Archives: Insight

Why You Should Get Financial Planning for Your Business

We understand that the process of financial planning for your business is never an easy one. It involves many complicated factors such as estimating required capital, framing financial policies, and determining competition.

That’s why clear objectives, flexible operations planning, intensive analysis, and realistic forecasting and projection are what you need for creating a successful financial plan. We can help you with this. If this is your first time, you can minimize roadblocks by hiring the right financial advisor who can assist you accomplish the following:

Efficient Capital Determination

Several factors will determine your capital requirements. With a thorough evaluation, we can assist you in having a clearer idea of the short- and long-term capital requirements for your business so you can efficiently decide on the capital structure that works well for you.

Determining the best formula for capital allocation from the start will help you in other aspects of your business plan in the long run. The right mix of capital allocation and resource conservation will help build a solid foundation for your business since it’s a critical element for growth—and we want nothing but for you to succeed.

Maximum Utilization of Financial Resources

Do you wish to maximize your current resources for the highest return on investment? We can help you achieve that through financial planning, which ensures adequate and effective monetary policies, procedures, and programs for your business. The specific benefits of doing financial planning for your resources include:

  • Balancing the outflow and inflow of your funds, which will maintain your budget’s stability
  • Ensuring that your funds are invested in the right places at the right time
  • Creating expansion programs and overall growth to keep your business alive and thriving
  • Reducing risks and uncertainties due to changing and shifting market trends by ensuring you always have enough funds for your operations
  • Reducing the unpredictability that can hinder your business’ growth, which ensures profitability and stability

Effective Financial Management

Through financial planning with us, you can determine and identify your cash needs in advance and future-proof your business today. We can help give you a clearer picture of how things are, what you can do, and how you can prepare for what comes next. Below are customized ways we can help you with financial management:

  • We’ll create a tax-mitigation plan that encompasses the central aspects of your wealth.
  • Together, we can map out your retirement cash flow, so you can maximize Social Security, mitigate tax liability, and balance income sources.
  • We can create a plan to help ensure efficient transitions for you, like business succession.

The Time is Now

In our experience, financial planning is a must for businesses of all sizes, from startups to large corporations. Don’t fall behind your goals—start your plan with us today.

Let our team at Aegis Financial help you meet your short- and long-term business goals through efficient and proven services. Contact us to get you started.

Wealth Transfer – Is Your Family Ready?

Wealth Transfer – Is Your Family Ready?

We are amid one of the largest wealth transfers in generations. It is important to have your estate planning documents in place and to make sure those documents stay current. This helps your family understand your wishes and direct them to be good stewards of the family wealth. At AEGIS Financial, we work with our client to prepare the next generation for an upcoming inheritance. Each of the following are important steps to consider when creating a wealth transfer plan.

Conduct Family Meetings

It is never too early or too late to begin a dialogue with your family regarding death and inheritance.  While some may believe this conversation to be uncomfortable, these meetings can create a bonding experience between generations, providing financial education, life skills and the understanding of a parent’s or grandparent’s morals, values and wishes. We help our clients, their families and beneficiaries to cover topics such as financial planning, college funding, taxes, retirement planning, charitable giving, wealth transfer, and many others. 

Teach Basic Financial Literacy Skills

It is important for families to instill financial values prior to receiving an inheritance.  As professionals, we assist our clients with helping those heirs understand the significance of financial literacy. The life skills we discuss include:

  • Importance of an emergency fund
  • How to create a budget and live within those means
  • Wise use of credit
  • Protecting assets
  • Prudent saving and investing
  • Charitable giving
  • Investing in yourself and knowing your worth

At AEGIS Financial, we have financial programs for every investor. We have many four generation families that we serve. 

Connect With Your Tax Professional and Wealth Management Team to Protect Your Wealth

We encourage clients to bring their heirs and/or other beneficiaries along to meetings to understand that they have trusted professionals to assist with financial decisions. Some benefits from including additional family members include:

  1. Learn how to discuss goals and concerns.
  2. Appreciate the benefits of working with a wealth management team during all of life’s opportunities and challenges.
  3. Understand client responsibilities when working with a wealth management team.
  4. Allow heirs to participate and/or make decisions in some aspects of generational wealth, if you choose.

Our team will walk you and your heirs through the entire financial process to ensure we address asset protection from a tax and financial standpoint.

