Getting to The Zero Percent Tax Bracket In Retirement

https://www.podbean.com/media/share/pb-nhudn-dedb75

In this episode, Jim Kilgore CFP® discusses whether or not it is possible to be in the zero percent tax bracket in retirement, and if so how to do it. 

Why You Should Want A Fiduciary

https://www.podbean.com/media/share/pb-npvzz-de173d

In this episode, Jim Kilgore CFP® walks through what a fiduciary advisor’s requirements are and why it is important for you to know the difference between the fiduciary standards and that of non-fiduciaries.

Social Security-Your Most Important Decision

https://www.podbean.com/media/share/pb-6uyic-dd582a

In this episode Jim Kilgore CFP® talks about how your Social Security claiming strategy can and will have a significant impact on your benefits during your retirement and just how important the decision really is.

A Tax Bomb Awaits You

https://www.podbean.com/media/share/pb-9htmx-dc87cf

In this episode, Jim Kilgore Certified Financial Planning Professional with 401 Advisor talks about the tax bomb waiting for most retirees when they retire.  Jim goes through some steps you can take to avoid this tax bomb. #CFP #taxplanning #financialplanning

What Is Financial Planning Anyway

https://www.podbean.com/media/share/pb-z2y2f-dbc304

Today I am expanding on last week’s podcast by talking about what financial planning is and how it can help you reach your financial goals.  Rather than just walk through a list of what financial planning is, I’d like to dive into some specific examples of ways financial planning saved the client’s money and how the fee paid was way less than the savings gained in the process.

The Foundation of Your Financial Plan

https://www.podbean.com/media/share/pb-s6yps-db0b4d

In today’s episode, Jim Kilgore Certified Financial Planning Professional with 401 Advisor talks about the different kinds of life insurance and how life insurance lays the foundation of your financial plan.  

A Productive Use of Time

A book review by Jim Kilgore CFP® and Bill DeShurko

There are thousands of books on the market aimed at individual investors who are attempting to go it alone and invest on their own.  Whether that be for retirement or some other financial goal, investing is a challenge… because the market does not always go up!

In Why Bad Things Happen To Good Investments, William Hepburn walks the reader through some of the most important concepts to understand regarding investing and managing risk.  He explains why buying a basket of stocks, mutual funds, or ETF’s and holding them forever does not always have the intended result and gives many examples where an active investment strategy can be superior to the buy and hold strategy.

We are in the business of investing and financial planning and we have read hundreds of books on investing over the years.  Mr. Hepburn’s writing style is such that anyone can read this book and understand the concepts he is trying to teach.  The book truly is written to the amateur investor looking to educate themselves on how to do it wisely.  Mr. Hepburn does not use a ton of heavy math and statistics and he is still able to explain things concisely. That said, there is much information in here for the experienced professional and individual alike.

Jim: One of the quotes I really enjoyed from the book was the following “There is an old saying on Wall Street that bulls can make money and bears can make money, but pigs and sheep get slaughtered.  The way to protect yourself from these emotional risks is to have systems and the discipline to stick with them.”

I think my favorite part of the book is how Mr. Hepburn explains to the reader over and over how Wall Street says one thing to the individual investor about how to invest, but does something entirely different with their own money.  If for no other reason, you need to read this book about how Wall Street does not have your best interest in mind, but rather their own. (Bill: especially if you think you are learning anything useful from watching the “business” news channels all day!)

Chapters 16 and 17 on Hedging and stops are invaluable to helping an individual investor and professionals alike limit the downside in their portfolios and is worth the price of the book by itself.

Bill: I’d also add that I first met Mr. Hepburn at an investment conference back in the 1990’s when you were a pariah in the industry if you recommended anything but buy and holding Morningstar ranked 5 star mutual funds. Well before that strategy was debunked, Will was a leader in the field of active portfolio management in the independent investment advisor arena.

As investment professionals, we highly encourage both do it yourself investors and those working with advisors to read this book. We don’t think you’ll be disappointed. Remember:

“It ain’t what you don’t know that gets you into trouble. It’s what you know for sure that just ain’t so.”

Mr. DeShurko is the Managing Member of 401 Advisor, LLC an independent registered investment advisor. Jim Kilgore is an Investment Advisor Representative of 401 Advisor, LLC. They are also  registered representatives of Ceros Financial Services, Inc. (Member FINRA/SIPC).  Ceros is not affiliated with 401 Advisor.  The views expressed are those of Mr. DeShurko and do not necessarily reflect those of Ceros Financial Services, Inc., its employees or affiliates.

Past performance does not guarantee future results.  There is no guarantee that any investment or strategy will generate a profit or prevent a loss. 

If Tomorrow Never Comes

https://www.podbean.com/media/share/pb-98g7x-da4766

The topic today is preparing for the what if’s in life, and how you should have a plan to make difficult decisions when every decision will be a difficult one.

401 Advisor Podcast

Bill and I take great pride in providing you with relevant and timely information regarding the market and the economy.  Which is why we are excited to announce we have just released the first episode of our podcast on PodBean, and within the next few weeks we will also be on iTunes and Stitcher.  PodBean is a very popular podcasting platform and they have an app available for download in the App Store for iPhone and so does Android.

