Blog Posts

By Michael J. Searcy

Let’s consider two forms of debt: consumption debt and investment debt.

Consumption debt comes from buying things you want or need when you don’t have enough cash to pay up front. This could include a car, a vacation, furniture or any number of items. These items are usually paid for on credit cards and can depreciate in value over time or immediately after purchase. For my long-time readers and clients, you know I am not a fan of consumption debt. I believe you should save up in advance for a purchase and pay cash, but I understand that, without a plan, this is easier said than done.

By Marc Shaffer

If you aren’t familiar with longevity annuities and Qualified Longevity Annuity Contracts yet, chances are you will start to hear more about them this year…especially if you are over the age of 55. While countless mailings may have you convinced that this is a new product, it has actually been around for a while. However, these annuities are being heavily marketed now that a new law is allowing them to be purchased with retirement funds from an IRA account or a qualified plan such as a 401(k) plan or profit-sharing plan.

By Michael J. Searcy

You have probably heard the TV and radio pitches that go a little like this: “If you are worried about the ultimate crash of the market and you don’t want any risk, we can guarantee no loss in a down market. You could get up to double digit gains without any risk and an income stream that continues to rise, even in down markets! Find out what your financial advisor hasn’t told you and what he probably doesn’t even know about.” We hear them all the time, and believe it or not, even a seasoned investor can be lured in by these claims.

As they get older, Americans face complicated decisions about long-term care, estate strategies, and their finances, while potentially struggling with diminished capacity to manage their affairs. At some point, your parents and other loved ones may need your help handling their finances. One study found that between five and ten percent of Americans over 65 need help with financial matters and another reported that 68 percent of elders suffer cognitive impairment or experience difficulty with daily tasks.

A Little Tax History

The first income tax suggested in the United States was during the War of 1812. The tax was based on the British Tax Act of 1798 and applied progressive rates to income. The tax was developed in 1814 but was never imposed because the treaty of Ghent was signed in 1815, ending hostilities and the need for additional revenue.

Several tax acts were proposed and passed in the 1860s. The Tax Act of 1861 proposed broad income taxation on any kind of income or wages earned by every person in the U.S. In 1864, a new tax act was passed to raise additional funds for the Civil War and reintroduced a sliding tax scale.