Sharing the Different Wealth Transfer Strategies

Bringing heirs to meetings with the wealth management team assists clients with communicating how they may receive their inheritance. Some of these conversations include:

  1. How assets are divided between each beneficiary.
  2. The creation of a trust to protect an inheritance for the long term.
  3. Gifting to family members over time while you are still alive.
  4. Planning to enjoy the wealth together by using it for family vacations, helping fund a child’s education, etc.

A Quick Note on Charitable Giving

If giving is important to you and your family, share these goals with your heirs, so they can continue to use your family’s wealth to help others. By communicating these wishes and having them participate with your giving, you will continue to keep your legacy alive for many years to come. Some families have created a family foundation with mission statements to communicate their wishes for future charitable giving.

These tools and strategies have proven to be very successful for our clients and allows future generations to be great stewards of their loved one’s wealth, as well as educating the next generation on the value of money and how to use it wisely. If you have not considered a family meeting, we encourage you seriously consider. Please be sure to alert your AEGIS Relationship Manager if you have someone who will be attending a future meeting, so your management team is prepared.

We can help regardless of the value of your accounts or the complexity of your estate. If you are interested in having our team assist you and your loved ones with any or all the above concepts, please let us know and we would be happy to meet with you and your family’s next generation.

Should You File Jointly, Or Not? | Under 30

For many married couples, filing jointly is a good idea, but there are exceptions.

Ninety-five percent of married couples file joint federal tax returns. Filing jointly can be convenient. Frequently, there’s a financial advantage, but that does not mean it should be done without consideration.1

Years ago, there was less incentive to file jointly. That was because the “marriage penalty” for doing so was effectively greater. There is no written “marriage penalty” in the Internal Revenue Code, but, in the past, income tax brackets were structured a bit differently and spouses having similar annual incomes sometimes paid more taxes by filing jointly than single taxpayers did.

There are many good reasons to file jointly. Nearly all of them involve saving money.

Joint filing may give you an effective tax break right off the bat. Currently, married taxpayers who file separately face the 28%, 33%, 35%, and 39.6% income tax brackets at lower income thresholds than other unmarried taxpayers.2

Joint filers can claim significant tax credits that marrieds filing separately cannot. If you want to claim the American Opportunity Tax Credit, the Lifetime Learning Credit, the Elderly or Disabled Credit, or the Earned Income Tax Credit (EITC), you have to file jointly. Joint filing also gives you the potential to claim the full Child Tax Credit, rather than a reduced one.3

Deductions, too, decrease when you file separately as a married couple. Standard deductions fall significantly. Phase-out ranges affect itemized deductions, and some itemized deductions are unavailable for married couples who do not file jointly. Couples who file separate 1040s can only deduct 50% of the capital gains losses joint filers can. In addition, if one spouse elects to itemize deductions, so must the other (there must be a separate Schedule A for each spouse). The spouse with fewer deductions has no ability to use the standard deduction to lower his or her taxable income.2,3

Joint filing even helps you with regard to the Alternative Minimum Tax. When you file separately as a married couple, your AMT exemption falls by 50%. So you may be more susceptible to the AMT if you file separately. If the AMT affects you, you will find many federal tax deductions reduced or unavailable to you.3

Do you live in a community property state? If you do, you may know that state tax law defines what is considered separately held or jointly held property. If you want to itemize deductions in a community property state, the paperwork can be onerous.3

More of your Social Security benefits may be taxed if you file separately. Social Security gives you a “base exemption,” an income threshold above which Social Security benefits may be taxable. The base exemption for married couples filing jointly is $32,000, meaning that if 50% of the Social Security benefits you receive in a tax year plus your other income in a tax year exceeds $32,000, taxes may apply. The base exemption for married couples filing separately who live together at any time during the tax year is $0. It improves to $25,000 for married couples filing separately who live apart for an entire year.4

So why would you not file jointly when married? In certain circumstances, filing separately may be wiser.

Maybe you do not trust your spouse financially. If your spouse is a tax cheat or interprets federal tax law very loosely, filing jointly could prove hazardous in the case of an audit or other troubles. Both spouses must sign a joint return, meaning that both spouses are legally responsible for all taxes, penalties, and fines linked to that return. Yes, an innocent spouse may be offered tax protection by the IRS, but that innocence must be proven.2,3

Maybe you or your spouse have large out-of-pocket medical expenses. If so, and if the spouse contending with such bills earns much less than the other, there may be merit in filing separately. By doing so, the spouse with far less income might have an opportunity to meet the 10% AGI threshold needed to itemize medical expenses. (The 7.5% AGI threshold for itemizing these costs is still in place for taxpayers age 65 and older.)2

Maybe you are separating or divorcing. If that is the case, then it may seem only natural to begin filing separately while still married. Doing so now may lessen the chance of the two of you wading through tax issues in the aftermath of a split.

