Sound Credit Union
Tacoma, Washington
Shannon & Associates Client Bulletin
Fall 2011 | 
Fall 2011
The End of the First-Year Depreciation Incentives
As we all know, the recession caused Congress to dramatically increase tax incentives for businesses that expend amounts for capital equipment…
Summer 2011 | Summer 2011
Choosing the Right 401(K)
Many companies offer employees a choice between two 401(k) plans. The version with which you’re probably most familiar is now considered a “traditional” 401(k). As before, you can choose to defer the income tax as well. You’ll also…
Spring 2011
2010 Tax Relief Act
On December 17 the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 was signed into law…
Fall 2009 | Fall 2009
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.…
Summer 2009 | Summer 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…
Spring 2009 | Spring 2009
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…
Winter 2008
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…
Summer 2008
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…
Spring 2008
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…
Employee Benefits Connection
Summer 2011
A Good Reason for Regular Compliance Audits
A recent Tax Court case* illustrates the need to keep abreast of changes in the law and to amend your plan accordingly. Failure to make sure your plan documents are in order and your plan is operating correctly could result in…
SA-KG Advisors Strategic Planning
4th Quarter 2011 for KG Advisors
How Economic Myths Distort Investment Outlook
Investors and analysts alike look to economic conditions and trends for clues to the direction of prices…
2nd Quarter 2011 for KG Advisors
Seeking Income When Yields Are Low But Rising
The good news for bond investors is that yields may slowly rise from the rock bottom levels of recent years…
1st Quarter 2011 for KG Advisors
Diversification And Socially Responsible Investing
In the old days of socially responsible investing (SRI), following your conscience tended to come at the cost of at least a few percentage points in lost returns…
3rd Quarter 2010 for KG Advisors
Entrepreneurs May Find New DB(k) Plans Interesting
As the owner of a small business, you can choose from a range of retirement plans. Yet while there are important variations among the many possibilities — 401(k)s, simplified employee pensions (SEPs), defined–benefit pension plans, and others — they basically fall into one of two categories depending on who is responsible…
2nd Quarter 2010 for KG Advisors
Don’t Go It Alone—Why Planning is A Family Affair
Having one spouse handle most family financial matters may feel like an equitable division of labor—with the husband, say, monitoring accounts and making investment decisions while the wife manages other household affairs…
1st Quarter 2010 for KG Advisors
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…
4th Quarter 2009 for KG Advisors
Do Roth IRA Conversion Rule Changes Help You?
Why would you volunteer to pay income tax next year by converting a traditional IRA to a Roth IRA…
3rd Quarter 2009 for KG Advisors
Will The New Silicon Valley Transform The Economy?
Storied Silicon Valley fueled the computer and Internet booms with a potent combination of technological know-how and entrepreneurial drive…
1st Quarter 2009 for KG Advisors
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.…
4th Quarter 2008 for KG Advisors
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…
Volume 6: Number 3
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…
Volume 6: Number 2
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…
Volume 6: Number 1
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…
Volume 5: Number 4
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.
Volume 5: Number 3
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.
Volume 5: Number 2
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.
Volume 5: Number 1
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.
Volume 4: Number 4
After years of debate, Congress has finally passed sweeping pension legislation—the Pension Protection Act of 2006 (the Pension Act).
Volume 4: Number 3
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.
Volume 4: Number 2
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.
Volume 3: Number 6
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.
Volume 3: Number 5
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.
Volume 3: Number 4
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.