1 - The local chapter of the American Association of University Women (AAUW) is meeting in the Depot Room this afternoon, and I am privileged to be giving the talk. The topic is New Realities in the Global Economy, and we will focus largely on emerging markets. This is not my first time speaking to the AAUW; they are always an engaging and challenging audience. They keep the speaker on his or her toes, and that is a good thing!
2 - The President followed up his recent budget proposal with a new proposal to change corporate tax rates. It has some very interesting aspects to it, which you can read in the article below. It's not likely to get much traction in an election year, and that's a shame. Is it just me, or does it seem to you that our leaders in Washington ought to be able to talk things over -- even if they disagree -- and work toward a common goal that everyone shares?
3 - It is a common belief that "attitude is everything." It's the theme running throughout my book The Graduate's Book of Practical Wisdom (sorry for the shameless plug), and I believe it applies even to investing. If you'd like to see what that means, click on this week's video below.
Have a rock-em sock-em week!
-Andy
Monday, February 27, 2012
Monday, February 13, 2012
Happy Valentine's Day from Tryon, NC
1 - The situation in Europe appears to be far from resolved. This morning's Wall Street Journal reports that the Greek parliament passed a deeply unpopular program of sweeping spending and wage cuts in an effort to secure bailout funds from the country's international creditors. The parliament had to be protected by 4,000 riot police as masses of furious protesters demonstrated outside. The package by no means guarantees that Greece will avoid a default, and even some parliamentary leaders are making noises about revisiting the measures in April. This is important to us because troubles in Europe could have global implications.
2 - Our little town sure knows how to come together for a good cause. This past Saturday, the Depot parking lot was the site of a fundraising event to support the family of Chuck Britton, a local contractor who has gone through some very expensive health problems lately. Despite the biting cold and wind, dozens of volunteers and hundreds of supporters showed up for boiled shrimp, BBQ, burgers, hot dogs, live music, and a silent auction with so many donated items that it completely filled the Depot Room. In order to get diners out of the cold and wind, the American Legion opened their building just across the parking lot. The event was a huge success -- and yet another example of why we all are here.
3 - Tomorrow is our Valentine's Day Tea for lady clients. Michele has asked that I emphasize the the dress is "Tryon casual," meaning you don't have to get all fancied-up. Because this is a ladies-only event, I will likely be the only male in attendance. As they say, it's a tough job, but someone's got to do it!
Have a super week!
-Andy
2 - Our little town sure knows how to come together for a good cause. This past Saturday, the Depot parking lot was the site of a fundraising event to support the family of Chuck Britton, a local contractor who has gone through some very expensive health problems lately. Despite the biting cold and wind, dozens of volunteers and hundreds of supporters showed up for boiled shrimp, BBQ, burgers, hot dogs, live music, and a silent auction with so many donated items that it completely filled the Depot Room. In order to get diners out of the cold and wind, the American Legion opened their building just across the parking lot. The event was a huge success -- and yet another example of why we all are here.
3 - Tomorrow is our Valentine's Day Tea for lady clients. Michele has asked that I emphasize the the dress is "Tryon casual," meaning you don't have to get all fancied-up. Because this is a ladies-only event, I will likely be the only male in attendance. As they say, it's a tough job, but someone's got to do it!
Have a super week!
-Andy
Monday, February 6, 2012
2012 TD Ameritrade Institutional National Conference
1 - Lady clients: time is running short! Please be our guest at a special Valentine's Day Ladies' Tea to be held next Tuesday, February 14 at 3:00pm in the Depot Room. Please click here for more information and to RSVP.
2 - I told you this was conference season: Juliet and I spent much of last week at the TD Ameritrade Institutional National Conference in Orlando. A video report is included below.
3 - Although I sent this next item in last week's update, I think it bears repeating, so here it is: Clients may be dismayed to receive a second or third "corrected" 1099 on your account. This has been an issue for clients for several years, and so I have written an explanation that I urge you to read. Scroll farther down the page to the article entitled "What's the Deal With 1099s?"
Have an excellent week!
-Andy
What's the Deal with 1099s?
Every year, our clients receive 1099 forms from TD Ameritrade. The 1099 is an IRS form on which a financial institution reports taxable events that have occurred within the client's account. The client or her tax preparer utilizes the form in preparing her tax return.
