Jim Allen has been elected to serve on the board of the Financial Planning Association (FPA) of California for 2019 -2020. His role on the board will be to represent the FPA Orange County as chairman of the Advocacy Committee. FPA Advocacy works on behalf of FPA members and their clients regarding issues that impact our client’s financial success and the financial planning profession.
Good financial planning involves taking a comprehensive and holistic approach to looking at your financial picture. It isn’t just investment management, but also tax planning, retirement income planning, estate planning, and protection of assets. It also means trying to maximize saving money through tax reduction strategies and expense management.
The Tax Cut and Jobs Act of 2017 (TCJA) is now in effect and should be considered when evaluating tax planning for this year and the next several. The TCJA is not permanent and is set to expire January of 2026, but there are provisions of the act that may provide opportunities for tax savings while it is in effect.
As we ring in 2018, the stock bull market that started in 2009 continues. The extended length of this bull market (close to historic levels) has caused some people to become concerned about a correction, which leads to considering moving more of their portfolio into bonds. Generally, bonds can be a good diversifier and lower the volatility of a portfolio when added to the asset allocation.
After much debate and speculation, the Republican’s tax reform package was signed into law by President Trump just before Christmas. The Tax Cuts & Jobs Act of 2017 is a pretty significant tax reform package and will likely affect you (some positively and others negatively) starting with your 2018 income tax return.