Donating Appreciated Bitcoin, Stocks and other Assets

Bitcoin's above $50,000, the S&P 500 is above $3,800. There's a lot of hurting out there with COVID. Is there a way that you can give back and also skip the taxes on some of these outrageous capital gains? So with all that's going on with COVID out there right now, there's a lot of pain and suffering, and a lot of people are very generous. They're giving back. Yet it's amazing how many people are giving cash while sitting on significant capital gains. Especially those of you who have Bitcoin at $50,000. I don't know when that party is going to end, but if you want to do a lot of good with that stock - with that coin, I should say - you can donate appreciated assets, not pay the capital gains on those assets and still deduct the value of the appreciated assets on your tax return....
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It’s Tax Season Again

Tax time is just around the corner. Here's a couple of pointers that may help mitigate the cost and difficulty of preparing your taxes this year. We've got a lot of different clients with a lot of different desires when it comes to how best to file their taxes. Some clients, every single document, as soon as they get it, they send it to their CPA. Something to keep in mind is when the CPA opens up that envelope, it's going to hack the clock and probably most CPAs have a minimum of 15 minutes, so you can start seeing where we're going here. Bundle the documents. You may send one bundle late January, another bundle late February, and another bundle late March. But bundle the documents because the less envelopes that CPA opens, the less it's going cost you. The second challenge we have is that the IRS requires...
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Gamestop: Robin Hood versus the Hedge Fund Insiders?

I'm sure you've heard in the news this week about GameStop - the Reddit traders who through Robinhood and various other platforms have been driving up the stock of GameStop to incredible Heights. 2500% above the beginning of the year. What on earth is going on? And should you even care? A lot of Interesting things have been happening with GameStop, and also a couple of other firms, that really bring to us the intersection between social media, the hedge funds, the clearing houses and the retail accounts. GameStop. What do we know? GameStop started the year at $18.84. On Thursday it had a $28 billion market cap at $483. Yes, that's up almost 2500%. And then yesterday (January 28th), Robinhood - AND major brokerages - basically told retail investors they could no longer buy any more. Horrors. The hedge funds can continue to trade this but the little guy...
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Capital Gains

So it's the last video in what has seriously been an eventful year for all of our clients, for all investors the world over and probably for you. At Avion Wealth, our goal is to protect your wealth. And of course, at the end of the year, we're worried about one last thing: is that, are they going to eliminate the capital gains tax for certain investors? Now, many advisors have been making a lot of noise and have latched onto some of Biden's remarks about imposing ordinary income tax rates on long-term capital gains and dividends for those earning more than $1 million a year. A lot of people will say "well, that's fairly rarefied air and it doesn't include me." But be that as it may, currently, individuals earning less than $441,000 pay only 15% capital gains, and those above that are paying 20%. And way down low...
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CARES Act – Charitable Giving

2020 is coming to a close. There are gifting opportunities. In fact, the CARES Act has added a few opportunities. Back in March, on the 27th, the CARES Act was passed. And what wasn't really given a lot of attention at the time is that some of the rules regarding charitable giving and deductions were changed. The easiest one for the vast majority of people is now the first $300 is above the line. And what that means in English, is you don't have to be itemizing deductions to allow it to reduce your taxes. That's a great opportunity. And there's also some increased deductions for food donations. As we know right now, the food banks and many other organizations are quite desperate for those donations. Cash donations - always of value - you can now deduct up to 100% of your AGI. So if for some reason with losses...
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Election Markets – Now What?

So it looks like Biden is on the cusp of taking the White House. And clearly the Republicans are retaining control of the Senate, and the Democrats holding onto the House. What does this all mean for you and your money? So this election has clearly increased pre-existing divisions. Most recently, the hurried installation of a Supreme Court justice added to that divisive atmosphere that's going on. The split government with the Republican Senate and the Democratic House and presidency pretty much means it'll be very difficult to get anything done in either direction. And with everything that's going on with the extremely severe recession for many sectors of the economy, COVID - some of the bigger challenges facing both the country, the planet - it's going to be very hard to get the things done that need to be done. And many of these things need to be "do...
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The Value Trap

Last week Dimensional released a report that showed an unprecedented negative outcome for value investing over the last few years. What is going on and how can we benefit from this information? So from July, 2010 to 2017 Value outperformed its historic performance by about one and a half percent, which is nice until we discover the Growth outperformed Value in the same period by 7.6%. That's a lot annualized over such a long period. In the last three years, Growth continued yet Value had an average annualized return of -3.3%. This has resulted in annualized spread of over -21%. That's pretty much unprecedented. We know the Value and Growth sort of do the seesaw thing, but right now we see this Growth's up here, Value's down there. Now for those of us who are diversified, who are disciplined, who've had a Value bias since basically the beginning of this...
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6 Steps to Protecting Your Wealth During Divorce

A divorce is one of the most difficult transitions you can go through. When you add uncertainty about money, that transition can get even more stressful. Here are six steps to help keep your finances intact during—and after—a divorce: Step 1. Assess your finances and make a budget As divorce proceedings get underway, take stock of your finances. Start by reviewing your income, retirement accounts, investment portfolio, and insurance policies. Next, make a budget that reflects your income and projected monthly expenses. Include both your personal debts and debts you share with your soon-to-be ex-spouse. Make sure to factor in expenses such as finding new housing or buying a car on a single income. Identify gaps in your budget where you come up short and see where you can make cuts to cover the difference. Step 2. Target shared debts first Debt on joint accounts can be problematic. Whatever your...
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Understanding Retirement Income Tax

When you retire, you’ll likely draw your income from several sources—such as retirement accounts, taxable investment accounts, and Social Security Benefits. Each of these sources is taxed according to its own rules. So, in order to accurately plan for your retirement, you need to know what these rules are, whether (and when) you’re required to make withdrawals, and how paying taxes on distributions will impact your overall financial goals. Here’s a breakdown of the most commons sources of retirement income and how they’re taxed: Traditional IRA and traditional 401(k) Withdrawals from traditional tax-deferred retirement accounts are taxed at your normal income tax rate. Once you reach a certain age, you must start taking—and paying taxes on—required minimum distributions (RMDs). The IRS changed RMD rules in 2020. If you reached age 70½ in 2019, you should have taken your first RMD by April 1, 2020. If you reached age 70½ in...
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How To Protect Against Inflation?

With the central banks throughout the world printing money with abandon, how are we supposed to protect ourselves and our portfolios from the risk, ever-present, of runaway inflation? Central banks are using quantitative easing to print money for good reason. The greatest danger is deflation, but as a result we are awash in cash. And from an asset point of view, we're seeing asset price inflation, acid bubbles. But how do we protect ourselves? We know that deflation is being managed as best as central banks can, but how do we protect ourselves from inflation damaging conservative portfolios? We have a number of options. First, most obvious, is gold. The problem with gold is something called contango, which led to oil prices being negative briefly back in March, the cost of storage and the fundamental volatility. Real estate has its own problems. Again, it's a great inflation asset, but right...
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