All that is straightforward enough. But just about every year, some clients are caught off-guard (and taken aback) by receiving a second (and sometimes a third) 1099 from TD Ameritrade. If you receive one of these "corrected" 1099s, you may understandably get the impression that Ameritrade "didn't get it right the first time" and now has to re-issue the form to correct its mistake. That impression would be wrong.
The 1099 issued by TD reflects the information provided to it by the stocks, bonds, mutual funds and ETFs that are represented in your account; each fund and ETF contains at least one additional layer of holdings, each of which reports its own info to the fund, which in turn reports to TD, which finally compiles everything and reports to you on the 1099. As a result, your 1099 may represent information provided by literally thousands of financial institutions.
Sometimes, one or more of those institutions needs to change its information. This could be the result of new information that was reported to it, a change in the way the IRS views a particular transaction that took place during the year, or the occasional (and inevitable) human error.
Corrected 1099s are a fact of life. The changes are almost always minor and have very little if any effect on the client's tax liability. My advice is this: If you receive a corrected 1099 before you have filed your tax return, discard the old one and use the new one. If you get a corrected 1099 after you have filed your return, compare it to the original and ask your tax professional if it is worth filing an amended return.
Here is TD Ameritrade's schedule for distributing corrected 1099s this year:
1st Correction Cycle - February 24, 2012
Reports reclassified income (not captured on Consolidated 1099 Forms to be issued in mid-February, 2012) that was reported to TD Ameritrade between February 1, 2012, and February 15, 2012.
REMIC cycle - March 15, 2012
To be completed no later than March 15, 2012. The precise date will be determined after the necessary data has been furnished to TD Ameritrade by the issuers. **This cycle also reports reclassified income not captured in previous cycle(s).**
2nd Correction Cycle - March 9, 2012
Reports reclassified income that was reported to TD Ameritrade between February 16, 2012, and February 29, 2012.
3rd Correction Cycle - March 21, 2012
Reports reclassified income that was reported to TD Ameritrade between March 1, 2012, and March 14, 2012.
4th Correction Cycle - April 11, 2012
Reports reclassified income that was reported to TD Ameritrade between March 15, 2012, and April 4, 2012.
5th Correction Cycle - April 25, 2012
Reports reclassified income that was reported to TD Ameritrade between April 5, 2012, and April 18, 2012.
6th Correction Cycle - May 23, 2012
Reports reclassified income that was reported to TD Ameritrade between April 19, 2012, and May 21, 2012.
2 - I told you this was conference season: Juliet and I spent much of last week at the TD Ameritrade Institutional National Conference in Orlando. A video report is included below.
3 - Although I sent this next item in last week's update, I think it bears repeating, so here it is: Clients may be dismayed to receive a second or third "corrected" 1099 on your account. This has been an issue for clients for several years, and so I have written an explanation that I urge you to read. Scroll farther down the page to the article entitled "What's the Deal With 1099s?"
Have an excellent week!
-Andy
What's the Deal with 1099s?
by C.A. Millard
Every year, our clients receive 1099 forms from TD Ameritrade. The 1099 is an IRS form on which a financial institution reports taxable events that have occurred within the client's account. The client or her tax preparer utilizes the form in preparing her tax return.
All that is straightforward enough. But just about every year, some clients are caught off-guard (and taken aback) by receiving a second (and sometimes a third) 1099 from TD Ameritrade. If you receive one of these "corrected" 1099s, you may understandably get the impression that Ameritrade "didn't get it right the first time" and now has to re-issue the form to correct its mistake. That impression would be wrong.
The 1099 issued by TD reflects the information provided to it by the stocks, bonds, mutual funds and ETFs that are represented in your account; each fund and ETF contains at least one additional layer of holdings, each of which reports its own info to the fund, which in turn reports to TD, which finally compiles everything and reports to you on the 1099. As a result, your 1099 may represent information provided by literally thousands of financial institutions.
Sometimes, one or more of those institutions needs to change its information. This could be the result of new information that was reported to it, a change in the way the IRS views a particular transaction that took place during the year, or the occasional (and inevitable) human error.
