Category: Financial Planning

Debtors typically experience a feeling of relief when a creditor agrees to provide debt forgiveness. But that feeling often is replaced by shock and confusion when they learn they owe taxes on so-called “cancellation of debt” (COD) income. Read on to learn the tax rules for COD income and how they might affect your tax situation. General Rule of Debt Forgiveness Taxes The IRS considers your debt canceled if it’s forgiven or discharged for less than the full amount you owe…. Read more ›

After months of negotiations, Congress finally passed the long-awaited Setting Every Community Up for Retirement Enhancement 2.0 Act (SECURE 2.0). This part of the omnibus funding package builds on the SECURE Act of 2019 and contains major changes in the required minimum distribution (RMD) rules and other retirement plan provisions. Here are five major taxpayer friendly changes that will kick in over the next few years. 1. Increased Starting Age for RMDs Traditional IRAs, individual retirement annuities, and accounts in… Read more ›

Debora E. May, senior advisor at Councilor, Buchanan & Mitchell (CBM) and co-founder of May Barnhard Investments (MBI), the firm’s financial advisory subsidiary, was named to the Top Financial Advisors Hall of Fame by Washingtonian Magazine. The hall of fame, whose members were published in the February issue, includes advisors recognized by peers multiple times over the years since Washingtonian began publishing its top financial advisors list in 2009. May co-founded MBI to provide comprehensive financial planning, tax planning and… Read more ›

On December 23, 2022, Congress passed the Consolidated Appropriations Act of 2023. The sprawling year-end spending “omnibus” package includes two important new laws that could affect your financial planning: the Setting Every Community Up for Retirement Enhancement (SECURE) 2.0 Act (also known as SECURE 2.0) and the Conservation Easement Program Integrity Act. Bolstering Retirement Savings (SECURE 2.0) The original SECURE Act, enacted in 2019, was a significant bipartisan law related to retirement savings. In the spring of 2022, with an… Read more ›

The article below appears in a longer, more detailed white paper with exclusive content focused on building a strong financial foundation for early career professionals. Click here to access the white paper. It’s never too early for young professionals to start planning for a sound financial future. By following these important financial considerations, you have already taken the first step. Know Your Worth First, do you understand what your net worth is? Net worth is your ASSETS minus your LIABILITIES…. Read more ›

  Debora E. May and Aleksandr S. Seleznev, partners at Councilor, Buchanan & Mitchell and co-founders of May Barnhard Investments (MBI), the firm’s wealth management subsidiary, were named to Bethesda Magazine’s 2022 list of top financial advisors. Professionals named to this list were selected through a peer review process by other financial advisors in the region who were asked who they would entrust with their clients’ work if they were unavailable to handle it themselves. (Click here for a disclaimer.)… Read more ›

Bonds have a reputation as a “safe” investment compared to stocks. In some respects, that’s true. But they can also be risky, which is why investment advisors generally recommend that people in typical circumstances keep a balanced portfolio — in other words, one that includes both stocks and bonds. If you have a retirement savings account, you probably do own stocks and bonds, contained within large institutionally managed funds, such as a retirement target-date fund. When you buy a bond… Read more ›

Young adults who start their careers weighed down by college debt have a tough time buying a home or maxing out a retirement plan. That’s why, in 1996, Congress added Section 529 to the Internal Revenue Code. It created a new tax-advantaged college saving vehicle. More than two decades later, “529 plans” now collectively hold around $320 billion in assets.A lesser-known alternative, with its own set of pros and cons, is the custodial Roth IRA. Even if you’ve already started… Read more ›

Get the most from Social Security. Younger retirees face a harsh penalty for working part-time. For every $2 earned over $19,560 in 2022 (up from $18,960 in 2021), you lose $1 in Social Security benefits. In the year you reach full retirement age, a higher earnings threshold applies. Your benefits will be reduced by $1 for every $3 of earnings only when earnings exceed $51,960 in 2022 if you reach full retirement age (up from $50,520 for 2021). After you… Read more ›

If you’re looking for money to buy a new car or pay off some bills, your 401(k) plan may seem like a pot of untapped gold. The temptation to tap your retirement funds often comes when you switch jobs and must decide how to handle your account. But in most cases, breaking into a retirement plan early is a mistake that will just melt away your savings. Unfortunately, many people make the unfortunate decision to “cash out” their retirement accounts… Read more ›