Wealth Management Newsletter | All posts archived in 'June 2020' — Page


From monthly archives: June 2020

We are pleased to present below all posts archived in 'June 2020'. If you still can't find what you are looking for, try using the search box.

Clearing Obstacles to Sound Tax Policy

David Frederick

Business owners face many challenges when it comes time to sell their business, not the least of which is taxation on the sales proceeds. There are strategies that can minimize these taxes, including approaches that use charitable intermediaries in the sale. These strategies can be effective, but have difficulties of their own. This articles discusses some benefits and obstacles of using charitable strategies to sell a business.

Click to read, Clearing Obstacles to Sound Tax Policy: The Case Against the Anticipatory Assignment of Income Doctrine in the Charitable Context, Authored by David Frederick, J.D., LL.M., Director of Wealth Planning at First Bank Wealth Management and Adjunct Professor of Economics at Washington University, and published in 4 Bus. Entrepreneurship & Tax L. Rev. 59 (2020). David may be reached at 314-995-8764 or via email at David.Frederick@fbol.com.

Available at: https://scholarship.law.missouri.edu/betr/vol4/iss1/5

Market Month: May 2020

The Markets (as of market close May 29, 2020) May saw several states and foreign countries ease restrictions put in place in response to the COVID-19 pandemic. As economies slowly picked up momentum, investors grew more confident in stocks, driving values higher. However, investor optimism was kept in check by sobering economic reports and growing tensions between the United States and China. The unemployment rate reached its highest level since the Great Depression while claims for unemployment insurance soared past 25 million. Economic output lagged in April as expected. Hardest hit were automakers, restaurants, and airlines. The month closed with a speech from President Trump condemning China over the pandemic, Hong Kong, and several other "broken promises." Despite these issues, investors drew optimism from the possibility that a COVID-19 vaccine is on the horizon, the gradual lifting of lockdowns, and the stimulus efforts in play. While May didn't see the double-digit gains enjoyed ...

Four Questions on the Roth Five-Year Rule

The Roth "five-year rule" typically refers to when you can take tax-free distributions of earnings from your Roth IRA, Roth 401(k), or other work-based Roth account. The rule states that you must wait five years after making your first contribution, and the distribution must take place after age 59½, when you become disabled, or when your beneficiaries inherit the assets after your death. Roth IRAs (but not workplace plans) also permit up to a $10,000 tax-free withdrawal of earnings after five years for a first-time home purchase. While this seems straightforward, several nuances may affect your distribution's tax status. Here are four questions that examine some of them. 1. When does the clock start ticking? "Five-year rule" is a bit misleading; in some cases, the waiting period may be shorter. The countdown begins on January 1 of the tax year for which you make your first contribution. For example, if you open a Roth IRA on December 31, 2020, the clock st ...

Mid-Year Is a Good Time to Fine-Tune Your Finances

The first part of 2020 was rocky, but there should be better days ahead. Taking a close look at your finances may give you the foundation you need to begin moving forward. Mid-year is an ideal time to do so, because the planning opportunities are potentially greater than if you waited until the end of the year. Renew Your Resolutions At the beginning of the year, you may have vowed to change your financial situation, perhaps by saving more, spending less, or reducing your debt. Are these resolutions still important to you? If your income, expenses, and life circumstances have changed since then, you may need to rethink your priorities. While it may be difficult to look at your finances during turbulent times, review financial statements and account balances to determine whether you need to make any changes to keep your financial plan on track. Take Another Look at Your Taxes Completing a mid-year estimate of your tax liability may reveal planning opportunities. You can use last year's tax r ...




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