Corrected 1099s are a fact of life. The changes are almost always minor and have very little if any effect on the client's tax liability. My advice is this: If you receive a corrected 1099 before you have filed your tax return, discard the old one and use the new one. If you get a corrected 1099 after you have filed your return, compare it to the original and ask your tax professional if it is worth filing an amended return.
Here is TD Ameritrade's schedule for distributing corrected 1099s this year:
1st Correction Cycle - February 24, 2012
Reports reclassified income (not captured on Consolidated 1099 Forms to be issued in mid-February, 2012) that was reported to TD Ameritrade between February 1, 2012, and February 15, 2012.
REMIC cycle - March 15, 2012
To be completed no later than March 15, 2012. The precise date will be determined after the necessary data has been furnished to TD Ameritrade by the issuers. **This cycle also reports reclassified income not captured in previous cycle(s).**
2nd Correction Cycle - March 9, 2012
Reports reclassified income that was reported to TD Ameritrade between February 16, 2012, and February 29, 2012.
3rd Correction Cycle - March 21, 2012
Reports reclassified income that was reported to TD Ameritrade between March 1, 2012, and March 14, 2012.
4th Correction Cycle - April 11, 2012
Reports reclassified income that was reported to TD Ameritrade between March 15, 2012, and April 4, 2012.
5th Correction Cycle - April 25, 2012
Reports reclassified income that was reported to TD Ameritrade between April 5, 2012, and April 18, 2012.
6th Correction Cycle - May 23, 2012
Reports reclassified income that was reported to TD Ameritrade between April 19, 2012, and May 21, 2012.
Andy's Report from "Inside ETFs" Conference
1 - Last Sunday through Tuesday, I attended the Inside ETFs conference in Hollywood, Florida. This particular conference is all about the nitty-gritty of investing, and this year's event didn't disappoint. For a two-minute video report, click on the image below. A little further down, following This Week's Economic News, I have also included a video synopsis of our March 17 panel discussion, New Realities: The Global Economy.
2 - With tax season comes the all-important Form 1099, on which financial institutions such as TD Ameritrade report taxable income to clients. You may be dismayed to receive a second or third "corrected" 1099 on your account. This has been an issue for clients for several years, and so I have written an explanation that I urge you to read. Scroll farther down the page to the article entitled "What's the Deal With 1099s?"
3 - Reminder for lady clients: Please be our guest at a special Valentine's Day Ladies' Tea to be held on Tuesday, February 14 at 3:00pm in the Depot Room. Please click here for more information and to RSVP.
Have a productive week!
-Andy
Every year, our clients receive 1099 forms from TD Ameritrade. The 1099 is an IRS form on which a financial institution reports taxable events that have occurred within the client's account. The client or her tax preparer utilizes the form in preparing her tax return.
All that is straightforward enough. But just about every year, some clients are caught off-guard (and taken aback) by receiving a second (and sometimes a third) 1099 from TD Ameritrade. If you receive one of these "corrected" 1099s, you may understandably get the impression that Ameritrade "didn't get it right the first time" and now has to re-issue the form to correct its mistake. That impression would be wrong.
The 1099 issued by TD reflects the information provided to it by the stocks, bonds, mutual funds and ETFs that are represented in your account; each fund and ETF contains at least one additional layer of holdings, each of which reports its own info to the fund, which in turn reports to TD, which finally compiles everything and reports to you on the 1099. As a result, your 1099 may represent information provided by literally thousands of financial institutions.
Sometimes, one or more of those institutions needs to change its information. This could be the result of new information that was reported to it, a change in the way the IRS views a particular transaction that took place during the year, or the occasional (and inevitable) human error.
Corrected 1099s are a fact of life. The changes are almost always minor and have very little if any effect on the client's tax liability. My advice is this: If you receive a corrected 1099 before you have filed your tax return, discard the old one and use the new one. If you get a corrected 1099 after you have filed your return, compare it to the original and ask your tax professional if it is worth filing an amended return.
Here is TD Ameritrade's schedule for distributing corrected 1099s this year:
1st Correction Cycle - February 24, 2012
Reports reclassified income (not captured on Consolidated 1099 Forms to be issued in mid-February, 2012) that was reported to TD Ameritrade between February 1, 2012, and February 15, 2012.
