Dear Garden State Trust: I bought shares in a mutual fund last summer and now I’m getting a distribution of capital gains from the fund. Why? I don’t want that. Do I have to pay taxes on it? —Buyer and Holder Dear Buyer: Federal law requires mutual funds to distribute nearly all of their realized…
Year: 2018
Holiday Spending
Holiday spending: It could be a new record! Why does the holiday spending season start after Thanksgiving, and why is it called Black Friday? Is it because: A. There was a market crash in gold in 1869 that cause financial distress to many. B. There was generally chaos in the streets of Philadelphia in the…
Charitable IRA Gifts
Dear Garden State Trust: I’ve heard of something called a “charitable IRA rollover.” What is that? —Generous But Prudent Dear Generous: Those who are older than 70½ are permitted to arrange for a tax-free transfer of up to $100,000 per year from their IRA to the charity of their choice. This is the technique you…
Sudden Wealth
Lotteries have grown in popularity in recent years, as jackpots have grown in size. In October, the multistate Mega Millions jackpot grew to more than $1.5 billion if taken as annuity payments, and the largest jackpot on record won with a single ticket. Lotteries are seen by some as the shortcut to financial security, even…
IRAs
Dear Garden State Trust: Which is better, the traditional IRA or the Roth IRA? —Future Retiree Dear Future: There is no simple answer to your question, unfortunately. The traditional IRA offers an immediate income adjustment and savings in federal and state income taxes. Taxpayers who are short on cash may need the deduction to be…
Falling into Foliage
New Jersey may not be part of New England, but its reputation for the beautiful changing leaves could be extended to our trees and changing colors too. New Jersey’s peak fall colors are usually between October 19th and the 29th, so it’s the perfect time to plan a trip. Many factors contribute to the exact…
Stock Markets
Dear Garden State Trust: How about that stock market? Can it last? —Happy Investor Dear Happy: Higher stock prices are driven by two factors: increasing earnings, and increasing investor speculation. The good news for investors is that the stock market records set in August were grounded upon increased earnings and a strongly growing economy. We…