Author: Service2Client

March Financial To-Do List

4 min read

March Financial To-Do ListReady or not, spring is right around the corner, and it’s the perfect time to get in fiscal shape for the rest of the year. However, tax preparation isn’t the only thing to put on your list. Here are a few other must-dos to keep you financially fit.

Purge Your Papers

After you finish your taxes, shred papers you don’t need, like credit card or ATM receipts. Then organize the papers you need to keep, such as car titles, loan paperwork, retirement statements, etc. Store them in a fireproof safe or password-protected file. You’ll also want to deactivate accounts (and apps) you no longer use. When you do this and rid yourself of that extra paper, as well as eliminate related files on your computer, it helps minimize the risk of your personal data being stolen should you or any institutions you’re registered with get hacked. Now, all of these tasks assume you’ve already filed with Uncle Sam and aren’t filing an extension. If you are filing an extension, that’s the next task on your list.

File a Tax Extension

And you’ll probably want to do so with E-File. But know this: an extension of time to file your return does not grant you any extension of time to pay your taxes. You should estimate and pay any owed taxes by your regular deadline to help avoid possible penalties. Finally, you must file your extension request no later than the regular due date of your return. For more info, check out this helpful page.

Evaluate College Aid Offers

If you have a high school senior, March is the time that they learn whether or not they’ve been accepted to colleges. It’s also the prime time to figure out how much money you’ll need for their education. If your child has been lucky enough to have received a financial aid letter, you’ll want to sit down and calculate how much cash you’ll need to supply or borrow. Generally, the universities include info in their letters about federal loans that you qualify for, so you can start that process. However, if you don’t like the offer that’s been extended, you can appeal it. Some schools may increase their offer.

Consider Buying Flood Insurance

April showers are just up ahead, but there are other forces of nature to contend with in spring: hurricanes, mudslides, and melting snow from freak freezes out of nowhere. All of these weather events breed water – and in some cases, too much of it. Check your homeowner’s insurance first to see if these acts of God are covered. If floods aren’t included, then flood insurance is something to look into. Even if you don’t live in a high-risk area, according to the National Flood Insurance Program, 20 percent of claims come from low- to moderate-risk areas. While annual premiums can run around $700 to 800 a year if you live in a low- to moderate-risk area, this could be less. Usually, there’s a 30-day waiting period before the policy kicks in, so it makes sense to buy it before you really need it.

Score on Deep Discounts

Now that winter is a distant memory, retailers are getting rid of cold weather inventory in March. Think winter coats, cozy clothing, and space heaters, for starters. Replacement windows and air purifiers are also priced low. And to get in the mood for spring cleaning, you may find vacuum cleaners on sale. Look for price cuts on (or around) St. Patrick’s Day, too. If you want to find more deals, you don’t need the luck of the Irish – just Google “March markdowns” and dive in.

Getting organized in March sets a great precedent for the rest of the year. Don’t miss this opportunity to get your financial house in order for the coming months.

Sources

https://www.consumerreports.org/financial-planning/march-financial-to-do-list/

https://www.bankrate.com/insurance/homeowners-insurance/cost-of-flood-insurance/#:~:text=The%20average%20U.S.%20homeowner%20may,on%20your%20individual%20rating%20factors.

U.S. Beneficial Ownership Information Reporting Begins

4 min read

The U.S. Treasury recently enacted a new reporting requirement aimed at quashing illicit financial transactions. The agency believes that corporate anonymity is enabling money laundering, terrorism, and drug trafficking. As part of the 2021 Corporate Transparency Act (CTA), certain companies are now required to report information about their beneficial owners. The goal of the new registration requirements is to create a centralized database of beneficial ownership information.

There has been push-back from some lawmakers and small business organizations, citing this as an erroneous regulatory process that just makes life harder for small businesses. Efforts to carve out exceptions or delay the implementation failed. As a result, the Treasury Department officially opened beneficial ownership information reporting on Jan. 1, 2024.

Who is Subject to Reporting?

Generally, a company may need to report beneficial ownership information if it is a corporation, LLC, or other business entity created by the filing with a U.S. secretary of state or a foreign company registered to do business in the United States. Reporting requirements for trusts and other entity types are more dependent on state law.