REMIC cycle - March 15, 2012
To be completed no later than March 15, 2012. The precise date will be determined after the necessary data has been furnished to TD Ameritrade by the issuers. **This cycle also reports reclassified income not captured in previous cycle(s).**
2nd Correction Cycle - March 9, 2012
Reports reclassified income that was reported to TD Ameritrade between February 16, 2012, and February 29, 2012.
3rd Correction Cycle - March 21, 2012
Reports reclassified income that was reported to TD Ameritrade between March 1, 2012, and March 14, 2012.
4th Correction Cycle - April 11, 2012
Reports reclassified income that was reported to TD Ameritrade between March 15, 2012, and April 4, 2012.
5th Correction Cycle - April 25, 2012
Reports reclassified income that was reported to TD Ameritrade between April 5, 2012, and April 18, 2012.
6th Correction Cycle - May 23, 2012
Reports reclassified income that was reported to TD Ameritrade between April 19, 2012, and May 21, 2012.
2 - With tax season comes the all-important Form 1099, on which financial institutions such as TD Ameritrade report taxable income to clients. You may be dismayed to receive a second or third "corrected" 1099 on your account. This has been an issue for clients for several years, and so I have written an explanation that I urge you to read. Scroll farther down the page to the article entitled "What's the Deal With 1099s?"
3 - Reminder for lady clients: Please be our guest at a special Valentine's Day Ladies' Tea to be held on Tuesday, February 14 at 3:00pm in the Depot Room. Please click here for more information and to RSVP.
Have a productive week!
-Andy
What's the Deal with 1099s?
by C.A. Millard
Every year, our clients receive 1099 forms from TD Ameritrade. The 1099 is an IRS form on which a financial institution reports taxable events that have occurred within the client's account. The client or her tax preparer utilizes the form in preparing her tax return.
All that is straightforward enough. But just about every year, some clients are caught off-guard (and taken aback) by receiving a second (and sometimes a third) 1099 from TD Ameritrade. If you receive one of these "corrected" 1099s, you may understandably get the impression that Ameritrade "didn't get it right the first time" and now has to re-issue the form to correct its mistake. That impression would be wrong.
The 1099 issued by TD reflects the information provided to it by the stocks, bonds, mutual funds and ETFs that are represented in your account; each fund and ETF contains at least one additional layer of holdings, each of which reports its own info to the fund, which in turn reports to TD, which finally compiles everything and reports to you on the 1099. As a result, your 1099 may represent information provided by literally thousands of financial institutions.
Sometimes, one or more of those institutions needs to change its information. This could be the result of new information that was reported to it, a change in the way the IRS views a particular transaction that took place during the year, or the occasional (and inevitable) human error.
Corrected 1099s are a fact of life. The changes are almost always minor and have very little if any effect on the client's tax liability. My advice is this: If you receive a corrected 1099 before you have filed your tax return, discard the old one and use the new one. If you get a corrected 1099 after you have filed your return, compare it to the original and ask your tax professional if it is worth filing an amended return.
Here is TD Ameritrade's schedule for distributing corrected 1099s this year:
1st Correction Cycle - February 24, 2012
Reports reclassified income (not captured on Consolidated 1099 Forms to be issued in mid-February, 2012) that was reported to TD Ameritrade between February 1, 2012, and February 15, 2012.
REMIC cycle - March 15, 2012
To be completed no later than March 15, 2012. The precise date will be determined after the necessary data has been furnished to TD Ameritrade by the issuers. **This cycle also reports reclassified income not captured in previous cycle(s).**
2nd Correction Cycle - March 9, 2012
Reports reclassified income that was reported to TD Ameritrade between February 16, 2012, and February 29, 2012.
3rd Correction Cycle - March 21, 2012
Reports reclassified income that was reported to TD Ameritrade between March 1, 2012, and March 14, 2012.
4th Correction Cycle - April 11, 2012
Reports reclassified income that was reported to TD Ameritrade between March 15, 2012, and April 4, 2012.
5th Correction Cycle - April 25, 2012
Reports reclassified income that was reported to TD Ameritrade between April 5, 2012, and April 18, 2012.
6th Correction Cycle - May 23, 2012
Reports reclassified income that was reported to TD Ameritrade between April 19, 2012, and May 21, 2012.
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