Tehachapi's Online Community News & Entertainment Guide
Tehachapi's Online Community News & Entertainment Guide
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The COVID-19 pandemic may end up changing our lives in some significant ways. To cite one example, it's likely we'll see a lot more people continue to work remotely, now that they've seen the effectiveness of tools such as video-conferencing. Education, too, may be forever changed in some ways. Perhaps just as important, though, is how many people may now think more about the future – including how they invest. If you work with a financial professional, you may have connected with this i...
If you're getting close to retirement, you're probably thinking about the ways your life will soon be changing. And one key transition involves your income – instead of being able to count on a regular paycheck, as you've done for decades, you'll now need to put together an income stream on your own. How can you get started? It's helpful that you begin thinking about retirement income well before you actually retire. Many people don't – in fact, 61% of retirees wish they had done better at pla...
With how quickly houses are selling, is there anyone waiting to buy? I hear people comment they are waiting to buy "until the market crashes, until rates drop more, less competition" and more. Yes, all these thoughts are floating around in future buyers' minds and maybe even yours. How do you know if waiting is the right choice, or going to cost you more money while you wait? Just about any online search for housing value data will show you that the long-term trend in housing value is up. In a...
Many people have decided that bitcoin is the next big thing – and they are backing up their enthusiasm with dollars. Should you, too, consider putting money into bitcoin or other cryptocurrencies? First of all, keep in mind an essential piece of financial advice: Don't invest in something you don't understand. And bitcoin is not easily understandable. There's no physical bitcoin, nor is it backed by a bank or government. It's a digital currency, used for transactions on a decentralized network o...
As the beneficiary of an inheritance, you are most likely to be faced with making many important decisions during an emotional time. Short of meeting any required tax or legal deadlines, don't make any hasty decisions concerning your inheritance. Identify a team of trusted professionals Tax laws and requirements can be complicated. Consult with professionals who are familiar with assets that transfer at death. These professionals may include an attorney, an accountant and a financial and/or...
If you don't have a spouse or children, you might think you don't need to do much estate planning. But if you have any assets, any familial connections, any interest in supporting charitable groups – not to mention a desire to control your own future – you do need to establish an estate plan. In evaluating your needs for this type of planning, let's start with what might happen if you die intestate – that is, without a last will and testament. In this scenario, your assets will likely have...
You have done everything right up to this point. You checked your credit, kept inquiries and new accounts to a minimum. You saved money for the down payment and closing costs, you have had consistent employment and are making sufficient income compared to your debt. You have diligently kept your paperwork and acceptable explanations for anything unique, you have found the mortgage advisor you want to partner with and have an accepted offer on a home of your dreams. What could go wrong? Ask any p...
If you've had an IRA and a 401(k) for many years, you may occasionally ask yourself some questions: "Am I contributing enough?" "Am I still funding these accounts with the right mix of investments for my goals and risk tolerance?" But here's one inquiry you might be overlooking: "Have I used the correct beneficiary designations?" And the answer you get is important. It wouldn't be surprising if you haven't thought much about the beneficiary designation – after all, it was just something you o...
For the past decade, U.S. stocks have outperformed foreign stocks by a wide margin, due in large part to the stronger U.S. recovery after the Great Recession. In general, U.S. companies have been more nimble and innovative in response to changing business dynamics, while aging populations in Japan and many European countries have slowed economic growth.1 Despite these challenges, some analysts believe that foreign stocks may be poised for a comeback as other countries recover more quickly from...
For more than a decade, inflation has been essentially dormant. In recent months, though, economists have expected an uptick but were still surprised by the sharp jump in the April Consumer Price Index (CPI), which rose 4.2 percent from a year ago. As an investor, what can you expect if we do enter a more inflationary environment? First, it's useful to understand the main causes of the recent spike in prices. Part of the explanation is simply a result of increased economic activity in the spring...
As we near the celebration of America's Independence, it got me thinking about American's efforts to gain independence from their mortgage. You have heard me say it before, "no one actually wants a 'mortgage.'" They want a home and generally by default they have to have a mortgage to get one. We then spend the next 30 plus years working hard to become free and independent of owning a home and of having a mortgage. With this in mind, I thought I would navigate through some strategies that can...
Independence Day is almost here. And as we make progress in moving past the COVID-19 pandemic, more of us will be able to enjoy Fourth of July activities. However you observe the holiday, it's important to recognize all the liberties we enjoy in this country. But you may still need to work at one particular type of freedom – and that's financial freedom. How can you achieve it? There's no one instant solution. But you can work toward financial independence by addressing these areas: • Ret...
