In April of this year, the Biden Administration outlined their proposed framework for The American Families Plan, a combination of programs to help families with income and education along with new capital gains taxes.  At this point, the American Families Plan is a proposal that has not been passed by Congress and may either be different when it is passed or not passed at all.  However, the changes to capital gains taxes are significant enough that we should start planning f

As we turn the page to the second half of 2021, my first observation is that this year seems to be going much faster than 2020 did.  With the proliferation of effective vaccines against COVID-19 and the retreat of the pandemic, the economy and regular life is opening back up and making life much more enjoyable.  Over the past year, we have seen a historic series of fiscal stimulus packages in response to the pandemic and our shutdown of some parts of the economy.  In addition

Procrastinators around the country can rejoice for a second year as the IRS announces that the traditional tax filing deadline of April 15th has been extended to May 17, 2021 for 2020 individual tax returns.  However, this seemingly simple declaration comes with some complexities that I would like to cover.   First, this is an automatic extension that doesn’t require any paperwork.  So, if you can get your tax forms completed by May 17th, there is no need to worry about filin

We do not have to look far to find the bad that has come from the pandemic; loss of life, health, and employment are just a few of the casualties.  On a less serious level, we all miss the social connections we were able to enjoy much more easily a year ago.  However, some of the greatest moves forward in human progress have occurred when the outlook was bleak.  Hopefully, the beginning of great progress will be born out of the current malaise. When we look back at history an

Tax-deferred accounts are great while you are working.  You can receive a tax deduction for deferring income into retirement accounts like IRAs and 401(k), and you don’t even have to pay taxes when the accounts have interest, dividends, and capital gains.  However, the party has to end at some point, and for many taxpayers, the moment the record screeches to a stop is when Required Minimum Distributions (RMD) begin.   Just as the name infers, RMDs are a requirement to distrib

In December 2020, Congress passed a second round of Coronavirus stimulus that included direct payments to individuals.  The first round passed in March 2020 as part of the CARES Act.  For simplicity, I’ll refer to the spring payments as “Trump Bucks” and the most recent payments as “Lame Duck Bucks.” Trump Bucks were up to $1,200 per adult taxpayer and up to $500 per child younger than 17, while Lame Duck Bucks are up to $600 per taxpayer or child younger than 17.   Depending

The events of this year have been like none other.  I have run out of adjectives to describe the year we’ve had so far.  The stock market went along with the madness in the first half of the year ending the longest bull market on record with the fastest bear market on record.  In just 33 days, the S&P 500 lost 34% of its value.  It reflected the shrinking economy, which was heading into a recession.  What happened next shocked everyone.  Starting on March 24th, the market beg

You’ve probably heard, but there’s an election coming up next month.  The stakes are high as this has been billed, once again, as “the most important election of our lives.”  Indeed, there are many issues to address for the next presidential term and the new congress.  For investors, the stakes can seem even higher given their exposure to companies that may be affected by policies enacted by those we elect.  Fortunately, we can all breathe easier by taking a closer look at hi

In 2013, our founder, Joe Call, offered our practice manager, Dani Dursteler, an opportunity.  Thinking of his upcoming retirement in a few years, Joe realized that there were possible scenarios in which his retirement or potential untimely death or disability could leave Dani without a job.  His solution was to offer Dani that Spinnaker pay for her tuition, fees, and books if she would like to pursue a college degree.  As a full-time employee and mother of two teenagers, the

The first half of 2020 has not played out the way anyone predicted it would at the beginning of the year. The largest global pandemic in 100 years has overtaken our very connected world and had significant short-term economic implications. The shutdown of the economy has resulted in a nearly instantaneous recession, record jumps in unemployment, and the fastest, deepest collapse in stocks prices in decades, if not ever. Rather than pass on the economic outlooks from economist

On March 27th, 2020, President Trump signed The Coronavirus Aid, Relief, and Economic Security (CARES) Act.  The bill provides an estimated $2 Trillion (with a T) of economic relief to individuals, families, unemployed workers, small-business owners, retirees, and severely-damaged industries affected by the Novel Coronavirus and our stay-at-home mitigation efforts.  This edition of Setting Sail will break down the key provisions that are most likely to apply to our clients as

On November 29, 2019, The Charles Schwab Corporation announced an agreement to acquire TD Ameritrade, one of its largest competitors. Since our founding in 1998, Spinnaker Financial Advisors has chosen to custody our clients’ assets with TD Ameritrade (or one of its predecessors). At this point in time, we have a lot more questions than we do answers, but I’d like to share with you what we do know. First, and most importantly, the two companies will continue to operate as sep

In December 2019, as the bitter and partisan impeachment hearings went on in the House of Representatives there was a brief moment of unity.  Attached to a larger bill which kept the government funded, the SECURE Act passed with overwhelming support from both parties.  Regarded as the largest change to retirement plans since the 2006 Pension Protection Act, the SECURE Act’s main purpose is to provide new ways for employers to create retirement plans for their employees.  Howe