At first glance, the rules make it look like all businesses are subject to reporting. There are exemptions, however, including nonprofits, publicly traded companies, and certain large operating companies. The FinCEN’s Compliance Guide provides an exemption qualification checklist.

Reporting Timelines and Requirements

First, you only must file an initial report once. There are no annual reporting requirements. Filing deadlines vary based on when a company was created or registered with the relevant secretary of state.

  • Before Jan. 1, 2024, => Deadline of Jan. 1, 2025
  • Between Jan. 1, 2024, and Jan. 1, 2025, => You have 90 calendar days after receiving notice of the company’s creation or registration to file.
  • On or after Jan. 1, 2025, => Deadline is 30 calendar days from the company’s creation or registration.

While there is no annual filing requirement, filing updates are necessary within 30 days of any changes. Ownership activity subject to change reporting includes registering a new business name, a change in beneficial owners, or a beneficial owner’s name, address, or unique identifying number previously provided.

What Do You Need to Report?

Beneficial ownership reporting must identify the following data.

At the company level, it must report:

  • Company name, both legal and trade (if applicable)
  • Company physical address (no post office boxes)
  • Jurisdiction of formation or registration
  • Taxpayer Identification Number

For each beneficial owner, the following must be reported:

  • Name
  • Date of birth
  • Address
  • Driver’s license, passport, or other acceptable identification

Depending on the situation, there also may be reporting requirements about the company applicant. This is generally a person involved in the creation or registration of the company. The same four pieces of data as for a beneficial owner would need to be provided.

As a general rule, a beneficial owner is someone who controls the company or owns 25 percent or more.

The full definition and all exemptions to whom constitutes a beneficial owner or company applicant can be found here.

No financial information or details about the business operations are required.

How and Where to File

You have the option to file online or via PDF. Filing online can be done through the Beneficial Ownership Information (BOI) E-Filing System on the FinCEN site.

There is no cost to file.

Conclusion and Cautions

While the reporting is simple, the requirements should not be taken lightly. Failure to report could result in civil penalties of up to $500 per day and criminal charges of up to two years imprisonment and a fine of up to $10,000.

The message is this: Don’t wait – and don’t forget to file!

New Email Deliverability Rules: Reaching Gmail and Yahoo Subscribers in 2024

4 min read

New Email Deliverability Rules Gmail and YahooEmail marketing remains the most powerful and effective tool, especially for its high ROI, reach, and engagement. It plays a significant role in business growth. However, more stringent measures are necessary due to evolving threats, hence the recent email deliverability requirements.

Starting this February, major email providers Gmail and Yahoo are implementing stricter email deliverability rules to combat spam and protect user inboxes. This announcement was made by both Google and Yahoo on Oct. 3, 2023, indicating a united effort to enhance email security.

Initially intended for bulk senders (marketers, businesses, and individuals) sending more than 5,000 emails a day, it also applies to senders who send regular emails to their subscribers and meet criteria as per the updated Google Email Sender Guidelines.

Although it may sound strict, there is nothing to worry about. By understanding the rules and adopting best practices, you can ensure your messages land safely in your subscribers’ inboxes.

Key Rules to Remember

  • Domain Authentication is Paramount – Implement security protocols, including Domain Keys Identified Mail (DKIM), Sender Policy Framework (SPF), and Domain-based Message Authentication, Reporting and Conformance (DMARC) to verify your sending domain and prevent spoofing. DKIM digitally signs emails for verification. SPF confirms that sending domain authorization prevents spammers from impersonating and sending messages from your domain, while DMARC specifies the handling of unauthenticated emails. Basically, these protocols confirm your sending domain as legitimate and not from a malicious email spammer or phisher. Although these protocols have been previously considered best practices, many senders have unknowingly or knowingly bypassed them. Some have ignored them, considering them challenging to deploy. Hence, the step to enforce them as mandatory requirements.
  • One-Click Unsubscribe is Mandatory – Make it easy for subscribers to opt out with a clear and accessible unsubscribe link in every email. The unsubscribe requests must be honored within 2 days. You can add an unsubscribe button to the header, whereby recipients can unsubscribe easily instead of marking an email as spam. This will ensure email deliverability is not harmed. Allowing easy unsubscribe also offers the benefit of having an email list of quality subscribers.
  • Maintain a Low Spam Complaint Rate – Keep your spam complaints below 0.3 percent (ideally, this should be below 0.1 percent) to avoid landing in the spam folder or getting blacklisted. Failing to comply with the spam complaint threshold could put the sending domain under review, restricting your email reach.

