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This has been a week of “attack of the killer CPA”.  I have been on the warpath against the spotted lantern fly nymphs that appeared on my fig tree Saturday afternoon and the green/white aphids which showed up on my tomato plants Wednesday morning.  I am so grateful for the many garden blogs and articles I have accessed this week. I started with a spray bottle of white vinegar and graduated to a pump sprayer which I filled with a Neem oil, dish soap and water mixture.  Every morning I find less and less bugs on my plants, I just hope the plants survive my killing spree. Gardening tip: check your plants daily even under the leaves and cover new plantings with mosquito netting to avoid the bugs from the start.

I hope you have great plans for the day and weekend and you do not have these invasive bugs in your gardens.

Weekly Take-Away

ChatGPT is in the news these days, taking the LSAT, SAT, GRE and AP exams, writing legal briefs, charting out health and fitness programs complete with recipes, and helping with those pesky technical emails that seem to take a half hour to get right and then edit with “good morning hope you are doing well” .  Sometimes ChatGPT works well, sometimes not so well. “OpenAI notes that GPT-4 scores in the top decile on the bar exam, whereas GPT-3.5 scored in the bottom 10 percent.”  We used to call my mom GTP for grandma Teddy (Theda) Parness, she was really funny and smart and pretty chatty so we call this new app ChatGTP and can see that as a tool it could be beneficial as long as you take the time to determine “best uses” and gain an understanding of it’s strengths and weaknesses, then test and use caution before relying on it.  I know I need help with my spelling, but I get plenty of help from Google and spellcheck.  NOTE:  I did not run this post by ChatGPT or ChatGTP and have not downloaded the app yet, but I am planning to start the leaning and testing process soon.

TAX ISSUES/TAX PLANNING

The Build It in America Act (H.R. 3938) May Not be Passed in Time for 2022 Extended Tax Returns

The Build It in America Act (H.R. 3938)  the purpose of which is “To amend the Internal Revenue Code of 1986 to encourage economic growth”, would extend “the ability for companies to immediately deduct research and development (R&D) costs (IRS Code Section 174), extend interest deductibility for borrowing costs for small- and mid-sized businesses and stop agricultural land purchases by foreign adversaries with a tax rule”. This bill introduced by the House committee on Ways and Means may not be passed by the extended corporation due date of September 15th and as such some tax returns may need to be amended in order to take advantage of the benefits provided by this bill.  Click through here for more specifics.

Good Financial Advice is a Great Investment for Your Retirement

The right financial advisory team can provide you with short term benefits and set you on a path for financial security during your retirement.  You can gain major benefits when your accounting  and legal professionals can connect and work with your investment advisor, and we recommend you take as much care when choosing a financial advisor as you do when choosing your accountant and attorney.  Here are the Why’s and When’s

• Manage Inflation and Market Volatility: Inflation and market volatility can have a significant impact on the value of your retirement savings. A financial advisor can help you navigate these challenges by protecting your investments and adapting to changing market conditions, ensuring that your retirement funds remain secure and continue to grow.
• Estate Planning and Wealth Transfer: Good financial advice extends beyond retirement planning to include estate planning and wealth transfer strategies.  Again this is why working as a team is so important – tax strategies can work, but the investments must be secure as well.
• Selection Process: When selecting a financial advisor, consider their professional qualifications, as well as their track record of success in retirement planning. This will help you gauge their expertise and ensure that they are well-equipped to address your specific needs.
  • • • Understanding how advisors are compensated is crucial when comparing different providers. Make sure you are aware of their fee structure and any potential conflicts of interest. Transparency is key to building a trusting relationship with your financial advisor.
      • A good financial advisor should provide regular updates on your portfolio performance and be available for consultations and meetings when needed. Effective communication ensures that you remain informed about your investments and can make well-informed decisions.
• Timing is Everything:  While it’s never too early or too late to seek financial advice, certain life events and milestones may prompt you to consult a professional. These include major changes in your financial circumstances, such as receiving an inheritance, experiencing a job loss, or approaching retirement age. Periodic financial check-ups can also help ensure that your retirement plan remains on track and adapts to any changes in your life.

ECONOMY

Social Security COLA Could be Minimal for 2024

This year we saw a social security cost of living adjustment (COLA) increase of 8.7%.   According to a forecast from The Senior Citizens League a non profit seniors group the “cooling inflation rates we are seeing could mean a 2.7% COLA for 2024 for social security benefits”.

Americans Have Nearly $1 trillion in Credit Card Debt

Americans have a staggering amount of credit card debt, totaling nearly $1 trillion, averaging to about $5,700 per person. High interest rates and inflation are adding to the problem. Credit card debt is a major financial burden for many Americans, and can have long-term consequences.

Debt Ceiling Deal Done? Here’s What’s Next for Bond ETF Investors

The debt ceiling agreement has helped ease macro-level concerns but could pose new challenges for bond exchange-traded fund (ETF) investors.

Fed Is Set to Pause and Assess the Effect of Rate Hikes

The Federal Reserve has decided to pause its interest rate hikes and assess the effects of the previous hikes. This decision was made in order to assess the impact of the rate hikes on the economy and to determine if further hikes are necessary.

Wage Growth Slowing Sharply in US, Indeed says

According to Indeed, wage growth in the US is slowing rapidly. The wage tracker – based on salaries for job advertisements listed on Indeed – showed that salaries were up 5.3% in May compared with the same time one year ago. That is a marked drop from January 2022, when wages were up about 9.3%, suggesting that employers are facing less competition for new hires. Based on the current trajectory, wage growth will likely return to its pre-pandemic range of about 3% to 4% late this year or early in 2024.

FDC Data Analysis Shows Bank Impersonation is the Most Reported Text Message Scam

The FTC ranks the top five types of text message scam reported in 2022, with examples of each showing the ways that scammers craft messages designed to deceive consumers. Fake bank security messages, often supposedly from large banks like Bank of America and Wells Fargo, were the most common type. These texts are designed to create a sense of urgency, and those who respond are connected to a fake bank representative.

GENERAL RESOURCES

• IRS resources for stimulus payments:
  • Use the Get My Payment tool to check on EIP payment status
  • Eligibility and general information about Economic Impact Payments
  • A list of frequently asked questions for stimulus payments
• IRS information about the Advance Child Tax Credit Payments
  • Portal to update information
  • A list of frequently asked questions on the advance Child Tax Credit Payments
• The best source for up-to-date and accurate health information is the Center for Disease Control (CDC)
• Our prior blog posts, videos and prior weekly newsletters
• Entrepreneur put together a listing of free tech resources for remote work
• The Consumer Financial Protection Bureau has warnings about COVID-related scams
• The New York Times has an online newsletter on K-12 and higher education
• The Wall Street Journal has a collection of articles on education
• The Louvre has digitized 482,000 artworks from its collection
• How to create a strong password

We sincerely hope that you and your family are well and remain well. If you have any questions or concerns, don’t hesitate to reach out to us. We are here for you.

If you need help with your accounting, want to create a tax minimization plan, want to discuss your business growth plan or your finances, are concerned about retirement goals or need to be held accountable for your 90 day action plan, contact us for a complimentary discovery session or an appointment to just get started

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