The goal of the podcast is to deliver the same relevant and timely content in a different format for people who would rather listen than read.  It also gives you the opportunity to stay connected with us on your daily commute or if you want to listen while you are doing some work around the house. 

The plan is to have one episode per week where we give our insights on the market, economy, retirement savings, taxes, estate planning, or one of the many topics pertaining to financial advice.  Then, a second episode that will be more of a question and answer format, where we will answer your questions you send us through email.  Send your questions to jim@401advisor.com and will answer them as they come in.

I hope you will like and subscribe to the podcast so you can get notified of the newest episode.  I have provided a link below, so you can try it out.

https://www.podbean.com/eu/pb-ffe5b-d97cf1

Bill and I want to thank you for your support, and we hope to hear from you soon.

Jim

Cash Flow Relief through the CARES Act

By Jim Kilgore CFP(R), 2 April 2020

Congress passed the CARES Act to provide emergency assistance and health response for individuals, families and businesses. The CARES Act is providing 2 Trillion dollars in assistance. I am going to cover two ways you can get money for your business as fast as possible through the CARES Act.

Economic Injury Disaster Loans (EIDL)

This is the first line of defense against disasters. These loans have been around for some time, however, these loans have been supercharged to combat the COVID-19 pandemic. Businesses who were substantially affected by the pandemic, who employ less than 500 employees and were in operation on or before January 31, 2020 are eligible to apply. It expands to Sole Proprietors or Independent Contractors.

How do I know if I am “Substantially Affected”?

The CARES act defines substantially affected as business who have experienced, supply chain disruptions, staffing challenges, a decrease in sales or customers or shuttered business.

What is the most amount of money I can ask for?

The maximum loan amount can be up to $2 million.

What can I use the funds for?

You can use the funds for the following:

  1. Payroll support, including paid sick, medical, or family leave, and costs related to the continuation of group health care benefits during those periods of leave
  2. Employee salaries
  3. Mortgage payments
  4. Rent (including rent under a lease agreement)
  5. Utilities
  6. Any other debt obligations that were incurred before the covered period

What are the terms of the loans?

The SBA offers many favorable terms in their EIDLs:

  1. The term is 30 years
    1. Interest Rates are 3.75% for small business and (2.75% for non-profits)
    1. The first month’s payments are deferred a full year from the date of the promissory note
    1. EIDLs less than $200K do not need a personal guarantee

How do I apply?

You can apply for these loans directly through the SBA at www.SBA.gov/disaster. There are no loan fees, guarantee fees, or prepayment fees. Even if you apply and are approved you do not have to take the loan so there is no harm in applying.

Paycheck Protection Program Loan Guarantee

Under the CARES Act Paycheck Protection Loan Guarantee offers one more source. These loans are done through your local lender. This program is offered to small business with fewer than 500 employees and select types of business with fewer than 1500 employees. Self-employed, sole proprietors, freelance, and gig economy workers are also eligible to apply.

How do I know if this program is right for my business?

This program is primarily for those businesses who have experienced a downturn as a result of COVID-19 pandemic and who are still in business and employing people.

What is the most amount of money I can ask for?

The maximum loan amount is $10 million but most business will apply for loans equal to 2.5 times their average monthly payroll costs including healthcare, paid sick leave and other benefits.

What can I use the funds for? You can use the funds for

  1. Payroll Costs excluding amounts for individual with compensation greater than $100,000.
  2. Rent pursuant to a lease executed before February 15th, 2020
  3. Utilities including internet and
  4. Group Health Insurance

Is this loan forgivable without any tax implications to me or my business?

You must maintain the same average number of employees for the first eight-week period beginning on the origination date of the loan as you did from February 15, 2019 -June 30, 2019 or January 1, 2020 to February 15, 2020. However, if you do not meet this requirement the amount forgiven will be reduced. There are additional reductions if you decrease employees’ salaries making less than 100,000 by more than 25% as compared to the previous quarter.

What are the terms of loans?

The SBA offers many favorable terms in their PPP loans:

  1. The term is 10 years
  2. Interest Rates go up to 4%
  3. The first month’s payments are deferred a full year from the date of the promissory note.
  4. They do not need a personal guarantee

How do I apply?

You can apply for these loans directly through your local lenders.

Questions?

If you have any questions on either type of loan or any portions of the loan application process please feel free to reach out to me at jim@401advisor.com or call at 937-782-9971.

Mr. Kilgore is a CERTIFIED FINANCIAL PLANNER™  with 401 Advisor, LLC an independent registered investment advisor. He is also a registered representative of Ceros Financial Services, Inc. (Member FINRA/SIPC). Ceros is not affiliated with 401 Advisor. The views expressed are those of Mr. Kilgore and do not necessarily reflect those of Ceros Financial Services, Inc., its employees or affiliates.


bill@401advisor.com • 937.434.1790

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Charles H. Dow Award Winner 2008. The papers honored with this award have represented the richness and depth of technical analysis.

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