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Overspending during the holidays can cost you more than you realize. It can be tempting to go crazy the first Christmas after you get your first real job. You are making a real salary, and you feel that you want to say thanks to those who have helped you while you struggled through college and internships. But that doesn't mean you should blow your budget in the process.  That's why it's important to have a Christmas survival guide to help you avoid common shopping mistakes and to prevent yourself from overspending.   1. Don't Bust Your Budget Before you buy a single Christmas present you should determine your spending budget this holiday season. It goes beyond gifts. Many people forget to add in Christmas cards, office parties, white elephant gifts, and travel expenses. If you are planning a party you should add this into your list as well. Then make a list of which you want to buy for and the amount you can afford to spend on the gifts. Once you add up all your projected costs, plus the estimated cost for gifts, then you'll have your holiday spending budget.  It's important to stick to your holiday budget. When you have used up all of your holiday money, it's time to stop spending.    2. Don't Use Credit One common holiday shopping mistake is to put everything on the credit card. You can end up paying for your Christmas gifts for several months—or even years—if you make this mistake.  Keep in mind that people tend to overspend when they use credit cards compared to cash. Use your debit card or cash to purchase your Christmas gifts. If you plan carefully you do not need to use credit to buy anything associated with the holidays. This is one gift you should give yourself.   3. Don't Buy to Impress It is tempting when you finally have some money to go out and buy extravagant gifts for everyone on your list. You may want to buy an extra nice gift for your parents or a close friend, but try not to go overboard on gifts. Plus, most people would prefer a thoughtful gift rather than one that's simply expensive.    4. Don't Forget Anyone One common holiday shopping mistake is to forget someone on your list. Shopping with a list is essential. For one, you do not want to forget anyone’s gift. Additionally, as you make out your list you can write down gift ideas for each person. Take your list with you and consult it as you shop. Cross off each person as you find the perfect gift, so you don't overbuy for one person and forget another.    5. Don't Forget to Shop Around You may hate shopping, or hate running from store to store trying to find the perfect gift. But another common shopping mistake is to forgo comparison shopping.  Comparing prices can save you big in the long run. At the very least look online at two or three stores, before you go shopping. This will give you an idea of how much an item should cost you. You may also consider buying your gifts online, or taking advantage of Black Friday sales to save money, but only if you go in with a game plan and stick to your shopping list.   6. Don't Wait Until the Last Minute The worst gifts and worst prices are a result of waiting until the last minute to do your shopping. There is nothing worse than the feeling of dread as you try to find a decent present for your family and friends in nearly empty aisles of a store, then spending way too much on an item because you have no other options. Avoid this holiday shopping mistake by shopping ahead. Bonus if you can get your shopping done before the holiday season begins.    7. Don't Forget to Include Christmas in Your Budget Many people’s biggest holiday financial mistake is to forget to spread the cost of Christmas over the entire year. You should set aside money each month to cover the cost of next Christmas. Put the money into a Christmas savings account or simply earmark the money in your normal savings account. This allows you to purchase your Christmas gifts without overspending or worrying about how much you have to spend on gifts.  Source: The Balance

The Thanksgiving dinner table offers a great opportunity for parents to tutor their children towards future success. As you pass the mashed potatoes, consider passing along family stories—your stories—of planning, saving and frugal spending. Make the stories lively and real. Give your kids a reason to believe your stories could someday be their own stories. Here’s a sampling of subject-course pairs you might find useful in your never-ending quest to boost your child’s success aptitude: Appetizer Things start off light, usually a raw vegetable tray or a bowl of fruit topped with a dollop of raspberry sherbet. It’s really just a tease for what’s to come. This is the course when the youngest of children are most engaged. Capture that enthusiasm with tales from your youthful exploits of lemonade stands, paper routes or the equivalent. Don’t emphasize the work (but don’t ignore it, either). Instead, glorify the fruits of that labor. The money you earned as a kid might seem like small change now, but it was a wad of cash back then. What joys did you convert it into? Do your kids have similar wants? How might they acquire those goods without writing a check on the Bank of Mommy or Daddy? Soup There’s nothing like a light broth to warm your insides without filling you up before the main course. The younger kids might begin to sway here, but the serious always appreciate this delicious portion. Liquidity is a common need at almost all stages of life. Do you remember a time when you thought you’d get by on credit only to find the check-out counter said “cash only”? What did you do? What lesson did you take away from that? How did that experience better prepare you for the next time? When was the next time and how important was it for you to have ready cash at that point? Remember, you’re telling a personal story involving money, but it should evoke more feeling and less finance. Your kids will retain it better when they are entertained by your vivid emotion than lectured with your dour experience. No matter how solid the plan, there’s always room for contingency. That’s what the extra cash is for. Plan on it, even if you’ve never used it. Salad Unlike the previous courses, the salad has a more tactile impression. It’s so real you can hear it crunch in your mouth. And the sweet vinegar base of its dressing tingles in your mouth. It’s a savory sensation. Everybody likes salad—or at least they say they do. Here’s your chance to regale them with the grandness of green. And by “green,” make it obvious you mean money. This is the story of the grand slam, your biggest success, the time you took a chance and reaped a much larger reward. Yes, risk is OK. It’s more than OK. It’s a requirement. The Pilgrims took a risk. Weave the Thanksgiving celebration into your own story of the risk you took to get the green. Go ahead, add some croutons to the dish if you like. And don’t worry if some of your retellings include a turkey or two. After all, sometimes the best way to learn is to make mistakes first. The bonus for your kids is they don’t have to make the same mistakes you did. They can make their own mistakes and then accomplish more than you did! Entrée We’ve now arrived to the meat and potatoes of the meal. These represent the heavy-duty nutrients, the headliners on this cavalcade of culinary stars. Sure, you’ve got a few green beans and a cranberry concoction on the side, as well as some rolls and butter to further fill your belly. But the actual attractions are the turkey, stuffing and sweet (and/or mashed) potatoes. Everything before this was just practice. Now comes the real thing. The road to success contains many