Saturday, December 21, 2019

Sweeping Changes to Retirement and Required Minimum Distributions (RMD)


One of the biggest changes to RMD and tax planning in the last 20 years is now going into effect on Jan 1, 2020.  This is part of the SECURE act passed this week.

We will be hosting a workshop on January 21, 2020 at the Perry Hall MD Library to review all the details of this dramatic change.

REGARDING RMD IF YOU ARE NEAR AGE 70 1/2;

So, if you turn 70 1/2 by the end of 2019, you will need to start taking RMDs for 2019. The first one needs to come out by April 1, 2020. 

However, if you turn 70 1/2 after Jan. 1, 2020, you now won’t be required to take an RMD for 2020. In fact, no one will be required to take a 2020 RMD based on turning 70.5 in 2020 or turning 72 in 2020

REGARDING LIFE EXPECTANCY TABLES;
Expect new life expectancy tables for 2021 and beyond.  This will not have an impact for tax years 2019 or 2020. Again, these are the tables used to calculate your RMD for your DEC 31 retirement balances.  We will have more clarity on this for 2021, but the changes are certain.  

These changes, along with the 2018 income tax changes are the most sweeping of the past two decades.  It will erase a lot of financial and tax planning.  

On top of this, we will no longer be able to have the benefit of stretch IRA accounts in estate planning.  This will make billions for the Treasury, but put a hefty burden on your beneficiaries.  

Please contact our offices in West Chester, Wilmington DE, or White Marsh MD for additional information.   
Mark your calendar for our January 21 workshop. Space is limited. 

Press Contact:  B. Michael Shanley  (610) 515-5800  

*Information contained herein is not tax or financial advise. Please consult your advisor for your specific situation. 


Friday, February 1, 2019

Special Workshops for GM White Marsh Workers

"We have seen these types of cuts all over the I-95 corridor in the past 5 years" said B. Michael Shanley, President of the Brandywine Advisors Group, LLC   It started in Wilmington with the DuPont/Dow buyouts, and now is affecting those working at the General Motors Plant in White Marsh, Maryland.  GM announced in November of the cuts in this plant, as well as other in the US and Canada.
Workers will face big decisions about buyouts, layoffs, health care, Social Security, among other issues like relocation and job training.

Brandywine Advisors Group will offer several small workshops at the White Marsh Public Library this February and March.  Any family that would like to discuss your options with a professional team of advisors, tax experts, retirement income planning experts please call our office at (410) 515-5800.  We will be posting the dates of the workshops shortly, but we can help anybody in need sooner.  There is no charge for the consultation, and we are happy to explore your concerns.

We understand your anxiety over all the sudden decisions that you will need to make.  Our team has worked with many families that have gone through this same process.

You can request a meeting by calling or go to www.BrandywineValleyGroup.com  for an appointment request.  We hope that whatever road you travel, that you have a smooth ride and enjoy the sights along the way.

Our White Marsh office is located across from the Public Library and a few miles from the GM plant.

Thursday, January 17, 2019

IRS and Tax Filing Update During Government Shutdown


Here is the most recent information we have during this partial government shutdown.  We do not have the schedule of updated tax software.  Please go to the IRS website for more up-to-date information.

The IRS Will Accept E-Filed Tax Returns on Jan. 28
Despite the partial government shutdown, the IRS announced that they will begin accepting and processing individual tax returns on Jan. 28, 2019.

Read more about this announcement on IRS.gov.
The IRS Plans to Issue Refunds as Scheduled
In addition, the IRS announced recently that refunds would go out even if a partial government shutdown persisted. Please remember, it can take up to 21 days  to get a refund from the IRS after you file the return.

Some IRS Operations Remain Limited
In addition, the IRS announced on Jan. 15 that while some of its operations will be operating as normal, others will be limited during the appropriations lapse:
  • The IRS processes for refund fraud detection and ID theft prevention will continue to operate as normal.
  • Automated systems, such as Where’s My Refund, will remain operational.
  • While in-person assistance locations will remain closed, IRS will be bringing staff back to answer phones, but at a reduced level that may increase wait times.
We hope that if you have any questions, please call Tabatha at 410-515-5800 for your tax return appointment today.   Join B. Michael Shanley on Feb 7 and 12 at the White Marsh Library for a very important workshop on Taxes in Retirement.  Seating is limited, please call for reservation today.



Sunday, January 6, 2019

Tax Time and Workshops - White Marsh Maryland

We welcome in 2019 with some new changes to our team and locations!  We have completed the purchase of Accurate Business Services in White Marsh, Maryland.  This adds another level of professional skills and services to all clients.  Bill and Donna Feehley decided it was time to retire, and Michael was looking for a great team of tax and bookkeeping professionals.  The Brandywine Advisors Group will now have a full tool box to assist families, business owners, and start-up businesses.  The focus will be tax planning and preparation, payroll and bookkeeping, valuation, and new company formations.  The group is also focused on retirement planning with key strategies for capital preservation and lifetime guaranteed income.  Going forward, the team can now offer a one-stop financial services platform.  This platform is what clients have asked for as retirement and taxes become more complicated and confusing.
Kicking off the year with three workshops at the White Marsh Public Library for important information on Taxes in Retirement.  Baby boomers are hitting the "tax torpedo" without any warning!  Your host, B. Michael Shanley will discuss the options, the strategies, and the long term plan for lower taxes, higher yields, and lifetime financial security.  Dates are for January 14, February 7 and 12.  Seating is limited, reservation required.

