NEWSLETTER  –  February 2018

Dear Friends,

Paying for School

I have developed a specialty of the financial planning that goes into paying education. Benjamin Franklin commented that a penny saved is a penny earned.  A more current rendition of that is that a penny saved is about $1.40 when we factor in the income tax costs that are avoided by saving as opposed to spending with after tax dollars. If you know anyone who needs help in this area, please send them to me.

Foreign Accounts

I have been following the Paul Manafort problems with interest.  In addition to state and federal tax liability on unreported income he will have huge penalties for not having filed FBARs in respect to foreign accounts. When IRS settled with the Swiss Banks, it got a huge amount of data on US taxpayers. Here is a link to a Bloomberg article on how it continues to follow those leads. .

Stock Market Run Up

There is a direct relationship between the recent runup in the stock markets and the new tax bill that has dramatically reduced corporate income tax rates.  Tax savings that come to the corporation go directly to the corporate bottom line.  A 15% tax cut translates into 15% higher earnings for the corporation.  Stocks are valued as multiples of earnings. The rate cut has a multiplier effect on stock values.

Let us know if you need help.