Repost: Why you shouldn’t celebrate that big tax refund

For most taxpayers, getting a chunk of refund from their taxes is a big thing. However, according to the source from CNBC, it is not an effective use of your cash flow. Find out why:

  • As of the first week of the filing season, the IRS issued an average refund of $1,865. That’s down from $2,035 last year.
  • The new tax law lowered individual income tax rates, roughly doubled the standard deduction, and limited itemized deductions.
  • A large refund suggests you overpaid on taxes in the prior year.

 

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If you are among the taxpayers expecting a refund this tax season, hold off on the champagne for a moment: A big check from the IRS isn’t necessarily good news.

The taxman kicked off the new filing season on Jan. 28, marking the first time taxpayers will be submitting their returns under the Tax Cuts and Jobs Act. The agency predicts it will receive more than 150 million individual income tax returns this spring.

In just the first week of the new filing season, the IRS has sent out 4.6 million refunds to early birds.

The average refund check as of the week of Feb. 1 was $1,865, according to the IRS, which in turn set off howls of protest on social media from taxpayers who were expecting at least what they got last year.

Though there’s no denying the feel-good factor of getting a fat check from Uncle Sam, it means you’ve likely overpaid your taxes during the prior year.

“A large refund from the IRS may seem like an advantage, but it isn’t the best or most effective use of your cash flow,” said Tim Steffen, CPA and director of advanced planning at Robert W. Baird & Co.

"You're basically giving the IRS an interest-free loan," he said.

Balancing withholding

If you are an employee, when you were hired your employer gave you a Form W-4, which you can use to tweak the amount of tax that’s withheld from your pay.

On that sheet, you can list the number of personal allowances you claim for your household. For instance, you can claim an allowance each for yourself, your spouse and your dependents.

Tread carefully: The more allowances you claim, the less tax you will have withheld.

If you underpay your taxes during the year, you’ll likely owe when you file your return.

“Some people read the form and think, ‘I’m married and have three kids,'” said Cari Weston, director of tax practice and ethics at the American Institute of CPAs. “They end up with five allowances and owe substantial taxes at the end of the year.”

To make things even more complicated, the IRS has adjusted its withholding tables and Form W-4 to reflect the changes from the Tax Cuts and Jobs Act. The agency has also released a new tax withholding calculator.

Because of the new tax law’s increase to the standard deduction and the elimination of personal exemptions, now might be the best time to review your Form W-4 to see if you’re withholding the appropriate amount of tax.

 

Continue reading HERE, for more insights.

 

 

 

 

Fascinating Reasons Why Millennials Should Invest in the Stock Market

Income-driven millennials will likely become multi-millionaire investors in the future. However, venturing into the risky world of investing can be a great challenge for the young generations. Nonetheless, the market sector has higher earning potential among other investment options, below are some of the many compelling reasons why the young demographics must invest in the stock market:

Image source: pexels.com

 

Easier Access

Apart from global economic growth, the rapid pace of technology advancement has transformed the way we trade stocks, today. Millennial investors can take advantage of the efficient trading tools such as cloud-based software and online trading platforms, developed to provide easier access to investors and keep track their investments anytime, anywhere.

 

Has a Variety of Safe and Profitable Investments

Alongside with Finance, the Tech sector has been one of the best-performing stocks in the market, for years. In terms of revenue, large companies like Microsoft, Apple, and Amazon are highly recognized as the most dominant tech stocks in the market. As they remain robust and successful despite economic crisis and uncertainties.

 

A Great Wealth Builder

Saving earlier for stable and financially secured golden years can be the best thing every millennial should learn. For instance, Warren Buffet, widely acclaimed as the richest business tycoon in the investment history was known to have built his fortune by trading in the stock market decades back until to date, following Benjamin Graham’s principles of value investing, according to Forbes.

 

 

 

Repost: Global Markets Rally

Check out the latest stock market performance from LOM Financial, today:

Image source: LOM Financial

Markets ended the abbreviated week as a warning of a global slowdown was offset by strong earnings. The MSCI World Index ended the week up 0.07% while the S&P 500 lost -0.21%.

 

IMF Warns of a Global Slowdown

The International Monetary Fund cut 2019 global growth estimates by 0.2% to 3.5%, citing risks of a more significant downward correction was rising. In the US, the effects of fiscal stimulus are expected to unwind. Mexico experienced a significant downgrade to growth reflecting lower private investment. The high levels of public and private debt mean capital markets should be more sensitive to downturns than they have been historically.

 

The IMF report mirrors the World Bank January 2019 assessment (published on 1/8/19), which sees headwinds from the removal of accommodative policies that supported the protracted recovery along with more extreme weather events creating challenges in developed and developing countries. Lax credit markets have resulted in a growing number of developing countries holding questionable levels of debt.

 

Market Wrap Up

Earnings releases have been mixed but strong positive revenues and EPS surprises on Wednesday from Proctor and Gamble, Comcast, and United Tech Corp marked the turnaround that helped bring markets back to levels near the beginning of the week.

 

Continue reading HERE.

These Are The Most Sought After Job Opportunities Of 2019

Make 2019 the best chapter of your career journey and be ready for the best opportunities that are coming your way. Here’s a list of this year’s high-paying professions that might help boost both your resume and career.

Image source: pexels.com

 

Financial Advisor

In recent years, investing has become the newest trend among high net worth individuals. Thus, many financial firms like – LOM Financial focus on providing financial advice and wealth management services to their well off clients. The average pay for this profession ranges from £35,000 up to £45,000 per year particularly in the UK.

 

Corporate Lawyer

The United States is known to be one of the most litigious countries across the globe, where the field of law is immensely sought-after. Such promising job can make you a whopping $147,000 per year according to Indeed.

 

Blockchain Developer

Today’s growing popularity and development of blockchain technology is clearly inevitable in most part of US and Europe. Furthermore, many well-established companies in the financial sector have built their own blockchain system and consequently eyeing for professionals who are expert in the field of programming.