enjoyable and satisfying side dishes. The road, however, remains the main dish. It is the spine of your success. It may contain multiple careers in different industries, but it always has one common thread: you. If you’ve primed them properly, your children will yearn to hear those events which have framed your success. They’ll now be ready to absorb your adventures in the jungles of long hours, hard work and corporate competition. They want to listen to your winning strategies because they’ll wonder if they’re made of the same stuff. Over the years, as they grow more confident, they’ll pay rapt attention to those same stories again in hopes of determining how to employ similar strategies in their own lives. Don’t hesitate to allow them to extract the nitty gritty details from you. Be proud of what you’ve done. Be more proud of what your kids will do. Dessert At this point, everyone sits sated, too filled to move. Yet, the sweet temptation of pumpkin (or apple, or cherry, or chocolate banana or even lemon meringue) pie calls you. And you cannot deny it. You casually nibble at small, bite-sized pieces in a relaxed, elongated way. This being the final course, there’s no rush, there’s no deadline. There’s only calm, easy, comfort surrounded by those you love most. Isn’t that what retirement is all about? Doesn’t this part of the meal offer the perfect metaphor for a life well lived, the epitome of success? Let your children know of your retirement plans, how they came to be and how you’ve prepared for them over your entire working life. Excite them by showing your own excitement for retirement. Describe how it represents a new beginning, one that you’ve long looked forward to. You’re either on the cusp or well within demonstrable financial success. You are the role model for your children. No one else is. No one else can be. No one else should be. Embrace this duty and share your success with your children. Heck, if you’ve succeeded in getting them pumped up to achieve their own financial success, the time is ripe to bring up the idea of having them start on the road to a comfortable retirement by showing them how to establish a Child IRA. Finally, as they sip from their glass and you drink from your cup remind them of this crucial fact: drinks are a separate charge. That’s when that contingency cash in your pocket comes in most handy.   Source: Forbes

Americans have slashed spending on restaurants, travel and live entertainment. But we’re spending more on subscription services—especially video-streaming subscriptions. A recent survey on digital media trends by Deloitte, the tax and business consulting firm, found that not only have more consumers signed up for video-streaming services since the COVID shutdowns began, but the average streamer pays for more services than ever. “In the early days of the coronavirus, there was a significant shift in viewership in all kinds of TV,” says Bruce Leichtman, of Leichtman Research Group, which surveys TV-consumer behavior. With 80% of Americans owning internet-capable TVs, the vast majority have both a pay TV service (meaning cable or satellite TV, or live TV streaming over the internet) and a streaming video-on-demand service (such as Netflix or Hulu), according to Leichtman. Since the pandemic hit the U.S., nearly 10% of consumers have both added and canceled at least one paid video-streaming service, according to the Deloitte survey, suggesting that more churn is in store as consumers seek more value. And as more media providers join the fray—including Disney+, Apple TV+ and HBO Max—competition is growing and putting pressure on providers to expand content and reduce prices. How to save on streaming With so many streaming choices, it’s tempting to load up on subscriptions—but the cost can quickly add up. If you already have a few streaming services, consider canceling the ones that you use the least. You can always re-subscribe when a service releases new content or adds a feature that makes it more worthwhile. And with the pandemic pressing pause on many sports, you may not need to subscribe to a live TV service if you originally signed up primarily to watch games. A digital antenna may be all you need for access to local channels. Sharing subscriptions is another way to save. Some services make this easier than others—the Netflix premium plan (which allows four simultaneous log-ons) and Hulu (with the $9.99-per-month unlimited screens add-on) are particularly family-and-friends friendly. If you want access to a single show, you may be better off paying per view than subscribing to a service. For example, an HBO Max subscription costs $14.99 per month, but one episode of Game of Thrones on Amazon’s Prime Video costs $3.99—or $24.99 for the entire season. Bundling services is another way to trim costs, and the savings are even greater if you are willing to put up with some ads. The ad-free Hulu, Disney+ and ESPN+ bundle goes for $18.99 per month, but you can also do the same bundle with the ad-supported Hulu version for a monthly charge of $12.99. Take advantage of free viewing, such as Peacock TV’s standard plan, as well as free trials. Netflix offers a 30-day trial, and most other services let you sign up free for a week. You can find longer free trials with certain services if you download them from a particular device or if you also subscribe to another related service. With AT&T TV Now, for instance, you can get a free trial of HBO Max for 30 days, rather than the standard seven days. And you can get a free year-long subscription to Apple TV+ with the purchase of an iPhone,  iPad, iPod touch, Apple TV or Mac. Sprint includes Netflix subscriptions with some of its cell phone plans. Video on demand Streaming services have expanded, especially with the introduction of newcomers HBO Max and Disney+. But with all of the available choices, it’s tougher to figure out what gives you the most bang for your buck. Look at the options and piece together what works best for you based on the content you value most, your budget and what you can get for free, suggests Dan Rayburn, a streaming-media expert. While there are many options, the following streaming services are the major players. Amazon Video This is a good choice to sample a wide variety of TV shows and movies, as well as a host of popular original content a la carte. Recent hits include the Emmy-award-winning series The Marvelous Mrs. Maisel and an adaptation of Philip K. Dick’s The Man in the High Castle.   Amazon Prime members ($12.99 per month or $119 per year) get access to Amazon’s streaming video library, or you can choose a stand-alone Amazon Video subscription ($8.99 per month). Apple TV+ Apple releases new original content every month. Popular titles include dramas inspired by true events, such as The Morning Show and The Banker. For kids and families, Apple TV+ offers such titles as Snoopy in Space, Helpsters (from the makers of Sesame Street) and the Apple original Ghostwriters. Apple TV+ also has a wide array of documentary films and original series. If you buy an Apple device, Apple TV+ is included free for one year. A monthly subscription is $4.99 per month after a free seven-day trial. You can also share your subscription with up to five family members. Disney+ The arrival earlier this year of Disney+ from the media Goliath caused existential angst among the other streaming services. That’s because a subscription gets you access to the full library of Disney and Pixar classics, Marvel epics, and the Star Wars sagas. The live-action film version of the musical Hamilton arrived on July 3, and Beyoncé’s digital album, Black Is King, was released on Disney+ on July 31. You can also watch