Year: 2015

2015 in Review: The Best of the Blog

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Reminder: SH&J is closed at 12:00 p.m. on December 31 and all day on January 1 to allow our team to celebrate the New Year.

It’s hard to believe the year is nearly over and 2016 is about to begin. We have been steadily blogging and thought it would be fun to end the year by sharing our most popular blog posts and series. Feel free to share your favorites as well as what you’d like to see on our blog in 2016 in the comments below.

10. 2015 Medical Advocacy Event
As healthcare continues to change, having a partner to advocate for your care and the care of your loved ones is more important than ever. If you were unable to attend our event in the Spring, we highly recommend watching the video. Watch Now>

9. 10 Ways to Show Your Money Some Love
Although it was written around Valentine’s Day, the tips apply all year long. From saving to looking for tax free options, this post is well worth a second look. Read Now> 

Continue reading →

Seasons Greetings and Happy New Year from Sharkey, Howes and Javer

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Christmas decoration with candlesAll of us at Sharkey, Howes and Javer wish you peace, joy and prosperity throughout the coming year. Thank you for your continued trust. We look forward to working with you in 2016 and the years to come.

Please note our holiday schedule:
Thursday, December 24: 8:30 a.m. – 12 p.m.
Friday, December 25: Closed
Thursday, December 31: 8:30 a.m. – 12 p.m.
Friday, January 1: Closed

Continue reading →

Special Edition of Inside the Economy with SH&J: December 17, 2015

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This week, we bring you a special edition of Inside the Economy with SH&J. As many of you are aware, the Federal Reserve increased interest rates on Wednesday for the first time since 2008. While the increase was a small one, only a quarter of a percentage point, it has caused media frenzy. In less than five minutes, Larry addresses the primary reasons behind this rate increase, what it could mean for inflation, mortgage rates, credit card interest, the housing market, Americans’ wallets, and more. Overall, Larry says the effects of this increase will be mostly positive. We will cover more on this topic during our next discussion on January 4th. Until then, have a wonderful holiday season and we look forward to reuniting with you in 2016!

Retirement Savings 101: 401(k)s, IRAs, Roths, Oh my!

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Retirement golden eggs on dollars, IRA in focus, 401k blurryOver the past two weeks we have compared Traditional IRAs to Roth IRAs and 401(k)s to Roth 401(k)s. Today we wrap up the series with a recap comparison to help guide you through the various ways to save for your retirement.

Traditional IRA

Established by: Individual
Contribution Limits: Up to $5,500 per year age 49 or below / $6,500 per year age 50 and above (limits adjusted annually)
Contributions: Pre-tax (unless non-deductible, then post-tax)
Matching Contributions: None
Distributions: Taxable and a 10% penalty unless 59 ½ or older (exceptions may apply)
Forced Distributions: Must start withdrawing funds at age 70 ½
Conversions/Rollovers: Can be converted to Roth IRA. Taxes paid during year of conversion. Deductible contributions can be rolled into a 401(k) if allowed by 401(k) plan.

Roth IRA

Established by: Individual
Contribution Limits: Up to $5,500 per year age 49 or below / $6,500 per year age 50 and above (limits adjusted annually)
Contributions: Post-tax
Matching Contributions: None
Distributions: Contributions may always be withdrawn tax and penalty free. Earnings prior to age 59 ½ are taxable and assessed a 10% penalty. Earnings after 59 ½ are tax-free unless the Roth IRA has been open less than 5 years in which case they are taxable and assessed a 10% penalty. (exceptions may apply)
Forced Distributions: None
Conversions/Rollovers: None

Traditional 401(k)

Established by: Employer
Contribution Limits: Employee may contribute up to $18,000 per year age 49 or below / $24,000 per year age 50 and above (limits adjusted annually)
Contributions: Pre-tax
Matching Contributions: Employer’s discretion
Distributions: Taxable and a 10% penalty unless
· If separated from service after age 55 or
· age 59 ½ or older (exceptions may apply)
Forced Distributions: Must start withdrawing funds at age 70 ½ unless still employed and not a 5% owner
Conversions/Rollovers: Upon termination of employment may
· Rollover to an IRA – not currently taxable
· Rollover to 401(k) if allowed by new employer – not currently taxable
· Convert to a Roth IRA – taxable event
· Distributed directly to owner – taxable event.

Roth 401(k)

Established by: Employer
Contribution Limits: Employee may contribute up to $18,000 per year age 49 or below / $24,000 per year age 50 and above (limits adjusted annually)
Contributions: Post-tax
Matching Contributions: Employer’s discretion (employer contributions are pre-tax dollars)
Distributions: Tax-free, but a 10% penalty plus taxes on earnings unless
· If separated from service after age 55 or
· age 59 ½ or older and the account has been open for at least 5 years (exceptions may apply)
Forced Distributions: Must start withdrawing funds at age 70 ½ unless still employed and not a 5% owner.
Conversions/Rollovers: Upon termination of employment may
· Rollover to a Roth IRA
· Rollover to a Roth 401(k) if allowed by new employer.

Which retirement savings account is right for you? For some, a 401(k) plus a Roth IRA may be the way to go. For others it might be a traditional IRA with a 401(k). Retirement saving decisions are as unique as you are.

As with any big financial decision, we recommend talking to a professional. Financial planners can help guide you to the best decision for your retirement and create a custom plan tailored to your individual goals.

If you are interested in a complimentary consultation, give us a call today at 303.639.5100 or visit shwj.com.

*Research for this post done on IRS.gov

Inside the Economy with SH&J: December 7, 2015

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Larry covers a lot of ground in our last discussion before the holidays: those in their 30’s may experience an upcoming economic event for the first time in their adult lives; an in-depth discussion on oil; and a look at Colorado’s hemp business. Larry also notes, “The longer the dollar stays up, the more it’s going to hurt the Chinese economy.” This discussion is full of interesting economic information. Listen in! Our Economic Discussions will return on January 4th. Have a safe and happy holiday season!

