Charles Carroll Blog

Here’s What the SECURE Act Means for Your Retirement and Estate Planning

Learn All You Need to Know About these Sweeping New Provisions.
Monday, 25 May 2020

Here’s What the SECURE Act Means for Your Retirement and Estate Planning

With so much focus on the economic volatility and stimulus packages stemming from the COVID-19 pandemic, many people have overlooked a piece of far-reaching new legislation signed into law in late 2019 meant to alleviate America’s retirement savings crisis. Called the Setting Every Community Up for Retirement (SECURE) Act, it took effect on January 1, 2020 and there are significant provisions that may impact your retirement planning.

Here are a few SECURE Act changes to know.

Intentional Investing: How to Make an Impact with Your Money

More and more investors are choosing to align their money with their values.
Monday, 11 May 2020

Intentional Investing: How to Make an Impact with Your Money

The world we live in has undergone significant change in recent months, leading some investors to rethink their strategies. While it’s usually best to stay the course during a time of market volatility, it’s also a good time to self-reflect and ask yourself whether you are using your wealth in alignment with your values. More and more young investors are leveraging their assets to make an impact in the world by using an investment strategy meant to produce some sort of positive social result. It’s called impact investing, and it has given rise to a new trend in financial planning.

If you think impact investing may be right for you, get intentional about what you want to accomplish. This means taking three steps at the outset.

Tax News: IRS Announces Extended Deadline for 2019 Tax Returns

Americans Can Defer for 90 Days
Friday, 20 March 2020

Tax News: IRS Announces Extended Deadline for 2019 Tax Returns

As we continue to face uncertain times, the IRS has made a welcome announcement.

Treasury Secretary Steven Mnuchin has announced that the IRS has decided to extend the filing and payment deadline for 2019 tax returns, allowing taxpayers to defer until July 15. Mnuchin indicated this move will put $300 billion into the economy during a time of great economic concern over the consequences of the COVID-19 pandemic.

The payment deferment is subject to certain caps, however. Individuals may defer tax payments of up to $1 million, while corporations may defer up to $10 million. The limits were purposefully selected to benefit small businesses that report income through S corporations, partnerships or other pass-through entities.

How to Remain Hopeful and Keep Perspective During the COVID-19 Outbreak

Tuesday, 17 March 2020

We are facing something we have never faced before in our lifetimes. That is a fact and, in a time, when the news of the pandemic spreading and the recommendations on social distancing getting broader by the day, it can be hard to feel certain or safe about anything. 

As troubling as it is to watch the unprecedented market decline and as hard as it is to tune out the decline of your investments, we need to maintain our health and the health and safety of our family, friends and neighbors as the number one priority. Covid-19 which emerged late in 2019 in China has spread rapidly and is a global pandemic. The measures taken by leaders around the globe have been unsettling leaving children without a classroom, parents working from home or without a job altogether and investors panicking about what is to come. 

This disruption to daily life and to our psyches is substantial and it’s terrible. The coming weeks will not be easy, but these measures are practical and prudent.

Chasing Past Performance: A Poor Investment Habit You Should Break

Why Pursuing Success in the Short-Term Often Leads to a Long-Term Cost

Wednesday, 04 March 2020

Chasing Past Performance: A Poor Investment Habit You Should Break

We live in a world with unpredictable financial markets, with the truism that past performance is never a guarantee of future results. Why, then, do we collectively continue to chase historical success by selling our holdings in slow-to-perform active fund managers and investing in recent winners instead?

The answer is largely psychological, in that we are ruled by a combination of outcome bias and an overemphasis on the power of skill over randomness. Taken together, this leads many investors down the damaging path of chasing past performance – and ultimately ending up disappointed.

Coronavirus: What the Viral Epidemic Means for Investors

Volatile Markets and the Ongoing Spread of the Virus are Causing Economic Uncertainty
Tuesday, 03 March 2020

Coronavirus: What the Viral Epidemic Means for Investors

Last week saw the worst week on Wall Street since 2008, as the Dow fell into correction likely due to the outbreak and spread of COVID-19, commonly called novel coronavirus. A market correction is a nerve-wracking event for investors, but the current uneasiness in the markets is no cause for panic.