Artemis Fowl, a sci-fi fantasy based on the popular series of young adult books, originally intended for release in theaters this year. This fall, Disney is set to release The Right Stuff, a series about the early days of the NASA space program based on Tom Wolfe’s bestseller. The standard Disney+ plan costs $6.99 a month. It is no longer offering a free trial. HBO Max Unlike HBO Now and HBO Go, HBO Max is a stand-alone streaming platform on which you can stream all HBO titles, plus other popular series and blockbuster movies. HBO Max also plans to unveil new, exclusive originals for everyone in the family. The service has an expansive library of TV favorites, such as Friends and Adventure Time, combined with the full HBO library of exclusive originals like Game of Thrones and Westworld, plus classic movies like Casablanca and Hayao Miyazaki’s Spirited Away. HBO Max costs $14.99 per month. You can sign up for a seven-day free trial. Hulu Hulu also streams popular TV shows, films and a wide range of exclusive content, including critically acclaimed TV series and films. For example, The Handmaid’s Tale and the 2020 Academy Award winner for Best Picture, Parasite, are Hulu exclusives. Upcoming original releases include The Dropout, starring Saturday Night Live’s Kate McKinnon, based on the ABC News investigative podcast, as well as the book-to-screen adaptation of Nine Perfect Strangers, starring Nicole Kidman and Melissa McCarthy. Hulu offers two options for video-on-demand subscriptions. The base price is $5.99 a month for streaming with advertising, but for $11.99 a month you can get the same service without ads. Hulu subscribers can stream from no more than two screens simultaneously, but you can add unlimited screens to either Hulu plan for $9.99 per month. Netflix The 23-year-old subscription service offers a wide variety of award-winning TV shows, movies, anime and documentaries, all commercial-free. Net­flix dominated the Emmy awards this year, surpassing HBO for the record for most nominations ever—among them Ozark, The Crown, Stranger Things and Unorthodox. The service also recently added some notable Oscar winners to its streaming library, including Eternal Sunshine of the Spotless Mind and Jurassic Park. Netflix offers three plans, all of which grant access to the full library and can be canceled at any time. The premium plan goes for $15.99 a month and offers Ultra HD streaming quality and the ability to watch content on four devices at a time. The standard plan, for $12.99 a month, offers high-definition streaming, and you can watch on two devices at a time. The basic plan, at $8.99 a month, will get you standard-definition streaming limited to one device at a time. If you have not previously subscribed or it has been a while since you have, you can sign up for a 30-day free trial. Live TV streaming services Internet live TV streaming services, a subcategory of pay TV, offer an alternative to consumers who want to forgo expensive cable or satellite TV but still want access to live content, such as sports, news and local channels. Sometimes referred to as “skinny TV,” live TV streaming services generally offer fewer channels than traditional pay TV but at lower prices and without locking you into a contract. Subscribers to traditional pay TV pay upward of $100 a month, on average, according to a survey by Leichtman Research Group. Internet live TV streaming services typically cost from $30 to $65 a month (with no installation fees). AT&T TV Now AT&T offers two versions of its streaming service, Plus and Max. Both let you stream live prime-time favorites, breaking news, nonstop sports and thousands of on-demand titles. At $55 per month, Plus offers more than 45 channels, while Max, at $80 per month, offers more than 60 channels and considerably more sports coverage. Both services provide ESPN and NBCSN, but Max more than triples the number of sports channels and includes HBO Max. Nickelodeon, Nick Jr., Cartoon Network and the three Disney channels are available on both versions. Fubo TV For $54.99 a month, you get 110 channels of live news, sports and entertainment, as well as 30 hours of DVR space and streaming on two screens at once. The family package ($59.99 per month) adds 500 hours of DVR space and an extra screen. The Ultra package ($84.99 per month) builds on the family plan with Sports Plus—24 additional sports channels, including international offerings beIN Sports and TUDN—as well as extra news and entertainment channels. Fubo also recently added ABC, Disney, ESPN and National Geographic to each plan. Hulu+ Live TV You get live sports, news and programming on more than 60 channels, including ABC, CBS, CNN, ESPN, Fox and MSNBC, plus local news channels in many cities. You can stream live games (when available) from major college and pro leagues, including the NCAA, NBA, NHL, NFL and English Premier League (football). For kids and family, Hulu+ Live TV also offers a Kids profile, which consolidates kids’ channels such as Disney and Cartoon Network in one place. And Hulu+ Live TV offers full access to the Hulu streaming library (the ad-supported version). The monthly charge is $54.99, after a one-week free trial. You can watch on two screens at a time or pay an additional $9.99 per month for the unlimited-screens add-on. You can add on DVR storage of up to 200 hours with full fast-forward capability for $9.99 a month (otherwise you’re limited to 50 hours with no skipping past ads). Peacock TV NBC’s new service gathers content from the network’s various channels in one place. The standard account (free, with no credit card required) has live news from NBC News, CNBC, MSNBC and E! News. You also get a handful of live TV features and a library of movies and TV shows for on-demand streaming, including kids’ shows and movies. Peacock Premium costs $4.99 per month after a seven-day free trial and offers full access to Peacock’s original content; the ad-free Premium option costs $9.99 per month. Both Premium versions also have live sports, including English Premier League football games. Sling Sling has two options, each for $30 a month. Sling Blue offers 45 channels that are more focused on news and entertainment, including Fox News, MSNBC, CNN and Bravo. Sling Orange, with 30 channels, has more sports coverage and family-friendly fare, including ESPN, HGTV, CNN, A&E and the Food Network. Free trials last only three days, but Sling is also promising a one-year price guarantee at sign-up. For kids and family, Sling Blue offers Nick Jr., Sling Orange has Disney, and both have Cartoon Network. YouTube TV With more than 85 channels and unlimited cloud DVR storage, YouTube TV is the Cadillac (or Tesla) of live TV streaming, at the upscale price of $64.99 a month. You can have up to six accounts per household and watch on up to three screens simultaneously. Content-wise, YouTube TV gets you wide access across a broad range of categories. For sports, it offers the NBA and MLB networks, the Tennis Channel, the Golf Channel, ESPN, and NBC Sports. You can also tune in to PBS, BET, Comedy Central and Nickelodeon, in addition to local channels and ABC, CBS, Fox and NBC. For kids and family, YouTube TV offers three Disney channels—Disney, Disney XD and Disney Junior—as well as Cartoon Network and PBS Kids. Source: Kiplinger