Making Sense of the Social Security Kill Bill

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Retirement Concept Social Security BenefitsEarly this November, Congress surprised many when they introduced the Bipartisan Budget Act of 2015 causing Financial Advisors to revisit ways to maximize cumulative Social Security benefits for their clients. With the passing of this budget deal, we see the end to two Social Security claiming strategies that have benefited many individuals – File and Suspend and the Restricted Application.

The new rules for File and Suspend will take effect with all applications filed after April 30, 2016. We will see the end of filing a Restricted Application for anyone who is turning 62 after December 31, 2015. This leaves a 6 month window for clients to review their situation with their financial advisor to determine how the changes will affect them, and if they can still take advantage of these strategies before they go away.

The File and Suspend strategy was commonly used by married couples to allow one spouse to begin collecting their spousal benefit at full retirement age while allowing the higher earning spouse to delay and then maximize their own benefit at age 70. Under the new rules, any suspension application filed after April 30, 2016 will also suspend all dependent and/or spousal benefits that would have been paid off of the suspended record. In other words, a worker must now collect their own benefit in order to trigger benefits for their spouse or dependents.

Restricted Applications for spousal benefits were often filed by couples who both wanted to delay collecting their own benefits while taking advantage of a spousal benefit in the meantime. The new rules now state that anyone turning 62 in 2016 or later will no longer be eligible to file a restricted application when they reach full retirement age. Individuals who will be 62 by the end of 2015 will remain eligible to file a restricted application when full retirement age is attained. The caveat – if this strategy depends on one spouse filing and suspending after April 30, 2016, the strategy will not work and further planning with your advisor may be beneficial.

For Example: Mark and Mary are both 63 and remain eligible to file a restricted application for spousal benefits at full retirement age. Mark wants to delay collecting his benefits until age 70. However, he will turn 66 after April 30, 2016 at which point the option to file and suspend is no longer available and spousal benefits will no longer be paid off a suspended benefit. Mark will either have to take his own benefit at age 66 to give Mary the option to file a restricted application for spousal benefits, or Mary will have to forego her spousal benefit allowing Mark to delay his own benefit and vice versa.

Individuals fortunate enough to have already implemented these strategies will not see a change to their current benefits. On the other hand, individuals born after 1953 will be unable to take advantage of either claiming strategy and are encouraged along with anyone who will be 62 by the end of 2015 or 66 before April 30, 2016 to meet with their financial advisor to determine the most optimal claiming strategy before the window closes.

Source: Savvy Social Security Planning for Boomers, Social Security ‘Loopholes’ Closing

5 Tips to Keep Holiday Spending Under Control

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The holidays sneak up on us every year. Often we haven’t taken the time to plan how and what we will spend during the holiday season. Before you start shopping, take a look at our tips to help keep your spending in check and your post-holiday bank account happier.

1. Set a Limit
Take a look at your budget and set a limit for holiday purchases. Consider using cash for shopping so when the money is gone, it is gone. A better suggestion is to fund a holiday spending account throughout the year. That way, the money is already saved and ready to spend guilt-free by the time the holidays roll around.

2. Shorten Your List
Even Santa makes a list of who is naughty and nice. While you might not want to decide who receives gifts the same way Santa does, looking at your list is an important step in keeping your spending under control. If you have more than a handful of people you buy gifts for outside of your immediate family, it may be time to cut down. Instead of buying gifts for everyone, consider writing a personal note or dropping off homemade goods. Continue reading →

Inside the Economy with SH&J: November 23, 2015

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The Federal Reserve shows a textbook yield curve in anticipation of a raise of rates, inflation continues to be an important economic indicator and new housing starts are slowing all in this week’s edition of Inside the Economy with SH&J. Larry also covers consumer spending and comments, “Those who are betting on a huge Christmas, well, I wouldn’t bet the farm.” A shorter discussion than normal this week, but an informative one which will give you some Thanksgiving table talking points. Listen in!

Happy Thanksgiving from Sharkey, Howes and Javer

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Thanksgiving Autumn Fall background with red, brown and yellow leaves and pumpkin

At Thanksgiving we take time to reflect on how thankful we are for you — our clients. We hope you have a wonderful Thanksgiving surrounded by loved ones. We will be closed on Thursday, November 26th and Friday, November 27th to allow our team to celebrate the holiday.


In the spirit of the season, enjoy this excerpt from the poem “The Pumpkin” by John Greenleaf Whittier. Read the full poem here 


Ah! on Thanksgiving day, when from East and from West,

From North and from South comes the pilgrim and guest;

When the gray-haired New Englander sees round his board

The old broken links of affection restored,

When the care-wearied man seeks his mother once more,

And the worn matron smiles where the girl smiled before,

What moistens the lip and what brightens the eye?

What calls back the past, like the rich Pumpkin pie?

 

Happy Thanksgiving!

Retirement Savings 101: What’s the Difference between a Roth 401(k) and a Traditional 401(k)?

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Retirement golden eggs on dollars, IRA in focus, 401k blurryDid you know many employers offer a traditional 401(k) and a Roth 401(k)? Learn the difference between the two to see what’s right for you.

Last week we covered the difference between Roth and Traditional IRAs. This week we look at the differences between Roth and Traditional 401(k)s.

Let’s start by defining the 401(k)…

401(k)s are retirement savings plans sponsored by an employer. Employees can defer all or part of their paycheck to the plan, as long as you are within the IRS limits. You can think of it as a deferred salary. Many companies will also match contributions to the plan. Continue reading →