If you lose a job, switch employers or step into retirement, you might consider rolling your retirement plan savings into an IRA. But this isn't your only option; it could make more sense to keep the money in your previous employer's plan or move it to your new employer's plan (if allowed by the plan). You could also cash out, but that's rarely a good idea. Withdrawals from tax-deferred retirement accounts are taxed as ordinary income, and you could be hit with a 10 percent tax penalty if you...
June is Effective Communications Month. And it's a good idea to recognize the importance of good communications, because it plays a role in almost every aspect of living – including your finances. You'll want to clearly communicate your financial goals to your loved ones – and you'll want to hear theirs, too. Let's look at some of the communications you might have with family members: • Your spouse – You and your spouse may have different thoughts about a range of financial topics – how much...
If you don't have a spouse or children, you might think you don't need to do much estate planning. But if you have any assets, any familial connections, any interest in supporting charitable groups – not to mention a desire to control your own future – you do need to establish an estate plan. In evaluating your needs for this type of planning, let's start with what might happen if you die intestate – that is, without a last will and testament. In this scenario, your assets will likely have...
Safe 1 Credit Union, headquartered in Bakersfield, has announced the hiring of Tim Spencer as its new Executive Vice President of Lending. Spencer brings more than 34 years of credit union industry experience to his new position. "We are excited to bring an individual of Tim's caliber to our organization," said David King, president/CEO for Safe 1. "His invaluable experience and lending expertise, in both consumer and mortgage, will be a great asset to our organization." During his career,...
Buying a home is a long-term commitment, so it's not surprising that older Americans are much more likely than younger people to own their homes "free and clear" (see chart). If you have paid off your mortgage or anticipate doing so by the time you retire, congratulations! Owning your home outright can help provide financial flexibility and stability during your retirement years. Even if you still make mortgage payments, the equity in your home is a valuable asset. And current low interest...
If you read my last article that focused on where to start as a homebuyer, you knew this topic was coming. Almost daily I talk with people who have found a lender, are looking for a lender or just finished purchasing with a lender. What I find interesting is how most of the time they are randomly found online, or in some other disconnected way. Sometimes people are lucky and end up with someone amazing, other times they are missing out on the true nature of mortgage guidance and end up just...
The COVID-19 pandemic may have unsettled many aspects of your life – including your financial situation. Even if your employment and earnings were not directly affected, you might have concerns about whether you’ve been making the right investment moves in such a stressful environment. The pandemic is, hopefully, just a once-in-a-lifetime occurrence, but different events can rattle financial markets. And changes in your own life can also impact your plans. To prepare yourself for whatever tom...
With over 33% of homebuyers being first timers, and that number projected to increase in the next several years, perhaps a great place to start with "Navigating Lending" is at the beginning. So, you want to buy a house but don't have a rich uncle willing to give you the cash, or multiple zeros to go with the numbers in your bank account. That means you will likely need a Mortgage Loan. A Mortgage Loan is a type of debt that is secured by the home or real estate property you are purchasing, with...
Qualified retirement plans, such as IRAs and 401(k)s, have many rules, and some of them can be quite complicated. Take the following quiz to see how well you understand some of the finer points. 1. You can make an unlimited number of retirement plan rollovers per year. A. True B. False C. It depends 2. If you roll money from a Roth 401(k) to a Roth IRA, you can take a tax-free distribution from the Roth IRA immediately as long as you have reached age 59½. A. True B. False C. It depends...
Is homeownership a goal of yours? In addition to meeting your basic need for shelter, it does offer some benefits. The equity you build in your home can be a valuable financial asset, and you may get to deduct your interest payments on your taxes. But if you're a first-time homebuyer, what steps should you take? First, make sure the time is right for you in terms of your personal and financial situations. Are you fairly confident that your employment is stable and that your earnings won't...
There are several businesses in town who provide bookkeeping, payroll and/or income tax preparation services. How do you determine which business is worthy of your trust? Our office (Moats & Hebebrand CPAs) think the answer to that question is based on how well the business meets the following criteria: 1) Length of time in Tehachapi 2) Credentials and experience of the individuals performing the services 3) Availability of the individuals performing the services 4) Attitude of the firm performi...
If you have a child or other family member who has special needs due to physical or mental conditions, you face a variety of challenges planning for their care, including financial ones. You may also have some well-meaning relatives who want to help, but who may not realize that their moves could actually result in some serious lifestyle and monetary problems for your loved one. Fortunately, by planning ahead, you can avoid these potential traps. As you probably already know, individuals with...
If you're planning to retire in just a few years, you may be getting excited about this next phase of your life. However, your ability to enjoy retirement fully will depend, at least partially, on the resources you can draw from your investment portfolio. So, while you still have time to act, ask yourself if you're comfortable with your portfolio's risk level. Your relationship with risk can change noticeably over time. When you started saving for retirement, you may have been willing to take...