Suze Orman says most Americans have the "wrong, wrong, wrong" idea when they choose a financial adviser. In a blog post, the personal finance guru cites a 2017 survey that found 53% of Americans believe financial advisers are required by law to put their clients' best interests ahead of everything else when they give retirement advice. But that’s not the case. "Only advisers who operate as fiduciaries are promising to always put the client’s interest first," Orman explains. Retirement planning is complicated, and seeking help is a smart move. But you want help you can trust. So when you pick a financial adviser, you’d better find a fiduciary, she says, meaning an adviser who's looking out for you. Why finding a fiduciary is key A rule proposed in Washington a few years ago would have required all advisers to meet the fiduciary standard and avoid conflicts of interest, like pushing high-risk investments that might earn them commissions. But the proposal eventually died. And now, many advisers don’t act as fiduciaries, though Americans typically take them at their word that they always put their clients first. Orman saw firsthand how it often doesn’t happen. Before she was offering financial tips to millions of Americans on TV and through books, Suze Orman was a financial adviser herself for 17 years. The firm where she worked often promoted certain stocks. “The advice your sales manager gave you to sell (a product) to clients was many times not in the best interest of the client — it was in the best interest of the firm," Orman said, in a 2019 Q&A with ThinkAdvisor. Today, her advice for consumers is to ask advisers "if they are a fiduciary and if they will put that in writing if you work with them," she says in the blog. A handshake and a promise simply isn’t enough. Ask the right follow-up questions When shopping around and vetting advisers who can help you build a solid retirement plan, you’ll want to be clear about how they do business. "Get confirmation that they are a fiduciary or move on to interviewing someone else," Orman says. Ask questions like these to make sure you’re dealing with a fiduciary: Will you receive commission in addition to what I pay you? When advisers let you know that they don't receive commission for steering clients toward certain products, you can feel confident they'll provide unbiased advice and not simply peddle options that will earn them more money. Are you registered as both an adviser and as a broker? Some certified advisers may also be acting as brokers, meaning they’re working as salespeople while managing your money. Have you ever been disciplined by a professional or regulatory body? If an adviser's services have drawn complaints, it’s best to steer clear. Get the right adviser in your corner At the end of the day, the best person who can manage your finances is you. “How your money is invested, spent and saved impacts you more than anyone else,” Orman says. “With so much on the line, it makes no sense to not be engaged and on top of your finances.” But that doesn’t mean handling your retirement completely on your own. Financial planning services are more convenient than ever, available online and by phone. Choose an adviser carefully, and always choose a fiduciary. “If there’s something you don’t understand, an adviser is the perfect person to explain or teach," says Orman. "That knowledge is what will give you the confidence that you are making the right decisions for your future." Source: Yahoo Finance Learn More The Fiduciary Experience At Advisors Management Group.  To get started on your financial journey, download AMG's signed Fiduciary questionnaire!

As a home seller, your goal is to sell your property quickly for the most money possible. However, in the wake of COVID-19, you'll need to take some extra steps to adapt your selling strategy to the current market -- such as incorporating social distancing procedures with in-person home tours. Here, we've outlined several steps would-be sellers should take to seal the deal (safely!) and get top dollar for their home.   Clean and Declutter If you're thinking about putting your home on the market, give it a deep clean in preparation for potential buyers who may visit for an in-person tour. You should also declutter the entire space. That's because you want potential buyers to envision themselves -- and not your junk -- in the home. Decluttering reveals a room's dimensions, architectural details and natural light, according to REALTOR® Magazine. Of all the updates you can make in preparation for a resale, simply cleaning your home is among the least expensive, and it has a big impact. If you do it yourself, you'll only need to foot the bill for cleaning supplies. If you decide to have your home professionally cleaned, you can expect prices to range from $100 to $180 per hour for a cleaning service, according to HomeAdvisor.com. The fee will vary based on the size, location and condition of your home. Once the cleaning is done, it may be worth the investment to hire a professional home stager. This person will reconfigure your space using furniture, art and home decor items to make it more attractive to potential buyers.   Choose the Right Agent for You ust as you would with any contractor, it's smart to interview at least three agents who do a lot of business in your neighborhood or your condo building. Ask friends and neighbors for references. Or you can search for one on Realtor.com by clicking on the Find Realtors® tab. When interviewing potential agents, beware of the one who suggests listing your home for the highest possible price. Chances are, he or she is just trying to snag the listing; reality is, it won't likely sell for that much. This is a tactic that could deter buyers and delay the sale Once you've found an agent you'd like to work with, it's a good idea to commit to the shortest possible listing period -- say, three months -- and renew it if you'd like. But that doesn't mean you're stuck with an agent who turns out to be a nightmare. Before signing a listing agreement, make sure it outlines the agent's duties and includes clauses that allow you to terminate or opt out of the contractual relationship if certain circumstances change (say, a job opportunity fell through or your spouse died) or because you believe the agent has failed to perform.   Determine How Much You'll Have to Pay Your Agent Traditionally, the seller pays a commission ranging from 5% to 6% of the home's sale price. That amount is divided equally between the selling agent and the buyer's agent. For a lower-cost alternative, consider using an agent who works for Redfin, a real estate brokerage active in more than 90 U.S. markets. Sellers who list with a Redfin agent pay 1.5% of their home's sale price in commission -- or 1% if they also buy their next home from a Redfin agent within one year (the 1% rate isn't available in all cities). You still pay a 2.5% or 3% commission to the buyer's agent. So, the total commission ranges from 3.5% to 4.5%. If you have a nice home and are willing to pay more to sell quickly, consider an iBuyer (“i" is for instant), such as Opendoor, Offerpad, Redfin Now or Zillow Offers. If your home meets their criteria, they'll make you a free, no-obligation purchase offer. If you accept the offer, you can close for cash in as little as a week. You'll pay from 6% to 14% of the home's sale price, but you won't pay fix-up or carrying costs while you're trying to sell. If your home is older and in poor condition, you could list it with an agent to sell “as is" to fixer-uppers, flippers or landlords. You'll pay the usual agent's commission, but no fix-up expenses. If you want the quickest possible sale with the least hassle and expense, you could sell directly to a real-estate investor. To find one, ask for a referral from a local real estate agent, search by location at HomeVestors.com or WeBuyHouses.com, or respond to one of the "we want to buy your house" or “sell your house fast" solicitations you've probably received in the mail. (For more information, see Retirees, Sell Your Home Without a Hassle.)   