Beyond the Rules: Deliverability Best Practices

  • Clean and Permission-Based Email Lists – Send only to subscribers who have opted-in, and keep your list clean by removing inactive users and bounced addresses.
  • Personalization and Segmentation – Tailor your emails to individual preferences and segment your list based on demographics, interests, or engagement levels.
  • Mobile-Friendly Design – Ensure your emails are optimized for mobile devices, as most users check their email on smartphones.
  • Subject Line Optimization – Craft compelling and relevant subject lines that invite users to open your emails.
  • Craft High-Quality and Engaging Content – Provide relevant and valuable information to maintain audience interest and avoid being marked as spam.
  • Avoid Spammy Tactics – Avoid excessive images, ALL CAPS text, and misleading content.
  • Engagement and Reputation – Encourage engagement by asking questions, including social media links, and providing valuable content. Positive user interactions improve the sender’s reputation.

Consequences of Ignoring the Rules

Failing to adhere to the new rules can have severe consequences, including:

  • Emails Landing in Spam Folders – Your messages may never reach your intended audience.
  • Domain or IP Blacklisting – Repeated violations can lead to your domain or IP address being blocked by email providers.
  • Decreased Sender Reputation – This can negatively impact your future deliverability rates, affecting domain reputation and overall business performance.

Adapting to the New Landscape

Although these requirements may seem overwhelming, they represent an opportunity to improve your email marketing practices and build stronger relationships with your subscribers. By prioritizing sender authentication, clear communication, and valuable content, you can ensure your emails reach the right inboxes and achieve your marketing goals.

Remember, staying informed about email deliverability best practices and adapting to evolving regulations is crucial for successful email marketing in today’s landscape.

Averting a Government Shutdown, and Reinforcing Air Travel Infrastructure, Weather Alert Systems and National Defense Initiatives

4 min read

Averting a Government Shutdown, and Reinforcing Air Travel Infrastructure, Weather Alert Systems and National Defense InitiativesMaking further continuing appropriations for the fiscal year ending Sept. 30, 2024, and for other purposes (HR 2872) – Passed by both branches and signed by the president on Jan. 18, this is the third temporary resolution designed to avert a government shutdown until Congress can agree on appropriations for fiscal year 2024. The bill extends the government funding deadline to March 1 for four appropriations bills and another eight until March 8.

Airport and Airway Extension Act of 2023, Part II (HR 6503) – This bipartisan bill was introduced on Nov. 29, 2023, by Rep. Sam Graves (R-MO). It extends certain Federal Aviation and Administration (FAA) programs and activities through March 8, namely the Unmanned Aircraft Systems (UAS) test site program and the remote detection and identification pilot program, weather reporting programs, the Remote Tower Pilot Program, and the Essential Air Service Program. The bill also extends authorization for the Airport Improvement Program (AIP) that provides grants for planning, development, and noise compatibility projects at certain public-use airports and extends the FAA’s authority to collect taxes on aviation fuel and airline tickets to support the Airport and Airway Trust Fund (AATF). The bill passed in the House on Dec. 11, in the Senate on Dec. 19, and was signed into law by President Biden on Dec. 26.

National Defense Authorization Act for Fiscal Year 2024 (HR 2670) – This bill incorporates provisions from a wide range of legislation introduced throughout 2023. It authorizes fiscal year 2024 appropriations and policies for: the Department of Defense (DOD); military construction; national security programs for the Department of Energy (DOE) and the Maritime Administration; the Defense Nuclear Safety Board; and the Naval Petroleum Reserves. Note that this bill does not provide appropriations but merely authorizes funding from an approved budget. The Act was introduced by Rep. Mike Rogers (R-AL) on April 18, 2023. It passed in the House on July 14 and the Senate on July 27. A conference report of the final text was produced and approved by both houses in December, and the Act was signed into law on Dec. 22, 2023.