Market Impact

While the spread of COVID-19 is atypical, market correction is not. In fact, it’s an entirely normal process, and not altogether unexpected after experiencing the longest-running bull market on record. There have been 22 market corrections since 1974, and they are aptly named because the market usually “corrects” itself and returns prices to their longer-term trends. While the coronavirus is likely to cause economic impact into at least the second quarter of 2020, historically, Wall Street’s reaction to these types of epidemics has been short-lived, including in the recent past.

‘Super’ Baby Boomers? Why This Generation Has Financial Superpowers

With a $30 trillion wealth transfer underway, Baby Boomers have the power to shape the next generation’s financial future.

Monday, 17 February 2020

‘Super’ Baby Boomers? Why This Generation Has Financial Superpowers

Albert Einstein might be best known for the theory of relativity, but did you know he also had an interest in finance and economics? In fact, he once referred to compound interest as the “eighth wonder of the world.”

Einstein wasn’t wrong; compounding is both powerful and fascinating. When combined with education, it can become a veritable superpower – one which Baby Boomers can wield as they continue making the largest transfer of wealth in American history.

The Unhappy Retirement: Why Traditional Retirement Planning for Couples is Flawed

It’s Time for a New Kind of Post-Work Planning

Monday, 03 February 2020

The Unhappy Retirement: Why Traditional Retirement Planning for Couples is Flawed

During your working years, retirement seems like a dream. It’s that glorious time on the horizon when you can spend your life in leisure with no cares in the world. Why, then, are many new retirees finding this phase of life to be confusing, frustrating or even downright miserable? The answer lies in the inherent flaws in traditional retirement planning.

Simple and Effective Tips to Create a Balanced Life

Here’s How to Find the Equilibrium You’re Searching For

Wednesday, 22 January 2020

Simple and Effective Tips to Create a Balanced Life

Brian Dyson, former COO of Coca Cola, is famous for his quest to find balance among work, family and self-care. Dyson understood what so many of us fail to remember at times – that all the balls we’re juggling in life aren’t created equal. Here’s how he described it:

“Imagine life as a game in which you are juggling some five balls in the air. You name them — work, family, health, friends and spirit and you’re keeping all of these in the air. You will soon understand that work is a rubber ball. If you drop it, it will bounce back. But the other four balls — family, health, friends, and spirit — are made of glass. If you drop one of these, they will be irrevocably scuffed, marked, nicked, damaged, or even shattered. They will never be the same. You must understand that and strive for balance in your life.”

So, how do we find this balance, exactly? Many people say it isn’t possible, and that it’s just a myth that keeps us chasing something unattainable. After all, we have a finite number of hours in the day, limited energy to disperse across all areas of life and the need for a paycheck. Is it truly possible to find equilibrium? As it turns out, the answer is yes. It simply takes a commitment to the following simple, yet effective, strategies.

Staying on Track During a Volatile Stock Market

Here’s How to ‘Future-Proof’ Your Long-Term Investments

Friday, 03 January 2020

Staying on Track During a Volatile Stock Market

Investing in the stock market isn’t for the faint of heart, and many news stories can cause your panic level to rise when you aren’t prepared to ride the natural highs and lows. However, you’re not alone in your worries about the future. In fact, 60 percent of Americans report feeling stressed by simply thinking about the stock market. The good news is, if you have planned your long-term investments properly, they are actually built to ride the highs and lows of a mercurial market. Remember, investing is a long game; if you prepare properly, you can overcome short-term volatility. Below is a three-point checklist to help you protect your investments through a rough period.