Set the Right Price Your agent should provide you with a comparative market analysis, which examines the selling prices of homes similar to yours in size, amenities and location. You'll want to use it as a guide to help set your asking price. If it's a seller's market (meaning the demand is strong, but the supply is insufficient) and home prices continue to rise, you may get multiple bids that drive up your original list price. If buyers have the advantage and home prices are flattening or declining, you may have to negotiate a lower sale price or offer to pay some of the buyer's closing expenses. Remember, whatever purchase price you agree upon, it still must pass muster with an appraisal of the home's current market value, which protects the buyer and the mortgage lender.   Be Prepared to Disclose Your Home's Defects It's the law in most places to disclose knowledge of any material defects. You may be required to reveal known problems of your home's roof, walls, foundation, basement, plumbing, heating and electrical systems, as well as past pest problems and the presence of hazardous materials such as radon, lead paint and asbestos. Your state may even require you to fill out a standard disclosure form. Honesty is always the best policy. Even if you don't disclose problems, the buyer's home inspector is likely to discover them and your lack of transparency could cause the buyer to walk away. And, if he or she discovers the problem after the sale closes, you could be sued for misrepresentation or omission in your disclosure. You could proactively hire a home inspector to identify small and big problems that you can have fixed before listing your property. The cost of a home inspection will run you about $300 to $400, according to HomeAdvisor.com. The fee may vary by region and sometimes on the age, size and construction of the house.   Protect Yourself and Your Home in the COVID-19 Era As a seller, you have control over how your property is shown. This past spring, as the coronavirus outbreak emerged, many home sellers delayed listing their homes for sale or temporarily took them off the market. Meanwhile, the National Association of Realtors® (NAR) strongly urged members to conduct virtual showings and to limit in-person activity as much as possible. Many of the organization's other recommendations will persist as states and localities reopen for business. Your agent should discuss them with you. They include:   When Buyers Show Up, Leave! So you've done your best to prepare your home for sale: You've cleaned, decluttered, repaired and staged. Now, when it's being shown, leave the premises. You want the buyers to feel comfortable looking around your house, not wondering where they'll encounter you lurking next. If they have any questions, their agent will call yours. Besides, when you meet with buyers face-to-face, you might inadvertently reveal how motivated you are to sell and other clues that erode your negotiating power. With social distancing, it's probably safer not to be there, too.   Bridge the Gap Between Homes You may face the dilemma of wanting to buy your next home before having sold your previous one. Where will you get the money to make a down payment and close on the new home? You have a couple of options: You can make your purchase offer contingent on the sale of your current home. Sellers are most likely to accept the contingency if the local market is hot and your previous home is likely to sell quickly. (However, if they have received multiple offers, they may not accept an offer with any contingencies.) Or, you can borrow the money to cover a down payment and closing costs on your new home until your old one sells. Bridge loans, a type of home-equity loan formerly used for this purpose, have all but disappeared. But you can borrow the money you need from a home-equity line of credit secured by your current home, from an IRA or a 401(k), or from your investment portfolio. Ultimately, you'll want to weigh the risk that you could end up owning and paying mortgages on two homes for some time. The safest strategy is to sell first, then buy. For more about borrowing from your retirement accounts to buy a home, see How Home Buyers Can Tap an IRA Penalty-Free and Should You Borrow From Your 401(k)?   So You Sold at a Loss . . . Don't expect Uncle Sam to lend a helping hand if you lose money on the sale of your personal residence. Plenty of homeowners experienced losses if they had to sell in the aftermath of the housing crisis beginning in mid 2006. But, even in a healthy market where home prices are rising, you could lose money if you sell before you've increased your home equity enough (through home-price appreciation and paying down your mortgage balance) to offset your cost to sell.   Next Steps If You Profit From a Home Sale If you own and live in a home for a total of 24 months within the five years prior to the date of sale, you won't owe taxes on up to $250,000 in home-sale profits if single, or $500,000 in profits if married filing jointly. The home must be your main home (for criteria, see IRS Publication 23, Selling Your Home). That means most homeowners won't pay a dime to Uncle Sam on their home-sale profits. If you're married and filing jointly, only one spouse must meet the ownership test (one of you owned the home for a total of 24 months within the five years prior to the date of sale), but both of you must meet the residence test (you both lived in the home for at least 24 months). If you inherit a home, you'll only owe taxes on the stepped-up basis of the home. For exceptions to this rule (notably for divorced spouses, widows or widowers and members of the uniformed services, foreign service, intelligence agencies or Peace Corps on qualified, extended duty), the IRS Publication 523 provides guidance: You may qualify for a partial exclusion of any gain if the main reason for your home sale was a change in workplace location, a health issue, or an unforeseeable event.   The Tax Impact of Selling a Deceased Parent's Home Say your father bought his home in 1950 for $15,000. When he died, he left you the house, which is now worth $315,000. Do you have to pay taxes on the $300,000 gain? Probably not. When you sell the house, your gain or loss will be measured from the fair market value of the home on the date your mother or father died (the tax basis) of $315,000. If you sell for more, the difference will be taxed as a long-term gain. Be sure to keep track of selling costs including the real estate agent's commission, any closing costs you pay and the cost of repairs that you agree to pay after the buyer's home inspection. You can subtract these costs from the sale price of the home to reduce taxable profit. If you sell for less and your capital losses are more than your capital gains, you can deduct the difference as a loss on your tax return. You can claim up to $3,000 of the loss annually (or $1,500 if married and filing separately), and you can carry over the balance of the loss to next year's tax return.   Source: Kiplinger

