Shannon & Associates Client Bulletin

Year-End Tax Planning for Investors
If you expect to sell securities for a profit in a taxable account, consider doing so in 2009 while tax rates are at low levels. Some predict that those rates may soon move higher. What's more, you may be able to shift your gains to loved ones who'll owe no tax in 2009.…

Faster, Slimmer Stimulus Payments
In the Economic Stimulus Act of 2008 (Stimulus Act), most taxpayers were given stimulus payments of $600 each to spur a sputtering economy. Generally, they received another $300 for each child under age 17. Some low-income retirees received $300. In 2009, with…

The American Recovery & Reinvestment Tax Act of 2009
The American Recovery and Reinvestment Tax Act of 2009 (the “Act”) was enacted on February 17, 2009, and contains several federal tax provisions aimed at stimulating the economy and providing job creation…

Emergency Economic Stabilization Act of 2008
On October 3, 2008,the massive Emergency Economic Stabilization Act of 2008 (the Act) was signed into law. Understandably enough, most of the commentary about this legislation has focused on the broad economic implications. Relatively little attention has been given to the fact that the Act also includes literally hundreds of federal tax changes that will affect millions of individuals and many businesses, large and small alike…

Importance of a Buy-Sell Agreement
It is important that businesses with more than one owner (such as your business) have a written buy/sell agreement specifying what happens when an owner withdraws from the business. A buy/sell agreement is a contract between the owners (or the owners and the business entity itself) that establishes rules and restrictions applicable to changes in ownership…

Economic Stimulus Act of 2008
On February 7, Congress passed the Economic Stimulus Act of 2008 (Stimulus Act), and President Bush signed it into law on February 13. The new law includes three big tax breaks...

Best of Times Often Have Followed Worst of Times
These have been tough times for strategic long term investors. While it may seem logical to stay the course through the market's inevitable ups and downs—taking advantage of stocks' tendency to deliver strong returns over very long periods—that logic was little comfort during the bear market, when some portfolios lost more than half their value…

Does Your 529 College Savings Plan Match Up?
When the Pension Protection Act of 2006 made 529 college savings plans a permanent part of the tax code, it ended most debate about the best way to invest for educational expenses. However, there are dozens of state-sponsored plans to consider, each varying in everything from investment choices and performance to plan costs and tax advantages.…

When Times are so Scary, Opportunities Emerge
As the nation struggles through a severe financial crisis, you're undoubtedly worried about your financial security and the safety of your nest egg. But this is no time to sell stocks or make wholesale changes to a well-balanced portfolio that is aligned with your goals and investment time horizon…

Life Insurance—How Much Is Enough?
You are probably aware of the importance of having enough life insurance coverage to handle the financial contingencies that may affect your family in the event of your death. However, determining the necessary amount of life insurance can be complicated…

Becoming a Financially Savvy Single Parent
Raising children without a partner is an enormous challenge—emotionally, physically, and especially financially. Overwhelmed by the work involved in earning a living and caring for children, single parents can sometimes feel they will never be able to break the cycle of living paycheck to paycheck. But even if you have a limited income, you may find that simply managing your money better can alleviate your financial problems and allow you to save for the future…

Term Conversion: Changing Times, Changing Needs
Suppose you had purchased term insurance when you were just start- ing out in life to help protect your growing family. At the time, term insurance may have offered the flexibility to help meet your family's immediate needs at an affordable price...

The Importance of Disability Income Insurance: Many people may pay little attention to how they might handle their family’s living expenses should their income suddenly cease because of an unexpected illness or injury. Perhaps this is because most people believe an injury or illness will never happen to them. However, the statistics are unsettling.

How resourceful can you be during your retirement? Determining where your retirement money will come from is an integral part of planning for retirement. Most people draw on three main sources of income during retirement: Social Security, employer-sponsored plans, and personal retirement savings. Each offers important resources that will add to your overall retirement plan.

Saving for Education with Coverdell ESAs: The average price tag for four years at a private college exceeds $120,000, according to the College Board’s Trends in College Pricing 2006. That’s 35% higher than just five years ago. In fact, rising tuition costs are outpacing inflation; at the same time, federal grant aid is lagging behind inflation.

Shielding Your Finances from Disaster: Recent catastrophic events, ranging from natural disasters to terrorist attacks, have clearly demonstrated that the homes and livelihoods in which Americans have invested over many years can be wiped out in a matter of hours.

After years of debate, Congress has finally passed sweeping pension legislation—the Pension Protection Act of 2006 (the Pension Act).

In the language of life insurance, a beneficiary is the recipient of the proceeds of a policy when the named insured dies. The owner of a life insurance policy has a great deal of flexibility in naming beneficiaries and can generally name anyone he or she chooses.

Whether your estate plan is simple or complex, there are many details, often overlooked, that can undermine your plan's effectiveness. Below we've listed ten common estate planning mistakes. Although these are numbered, there is no intention to indicate severity or prevalence.

Naming a beneficiary for your traditional Individual Retirement Account (IRA) need not be a difficult task. Most people choose their spouse, if married, or another loved one. However, the rules governing the distribution of IRA assets to beneficiaries are not so simple.

If you have been fortunate enough to accumulate substantial assets during your lifetime, do you know that estate taxes may reduce the amount you'll be able to pass on to your heirs.

Market swings often prompt investors to reassess their portfolios. As you evaluate the efficacy of your investments in light of your financial goals, it's important to revisit two key principles—asset allocation and diversification.