Testing, Rapid Analysis and Narcotic Quality (TRANQ) Research Act of 2023 (HR 1734) – This bipartisan act was introduced on March 23, 2023, by Rep. Mike Collins (R-GA). It initially passed in the House on May 11, passed in the Senate with changes on June 22, was finalized in the House on Dec. 4, and enacted on Dec. 11. The bill directs the National Institute of Standards and Technology (NIST) to support research and other activities related to psychoactive substances such as fentanyl and a veterinary tranquilizer called Xylazine. Colloquially referred to as the zombie drug, this substance has proliferated in communities throughout the country and places law enforcement officers at great personal risk during confiscation.

A bill to amend the Federal Election Campaign Act of 1971 to extend the Administrative Fine Program for certain reporting violations (S 2747) – This bill extends authorization to the Federal Election Commission Administration Fine Program to enforce penalties for late and/or non-filed campaign finance disclosure reports. The legislation was introduced by Sen. Amy Klobuchar (D-MN) on Sept. 7, 2023, and passed in the Senate on the same day. It passed in the House on Dec. 11 and was signed into law on Dec. 19, 2023.

NWR Modernization Act of 2023 (S 1416) – This bipartisan bill instructs the National Oceanic and Atmospheric Administration (NOAA) to update the NOAA Weather Radio All Hazards (NWR) network of radio stations that broadcast 24-7 weather information, including weather warnings, watches, and forecasts. It has become imperative to beef up the coverage and reliability of radio stations – particularly in rural and underserved communities – via repairs, software upgrades, additional equipment, and alternative means of transmissions, as well as other potential improvements. The Act was introduced on May 23, 2023, by Sen. Maria Cantwell (D- WA). It passed in the Senate on Dec.18 and currently lies in the House.

National Weather Service Communications Improvement Act (S 1414) – This bill is designed to update the current in-house instant messaging service (NWSChat) that has been in use since 2008 by NWS forecasters. In the wake of increased severe weather events, wildfires, and climate-related emergencies across the country, it is necessary to use more reliable, updated state-of-the-art communications and real-time alerts in order for local communities to keep families, homes, and businesses safe and secure. This Act would require the NWS to adopt a new instant messaging service by October 2027. The bill, also introduced by Sen. Maria Cantwell (D-WA) on May 3, 2023, passed in the Senate on Dec. 18, 2023. Note that there is a similar bill in the Senate sponsored by Sen. Ted Cruz (R-TX) as well as a bipartisan version in the House.

Your February Financial To-Do List

3 min read

February Savings TipsJanuary has come and gone. You may or may not have stuck to your resolutions, but the good news is that February is here. Now is the perfect time to hunker down and get your monetary ducks in a row. Here are a few things to put on your agenda to get your financial house in order.

Pay Off Holiday Debt

Yes, it was fun to go shopping for holiday gifts, but those interest rates are high – you’ll want to pay your balances off as quickly as possible. And here’s a tip: you can make more than one payment per billing period. In other words, instead of waiting for your next paycheck, pay some of the balance now and some later. This will reduce the interest you’d pay if you waited two more weeks to pay in full. This way, you can actually pay your credit card bills more frequently and pay less over time. While you’re at it, look for lower interest rates and transfer those balances. All it takes is a Google search for “zero balance transfer credit card offers,” and you’ll find what you need in no time.

Start Working on Your Taxes

April will be here before you know it, so getting a jump on taxes is a smart idea. Also, filing early will give you more time to figure out how much you owe, if anything. If you want to take the guesswork out of preparing your taxes, you might consider hiring a tax professional. When you make your selection, ask for a price quote. Some tax preparers often want to see which forms you need before they work on your taxes, but you can still ask for a list of fees for various types of tax help to get a ballpark idea. Here’s a red flag: if someone says they’ll base your fees on a percentage of your refund, run away. This is a violation of IRS rules.

Get a Free Credit Report

All the big reporting companies – Equifax, Experian, and TransUnion – offer a free report one time every 12 months. So why not find out? When you see the truth of your credit report, it can motivate you to change some habits, like paying earlier, more often, and on time. No one likes late fees.

Save on a Gym Membership

In January, you probably got pummeled with lots of solicitations for a gym membership at low, low prices, but in February, the prices are even lower. If you don’t want to commit, you can sign up for a trial run. You can even negotiate a deal if you ask to speak to the manager. Finally, some gyms will offer you a deep discount if you agree to use the facilities during off-peak hours or on certain days. Flexibility is the key!