If you are unsure about whether to file jointly or singly, you can ask a tax professional for his or her opinion. Or, that professional can look at last year’s return and run the numbers for you. Most couples find that filing jointly works out best, but there are exceptions.

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note - investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.
Citations.
1 - forbes.com/sites/robertwood/2016/01/26/married-filing-joint-tax-returns-irs-helps-some-couples-with-offshore-accounts/ [2/6/16]
2 - abcnews.go.com/Business/filing-taxes-jointly-good-idea/story?id=22504248 [2/17/14]
3 - foxbusiness.com/features/2015/03/06/should-couples-file-taxes-separately-or-jointly-which-is-best-for.html [3/6/15]
4 - irs.com/articles/how-are-social-security-benefits-taxed [2/11/16]

The federal government has upgraded its Child Tax Credit. | Under 40

Thanks to the American Rescue Plan Act, there are four notable differences in effect for the 2021 tax year only.1

First, the Internal Revenue Service is paying many families who qualify for the CTC 50% of their credit before 2021 ends. Second, the credit has grown larger for most eligible families: $3,000 per child, $3,600 per child under age 6. Third, this year’s CTC is fully refundable. Fourth, the credit has been extended to 17-year-olds for the first time – that is, children who turn 17 in 2021.1,2

Remember, this article is for informational purposes only. It’s not a replacement for real-life advice, so make sure to consult your tax or legal professionals if you have any questions about the CTC or how it operates.

All this comes with a caveat. Some families may end up getting a bigger CTC than they should, and they may have to pay some of it back. Certain households may see their adjusted gross incomes (AGIs) rise for 2021, to the point where they may be eligible for less of the CTC than the I.R.S. has paid out to them.2

CTC payments are going out in monthly increments through December. Eligible familiesare receiving $250 a month for each child aged 6-17 and $300 a month for each child under age 6. A small number of CTC recipients are opting for a lump-sum payment that the I.R.S. will send them in 2022, after they file their 2021 federal tax returns.2

High-income families might get less. Phase-outs apply for this year’s expanded per-child credits of $3,000/$3,600. As a result, affluent households might only receive the standard $2,000-per-child credit in six monthly increments rather than the enlarged one.2

Phase-outs will kick in for single filers with modified adjusted gross income (MAGI) greater than $75,000, heads of household with MAGI greater than $112,500 and joint filers and widows/widowers with MAGI greater than $150,000. For each $1,000 (or fraction thereof) that the taxpayer’s MAGI exceeds the applicable threshold, the taxpayer’s CTC is reduced by $50.3

Some divorced parents have opted for the lump-sum payment in 2022. Here, the risk of taking the monthly payments is that if one parent claimed a child in 2020 but doesn’t in 2021, they may get CTC credits in 2021 that they have to pay back in 2022.2

Keep in mind that tax rules are constantly changing, and there is no guarantee that any of these CTC changes will be carried over into future tax years. If you have any questions, please reach out. We may have some resources that can help answer some of your questions.

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note - investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

College Funding Choices | Under 50

Explore the different ways you can help finance the costs of higher education.

How can you help cover your child’s future college costs? Saving early (and often) may be key for most families. Here are some college savings vehicles to consider.

529 college savings plans. Offered by states and some educational institutions, these plans allow you to save up to $15,000 per year for your child’s college costs without having to file an I.R.S. gift tax return. A married couple can contribute up to $30,000 per year. However, an individual or couple’s annual contribution to a 529 plan cannot exceed the yearly gift tax exclusion set by the Internal Revenue Service. You may be able to front-load a 529 plan with up to $75,000 in initial contributions per plan beneficiary—up to five years of gifts in one year—without triggering gift taxes.1,2

Remember, a 529 plan is a college savings play that allows individuals to save for college on a tax-advantaged basis. State tax treatment of 529 plans is only one factor to consider prior to committing to a savings plan. Also, consider the fees and expenses associated with the particular plan. Whether a state tax deduction is available will depend on your state of residence. State tax laws and treatment may vary. State tax laws may be different than federal tax laws. Earnings on non-qualified distributions will be subject to income tax and a 10% federal penalty tax.

