Retirement in Motion

Tips and resources that everyone can use

New Tax Law Preserves Medical Deduction

For the next 18 months, Americans with high medical bills will be able to continue to write off expenses exceeding 7.5% of their income. To claim the deduction, filers must itemize. However, now that the standard deduction has been increased to $12,000 for individuals, $24,000 for joint filers, it may make sense to simply claim the standard deduction, according to the AARP.[1]

Q&A

Does it still make sense to give to charity?

2017 may be the last year that tens of millions of Americans got a tax break for donating to their favorite charities. That’s because the new higher standard deduction of $24,000 per couple ($12,000 single) that President Trump signed into law last December means that only a tiny percentage of taxpayers likely will take itemized deductions, such as those for charitable donations. Still, many donors will continue to give, because the main goal of charitable giving is doing some good.

Quarterly Reminder

Summertime is a great time to get organized

From a tax or portfolio management perspective, the dog days of summer don’t have much going on. But it’s still a great time to organize your financial records and get ready for the second half of the year. How easy is it for you to put your hands on bank statements, tax receipts, IRAs or estate planning documents? Office supply stores have sturdy file boxes for keeping all your records in one place. Set up file folders to contain all your most important financial papers and records.

Tools & Techniques

Think of buckets, not budgets, when saving for specific goals

The advantage of using buckets for short-, intermediate- and long-term goals is that you can keep clear and specific tabs on the risk-return profile of the types of investments you use to fund them. If you know you’ll need a certain amount of money within 12 months to meet a certain goal, you’re not likely to invest in stocks within that bucket, because stocks are susceptible to short-term volatility.

Corner on the Market

Basic financial terms to know

Municipal bonds

These are debt securities that are created when a state, county or municipal government embarks on a new project like a new school, water treatment plant, or road, and looks for investors to help finance it. Municipal bonds are exempt from federal income taxes and many are issued with exemptions from state and local taxes, meaning that investors keep more of the income generated from the securities.

[1] Dena Bunis, “How You Can Deduct Your Medical Expenses,” aarp.org, January 12, 2018. https://www.aarp.org/money/taxes/info-2018/medical-deductions-irs-fd.html?intcmp=AE-HP-FLXSL-DR-SLIDE1

Not intended as tax advice. Consult your own tax, legal, and accounting advisors before engaging in any transaction.

Kmotion, Inc., 412 Beavercreek Road, Suite 611, Oregon City, OR 97045; 877-306-5055; www.kmotion.com

©2018 Kmotion, Inc. This newsletter is a publication of Kmotion, Inc., whose role is solely that of publisher. The articles and opinions in this newsletter are those of Kmotion. The articles and opinions are for general information only and are not intended to provide specific advice or recommendations for any individual. Nothing in this publication shall be construed as providing investment counseling or directing employees to participate in any investment program in any way. Please consult your financial advisor or other appropriate professional for further assistance with regard to your individual situation.