Our routines have been turned upside down by the coronavirus pandemic. That includes the regular process of making estimated tax payments for people who are self-employed or don't have taxes withheld from other sources of taxable income (such as interest, dividends or capital gains). In a normal year, the first estimated tax payment for 2020 would have been due April 15, and the second payment for the year would be due June 15, 2020. But, of course, nothing is normal right now. Estimated taxes are typically paid in four equal installments—one installment for each quarter of the year. For the 2020 tax year, estimated tax payments for the first and second quarter aren't due until July 15, 2020. As a result, the 2020 estimated tax payment schedule is adjusted as shown in the table below.   Due Dates for 2020 Estimated Tax Payments Payment When Income Earned in 2020 Due Date 1st Payment January 1 to March 31 July 15, 2020 2nd Payment April 1 to May 31 July 15, 2020 3rd Payment June 1 to August 31 September 15, 2020 4th Payment September 1 to December 31 January 15, 2021 You don't have to make the payment due January 15, 2021, if you file your 2020 tax return by February 1, 2021, and pay the entire balance due with your return.   No Income Until Later in the Year? You don't have to make estimated tax payments until you have income on which you will owe tax. So, for example, if you don't have any taxable income until July 2020, you won't have to make an estimated tax payment until September 15, 2020. At that point, you can either pay your entire estimated tax by September 15, or you can pay it in two installments by September 15 and February 1.   Farmers and Fishermen If at least two-thirds of your gross income is from farming or fishing, you can make just one estimated tax payment for the 2020 tax year by January 15, 2021. If you file your 2020 tax return by March 1, 2021, and pay all the tax you owe at that time, you don't need to make any estimated tax payments.   How to Pay Use Form 1040-ES to calculate and pay your estimated taxes. There are a number of ways to pay estimated taxes, including by check, cash, money order, credit card and debit card. There are many online payment options, too, such as the Electronic Federal Tax Payment System (EFTPS). The various payment methods are described in the instructions for Form 1040-ES.   Penalties Whether you make estimated tax payments or rely on withholding, you could be hit with a penalty if you don't pay enough tax throughout the year. The penalty doesn't apply if you owe less than $1,000 in tax. You can also avoid the penalty if your 2020 withholding or estimated tax payments equal at least 90% of your 2020 tax liability, or 100% of the tax shown on your 2019 return (110% if your 2019 adjusted gross income was more than $150,000).   Don't Forget About Your State Finally, unless you live in a state with no income tax, you probably owe estimated tax payments to your state, too. Due dates for state payments may or may not coincide with the federal dates, so be sure to check with the appropriate tax agency in your state.   Source: Kiplinger

This has been a very different couple of months with many changes in everyone’s world.  Although we haven’t been able to meet in person, AMG has continued to work for you while social distancing and following recommended guidelines.  Fortunately, our offices were already set up to accommodate that, for which we feel very blessed.  We are so fortunate to have the technology to continue working and communicating with you, we have enjoyed talking with many of you via telephone or web-conference!    We wanted to reach out to you to give you a status update and let you know our plans moving forward in response to COVID-19 and all of the changes that have come with it.  Our plan is to open our lobbies on June 1st.  This will allow us to be here for you to drop things off and for you to briefly pick things up when needed.  We have had great success with telephone and web meetings, and we will continue to offer that indefinitely from here on out for those who prefer one of those methods.  In addition, beginning June 1st, we will also be offering in-person meetings again for those who choose.  Our only preference is that you have the options you are most comfortable with to do business with us. We are taking the continued health and safety of you and our team very seriously.  We have been disinfecting regularly and maintaining social distance.  We have been keeping up on CDC and Wisconsin DHS guidance and have used this to put together our own specific COVID-19 Response Plan.  This plan is meant to continue making everyone’s health & safety a priority while getting back to delivering things and meeting in person when you desire.  You can find a detailed copy of our detailed COVID-19 Response Plan Here:  COVID-19 Response Plan  A few highlights from our COVID-19 Response Plan that are specific to our offices: Surfaces and supplies are disinfected regularly. Hand sanitizer will be available to you in our office. Phone or Web meetings will be offered to you indefinitely.  For in-person meetings, you will be shown to a private conference room to wait for your meeting or for any discussion/questions rather than wait/discuss in the lobby. Following your current in-person appointment, we will call or email you to schedule future appointments to limit those in the lobby. In the case there is a line to the front desk within the lobby, a 6-foot distance will be maintained between those in line. Internal entry doors will be propped open during business hours in an effort to reduce surfaces being touched by multiple people. For income tax return and document pick up, we will be notifying you of a timeline to stop in and pick things up.  This is in an effort to spread out the traffic stopping in upon opening.  We have hundreds of people who may stop in, so we are doing this to be proactive.  If you are unable to stop in during the timeline given or wish to wait until closer to the filing deadline, please wait a couple of weeks past your assigned timeline to stop in or schedule an appointment.  Lobby interaction will be limited to: Brief drop off/pick up of documents Payment of services We know and appreciate that there are many opinions, comfort levels, and views on how doing business should and will look like moving forward.  We want to make everyone feel comfortable while giving you options, and we plan to do so responsibly at all times.  Thank you all for your patience.  If you have any questions about our COVID-19 Response Plan, please feel free to reach out to Jenna Deets at 608-782-0200 or jennad@amgteam.com.   Sincerely, Your AMG Team    CLICK HERE for a copy of our COVID-19 Response Plan

Home values rose across the country in 2019, which means many homeowners' property taxes are now going up, too. The taxes can hit particularly hard in states with the highest effective property tax rates -- New Jersey, Illinois, Texas, Vermont and Connecticut -- now that federal deductions for state and local taxes are capped at $10,000. If you’ve lost your job or suffered other financial setbacks because of the coronavirus pandemic, check with your county or other jurisdiction for property-tax relief. A number of states and counties have extended deadlines for property tax payments or offered other forms of relief. For example, several counties in Washington have delayed the first of two annual property tax payments from April 30 to June 1. West Virginia extended the deadline for payments for the second half of 2019 from April 1 to May 1. Iowa has suspended interest and penalties on late property tax payments. If you’re unable to pay on time and your state or county hasn’t extended the deadline, contact your property tax office. You may qualify for a program that will waive fees or interest on late payments. If your property tax bill has increased significantly, you may have grounds for an appeal, particularly if the increase seems out of line with overall appreciation in your area. Most jurisdictions give you 90 days after you receive a new assessment to appeal, although some close the appeals window after 30 days, says Pete Sepp, president of the National Taxpayers Union. Some lawyers handle property tax appeals on a contingency basis, but most homeowners can appeal on their own, Sepp says. Plenty of property owners challenge their assessments each year, and between 20% and 40% of them win lower assessments and lower property tax bills. The following steps will show you the way to success.   