If your child doesn’t want to go to college, you can change the beneficiary to another child in your family. You can even roll over distributions from a 529 plan into another 529 plan established for the same beneficiary (or another family member) without tax consequences.1,2

Grandparents can also start a 529 plan or other college savings vehicle. In fact, anyone can set up a 529 plan on behalf of anyone. You can even establish one for yourself.1,2

Coverdell ESAs. Single filers with modified adjusted gross incomes (MAGIs) of $95,000 or less and joint filers with MAGIs of $190,000 or less can pour up to $2,000 into these accounts annually. If your income is higher than that, phaseouts apply above those MAGI levels. Money saved and invested in a Coverdell ESA can be used for college or K-12 education expenses.3

Contributions to Coverdell ESAs aren’t tax-deductible, but the accounts enjoy tax-deferred growth, and withdrawals are tax-free, so long as they are used for qualified education expenses. Contributions may be made until the account beneficiary turns 18. The money must be withdrawn when the beneficiary turns 30, or taxes and penalties may occur.3,4

UGMA & UTMA accounts. These all-purpose savings and investment accounts are often used to save for college. They take the form of a trust. When you put money in the trust, you are making an irrevocable gift to your child. You manage the trust assets until your child reaches the age when the trust terminates (i.e., adulthood). At that point, your child can use the UGMA or UTMA funds to pay for college; however, once that age is reached, your child can also use the money to pay for anything else.5

Using a trust involves a complex set of tax rules and regulations. Before moving forward with a trust, consider working with a professional who is familiar with the rules and regulations.

Imagine your child graduating from college, debt-free. With the right kind of college planning, that may happen. Talk to a financial professional today about these savings methods and others.

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note - investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.
Citations
1.  IRS.gov, March 5, 2021
2. FINRA.org, 2021
3. IRS.gov, March 5, 2021
4. TheBalance.com, April 27, 2021
5. Finaid.org, 2021
 

2022 Contribution Limits | Under 60

Is it time to contribute more?

Preparing for retirement just got a little more financial wiggle room. This week, the Internal Revenue Service (IRS) announced new contribution limits for 2022.

Staying put for 2022 are traditional Individual Retirement Accounts (IRAs), with the limit remaining at $6,000. The catch-up contribution for traditional IRAs remains $1,000 as well.1

For workplace retirement accounts (i.e. 401(k), 403(b), amongst others), the contribution limit rises $1,000 to $20,500. Catch-up contributions remain at $6,500.1

Eligibility for Roth IRA contributions has increased, as well. These have bumped up to $129,000 to $144,000 for single filers and heads of households, and $204,000 to $214,000 for those filing jointly as married couples.1

Another increase was for SIMPLE IRA Plans (SIMPLE is an acronym for Savings Incentive Match Plan for Employees), which increases from $13,500 to $14,000.1

If these increases apply to your retirement strategy, a financial professional may be able to help make some adjustments to your contributions.

Once you reach age 72, you must begin taking required minimum distributions from a Traditional Individual Retirement Account (IRA) or Savings Incentive Match Plan for Employees IRA in most circumstances. Withdrawals from Traditional IRAs are taxed as ordinary income and, if taken before age 59½, may be subject to a 10% federal income tax penalty.

Once you reach age 72, you must begin taking required minimum distributions from your 401(k), 403(b), or other defined-contribution plans in most circumstances. Withdrawals from your 401(k) or other defined-contribution plans are taxed as ordinary income and, if taken before age 59½, may be subject to a 10% federal income tax penalty.
To qualify for the tax-free and penalty-free withdrawal of earnings, Roth IRA distributions must meet a five-year holding requirement and occur after age 59½. Tax-free and penalty-free withdrawal can also be taken under certain other circumstances, such as the owner's death. The original Roth IRA owner is not required to take minimum annual withdrawals.
This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note - investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

Citations
1. CNBC.com, November 5, 2021

The Need for Power of Attorney | Under 70

POAs and other advanced directives are becoming more important.

The point of the POA. A power of attorney (POA) is a legal instrument that delegates an individual’s legal authority to another person. If an individual is incapacitated, the POA assigns a trusted party to make decisions on his or her behalf. 