Buy Things on Deep Discount

With high prices and high-interest rates, it makes sense to check out all the price cuts on Consumer Reports. On this site, you’ll find all the good stuff: cars, home and garden supplies, appliances, electronics, and more.

These are just a few of the items you can put on your financial to-do list. All it takes is carving out some time and getting started. Once you get going, you’ll probably make more progress than you ever dreamed.

Sources

https://www.consumerreports.org/personal-finance/february-financial-to-do-list/

Understanding How Variances Vary

3 min read

how to calculate VariancesVariance analysis is found by determining the difference between what was budgeted and what actually occurred. Additionally, when variances are added together, we get a better picture of how well a company is measuring its performance against expected metrics. It’s also important to be mindful that each metric is measured to determine what the actual cost is versus the industry’s standard cost.

Whether it’s materials, labor, electricity, or another metric, if the actual cost is lower than the standard cost for the same quantity of materials, it would be a favorable price variance. However, if the number of materials was more than the standard quantity, it would be considered an unfavorable variance. Examining variance allows us to analyze the price and quantity of the variable being analyzed. Always keep in mind that unusual or significant variances should be investigated to see why such anomalies exist.

It’s important to distinguish between variances and the types of inputs. When it comes to materials, labor, and similar variable overhead, variances to be analyzed are for price and quantity/efficiency. When it comes to fixed overhead, analysis looks at variances in budget and volume.

One way to conduct variance analysis is through the Column Method. The following example illustrates this:

A business produces widgets. The following assumptions are made:

  • 6,000 widgets are produced in a month
  • Direct labor hours are used as the basis to allocate overhead costs to products
  • Denominator level of activity is 8,060 hours, resulting in $48,360 in fixed overhead expenses budgeted.

Other cost assumptions include:

Direct Costs

Labor: 2.6 hours/widget @ $14 per hour

Materials: 10 pieces/widget @ $1/widget

Overhead

Variable: 2.6 hours/widget @ $8/hour

Fixed: 1.3 hours /widget @ $12/hour

However, the business saw the following costs for the month’s production:

Variable overhead manufacturing costs: $34,000

Fixed overhead manufacturing costs: $50,000

Both of the following are Direct Costs:

Material: 50,000 items bought @ $0.96/widget

Labor: 8,000 hours totaling $128,000

Materials Variance

Real Quantity x Real Price = 50,000 pieces x $0.96 per widget = $48,000

Real Quantity x Industry Price = 50,000 pieces x $1 per widget = $50,000

Standard Quantity x Industry Price = 36,000 pieces x $1 per widget = $36,000

Price Variance = $50,000 – $48,000 = $2,000

Quantity Variance = $50,000 – $36,000 = $14,000

When we find the difference between these two amounts, there’s an unfavorable variance of $12,000. Additionally, it’s worth looking at why there were 50,000 pieces used versus the standardized 36,000 pieces. It could be due to defective materials, problematic machinery, etc.

Labor Variance

Real Hours x Real Rate = 8,000 hours x $16 per hour = $128,000

Real Hours x Industry Rate = 8,000 x $14 per hour = $112,000

Standard Hours x Industry Rate = 7,800 x $14 hour = $109,200

Rate Variance = $112,000 – $128,000 = -$16,000

Efficiency Variance = $109,200 – $112,000 = -$2,800

Based on this calculation, there’s a total unfavorable variance of -$18,800. Management should look at why labor costs are higher than the standard and why production took more supplies than the industry standard.

While this is not all-encompassing, it does show the importance of understanding the nuances of calculating variances and how it’s essential to understanding a business’ (in)efficiency.

How to be Your Tax Pro’s Favorite Client this Tax Season

4 min read

How to be a good clientWhy on earth, you may ask yourself, would I care about being a good client to my tax prep professional? I mean, you are a paying client, and aside from treating them with the same decency and respect that you would show any other random person, who cares – right? Wrong!

What’s in it for me?