Please call (410) 515-5800 for your reservation today.  www.AccurateBusiness.com

Have a very blessed 2019 and we look forward to seeing you soon!  


Thursday, November 22, 2018

Thanksgiving Advise from your Brother in Law

It all looked very, very easy a year ago this week, yes I am talking about BITCOIN.  Moving up the charts faster than anyone could believe.  Well, the proof is in the proverbial pudding now.  If you had listened to that brother-in-law about how Bitcoin was the next Amazon, Google, or Netflix, he was dead wrong.  It has proven to be the worst investment, correction, gamble of the year. 
All the talking heads, CNBC, FOX, Warren Buffet, had to try to put a spin on this cyber freak currency.  The rest of us watched the show from the sidelines. 
It has all the makings for a bust, no SEC, no asset based backing, traded in complete secrecy, and of course, now we know, manipulated for the benefit of early gamblers.  FOMO at its finest, better then the dot com bust, the penny stock bust, and right out of the pages of boiler-room (the movie).

If you lost 50-60% in a year, that is too bad.  If you feel that you where a victim of manipulation, fraud, sales fraud, or just plain old injustice - Good Luck.  You played in the wild west.  No law of the land, no enforcement agency, and of course not a shoulder to cry on. 

I hope your brother-in-law is picking up the tab this Holiday season, it is the least he could do....  be nice to him, he may have to be cutting grass for a long time. 

EDSEL, YUGO, PINTO, BITCOIN.........I will not go on....

Blessings for the Holiday Season, B. Michael Shanley

Friday, January 1, 2016

Help for DuPont Employees

DuPont announced this week that it will cut 1,700 jobs from the Wilmington, Delaware area. In a filing with the SEC, the company announced the cuts as part of a broader, 5,000 job downsize as the company prepares to merge with Dow Chemical.  The company expects to notify employees by January 4, 2016.
An icon for the Northern Wilmington business community for over 200 years, DuPont has employed generations of Delaware residents. The downsize and merger is part of a global trend of large corporations seeking to increase earnings by consolidation and selling off smaller, specialized business units.  Shareholders and activist have been pushing DuPont in recent years to make significant changes to the company balance sheet.

The Brandywine Valley Advisors Group will offer no cost workshops and seminars to those DuPont families that have been affected by this recent news.  B Michael Shanley has hosted monthly workshops in the area that help local retirees understand the complexity of social security, pensions, and IRA income strategies. These workshops will focus on how to plan a retirement that can provide guaranteed lifetime income to families, without fear of economic downturn, poor investment returns, and health problems.  A schedule of workshops will be released soon.

Please visit www.BrandywineValleyGroup.com for more up-to-date information.

Tuesday, December 22, 2015

Call 2015 the Year of Hope

As the calendar winds down, this past year has proven out to be much to do about nothing. A very long awaited, almost 3 years, hike in Fed interest rates came about with nothing more than a slight raise in the prime.  The new normal is certainly running the global economies. That normal is quantitative easing, currency manipulation, central bank liquidity, and Hope that all this will stabilize world markets.  There is great Hope that the Fed can normalize interest rates in time to prevent another global financial crisis.  It will be very difficult to accomplish if commodity price stay low and the dollar remains high.  Increasing domestic interest rates, with a low growth GDP, may cause deflation, therefore lowering values on all asset classes including equities and real estate.
   This interest rate increase is on uncharted waters. It is only a Hope that unemployment will fall and GDP will provide stable growth.  It is also a Hope that China remains at a growth level above 7%.  Many specialist predict that this may not be the case, and using voodoo economics, China is masking an industrial and consumption slowdown.
 The biggest Hope involves DEBT.  As interest rates rise, companies will use more cash flow to pay interest on highly leveraged balance sheets.  Sectors like energy and health care are already feeling the effects and cause a big ripple in the junk bond market. Many public companies are borrowing money to pay dividends to shareholders, this will also be an increased cost in 2016.  Stocks with good dividends are attractive to investors when markets are moving sideways and retirement portfolios are seeking yield.
There is another Hope, that is the Hope that we are not in an earnings recession.  It will take some time to determine, as many companies are using free cash to do stock buy-backs. This process will increase earnings per share, but it is hard to sustain if cash dries up.
We can HOPE for a few things; Blessings of health and happiness in 2016, good friends and family, good health and well-being for all.  Happy Holidays!  All the Best for 2016!