Lucia Capital Group Weekly

How You May Avoid a Tax Audit
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How You May Avoid a Tax Audit

May 5, 2021

Last week’s video dealt with some of the things that may trigger a tax audit of your return.  Of course, there’s no hard-and-fast rule about why anyone’s return might be looked at more carefully by the IRS than others, but we do know that certain actions, or incorrect accounting, can lead to an eventual audit. It’s always best to avoid those situations.  In this week’s edition of Lucia Capital Group Weekly, “Professor” Rick Plum, CFP, gives you some tips on how to keep the IRS out of your hair in the first place.
What Might Trigger a Tax Audit?
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What Might Trigger a Tax Audit?

April 29, 2021

For taxpayers, an audit notice is perhaps the scariest part of the entire tax-filing process. Even more than having to write a large check at filing time, the thought of being audited is for  many people worse. You may be almost entirely sure you’ve done nothing wrong, but still… that notice in the mail. This is why it’s good to know what might trigger a tax audit ahead of time. The odds of an audit are very low, when given the entirety of the American taxpaying public, but if you know what they may be looking for, and what actions may color your return a deeper shade of red, you may be able to avoid those triggers.
What Is an “Alternative” Investment?
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What Is an “Alternative” Investment?

April 16, 2021

Diversification is not just a financial industry buzzword; it’s often an important part of just about anyone’s financial strategy.  A common form is a simple one: stocks, bonds, and cash.  But is that true diversification?  For some people, that may work just fine.  Others, though, may want to consider a little extra: something known as an “alternative investment.” Whether these are suitable for an individual investor, though, depends on several factors.  So before you jump into anything non-traditional, it’s a good idea to know what you’re getting into and why.
Why Having Multiple Sources of Retirement Income May Be Best
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Why Having Multiple Sources of Retirement Income May Be Best

April 8, 2021

If you’ve ever thought about how you’ll be able to have enough income to make it through retirement, you’re not alone.  Many people are concerned about potential future cuts to Social Security, as well as a continuation of low interest rates — both of which can impact your income at retirement. This is why it may be a good idea to consider having multiple sources of income once you’ve stopped working.  But how do you do that? And what form should that income take?
Your Spouse Dies – What Do You Do Now?
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Your Spouse Dies – What Do You Do Now?

April 1, 2021

“What will happen to me if my spouse passes away?” It’s a question we get a lot; and it’s one we also don’t get often enough. The death of a spouse is hard enough emotionally, but when financial issues are added to that, it can quickly become overwhelming.   This, again, is why it’s so important to have a strategy already in place. Sometimes just knowing that so many things are already taken care of can lessen the long-term burden of losing a spouse.
3 Important Issues With Later-in-Life Divorce
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3 Important Issues With Later-in-Life Divorce

March 19, 2021

Most marriages are designed to last forever, or at least that’s usually the intention.  But when divorce happens, it can often create unforeseen financial issues for one or both parties — especially if they’re older, and have a lot of assets. Divorce in or near retirement can destroy years of careful planning if you’re not aware of your options.  There are pension considerations, Social Security issues, and you sometimes have to figure out what to do with your home.
Three Hidden Benefits of the Roth IRA
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Three Hidden Benefits of the Roth IRA

March 5, 2021

Individual Retirement Accounts (IRAs) are designed to be used as savings vehicles for your retirement.  As an added incentive to save, they often come with distinct tax advantages, such as deductions, deferrals, or tax-free withdrawals.  There are also, in most cases, penalty taxes for removing your money from the account too early. With the Roth IRA, though, there are exceptions to this “penalty tax,” potentially allowing you to access your money before you would normally be allowed to do so.  How might you be able to benefit from that?