There are nondurable, springing, and durable powers of attorney. A nondurable power of attorney often comes into play in real estate transactions, or when someone elects to delegate their financial affairs to an assignee during an extended absence. A springing power of attorney “springs” into effect when a specific event occurs (usually an illness or disability affecting an individual). A “durable” power of attorney allows an assignee, or agent, to act on behalf of a second party, or principal, even after the principal is not mentally competent or physically able to make decisions. Once a principal signs, or executes, a durable power of attorney, it may be used immediately, until it is either revoked by the principal or the principal dies.1 

Keep in mind this article is for informational purposes only. It’s not a replacement for real-life advice. Make sure to consult your legal professional so you can better understand what type of powers of attorney is a best fit for your situation.

What the POA allows in financial terms. Financially, a Power of Attorney is a tremendously useful instrument. An agent can pay bills, write checks, make investment decisions, buy or sell real estate or other hard assets, sign contracts, file taxes, and even arrange the distribution of retirement benefits.

Advanced healthcare directives: HCPOAs and Living Wills. Some illnesses can eventually rob people of the ability to articulate their wishes, and this is a major reason why people opt for a Health Care Power of Attorney (HCPOA) or a living will. There are differences between the two.

A Health Care Power of Attorney (also called a “healthcare proxy”) allows an agent to make medical decisions for a principal, should they become physically or mentally incapacitated. A living will gives an assignee similar powers of decision, but this advanced directive only applies when someone faces certain death. The assignee has the authority to carry out the wishes of the incapacitated party. 


Would you like to learn more? It may be time to meet with an attorney who specializes in these issues. You can find one with the help of an insurance or financial professional who has assisted families with legacy planning.  

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note - investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

Citations
1. AgingCare.com, August 23, 2021

How U.S. Savings Bonds Work | 70 + Older

How to keep track of your savings bonds’ maturity dates.

Did you buy U.S. Savings Bonds decades ago? Or did your parents or grandparents purchase them for you? If they’re collecting dust in a drawer, you may want to take a look at them to see if any of your bonds have matured. If your bonds have matured, that means they are no longer earning interest, and it also means you may want to consider cashing them in.1

This article is for informational purposes only. It’s not a replacement for real-life advice, so make sure to consult your tax professional when you’re considering any move with a U.S. Savings Bond.

You want to keep track of the maturity dates, the yields and the interest rates on your bonds, as that will help you to figure out what bond to redeem when. Fortunately, you’re able to check the maturity dates online now so it’s relatively easy to determine if it’s time to cash-in your bonds.2

Use savings bonds for educational purposes. If you’ve been holding onto Series EE or Series I savings bonds, the interest paid is tax-exempt, so long as the money is used to pay for qualified educational expenses. There are other considerations, so if you discover you have these types of bonds to cash in a tax professional may be able to provide some guidance.3

Interest accumulated over the life of a U.S. Savings Bond must be reported on your 1040 form for the tax year in which you redeem the bond or it reaches final maturity. This must be done even if you (or the original bondholder) chose to have the interest on the bond accumulate tax-deferred until the final maturity date. Failure to report such interest may lead to a federal tax penalty.2

Remember, U.S. Savings Bonds are guaranteed by the federal government as to the payment of principal and interest. However, if you sell a savings bond prior to maturity, it could be worth more or less than the original price paid.

U.S. Savings Bonds are taxed in one of two ways. Bondholders choose to defer the tax until the bond matures. Once they redeem the bond, they report the interest through a 1099-INT form. Some choose to pay the tax annually prior to cashing the bond in, reporting the increase in the value of the bond as taxable interest each year.2,3

What if you find out you have held a U.S. Savings Bond for too long? Another note about reporting interest: if a U.S. Savings Bond has matured andyou have failed to redeem it,youwill not finda Form 1099-INT for it in your records. Only redemption will bring that 1099-INT your way. (The accumulated interest for the bond should have been reported to the IRS regardless.) After you cash in that old bond, you will thereafter receive a 1099-INT. It will record that the interest on the bond was earned in the year of the bond’s final maturity.2

Plan ahead & keep track. U.S.Savings Bonds were issued on paper for decades and were often purchased on behalf of children and grandchildren. Now, U.S. Savings Bonds are issued electronically. While the interest on U.S. Savings Bonds is taxed by the IRS, it is exempt from state and local taxes.1,2

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note - investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

Citations.
1. TreasuryDirect.gov, August 2, 2021
2. IRS.gov, April 1, 2021
3. BusinessInsider.com, Feb 12, 2021

AEGIS Cares | Quarter 4 2021 & Quarter 1 2022

AEGIS Cares Quarter 4 2021 Giving Plan

For our Quarter 4 Giving Plan we donated 100 turkeys for Thanksgiving and 75 Hams for Christmas to Father Carr’s of Oshkosh and St. Joe’s Food Program of Menasha! These donations helped feed over 100 families in our community for the holidays.  