Step 1: Know the Rules Schedules vary, but local governments commonly send assessment notices to homeowners in the first few months of the year. As soon as you get yours—or even before—check the deadline for challenging the value. You may have just a few weeks. And be sure you know how your locality assesses property. Some set the tax assessment at a percentage of market value—80%, for example—so don't be smug if you get a $90,000 assessment on a home you think is worth at least $100,000.   Step 2: Catch a Break When you get your property tax bill, check it for your tax rate, assessment figures and payment schedule, and make sure that you're getting the tax breaks you deserve. Some states allow anyone who owns and lives in a primary home to shield a portion of its value from taxation. You may be eligible for credits based on your income or status as a senior citizen, veteran or disabled person. In Florida, for example, all homeowners are eligible for a homestead exemption of up to $50,000; those 65 and over who meet certain income limits can claim an additional $50,000. Illinois Gov. J.B. Pritzker recently signed legislation that will make it easier for seniors in Cook County—which includes Chicago and is the state's most populous jurisdiction—to apply for a property tax break of up to $8,000 a year. Rebates and other property tax breaks aren't automatic: you usually have to apply for them and show proof of eligibility. Contact your state's department of taxation or visit its Web site to see what breaks are available to you.   Step 3: Set the Record Straight Check your property's record card, which you'll find at your assessor's office or possibly on its Web site. This is the official description of your house, and if you see an outright error—indicating four bedrooms and three-and-a-half bathrooms for your two-bedroom bungalow, for example—the assessor may fix the problem on the spot, reduce the assessed value and your tax bill. That'll save you the trouble of a formal appeal.   Step 4: Size Up the Neighbors We'd never tell you to keep up with the Joneses, but comparing your property to similar ones in your neighborhood will determine whether you have a solid case. Pull up property cards of several homes of similar age and square footage and with the same number of bedrooms and bathrooms to see how their assessments line up with yours.   Step 5: Build Your Case If you find that your assessed value is considerably higher than several similar homes, you may have grounds for appeal. But even if the assessment falls into the middle of the pack, it's not necessarily fair. Maybe your house has a leaky basement or lousy grading that doesn't allow you to have a garden. The assessment should be based on the market value of your home; if your place has issues that would turn off buyers, now's the time to own up to them   Step 6: Fight City Hall The process varies by locality, but you'll likely send your appeal and your evidence—data on comparable properties, blueprints, photographs, repair estimates—to the assessor for review. You should get a verdict within a couple of months. If you're dissatisfied, take your case to the appeals board and put your persuasive skills to work. Don't whine, and save your opinions on politics and tax rates for elected representatives who vote on those matters.   Step 7: Enlist Troops If you don't have time, or the stomach, to do battle yourself, get a hired gun to do the legwork for you. A professional appraiser can provide the strongest evidence of your property's worth. If your community allows outside appraisals—and if you're willing spend at least $250 -- find an appraiser with national certification, such as through the Appraisal Institute or the American Society of Appraisers. Don't fall for solicitations from law firms or other services saying they'll assist you in return for a high percentage of the savings on your bill—it's not worth the cost.   Step 8: Reap the Rewards If you need added incentive to bring a skeptical eye to your real estate appraisal, remember this: A successful appeal is truly the gift that keeps on giving, year after year. Raise a toast to your success.   Source: Kiplinger

ou may be wondering about your odds of an IRS audit. Most people can breathe easy. The vast majority of individual returns escape the IRS audit machine. In 2018, the Internal Revenue Service audited only 0.59% of all individual tax returns, and 81% of these exams were conducted by mail, meaning most taxpayers never met with an IRS agent in person. So the odds are generally pretty low that your return will be picked for review. That said, your chances of being audited or otherwise hearing from the IRS escalate depending on various factors. Math errors may draw IRS inquiry, but they'll rarely lead to a full-blown exam. Check out these 10 red flags that could increase the chances that the IRS will give the return of a retired taxpayer special, and probably unwelcome, attention.   Making a Lot of Money Although the overall individual audit rate is only about one in 170 returns, the odds increase as your income goes up, as it might if you sell a valuable piece of property or get a big payout from a retirement plan. IRS statistics for 2018 show that people with incomes between $200,000 and $1 million who do not file a Schedule C had an audit rate of 0.6%. The rate is 1.4% for Schedule C filers. Report $1 million or more of income? There's a one-in-31 chance your return will be audited. We're not saying you should try to make less money — everyone wants to be a millionaire. Just understand that the more income shown on your return, the more likely it is that you'll be hearing from the IRS.   Failing to Report All Taxable Income Failing to report taxable income from wages, dividends, pensions, IRA distributions, Social Security benefits and other sources will almost certainly draw unwanted attention from the IRS. The IRS gets copies of all the 1099s and W-2s you receive. This includes the 1099-R (reporting payouts from retirement plans, such as pensions, 401(k)s and IRAs) and 1099-SSA (reporting Social Security benefits). The IRS's computers are pretty good at matching the numbers on the forms with the income shown on your return. A mismatch sends up a red flag and causes the IRS computers to spit out a bill. So, be sure to report all income, whether or not your receive a form such as a 1099. For example, if you got paid for tutoring, giving piano lessons, driving for Uber or Lyft, dog walking or selling crafts through Etsy, the money you receive is taxable.   Taking Higher-Than-Average Deductions If deductions on your return are disproportionately large compared with your income, the IRS may pull your return for review. A large medical expense could send up a red flag, for example. But if you have the proper documentation for your deduction, don't be afraid to claim it. There's no reason to ever pay the IRS more tax than you actually owe.   Claiming Large Charitable Deductions We all know that charitable contributions are a great write-off and help you feel all warm and fuzzy inside. However, if your charitable deductions are disproportionately large compared with your income, it raises a red flag. That's because the IRS knows what the average charitable donation is for folks at your income level. Also, if you don't get an appraisal for donations of valuable property, or if you fail to file Form 8283 for noncash donations over $500, you become an even bigger audit target. And if you've donated a conservation or façade easement to a charity, chances are good that you'll hear from the IRS. Be sure to keep all your supporting documents, including receipts for cash and property contributions made during the year.   