Brian's Blog
Dear Friends and Valued Clients:
I hope this letter finds everyone well! The summer of 2010 brings a mixed bag of
highs and lows to life’s picnic table. As my Grandpa Jim used to say, “Sweet, cold watermelon attracts flies, but smoke from a grill keeps the mosquitoes away…that’s
why I only eat meat!” Extreme solution, but his point clearly defined parts of the
good and bad occurring from the same event.
We regularly make decisions by reviewing the pros and cons associated with an
event. We try to educate ourselves so we can make a knowledgeable decision.
Often, we don’t know if we made the correct decision until many years have
passed. And typically, the end result is not exactly what we expected.
At Lichtenstein Financial, we strive to share our insights and experiences with you,
to help you make your life-decisions count. Long-term planning carries the good fortune of being able to frequently and jointly review your steps during your trek through life.
On behalf of our entire staff, I’d like to take this opportunity to thank you
for your trust in our services. I’d also like to thank you for all of your referrals.
We are always excited to speak with anyone that may benefit from our services. Initial consultations are always provided as a courtesy.
What is included on these pages:
· 2010 Thresholds for Retirement and Social Security
· Connecticut Tax News
· Economy and Stock Market Brief
· Update on Mortgages and Lending
· Long-Term Care Insurance Update
· IRA and Pension Funding
· Summer Tax Tips (Please read any short articles that interest you)
*50 yrs & up, increase limit by $2,500
~50 yrs & up, increase limit by $5,500
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Connecticut Tax News
- Sales Tax Holiday - Connecticut shoppers will have one week to buy items of clothing and footwear costing under $300 without paying Connecticut sales tax. This year, the tax-free week will run from Sunday, August 15 through Saturday, August 21.
- As many of our investment clients know, each state has a relationship with a mutual fund company that offers 529 college savings investment options. The Connecticut Higher Education Trust (CHET) uses TIAA-CREF. You are allowed to use any state’s program and any affiliated mutual fund family (in our investment practice, we generally use American Funds). However, there is an incentive to use Connecticut’s program, because the amount contributed to CHET accounts during a tax year is eligible for a deduction from Connecticut adjusted gross income in an amount not to exceed $5,000 for a single return or $10,000 for a joint return for that tax year. Grandparents can even take the deduction!
- The maximum Connecticut property tax credit against income tax for 2010 remains at $500.
Economy & Stock Market Brief
Unemployment remains high, and the housing market is still in a slump…sound familiar to last year? In addition to the financial sector continuing to clean up it’s mess, we are painfully reminded how fragile the world’s economy and ecology is by the BP spill in the Gulf of Mexico. The equity markets have recovered significantly from March 2009 lows, but we still don’t see blue skies to the horizon.
Our general recommendation is to invest for the long-term using our WealthHealthâ Lifestyle Portfolios. Staying loyal to a disciplined, asset allocation approach is smart and simple. We monitor investment clients’ portfolios with an eye on current events, and two eyes on matching portfolio allocations with investor risk tolerance. We balance this with overall investment accumulation, income distribution, and general life planning goals in our ongoing effort to maximize WealthHealthâ for our clients. Please contact Steve Simolari or me with any personal portfolio questions. If you are retiring in the near future, please call to schedule a meeting to create a retirement income distribution plan that meets your needs.
Mortgages and Lending in a New Environment
Residential mortgage rates are historically low, and the lending maze has become less daunting, so if you find a fixed rate that is at least a half a percent less than your current fixed rate, or if you currently have a variable rate, you may want to entertain a refinance. Educate yourself regarding points and fees associated with a refinance. Try not to extend the term of your mortgage unless your circumstances are not optimal. At that point, speak with us for some guidance.
Long Term Care Insurance is Important
If your total wealth is less than $2 million dollars, and you want to protect your assets and/or leave a legacy to your beneficiaries, you should speak with Steve or me about long term care insurance (LTC). We only offer Connecticut Partnership LTC Insurance to Connecticut residents. CT Partnership LTC Insurance is designed to protect your assets, and thus, we often recommend paying the premiums directly from your investment portfolio, thus reducing the pressure on your monthly household budget.
ROTH CONVERSIONS and IRAs – Fund Them Now!
Don’t wait until April 15, 2011 to fund your 2010 IRAs or other retirement plans. Do it Now! Please call Steve Simolari or me if you need advice on retirement plans, or the timing of contributions. Also, please call to schedule an appointment with me this fall if you are interested in reviewing the current tax advantages of converting a traditional IRA or a qualified plan to a ROTH IRA in 2010.
Please contact our office if you would like to speak with us concerning any time sensitive issues. When calling, please provide our staff with details of your inquiry. As always, brief telephone discussions are our courtesy. Please take advantage of our time. It’s better to get our input prior to your making a significant decision. If you call our office and the voice mail picks up, it is because we are on another line or with a client. Please follow the voice mail directions and leave a message. As always, we will call you back as soon as possible. We are now scheduling Fall investment portfolio meetings for September. If you have not met with us since tax season, please call at your earliest convenience to arrange an appointment with Steve Simolari or me.
We thank you for your business, and look forward to working with you in the future. Enjoy the rest of the summer!
Brian
These articles are distributed by: Brian Lichtenstein of Lichtenstein Tax Consultants, LLC. and written by: National Assocation of Tax Professionals
Tax Advice Offered Through Lichtenstein Tax Consultants, LLC.
Any tax or legal information provided here is merely a summary of our understanding and interpretation of some of the current income tax regulations and is not exhaustive. Investors must consult their tax advisor or legal counsel for advice and information concerning their particular situation.
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