Blog

By Paul Morrone CFP®, CPA/PFS, MSA

Snowbirds are faced with an increasingly complex challenge, proving their state of residence for tax purposes. While the proverbial six-month-and-a-day rule may be a good place to start, it is not necessarily so cut and dry. States are challenging residency status more frequently following retiree and wealth migration trends as relocation to low or no-tax states becomes a more frequent occurrence. Precedents are being established which may force wealthier taxpayers owning multiple properties to make more calculated moves as they consider a residency change.

By Thomas Morrone CFP®, CPA

Newport RI is a vacation destination for so many people and Cathy and I unquestionably fall into that group. We have been there countless times over the years and most recently escaped for two nights during the week just before this past Memorial Day holiday. Even though we have been there numerous times, most of those jaunts have been during the height of the tourist season during the months of June, July and August. This trip, being just prior to the summer rush, was a very pleasant experience. Lodging prices were half of the summer pricing, parking in town was plentiful, crowds were minimal so both walking and shopping were enjoyable, and restaurants were not crowded so the dining options were “where did we want to go versus where can we get in”? Kelly and David gave us a gift certificate to our favorite hotel location in Newport out on Goat Island. It was a Hyatt Resort for years but was recently acquired by Gurney’s, which also has a location in the Hamptons.

By Paul Morrone CFP®, CPA/PFS, MSA

Believe it or not, there are some bad things that can happen during good times. Everyone is happy when equity markets perform well. Rising stock prices are generally a reflection of favorable macroeconomic conditions, positive investor sentiment and strong corporate performance. While this is not the ‘what goes up must come down’ conversation, there are some negative consequences for those who deviate too far from their plan to make a quick buck. More concerning is that many of these decisions stem from emotion, confusion and misinformation as financial news (both good and bad) is shoved down our throats through word of mouth, TV, the internet and social media.

By Paul Morrone CFP®, CPA, MSA

I lived right around the corner from Sleeping Giant State Park for decades and often considered it a peaceful place to get away. Last week, I shared some pictures of the destruction that overtook the park during the recent tornado here, and I’m sad to say I’ve heard that the park could be closed for months while the cleanup effort takes place. With hundreds of trees down and a landscape that now looks post-apocalyptic, it got me thinking about all the great memories I have had there over the years. A morning hike became part of my weekend ritual during the warmer months which always included cup of coffee, breakfast sandwich and chocolate glazed donut at Whitney Donut Shop. I’m sure I’ve hiked just about every inch of that mountain during my lifetime (hill is a better word, but it will always be the mountain to me), but two instances stand out that still make me laugh to this day.

By Paul Morrone CFP®, CPA/PFS, MSA

You own a home, you own a car, you buy insurance. It’s how things are done, it’s how your parents did it, it’s how your friends do it, and it’s something you probably didn’t think twice about. Laws and lender requirements aside, you would never go without insurance as the cost to repair or replace these assets can be staggering and upend even a financially sound household. While most don’t think twice about insuring physical assets, they often overlook insuring their biggest intangible asset, their earning potential!

By Thomas Morrone CFP®, CPA

Call me old fashion but what ever happened to a simple please and thank you? It is such an easy thing to do but being polite and respectful seems to be from an era gone by. Let me be clear that many, if not most people, extend common courtesy to others. After all, how hard is it to be polite and courteous? In my opinion, it seems to take more energy to be rude and obnoxious but for some that just seems to be the way it should be. It is unfortunate that as our society has been swooped up with technological advancements that some common courtesy between people has suffered. Maybe I am more sensitive to this as I get older, but everything is moving so fast that many people seem to not have the time or patience or even care about being polite and courteous to others.

By Paul Morrone CFP®, CPA/PFS, MSA

It’s no surprise that the not-for-profit sector was resistant to some of the tax code changes as many donors may receive little, if any, tax benefit for their generosity in the upcoming years. While deductions for contributions are not generally the only motivation for individuals to bequeath some of their wealth to an organization with good stewardship, it certainly makes giving more attractive from a dollars and cents perspective.

By Paul Morrone CFP®, CPA, MSA

Over the last few weeks we have been ‘nesting’ as my mother likes to call it. I like to call it doing housework. We’ve started to make measurable progress getting the house ready for a new baby, but for some reason I feel like I still can’t see the light at the end of the tunnel. The inventory in my basement is slowly transforming what’s left of the open space into what looks like a Babies R Us going out of business sale. Boxes are piled nearly to the roof, furniture is arranged like a jigsaw puzzle and toys, books and clothes have accumulated everywhere. Each time I look at the ever-growing pile I think to myself, where is all of this stuff going to go?

I hope you enjoy this video. It shares some insight from our friends at Dimensional Fund Advisors who share the same long-term outlook we as advisors try to instill on our clients.

By Paul Morrone CFP®, CPA/PFS, MSA

You’ve inevitably heard someone say that the ‘maximum contribution’ to a 401(k) plan is $18,500 if under 50 and $24,500 if over 50 (for 2018). This is a bit misleading, however, as the maximum total addition to a defined contribution plan is actually $55,000 for the 2018 tax year, of which the above limits apply only to pre-tax salary deferrals. Confused yet? Many times, people don’t even know they have after-tax money in their 401(k) plan until they try to roll out the balance and the representative on the phone tells them that they have after-tax contributions as well. This little ‘surprise’ often leads to the question ‘where did this money come from?’