Not Taking Required Minimum Distributions The IRS wants to be sure that owners of IRAs and participants in 401(k)s and other workplace retirement plans are properly taking and reporting required minimum distributions. The agency knows that some folks age 70½ and older aren't taking their annual RMDs, and it's looking at this closely. Those who fail to take the proper amount can be hit with a penalty equal to 50% of the shortfall. Also on the IRS's radar are early retirees and others who take payouts before reaching age 59½ and who don't qualify for an exception to the 10% penalty on these early distributions. Individuals age 70½ and older must take RMDs from their retirement accounts by the end of each year. However, there's a grace period for the year in which you turn 70½: You can delay the payout until April 1 of the following year. A special rule applies to those still employed at age 70½ or older: You can delay taking RMDs from your current employer's 401(k) until after you retire (this rule doesn't apply to IRAs). The amount you have to take each year is based on the balance in each of your accounts as of December 31 of a prior year and the life-expectancy factor found in IRS Publication 590-B.   Claiming Rental Losses Claiming a large rental loss can command the IRS's attention. Normally, the passive loss rules prevent the deduction of rental real estate losses. But there are two important exceptions. If you actively participate in the renting of your property, you can deduct up to $25,000 of loss against your other income. This $25,000 allowance phases out at higher income levels. A second exception applies to real estate professionals who spend more than 50% of their working hours and more than 750 hours each year materially participating in real estate as developers, brokers, landlords or the like. They can write off rental losses. The IRS actively scrutinizes large rental real estate losses. If you're managing properties in your retirement, you may qualify under the second exception. Or, if you sell a rental property that produced suspended passive losses, the sale opens the door for you to deduct the losses. Just be ready to explain things if a big rental loss prompts questions from the IRS.   Running a Business Schedule C is a treasure trove of tax deductions for self-employed people. But it's also a gold mine for IRS agents, who know from experience that self-employed people sometimes claim excessive deductions and don't report all their income. The IRS looks at both higher-grossing sole proprietorships and smaller ones. Sole proprietors reporting at least $100,000 of gross receipts on Schedule C, cash-intensive businesses (hair salons, restaurants and the like), and business owners who report a substantial loss have a higher audit risk.   Writing Off a Loss for a Hobby Your chances of "winning" the audit lottery increase if you file a Schedule C with large losses from an activity that might be a hobby, such as dog breeding, jewelry making, or coin and stamp collecting. Your audit risk grows if you have multiple years of hobby losses and you have lots of income from other sources. IRS agents are specially trained to sniff out those who improperly deduct hobby losses. So be careful if your retirement pursuits include trying to convert a hobby into a moneymaking venture. To be eligible to deduct a loss, you must be running the activity in a business-like manner and have a reasonable expectation of making a profit. If your activity generates profit three out of every five years (or two out of seven years for horse breeding), the law presumes that you're in business to make a profit, unless the IRS establishes otherwise. If you're audited, the IRS is going to make you prove you have a legitimate business and not a hobby. Be sure to keep supporting documents for all expenses. Failing to Report Gambling Winnings or Claiming Big Losses Whether you're playing the slots or betting on the horses, one sure thing you can count on is that Uncle Sam wants his cut. Recreational gamblers must report winnings as other income on the 1040 form. Professional gamblers show their winnings on Schedule C. Failure to report gambling winnings can draw IRS attention, especially because the casino or other venue likely reported the amounts on Form W-2G. Claiming large gambling losses can also be risky. You can deduct these only to the extent that you report gambling winnings. Writing off gambling losses but not reporting gambling income is sure to invite scrutiny. Also, taxpayers who report large losses from their gambling-related activity on Schedule C get an extra look from IRS examiners, who want to make sure that these folks really are gaming for a living.   Neglecting to Report a Foreign Bank Account You may be traveling more in retirement, but be careful about sending your money abroad. The IRS is intensely interested in people with money stashed outside the U.S., and U.S. authorities have had lots of success getting foreign banks to disclose account information. Failure to report a foreign bank account can lead to severe penalties. Make sure that if you have any such accounts, you properly report them. This means electronically filing FinCEN Form 114 (FBAR) by April 15 to report foreign accounts that total more than $10,000 at any time during the previous year. And those with a lot more financial assets abroad may also have to attach IRS Form 8938 to their timely filed income tax returns.   Source: Kiplinger

With a fair amount of fanfare, the IRS recently released its "Get My Payment" tool. This online app—located on the IRS website at irs.gov/coronavirus/get-my-payment—is supposed to let you: Check the status of your stimulus payment; Confirm your payment type (paper check or direct deposit); Get a projected direct deposit or paper check delivery date (or find out if a payment hasn't been scheduled); and Enter your bank account information for direct deposit if the IRS doesn't have your direct deposit information and they haven't sent your payment yet. Unfortunately, however, many people (millions?) can't get any information out of this tool. They keep getting a message saying: "Payment Status Not Available. According to information that we have on file, we cannot determine your eligibility for a payment at this time." It can be very frustrating if you're one of the people getting this message every day—believe me, I know, because I'm one of them. According to the IRS, there are several reasons why the "Get My Payment" tool will give you the "Payment Status Not Available" messages, including: The IRS hasn't finished processing your 2019 return; The tool doesn't have your data yet; You used the "Non-Filers: Enter Payment Info Here" tool, but the IRS hasn’t processed your entry yet; You receive Social Security benefits, Supplemental Security Income (SSI), Railroad Retirement Board benefits, or Veterans Administration benefits, and the necessary information from the agency that administers those benefit programs hasn't been loaded onto the IRS system yet (for people who don't normally file a tax return; or You're not eligible for a payment. For many of us, it looks like we'll just need to wait a little longer. The IRS updates the tool once per day (overnight), and they're working on adding more data to allow more people to use the tool. So, I guess working a little harder on being patient will do me some good. source: Kiplinger