Honestly, it’s simply in your own best interest to be a good client. Maintaining a positive relationship with your tax professional can benefit you in numerous ways. Your tax preparer bills you in one of three ways: a flat fee (guaranteed); hourly; or a hybrid with a basic flat fee that they’ll only add to if out-of-scope issues/problems come up. Let’s look at each approach in more detail.

First, a scenario where you have a guaranteed flat fee no matter what. In this case, it’s pretty obvious to see that one of a tax preparer’s main incentives is to perform the work correctly and up to professional standards, but as fast as possible; less time equals more money. Here, being a good client means that you give your tax professional more room to be thoughtful about your tax return and even perform some planning/optimizing for the current year or next year. If you can help them prepare your return efficiently, there’s room to spare in providing you with value-added advice.

Second, when you engage a tax pro on a strictly hourly basis, saving them time on the administrative side of the return prep will equate to direct savings in your pocket. When you pay by the hour, you are paying regardless of whether they are calculating or reviewing your return, providing advice, planning, or chasing you down for missing info, open items, questions, etc.

Third, we have the scenario where you have a flat fixed fee unless you add services out of scope or things really go sideways. Here, while most tax preparers will eat a little bit of time, if you cause delays in the preparation process due to incomplete or unorganized information or you are late to respond to questions, there is a good chance you’ll get billed for that time as it wasn’t planned for and was unnecessary.

Finally, making your tax professional’s life easy will simply make you more likable as a client. And we all know that we treat people we like better.

How do I become a great client?

So, at this point, you are asking, how do I become my tax professional’s favorite client? There are a few main areas to consider if you want to establish a good working relationship and make life easier for everyone.

  • Be Organized – The more organized you can be in gathering and submitting your underlying tax documents (W-2, 1099s, etc.) and other necessary information, the better. Many tax preparers will send a tax organizer to help you fill out and organize what you send over. Following this is the best way, but any method that is clear, logical, and complete is best.
  • Submit All Your Information at Once – While it’s not always possible, don’t submit your information until you have everything. Sending over documents piecemeal is a surefire way to cause confusion and delays and makes the process rife for errors. In fact, many CPAs won’t even start a return until they have everything. Again, this isn’t always possible because sometimes a K-1, for example, is not yet available – but that should be an exception to the rule.
  • Be Responsive – To the degree that you can be responsive to follow-up questions from your tax preparer or their staff. This will ensure your return keeps moving, saving time (and therefore billable hours) that stopping and starting creates.

Conclusion

Following these tips will not only help you develop a great relationship with your tax preparer for years to come, but it also will ensure the most accurate and efficient preparation of your return possible.

Municipal Bond Outlook for 2024

3 min read

Municipal Bond 2024One of the positive aspects of sustained high-interest rates is higher yields on bonds, particularly high-quality municipal bonds. It is possible that 2024 will present a different scenario as the Federal Reserve begins a schedule of monetary easing by reducing interest rates over time. The potential for this strategy, combined with a slowdown in inflation and economic growth – and exacerbated by the potential volatility of a U.S. presidential election – offers a hazy but ultimately positive outlook for municipal bonds.

For now, investors with a long-term outlook (up to 10 years) can take advantage of current high-interest rates before they begin declining. A key recommendation is to focus on the credit quality of muni bond issuers, which is more likely to face adjustments due to lower reserves and unreliable revenue streams during an economic slowdown.

The following are some municipal bond market considerations for long-term investors.

  • While absolute rates are expected to decrease in 2024, muni bonds should continue to offer high yields and strong credit quality.
  • Speaking of credit quality, despite the larger universe of corporate bonds, there are more AAA- and AA-rated munis than corporate bonds. For example, there are only 13 unique issuers of AAA-rated bonds within the Bloomberg U.S. Corporate Bond Index. Of these 13, two comprise the majority of outstanding AAA corporate bonds. This means an investor is better able to diversify assets across a mix of high-quality muni bonds or a municipal bond fund.
  • Remember that munis are generally exempt from federal and state income taxes (when the investor lives in the issuing state) and might therefore provide a higher tax-equivalent yield when compared to yields of other long-term bonds.
  • In order for municipal bond income to be comparable to the after-tax yield of corporate bonds, the investor should be subject to a 45 percent or higher total cumulative tax rate. This is referred to as the “break-even” rate wherein municipal bonds will likely yield more after-tax income.
  • Longer-term, AAA-rated municipal bonds (up to 10 years) are expected to offer greater value compared to shorter-term munis.
  • Credit conditions are expected to continue their upward trend in 2024. As a general rule, municipal bonds are highly rated, but the average credit rating has increased even more since the pandemic. For example, the percentage of AAA- or AA-rated bonds in the Bloomberg U.S. Municipal Bond Index increased from 67 percent (pre-pandemic) to 71.4 percent as of November 2023.
  • Some of the most popular provisions of the 2017 Tax Cuts and Jobs Act are scheduled to expire in 2025. Demand for muni bonds might soar this year as taxpayers seek more tax-advantaged benefits given the potential loss of itemized deductions and a reduced standard deduction. Look for this sunsetting tax legislation to be a hot issue as this year’s election season gets up and running.