We also participated in a program called Adopt a Family for both Winnebago and Outagamie Counties.  The program is for low-income families that struggle to meet ends meet during the holiday season and need assistance in getting gifts and providing food for their families for Christmas. AEGIS adopted two families, one from each county, and we were able to provide gifts for 9 children and their parents as well as a Christmas meal! A big thank you to those clients who had participated in our Quarter 4 Giving plan with us!  

If there are any organizations or causes that you would like us to support, please call Courtney Krell at (920) 233-4650 or email her at courtney.krell@aegis4me.com

AEGIS Cares Quarter 1 2022 Giving Plan

For our Quarter 1 Giving Plan we are volunteering at Jake’s Network of Hope in Neenah. Jake’s Diapers, Inc. solves diaper need for infants, elderly, and those with special needs. They believe this is essential for clean, healthy, and active lives, and creates a sense of dignity for those they serve. On March 1, our team will be heading over to Jake’s warehouse for the afternoon to help package diapers for families in the community and even internationally!

Go to their website https://jakesnoh.org/ to learn how you can help!

If there are any organizations or causes that you would like us to support, please call Courtney Krell at (920) 233-4650 or email her at courtney.krell@aegis4me.com

 

Under 30 | Insurance When You’re Newly Married

Insurance When You’re Newly Married
Assess the coverage for your new household.

Provided by AEGIS Financial

Marriage changes everything, including insurance needs. Newly married couples should consider a comprehensive review of their current, individual insurance coverage to determine if any changes are in order as well as consider new insurance coverage appropriate to their new life stage.

Auto. The good news is that married drivers may be eligible for lower rates than single drivers. Since most couples come into their marriage with two separate auto policies, you should review your existing policies and contact your respective insurance companies to obtain competitive quotes on a new, combined policy.

Home. Newly married couples may start out as renters, but they often look to own a home or condo as a first step in building a life together. The purchase of homeowners insurance or condo insurance is required by the lender. While these policies have important differences, they do share the same purpose – to protect your home, your personal property, and your assets against any personal liability.

You should take special care of what is covered under the policy, the types of covered perils, and the limits on the amount of covered losses. Pay particular attention to whether the policy insures for replacement costs (preferable) or actual cash value.

Health. Like auto insurance, couples often bring together two separate, individual health insurance plans. Newly married couples should review their health insurance plans’ costs and benefits and determine whether placing one spouse under the other spouse’s plan makes sense.

Disability. Married couples typically combine their financial resources and live accordingly. This means that your mortgage or car loan may be tied to the combined earnings of you and your spouse. The loss of one income, even for a short period of time, may make it difficult to continue making payments designed for two incomes. Disability insurance replaces lost income, so that you can continue to meet your living expenses.1

Life. Central to any marriage is a concern for each other’s future well-being. In the event of a spouse’s death, a lifestyle based on two incomes may mean that the debt and cash flow obligations can’t be met by the surviving spouse’s single income. Saddling the surviving spouse with a financial burden can be avoided through the purchase of life insurance in an amount that pays off debts and/or replaces the deceased spouse’s income.2

Liability. Personal liability risks can have a significant impact on the wealth you are beginning to build for your future together. Consider purchasing umbrella insurance under your homeowners policy to protect against the financial risk of personal liability.

Extended Care. Extended care insurance may be a low priority given other financial demands, such as saving for retirement. Nevertheless, you may want to have a conversation with your parents about how long-term care insurance may protect their financial security in retirement.

The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation.

AEGIS Financial may be reached at 920-233-4650 or info@aegis4me.com. aegis4me.com

