Financial Services Blog

Financial Services E-Advisor: December 2012

This month's Financial Services E-Advisor includes the following articles:

The Economics of Borrowing From Your 401(k)

When times are tough, that pool of dollars sitting in your 401(k) plan account may start to look attractive. But before you decide to take a plan loan, be sure you understand the financial impact. It's not as simple as you think.

Click here to learn more about borrowing from your 401(k).

How to Give Wisely and Well

Giving to charity has never been easier. You can donate the old-fashioned way–by mail–but you can also donate online, by text, or through social networking sites. According to the National Center for Charitable Statistics, over 1.4 million nonprofit organizations are registered with the IRS. With so many charities to choose from, it's more important than ever to ensure that your donation is well spent. Here are some tips that can help you become both a generous and wise donor.

Click here to read more tips that can help you become both a generous and wise donor.

Life Insurance Tax Traps for the Unwary

Life insurance has been recognized as a useful way to provide for your heirs and loved ones when you die. Lawmakers have long recognized the social significance of life insurance as a source of funds for widowed spouses and children, and have offered liberal tax benefits as an incentive to those who put their hard-earned dollars into life insurance policies. However, there are a number of situations that can easily lead to unintended and adverse tax consequences. Here are some of the life insurance tax traps you may want to avoid.

Should I Be Worried About Recent Municipal Bankruptcies?

Municipal bonds have received a lot of attention recently, in part because their tax advantages could become more valuable in 2013. However, they also have come under scrutiny because of some widely publicized bankruptcy filings by local governments.

Click here to read more about the recent municipal bankruptcies.

Are Municipal Bonds Still a Good Investment?

 That may depend on your situation. Bond prices generally have benefitted greatly over the last few years from low interest rates, and munis have been no exception. Also, income from munis is generally exempt from federal income taxes; that has enhanced their after-tax return relative to corporate bonds or U.S. Treasuries, especially since Treasury yields are at historically low levels.

Click here for more information on whether municipal bonds are still a good investment.

For more information on our Financial Services Group, post a comment below or contact one of our professionals at 440-449-6800.

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