Given the higher yields available for the past 15 years, municipal bond returns are projected to be favorable in the near term. However, be wary of issuers that lack strong reserves and whose revenue streams are linked to economic activity.

Perhaps most importantly, investors should consider their objectives when investing in municipal bonds. If you are already in or nearing retirement, take into account your current tax bracket, the type of account you plan to invest in (taxable or tax-advantaged), credit quality, and time to maturity to effectively assess the value of municipal bond income in your portfolio.

How a No-Spend January Can Kickstart Your New Year

3 min read

No-Spend January, how to save after the holidaysHere we go again. The new year is approaching, and those resolutions are staring us in the face – and the most common? Saving money. In fact, according to YouGov, this is the most important resolution for American adults. Now, certainly, you can’t not spend money in January (you have to eat), but the idea is to rid yourself of any unnecessary cash outflow so you can kickstart the year with some solid financial habits.

Limit Trips to the Store

Of course, you’ll need food, toiletries, and general household staples, but here’s your chance to step back and make lists, as opposed to running out to Target or Starbucks for a quick adrenaline rush. Plan your trips out. Buy store brands. Check prices. Use those coupons. Set your sights on the long view of the month, if not the year. This is one way to work toward getting fiscally fit.

Eat Everything in Your Pantry

You probably have cans of soup and pasta sitting on your shelves. Maybe even some canned veggies. Google some simple recipes with the items you have, add some spices, and voila, you’ve got a tasty, no-spend meal. Nothing like this can lead to long-term savings.

Forgo Eating Out

Once more, this tip is related to the first two. Truth is, you’ll want to go out to eat a few times – so go – but within reason. The trick is to find affordable spots with delicious grub. Another money-saving idea: split your entrees. You’ll not only save dollars but also calories.

Reevaluate Your Subscriptions

This is something that might creep up on you during the year. While you’ve been scrolling these past months, you might have seen an irresistible product, and you just had to have it – whether it was special vitamins, a hip magazine, or yet another streaming station with all those binge-worthy shows you can’t stop watching. But you might ask yourself: are these expenditures really improving my life? Once you see how much money you’ll be saving, you’ll most likely feel better (new and improved!) already.

Invest the Money You’re Saving

Now that you’ve cut back, you should have a surplus of cash accumulated over the year. So, what to do? One of the best things to do is tuck it away in a high-yield savings account. Just like with regular (traditional) savings accounts, you can withdraw when you want to. But with a high yield, you’ll most likely have a limit to how often you can take money out, which is usually six times per month without a fee. The main difference between a traditional and high-yield savings account is the interest rate. The current national average interest rate for a traditional savings account is 0.64 percent APY. Comparatively, top high-yield savings accounts pay between 4.25 percent and 5.27 percent. You in? Thought so.

Moral of the story? No-spend January is all about starting some new habits for 2024 – and watching them pay off. This way, during the new year, you’re not just working for your money, but allowing your money to work for you.

 

Sources

https://www.cbsnews.com/news/how-no-spend-january-can-kickstart-solid-financial-habits-for-2024/

 

Technology Trends for Businesses to Watch in 2024

4 min read

Artificial Intelligence (AI) AdvancementsThe unrelenting advancement of technology is still going strong even as we enter 2024. The business landscape is poised for transformative changes, driven by ongoing developments that demand organizations to be innovative and adaptive. Below, we explore some key technology trends that businesses should keenly observe to remain competitive.

