Friday Financial Five – March 4, 2016
Friday, March 04, 2016
The deadline for filing corporate tax returns without extension is March 15th. This year, owners can count on the Section 179 deduction for qualifying software and equipment. The tax-extension bill makes permanent the $500,000 maximum for the year. Bonus depreciation was extended through 2017, allowing a 50 percent deduction on new equipment purchases in 2015. Some business owners will also have to navigate the tax ramifications of the Affordable Care Act for last year but especially going forward. The IRS website provides information to assist in that process.
Another list for best places to retire
Markets have been turbulent this year, but that doesn’t mean one can’t dream about the ideal retirement locale. Bankrate’s list of most favorable states for retirement is based on crime, the cost of living, taxes, and weather, among other qualifications. An enviable tax environment and low crime numbers help Wyoming top the list and Rhode Island, often at the bottom of retirement lists, makes a surprise appearance in the 22nd spot thanks to health care quality. New York assumes the bottom position at 50th with the worst tax environment and near-worst cost of living.
Retirement health spending rises with increased longevity
Fidelity’s most recent calculation for total retirement healthcare costs show an increase from $220,000 to $245,000. This figure assumes the total spending for two 65 year olds retiring in 2015 and doesn’t account for long term care or over the counter medications. The result reinforces how important the use of a Health Savings Account can be to accumulate funds, especially for those early in the working career.
Women more likely to face retirement impoverishment
A troubling report from the National Institute on Retirement Security finds that women are 80 percent more likely than men to fall into poverty in retirement. Women age 65 and older have a retirement income 25 percent lower than men and that gap increases to 44 percent at age 80. Also cited was a Vanguard report showing that in 2014, the median retirement account savings was $36,875 for men and $24,500 for women.
Billionaires club takes a small hit
Forbes has uncovered an unsettling trend for the ultra-wealthy: the number of billionaires is shrinking. The 2016 list counts 1,810 billionaires, a drop of 16 from last year, while the group’s average net worth dropped from $3.86 billion to $3.58 billion. Bill Gates still tops the list at $75 billion, while two-thirds of the list includes billionaires who are self-made.
Dan Forbes, a CFP Board Ambassador, is a regular contributor on financial issues. He leads the firm Forbes Financial Planning, Inc in East Greenwich, RI and can be reached at [email protected].
Related Slideshow: Oregon Business Rankings in US
See how Oregon stacked up against the other states in the U.S.
Oregon gets a C+ for small business friendliness from Thumbtack, in conjunction with the Kauffman Foundation.
According to the ranking:
Overall friendliness C+
Ease of starting a business B
Ease of hiring D+
Health & safety D
Employment, labor & hiring D
Tax code D+
Training & networking programs B+
Oregon has been ranked as the 2nd most eco-friendly state in the country, according to a recent study by WalletHub.
Oregon ranks eighth in environmental quality and first in Eco-Friendly Behaviors landing them in second overall.
Oregon is behind Vermont and ahead of New York and Minnesota who land in the third and fourth spots respectively.
Small Business Friendliness Grade: C+
The Economist grades states on an A+ to F grading scale for its small business climate. Oregon is one of 4 states that earned a "C+"
Overbearing bureaucracy and excessive licensing is stifling small business in America.
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