Louisville Magazine is Louisville's city magazine, covering Louisville people, lifestyles, politics, sports, restaurants, entertainment and homes. Includes a monthly calendar of events.
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Special Advertising Section Working with a professional doesn't mean we should stop learning for ourselves. MyMoney.gov explains that the recent economic crisis highlighted how essential it is that individuals and families have the information, education, and tools they need to make sound fnancial decisions in an increasingly complex U.S. and global fnancial system. MyMoney.gov is the U.S. government's website dedicated to teaching all Americans the basics about fnancial education. It is a one-stop online resource for information about buying a home, balancing your checkbook, or investing in your 401(k). Tere are a number of fnancial publications that will keep you informed about changes and anticipated trends. As an example, Te Kiplinger Washington Editors' 2013 forecast includes these fve key issues which may infuence your fnancial decision making process this year: year-end in both starts and sales as the housing recovery speeds up. 3. U.S. oil production will hit a 20-year high of more than seven million barrels a day. Expect gasoline to average about $3.70 per gallon. Achieving fnancial goals in the current economy may best be accomplished by educating yourself and building relationships with trusted fnancial professionals. Tis banking, fnance and wealth management section taps into the knowledge of several local experts to help you grow and protect your fnancial investments. 4. Te new health care law will roll out on schedule. Enrollment start October 1. • Learn about the evolution of wealth advisors in the current economy 5. Next-generation smart phones will serve as personal assistants. Sensors and apps will track everything. • Uncover the beneĕts of reĕnancing and determine if it is the right choice for you 2. Your taxes are going up. Cost to a typical family: about $2,000. "An investment in knowledge pays the best interest." 1. Housing will be 2013's MVP. Look for a return to pre-boom numbers by —Benjamin Franklin • Get an education on the ĕscal cliČ agreement and resulting tax changes and potential market impact Work Cited: kiplinger.com/article/business/T019-C000S005-13-bold-forecasts-for-2013.html http://www.mymoney.gov/ Ask the Experts Q. How are interest rates determined? A. Interest rates fuctuate based on a variety of factors, including infation, the pace of economic growth, and Federal Reserve policy. Over time, infation has the largest infuence on the level of interest rates. A modest rate of infation will almost always lead to low interest rates, while concerns about rising infation normally cause interest rates to increase. Our nation's central bank, the Federal Reserve, implements policies designed to keep infation and interest rates relatively low and stable. Q. When should you refnance? A. Typically homeowners believe a drop in interest rate of 1% is the rule of refnancing; however, this belief is not always the best rule. Many times the determining factors should be how quickly you can recoup the closing costs of the refnance and how long you are going to be in the home. If you are planning on moving in a short period of time, it generally would not make sense to refnance as you would not get a chance to break even with the closing costs. ——Chris Steiner Vice President, Regional Manager of Mortgage Lending, RepublicBank 48 LOUISVILLE MAGAZINE 2.13 Q. What about the 0% long term capital gains rate? A. Te 0% rate for long-term capital gains continues under the American Taxpayer Relief Act of 2012. Long-term gains qualifying for this rate are those which fall below the top of the 25% tax bracket. Tis provision was set to expire in 2013 but was made permanent by the Act. Q. What are the tax rates now for qualifed dividends? Weren't they going to be taxed as ordinary income? A. Te Act also makes the provision for taxation of qualifed dividend income at the long-term capital gains rates permanent. Q. Isn't there an 18% capital gains rate going into efect in 2013? A. If the Bush tax cuts had expired, an 18% rate would have been revived for qualifed fve-year gains. Te rate enacted in 1997 took eČect in 2001 but was overturned by subsequent law. će Act makes permanent the provision in the Bush tax cuts and meansthe18%ratewillnottakeeČectandhasbeenpermanently repealed. —Gregory King, CPA Vice President J.J.B. Hilliard, W.L. Lyons, LLC