1. Artificial Intelligence (AI) Advancements: Unlocking New Possibilities

The year 2023 witnessed widespread adoption of generative AI in various applications, from design tools to search engines and office software. This transformative shift changed the way businesses interact with technology.

Continued integration of AI is expected to redefine automation, decision-making processes, and customer experiences. Evolving AI algorithms, especially in natural language processing and computer vision, will play a pivotal role. From enhancing customer service interactions to optimizing supply chains and enabling predictive maintenance in various industries, the transformative impact of generative AI will become increasingly evident.

Tech investments geared toward meeting changing priorities will be a hallmark of 2024. More businesses are anticipated to harness AI-driven automation, particularly using Generative Pre-trained Transformers (GPTs), further streamlining operations and enhancing efficiency.

2. Cybersecurity Innovations: Staying Ahead of Evolving Threats

As cyber threats continue to evolve, businesses should anticipate increased data breaches. In response to sophisticated cyber threats, cybersecurity innovations are set to take center stage in 2024. Advanced solutions leveraging AI-driven threat detection and response mechanisms will become more prevalent. The industry will witness an intensified focus on zero-trust security frameworks, heightening data protection measures. Cyber-resilience will be paramount, necessitating proactive measures to safeguard digital assets and ensure business continuity.

3. 5G Technology Implementation: Revolutionizing Connectivity

The widespread adoption of 5G networks will redefine connectivity standards in 2024. Businesses will benefit from faster and more reliable network speeds, unlocking opportunities for innovative applications and services. The increased bandwidth and reduced latency offered by 5G will enable businesses to explore new frontiers in communication, collaboration, and data transfer.

4. Edge Computing Expansion: Real-time Data Processing Redefined

Edge computing will gain even more prominence in 2024, playing a pivotal role in real-time data processing and latency reduction. Its integration with Internet of Things (IoT) devices will enable businesses to conduct faster and more efficient data analysis at the source, paving the way for enhanced decision-making and operational efficiency.

5. Blockchain Beyond Cryptocurrency: Transforming Business Processes

Blockchain technology, often associated with cryptocurrencies, will find increased adoption in 2024 for purposes beyond financial transactions. Businesses will utilize blockchain for secure and transparent supply chain management, the execution of smart contracts, and the development of decentralized applications. Integration into traditional business processes will enhance security and operational efficiency.

6. Extended Reality (XR) Integration: Shaping Immersive Experiences

Augmented reality (AR) and virtual reality (VR) will expand across industries in 2024. These technologies will play integral roles in training, healthcare, retail, and more. Improved XR technologies will deliver more immersive and realistic user experiences, unlocking new possibilities for customer engagement and employee training.

7. Sustainable Technology Solutions: Embracing Environmental Responsibility

A growing emphasis on environmentally friendly technology will be a defining feature of 2024. Businesses will increasingly adopt energy-efficient data centers and integrate sustainable practices into product development. This shift toward green technologies is driven by environmental consciousness and the potential for cost savings and corporate social responsibility.

8. Quantum Computing Developments: Unlocking New Frontiers

Quantum computing will continue to make strides in 2024, with ongoing research potentially leading to practical applications in certain industries. Businesses, particularly early adopters like financial services organizations, will leverage quantum computing to tackle complex problems beyond classical computers’ capabilities, such as fraud detection and optimization challenges.

9. Robotic Process Automation (RPA) Evolution: Intelligent and Adaptive Automation

Robotic Process Automation (RPA) capabilities will witness enhancements in 2024. RPA will not only automate routine tasks and processes but will also integrate more seamlessly with AI, providing more intelligent and adaptive automation solutions. This evolution will contribute to increased efficiency and productivity in business operations.

10. Voice and Conversational Interfaces: Transforming User Experiences

The popularity of voice-activated technologies and conversational interfaces will continue to grow in 2024. These technologies will find applications in customer service and various business operations, enhancing user experiences. Integrating voice assistants into diverse applications will further streamline interactions and improve overall usability.

Conclusion

The technological landscape in 2024 promises unprecedented advancements, challenging businesses to stay abreast of these trends for continued growth and innovation. Staying agile and embracing these technological shifts will be crucial for businesses looking to thrive in an ever-evolving digital era.