In the digital age, where technology connects us globally, the convenience of the online world also brings a dark side—online financial scams. Cybercriminals employ several tactics to deceive unsuspecting victims. Online scams come in diverse forms, targeting individuals and businesses alike. From phishing emails and deceptive websites to social engineering and sophisticated malware, cybercriminals deploy a vast array of tactics to exploit the vulnerabilities of potential vic

Part of being in polite society means not talking openly about politics, religion, and money.  I suppose this norm is based on the idea of not being disagreeable about character-defining attitudes and traits.  Money, in particular, can be a difficult topic because we all have different views on income, spending, debt, and other money-related topics.  Often, we feel attached to the strategies that have worked for us or for our family and may judge others who take a different a

Every year, the formula for personal income taxes changes at least a little bit.  Some of these changes are made by Congress, and others are simply cost-of-living adjustments that the IRS calculates according to the tax code.  The historically high inflation of 2022 led to some significant changes for the 2023 tax year.  However, with lower inflation in 2023, the charges are not as significant. The standard deduction for married couples filing jointly for tax year 2024 rises

  When it comes to college savings solutions, it is hard to beat the 529 Plan.  These accounts are administered by the various states and offer investors a tax-advantaged way to invest for their children’s or grandchildren’s college expenses.  Although contributions do not receive a tax deduction, the earnings grow tax-deferred and eventually tax-free if used for qualifying education expenses.  Some states, including Idaho, offer a state-tax deduction for contributions to the

Over the past Labor Day holiday weekend, our clients’ accounts were moved from TD Ameritrade to Charles Schwab as part of a merger between the two companies.  We are happy to report that all of the correct positions, balances, and histories of the accounts under our management transferred perfectly to their new home at Schwab.  In the process, the old TD Ameritrade 9-digit account numbers were changed to Schwab 8-digit account numbers.   After a month of working with Schwab a

Inflation is a term that frequently makes headlines in the world of economics and finance, but what exactly is it? In simple terms, inflation is the rate at which the general level of prices for goods and services rises, resulting in a decrease in purchasing power for a given currency. It is a crucial economic indicator that affects everyone, from consumers and businesses to policymakers and investors. It is typically expressed as an annual percentage and is measured by track

Before I dig into what has transpired over the first half of 2023, let’s revisit the reasons why we started investing in the first place.  Good investing is always goal-focused and planning driven, so ideally, we started with certain goals.  A common goal is retiring at a certain age and with a certain income.  The goals have probably evolved over time and may include multiple generations, but they are still goals to invest for.   The design of your investment portfolio is ba

In 2019, TD Ameritrade accepted an offer to be acquired by Charles Schwab.  The merger took some time to receive approval from the government, and the two companies have been operating separately but under the same ownership.  After the approval was given, they have been planning how to combine the two companies into one.  Over the upcoming Labor Day weekend, all TD Ameritrade accounts will be converted into Schwab accounts.   Although Spinnaker does not have a formal relatio

The conclusion of the first quarter of our new year is a good time to recall what has happened from an economic and market perspective.  After all, looking back at what has happened is always easier than guessing what will happen in the future.  Most of the developments have been positive.  The economic indicator on everyone’s minds is inflation and the progress has been good.  After reaching its peak in June of 2022 at an annual rate of 9.1%, the Consumer Price Index (CPI) h

The last few months and even the last few years have been busy for retirement planners as retirement-focused tax law changes have been made.  This is a summary of the most important changes and how they may affect you.   End of the Stretch IRA for IRA Beneficiaries In December 2019, Congress passed the Setting Every Community Up for Retirement Enhancement (SECURE) Act.  This act made several changes to the retirement planning landscape, the largest of which was new rules for

Looking back on 2022, the biggest financial story is that inflation returned in a big way for the first time in decades.  This has wreaked havoc on family budgets as wages and investments have not kept up with rising costs.  If there is a silver lining to the inflation we have experienced, it is that many of the provisions in the Federal Tax Code are automatically linked to the rate of inflation.  The simplest way of understanding this is that the same income will result in l

I remember thinking to myself in late 2019 that the new year would bring not only a new decade but a decade with a definitive name.  Unlike the previous two decades of the 2000s and the 2010s, our new decade would have a real name; the 20s.  Even better, the last time we had the 20s, times were so good they were called the roaring 20s.  Hopefully, history would repeat itself.  Instead, the only history that repeated itself was a global pandemic like we hadn’t seen since 1918.

In 1975, the Securities and Exchange Commission mandated that brokerage companies deregulate commissions on buying and selling securities.  For the first time in 180 years, trading fees were set by market competition.  This deregulation paved the way for an entirely new industry called discount brokers.  Instead of full-service brokers that provided investment advice, these discount brokers allowed do-it-yourself investors to transact market trades at a fraction of the price.

Retirees and other Social Security recipients will be happy to hear that their benefits will see a significant increase in January 2023.  The Social Security Administration has announced that benefits will receive a cost-of-living adjustment (COLA) of 8.7%.    Since 1975, Social Security benefits have been adjusted to compensate for inflation.  Before then, increases were set by legislation.  This is the largest increase since 1981 and the fourth-largest increase ever.  The a

The first six months of 2022 saw the S&P 500 decline 21% from its all-time high at 4,796.56 on January 3 to a closing low of 3,785 on June 30th.   More noteworthy even than the extent of the decline was its gathering violence: in mid-June, the market ran off a streak of five out of seven trading days on which 90% of S&P 500 component stocks closed lower.  This is one-sided negativity on a historic scale.   Regardless of all other points I wish to make to you in this report, t

As we close the books on 2021 and start the journey of 2022, you may have noticed more than a few advertisements for weight loss programs and tax filing services.  Yep, it’s that time of year again.  Filing taxes can be a big project as we gather the correct documents, search for and meet with accounting professionals or even fill out the forms ourselves with tax preparation software.  The IRS estimates that the average taxpayer spends 13 hours preparing their tax return.  He

The Social Security Administration announced that retirees will receive a 5.9% increase in their Social Security benefits in January of 2022.  This is the largest annual increase in benefits in nearly 40 years as the price of food, cars, housing, and other goods and services has risen in the past year. Seventy million Americans receive Social Security, and this comes as welcome news in this inflationary environment. However, the cost of medical care has also increased, and Me

Yes, you read that right.  This is not a joke.  The impossible has happened. In May of 2021, Governor Little signed House Bill 380, which created a tax rebate for full-time residents.  To be eligible for this rebate, taxpayers need to be a full-year resident in both 2019 and 2020 and file either a state tax return or a grocery credit return in both years.  A full-year resident is defined as spending more than 270 days in the state or being domiciled in the state.   Although t

We all thought that 2020 would go down as the craziest, most unpredictable year of our lives.  It probably was.  But after the Covid-19 vaccines were released in early 2021, many of us expected and were looking forward to a return to normal.  As it turned out, the most unpredictable year of 2020 led us right into the weirdest year of 2021.  A world which, in some ways, resembled the good old days of 2019 and in many other ways felt like the twilight zone.  May I offer a few e

As the pandemic has wound down, businesses open back up, and the economy heats up, it seems we have found a new enemy in inflation.  Indeed, the Bureau of Labor Statistics reports that the Consumer Price Index (CPI) rose 0.9% in the month of June and is up 5.4% over the last 12 months.  Some of this gain is due to increases in food and energy, but even the core inflation rate, which removes food and energy, is up 4.5% over the past 12 months, the largest gain since 1991.  Thi