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note – investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.
Investment Advisory Services are offered through AEGIS Financial, registered investment adviser.
Securities offered by Registered Representatives through Private Client Services, Member FINRA/SIPC. Advisory products and services offered through AEGIS Financial, a Registered Investment Advisor. Private Client Services and AEGIS Financial are unaffiliated entities.
AEGIS Financial does not accept orders and/or instructions regarding your account by e-mail, voice mail, fax or any alternate method. Transactional details do not supersede normal trade confirmations or statements. E-mail sent through the Internet is not secure or confidential. AEGIS Financial reserves the right to review, monitor, and archive all e-mail sent and received. Any information provided in this e-mail has been prepared from sources believed to be reliable, but is not guaranteed by AEGIS Financial and is not a complete summary or statement of all available data necessary for making an investment decision. Any information provided is for informational purposes only and does not constitute a recommendation. AEGIS Financial and its employees may own options, rights or warrants to purchase any of the securities mentioned in e-mail. This e-mail is intended only for the person or entity to which it is addressed and may contain confidential and/or privileged material. This email transmission and any documents, files or previous email messages attached to it may contain information that is confidential or legally privileged. If you are not the intended recipient, you are hereby notified that you must not read this transmission and that any disclosure, copying, printing, distribution, or any action or omission of this transmission is strictly prohibited. If you have received this transmission in error, please immediately notify the sender by telephone at 920-233-4650 or return and delete the original transmission and its attachments without reading or saving in any manner.
Citations.
1 – chicagotribune.com/business/success/terrysavage/tca-disability-insurance-can-protect-you-from-unthinkable-20190410-story.html [4/10/19]
2 – chicagotribune.com/business/success/terrysavage/tca-disability-insurance-can-protect-you-from-unthinkable-20190410-story.html [4/10/19]

Under 50 | Diversification, Patience, and Consistency

Diversification, Patience, and Consistency
Three important factors when it comes to your financial life.

Provided by AEGIS Financial

Regardless of how the markets may perform, consider making the following part of your investment philosophy:

Diversification. The saying “don’t put all your eggs in one basket” has real value when it comes to investing. In a bear or bull market, certain asset classes may perform better than others. If your assets are mostly held in one kind of investment (say, mostly in mutual funds or mostly in CDs or money market accounts), you could be hit hard by stock market losses, or alternately, lose out on potential gains that other kinds of investments may be experiencing. There is an opportunity cost as well as risk.1

Asset allocation strategies are used in portfolio management. A financial professional can ask you about your goals, tolerance for risk, and assign percentages of your assets to different classes of investments. This diversification is designed to suit your preferred investment style and your objectives.

Patience. Impatient investors obsess on the day-to-day doings of the stock market. Have you ever heard of “stock picking” or “market timing”? How about “day trading”? These are all attempts to exploit short-term fluctuations in value. These investing methods might seem fun and exciting if you like to micromanage, but they could add stress and anxiety to your life, and they may be a poor alternative to a long-range investment strategy built around your life goals.

Consistency. Most people invest a little at a time, within their budget, and with regularity. They invest $50 or $100 or more per month in their 401(k) and similar investments through payroll deduction or automatic withdrawal. They are investing on “autopilot” to help themselves build wealth for retirement and for long-range goals. Investing regularly (and earlier in life) helps you to take advantage of the power of compounding as well.

If you don’t have a long-range investment strategy, talk to a qualified financial professional today.

AEGIS Financial may be reached at 920-233-4650 or info@aegis4me.com. aegis4me.com

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note – investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.
Investment Advisory Services are offered through AEGIS Financial, registered investment adviser.
Securities offered by Registered Representatives through Private Client Services, Member FINRA/SIPC. Advisory products and services offered through AEGIS Financial, a Registered Investment Advisor. Private Client Services and AEGIS Financial are unaffiliated entities.
AEGIS Financial does not accept orders and/or instructions regarding your account by e-mail, voice mail, fax or any alternate method.  Transactional details do not supersede normal trade confirmations or statements.  E-mail sent through the Internet is not secure or confidential.  AEGIS Financial reserves the right to review, monitor, and archive all e-mail sent and received. Any information provided in this e-mail has been prepared from sources believed to be reliable, but is not guaranteed by AEGIS Financial and is not a complete summary or statement of all available data necessary for making an investment decision.  Any information provided is for informational purposes only and does not constitute a recommendation.  AEGIS Financial and its employees may own options, rights or warrants to purchase any of the securities mentioned in e-mail.  This e-mail is intended only for the person or entity to which it is addressed and may contain confidential and/or privileged material.  This email transmission and any documents, files or previous email messages attached to it may contain information that is confidential or legally privileged.  If you are not the intended recipient, you are hereby notified that you must not read this transmission and that any disclosure, copying, printing, distribution, or any action or omission of this transmission is strictly prohibited.  If you have received this transmission in error, please immediately notify the sender by telephone at 920-233-4650 or return and delete the original transmission and its attachments without reading or saving in any manner.
Citations.
1 – forbes.com/sites/brettsteenbarger/2019/05/27/why-diversification-works-in-life-and-markets [5/27/19]

Under 60 | Roth IRA Conversion in the Era of COVID-19

Roth IRA Conversion in the Era of COVID-19
Is it right for you?