Consider These Four Things Before Bailing Out Your Adult Children

Financially Supporting Your Kids May Negatively Impact Your Own Financial Health

Thursday, 26 December 2019

Consider These Four Things Before Bailing Out Your Adult Children

Are you considering financial support for your adult children? If so, you’re not alone. In a recent study by TD Ameritrade, 25 percent of baby boomers admitted they are supporting adult family members. That support, on average, equates to $10,000 per year. That’s a full $10,000 that boomers aren’t able to save or invest for their retirements – annually. 

When it comes to your retirement planning, it’s important to ask yourself whether you can truly afford that kind of generosity. After all, if you fall short of your retirement goals, will anyone be there to bail you out? More than likely, the answer is no.

So, before you agree to provide financial support (or further financial support) to your adult children, you should ask yourself four questions:

Here’s How Gratitude Can Help Your Finances

Learn How Your Mindset Can Improve the Way You Manage Your Money
Wednesday, 20 November 2019

Here’s How Gratitude Can Help Your Finances

The term “money mindset” is most often used in discussions about attracting greater wealth in your life. However, there’s an alternative way to look at this phrase, too. What if, instead of focusing on trying to bring more money your way, you flipped your mindset to one of gratitude for what you already have?

Believe it or not, waking up each day focused on practicing an attitude of gratitude can actually enhance your finances over the long-term. Read on to learn three important reasons that being grateful can improve the way you manage your money.

How to Make Your Retirement Bear Market-Proof

Four Steps for Surviving a Market Meltdown
Wednesday, 13 November 2019

How to Make Your Retirement Bear Market-Proof

The past decade has been kind to recent retirees – they’ve benefited from a bull market that quite possibly increased their net worth even though they’re no longer working. Of course, not all retirees will be this lucky.

Since the market is always in flux, some retirees will find themselves in the unfortunate predicament of retiring into a bear market that’s about to show its teeth. However, all hope is not lost. Here are four steps you can take to help ensure your retirement is bear market-proof.

1.     Take Stock of Your Budget

The ebbs and flows of the market can make us feel powerless at times, with Wall Street maintaining more control over our money than we do. This is an unsettling feeling, particularly if you’re newly retired or will be retiring soon.

Your Retiree Routine

Are You Spending Your Retirement Days the Same Way Others Are?
Thursday, 24 October 2019

Your Retiree Routine

It’s common for those on the verge of retirement to struggle with imagining their days without work. So much empty space on the calendar can be exciting, but it can also cause feelings of anxiety and overwhelm.

Don’t fear – once you actually retire, you’re likely to find that your days are not as different as you thought they might be. If you’re intentional about how you structure your schedule and open-minded about the experiences and activities you’d like to try, you’ll soon find yourself with a full agenda designed to create the fulfilling retirement you’ve dreamed of.

Understanding Taxes On Your Retirement Income

Most people spend their working years worried about saving enough for retirement. What tends to escape attention, however, is how that retirement income will be taxed in the future.
Tuesday, 08 October 2019

Understanding Taxes On Your Retirement Income

Depending upon the type of income, retirement earnings are often taxed at a lower rate – or sometimes not at all. It’s important to understand where your retirement income falls on this continuum so that you can ensure you will have the spending power you hope for once you stop working.

Example Scenario

Let’s imagine you’re a single person who earns $80,000 each year, and you save 10 percent for your retirement. After deducting this retirement contribution, income taxes and applicable FICA taxes, you’re likely to have $50,000-$60,000 at your disposal annually. How do you ensure you’ll have this same amount available to you in retirement after taxes? Since that answer is highly dependent upon the source of your retirement income, let’s take a look at a few common sources:

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The information presented on this website is for information on matters of interest only. Given changing laws, rules and regulations, there may be delays, omissions or inaccuracies in information contained on this website. The information in this website is provided with the understanding that the authors and publishers are not herein engaged in rendering legal, accounting, tax, or other professional advice and services. Before making any financial decision, you should consult one of the Charles Carroll advisors. Every effort has been taken to see that the information contained on this website is accurate. Charles Carroll in not responsible for any errors or omissions, or for the results obtained from the use of this information. Charles Carroll and its employees are not liable to you or anyone else for a decision made or action taken based on the information on this website