.” William Shakespeare.

We all procrastinate, especially when it is something that may not be very pleasant. Maybe, for you, it’s going to the doctor for a checkup or saving for retirement or taking that trip to Europe - not exactly an unpleasant task but one you have put off because “the time isn’t right.” When will the time be right?

What things will you commit to stop procrastinating about - today?

Charitable Contributions

2009-12-01T22:12:00Z

As we approach the end of the year, the requests for charitable contributions come in daily. Making charitable donations is a great way to help lower your tax bill but, as always with the IRS, makes sure you do it properly. Since 2005, you have been required to maintain a receipt of your cash donations regardless of the amount of the donation. This receipt can be an actual letter or receipt from the organization (the absolute best method of proof), a cancelled check showing the name of the organization and the amount or a credit card receipt showing the same information. Your credit card statement may work but it must show the organization name, the amount and the date of the donation.

One other step you should take if you aren't completely familiar with the requesting organization, is to verify their non-profit status. Many times, I've had clients come in with letter receipts saying that a donation was made but upon further scrutiny have found that the "charitable organization" is not listed in the IRS database of authorized non-profits. To check out the status of a non-profit organization go to www.irs.gov/charities. On the left side of the screen you will see a link to "Search for Charities". Click this link and you can search for the charity by name, city and/or state. Please note that there is also a list of recent revocations and deletion and a list of suspensions. Check these lists carefully to ensure that you are making a deductible contribution to a valid charity.

If you have further questions about this, please contact Kathy and she will be happy to assist you. Happy Holidays!

Life Changes

2009-11-05T23:51:00Z

In this blog I'd like to share some thoughts about how we can be of more value to you, and your family.

Far too often clients share things with me after-the-fact that we either could have helped them with, or would have helped us in our planning and investment approach - if only we had know what was going on with them.

A recent experience illustrates that point. One of our clients will have a prostate operation in the next couple of days. His concern about this and various test results have obviously been on his mind. However, we didn't know any of this and continued to follow the plan established some time ago. There were recent changes in his outlook and temperament that confused us and created an uncomfortable situation in working with him.

If only we had known about what was going on in his life we could have worked with him to reduce the multitude of anxieties he was experiencing - including his financial situation, which needed to be adjusted.

I share this with you because our sole purpose in this profession is to help our clients have the best life possible in every way. However, we can't do that if we don't know what is happening with you. It's kind of like trying to put on a parachute after you've jumped out of a plane. It can be done, but things would have been so much better and easier to have put it on first, and then jump.

Kathy, Erica and I all love our work and are committed to taking the best care of our "Summit Family" as we can. However, we can only do this if we know what is on your mind. We need to know your fears, concerns and criticisms if we are going to be able to work together to make things better for you.

Sometimes our quarterly (?) meetings may seem a little like a "social hour". I don't see them that way. It is a time when I learn about you and your beliefs and concerns. These meetings help me give you better advice because I now understand you - instead of just giving an answer.

So I ask that you please do two things that are extremely important:

1. Let us know what is on your mind
2. Come in for your quarterly meetings

Happy Thanksgiving,

Jim

IRS Email Scams

2009-09-17T22:33:00Z

Kathy just received an e-mail from her contact at the Seattle IRS office. He wanted to alert everyone about the e-mail phishing scams that are out there that appear to be from IRS saying you have underreported your income. DO NOT OPEN THIS E-MAIL!! It will take you to a dummy IRS website and when you click on anything, it downloads a Trojan virus and you have problems!!

This email is so prolific and aggressive, her contact received it on his IRS e-mail address. Is that gutsy or what?

Remember, the IRS will NEVER contact you by e-mail about a personal return issue. Consider any e-mail you receive from the IRS to be a scam.

If you have any questions about this, please call Kathy at 253-589-1401.

A little bit sideways

2009-08-18T21:23:00Z

Yesterday, we saw a very large drop in the market and today we saw a pretty good rebound. So, is the market going to go up or go down? The best answer anyone has is: yes.

I have expected a really large drop in the market for months and that has not happened. The moves yesterday and today are good examples of the difficult market we are in right now. While we are having good days and some bad days - the market has mostly gone sideways as of late.

As I've mentioned before, I remain very concerned and cautious about the market and whether or not we are seeing a true recovery or simply a set-up for another drastic fall. Since it is impossible to determine right now, I've chosen to remain very conservative with the portfolios.

Still, with everything above, I plan to try to take advantage of the market drops and move more SLOWLY into the market a LITTLE more. The only big bet I'm making is to remain cautious.

I am in Texas visiting my son and his family this week. However, as you might be able to tell I'm continuing to keep an eye on the market and the portfolios. I will be back in the office next Tuesday. Until then, remain calm and enjoy what's left of our summer.

Jim Suits

Are you in danger?

2009-07-21T16:53:00Z

As you know, there have already been a number of significant tax changes this year with many more in the works. The one I want to discuss briefly today is a part of the stimulus package which has already been enacted. Many of you may have noticed that your take home pay has increased over the last couple of months. This is due to a decrease in the amount of federal tax being withheld from your pay (wages or retirement benefits). While this is a great boost to your monthly income, it is, in fact, setting you up for a much larger tax bill in April. You see, the withholding tables have been adjusted to allow for more money for discretionary spending but the tax tables have remained the same (and may even be higher by year's end). What this actually means is that you are getting your refund now instead of later OR you are getting money that you will need to pay back in April. For those of you who already pay in April, plan on a significantly larger bill next year.

So how do you avoid this situation? By coming in for a tax review (combined with our quarterly meeting with Jim or Alan) and adjusting your withholding back to the appropriate amounts for you, we can help you to avoid a potentially disastrous situation next year. Please call us for an appointment.

Travel - Cheap

2009-06-16T21:42:00Z

If you like to travel - cheap - consider being a corporate courier. Corporations often need someone to "deliver" packages and are willing to pay up to 85% of your air fare if you'll do that for them. You must be at least 18 years old and hold a United States or European Union passport that will be valid for at least 6 or more months. The catch? You may need to make a $500 deposit with the company - to make sure you don't cancel at the last minute. It is returned when you finish the trip - or you can leave it with them for the next trip! To find a courier company, look in the Yellow Pages under "Air Courier Services", Air Transportation", or "Courier Air Travel". Or go to:

http://www.manta.com/mb_34_B520X_000/air_courier_services

-Happy traveling!

Welcome

2008-09-30T14:07:31Z

Welcome to my blog. Please check back soon for new entries.