Provided by AEGIS Financial

 

The COVID-19 pandemic has shaken up nearly every aspect of American life. To say it’s been a difficult time would be an understatement.

However, difficult times may open doors to new possibilities. Businesses are changing their ways of operating, and individuals are exploring new avenues for investment. It may be time for you to consider some opportunities, as well.

What is a Roth Conversion? A Roth conversion refers to the transfer of an Individual Retirement Account (IRA), either Traditional, SIMPLE, or SEP-IRA, into a Roth IRA. With Roth IRAs, you pay tax on the money before it transfers into the account.

One benefit to having your money in the Roth IRA is that, unlike a Traditional IRA, you currently are not obligated to take Required Minimum Distributions (RMDs) after you reach age 72 (RMDs would be required to any non-spousal beneficiaries, however).

Another benefit is that since the money was taxed before going into the Roth IRA, any distributions are tax-free. Keep in mind that tax rules are constantly changing, and there is no guarantee that Roth IRA distributions will remain tax-free.1,2

Why Go Roth in 2020? In the face of the market downturn after the COVID-19 outbreak, you may be in a unique financial situation. For example, suppose you have an IRA account that was worth $1 million before the downturn, but it’s currently worth $800,000.

Perhaps your income has also decreased, potentially putting you in a lower tax bracket. Maybe you own one or more businesses, such as restaurants, that have been closed. You may not yet know if these businesses will be opening again in 2020. Your income could hypothetically be considerably lower this year than last year.

But: this may present an opportunity. Less earned income may mean lower total taxes due on a Roth conversion, especially if the overall account value has dropped.

Keep in mind, this article is for information purposes only and is making an assumption on an IRA account’s value and applying a hypothetical drop in earned income. We recommend you contact your tax or legal professional before modifying your retirement investment strategy.

No Turning Back. While this may be a good time for you to consider converting to a Roth IRA, remember that there’s no turning back once you do. The Tax Cuts and Jobs Act of 2017 decreed that Roth conversions could no longer be undone.3

A Roth IRA conversion is a complicated process, and it’s wise to involve your trusted financial professional. Please feel free to reach out with any questions you have about your situation.

AEGIS Financial may be reached at 920-233-4650 or info@aegis4me.com. aegis4me.com

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note – investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment. To qualify for the tax-free and penalty-free withdrawal of earnings, Roth IRA distributions must meet a five-year holding requirement and occur after age 59½. Tax-free and penalty-free withdrawal also can be taken under certain other circumstances, such as a result of the owner’s death. The original Roth IRA owner is not required to take minimum annual withdrawals.
Investment Advisory Services are offered through AEGIS Financial, registered investment adviser.
Securities offered by Registered Representatives through Private Client Services, Member FINRA/SIPC. Advisory products and services offered through AEGIS Financial, a Registered Investment Advisor. Private Client Services and AEGIS Financial are unaffiliated entities.
AEGIS Financial does not accept orders and/or instructions regarding your account by e-mail, voice mail, fax or any alternate method.  Transactional details do not supersede normal trade confirmations or statements.  E-mail sent through the Internet is not secure or confidential.  AEGIS Financial reserves the right to review, monitor, and archive all e-mail sent and received. Any information provided in this e-mail has been prepared from sources believed to be reliable, but is not guaranteed by AEGIS Financial and is not a complete summary or statement of all available data necessary for making an investment decision.  Any information provided is for informational purposes only and does not constitute a recommendation.  AEGIS Financial and its employees may own options, rights or warrants to purchase any of the securities mentioned in e-mail.  This e-mail is intended only for the person or entity to which it is addressed and may contain confidential and/or privileged material.  This email transmission and any documents, files or previous email messages attached to it may contain information that is confidential or legally privileged.  If you are not the intended recipient, you are hereby notified that you must not read this transmission and that any disclosure, copying, printing, distribution, or any action or omission of this transmission is strictly prohibited.  If you have received this transmission in error, please immediately notify the sender by telephone at 920-233-4650 or return and delete the original transmission and its attachments without reading or saving in any manner.

Citations.

1 – Investopedia.com, November 26, 2019.
2 – Investopedia.com, January 17, 2020.

3 – Congress.gov, December 22, 2017.