Effective for tax years AFTER December 31, 2015 due dates for some tax returns will change such as Partnerships and C Corporations.
BUT for year 2015 filing in 2016 ( so confusing, isn’t it?) the due dates for the return or extension are:
March 15th C and S Corporations
April 15th Individual and Partnerships
We all need to ask at one time or another about investing. As a Ramsey ELP I know what confidence we can give to people and not judge what questions they ask. You don’t know, we can help often in plain English. So I am sharing one of Dave’s articles on investing. For more information check out DaveRamsey.com
Dave Ramsey’s Investing Minute
Should You Pay an Advisor for Investing Advice?
Part of Dave’s investing philosophy is that you should work with an experienced investing professional to build your retirement nest egg. He knows from experience that you can get a lot of value from the advice and expertise of a trusted pro. But as beneficial as an advisor’s help can be, you should never put up with a “pro” who can’t, or won’t, answer some tough questions.
For example, you’ve probably already asked yourself, Why shouldn’t I invest on my own in low-cost mutual funds or exchange-traded funds, get the same returns as the stock market, and skip paying an advisor’s commission? That’s a great question for a smart investor to ask an advisor as well. You deserve to know what you can expect from an investing professional before you decide to spend your hard-earned money paying any fees.
But asking the question is just the first step. You’ll also need to know how to judge your advisor’s answer before you place your trust in them. Here’s the kind of honest and detailed response you’re looking for:
An Advisor May Cost More Up Front, But . . .
A good advisor will understand your concern about expenses. After all, the money you pay them reduces the amount you’re able to invest for your retirement. “In an apples-to-apples comparison, you will pay more by using an advisor,” Clayton Shearer, an investing advisor in Colorado, said.
But for this to be a true apples-to-apples comparison, you, as an investor working on your own, would have to choose the same investment as the advisor, make the same decisions about that investment, and keep the investment the same amount of time as an advisor would recommend, Clayton added.
If you did all that, it’s true you could match the returns the advisor would get and save on the commission. But what usually happens when an investor goes it alone is that they allow emotion to rule their investing decisions. As a result, they panic in market downturns, selling off their mutual funds to avoid additional losses. Then, when the market recovers, they miss out on most of the rebound, buying back their mutual funds after values have gone back up.
DALBAR, an investor behavior research firm, has analyzed investor behavior for more than 20 years, and their studies confirm Clayton’s experiences with his clients. Because investors buy and sell at all the wrong times, their average return trailed the S&P 500 by more than 8% in 2014 and nearly 5% over the last 20 years. That’s the difference between facing retirement with a $1 million-plus retirement nest egg and a $430,000 nest egg after 30 years of investing.
Tough Times Prove an Advisor’s Worth
In a market like the current one with large gains and little volatility, it’s easy for investors to believe they can handle their own investments and stick with a long-term plan without panicking in market downturns. But, as Clayton and DALBAR point out, we don’t always do what we know we should do.
“I know as soon as the stock market turns, every investor is going to be doing the exact same thing they did in 2008,” he said. “Emotions will take over and they’ll start calling me to tell me they’re done—they want out right now.
“That’s when an advisor truly proves their worth,” he explained. “When we can keep you in the market when you need to be in the market and keep you putting money in even when it doesn’t feel good, then we have just multiplied your earnings in the future.”
“Over the long term, an advisor is going to make you more money,” Clayton explained. “I’m not going to say that we will outperform the market. But I am going to say that our process of picking investments, keeping investments, and keeping you on track will give you more consistent long-term growth than the vast majority of investors could achieve on their own.”
Protection and Planning: The Advisor’s One-Two Punch
Jeff Dobyns, investing advisor and long-time Endorsed Local Provider, agrees that protecting clients from investing mistakes is a large part of an advisor’s job, but it may not be the most important part.
“Probably the biggest value-add is the comprehensive financial planning a good advisor can bring to the table,” Jeff said.
Poor decision-making in any financial area can cost an investor thousands—even hundreds of thousands—over the investor’s lifetime. The tax savings on the choice to invest in a traditional IRA or a Roth IRA alone can lead to substantially greater savings than an investor could get by working without an advisor.
Last week I posted that an obscure portion of the ACA took effect which barred and penalized business owners ( generally those with under 50 employees) from having some type of health care reimbursement policy in effect.
Today I learned that a bipartisan group of legislatures have introduced bills in both the Congress and Senate that would take the sting out of the law and permit small employers to continue the reimbursement arrangement.
I have not been a fan of healthcare reimbursement plans generally because I have witnessed employers not offering this to all employees, but rather they picked their favorites and provided this to them as a “reward” or “bonus” if you will. If the employer provided it to all, I had no problem with it.
If you would like to know more see House (H.R. 2911) and Senate (S. 1697) known as the Small Business Healthcare Relief Act
An obscure IRS rule took effect this week affecting small business owners who thought helping their employees by increasing wages or paying for their healthcare costs would be a great way to not provide health coverage through work.
Employers who have done this will find themselves paying $100 penalty A DAY PER EMPLOYEE.
“Under the rule, which the NFIB noted appears nowhere in the Affordable Care Act, employers who do not offer a group health plan, but give their workers additional pay to compensate for the purchase of health insurance or direct medical expenses, can be fined $100 per day, per employee. Over the course of a year that can add up to $36,500 per employee, up to $500,000 in total. In contrast, the penalty on businesses for failing to comply with the employer mandate is only $2,000 per year.”
New Tax Penalty Starts Today on Small Business Health Insurance
Washington, D.C. (July 1, 2015)
By Michael Cohn