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Important IRS Update: Significant Interest Penalty Increase for Tax Underpayments
The Internal Revenue Service (IRS) has recently announced a critical change that could significantly impact taxpayers who underpay their taxes. This update is particularly relevant as we approach the next tax filing season. Previously, the IRS charged a 3% interest penalty on estimated tax underpayments. However, this rate has now been increased to a substantial
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Will Inflation Hurt Stock Returns? Not Necessarily
Investors may wonder whether stock returns will suffer if inflation keeps rising. Here’s some good news: Inflation isn’t necessarily bad news for stocks. A look at equity performance in the past three decades does not show any reliable connection between periods of high (or low) inflation and US stock returns. Since 1993, one-year returns on
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Maximize Your Charitable Impact with These Four Strategies
As the year draws to a close, it’s a perfect opportunity to rethink how you give to charity. This is important for managing how much tax you pay and how much help reaches those in need. Here are four effective strategies: Need Guidance? Reach Out to Us! These strategies are just a starting point. There
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A Deeper Look at Active Investment Management
When we talk about investing, you might have heard of “actively managed funds”. These are funds where professionals try to pick the best stocks or bonds to beat the market. Sounds cool, right? But did you know there’s a cost to this?
Here’s the article that explains it in detail.
Let’s break it down:
- Management Fees: First, these funds often have higher fees because you’re paying the experts to make those picks for you. It’s like going to a fancy restaurant and paying extra for the chef’s special dish.
- Performance Doesn’t Always Match the Price: While it sounds great to have a pro make the calls, many times, these actively managed funds don’t do any better than funds that simply follow the market. It’s like paying extra for that chef’s dish and then realizing it tastes just like something you could’ve gotten for half the price elsewhere.
- Hidden Costs: There’s more! Actively managed funds can also come with other costs that aren’t obvious right away. Like when you buy something and later find out there’s an extra charge for delivery.
So, why are we talking about this? Well, knowing about these costs can help you make smarter decisions about where to put your money. If you’re spending more on fees, that’s less money that’s working for you in the market.
Take Action! If all of this feels a bit confusing, or if you’re unsure about where to put your money, don’t worry. Reach out to Shah Total Planning. They’re here to help you figure things out and make the best decisions for your financial future.
Remember, it’s not just about investing. It’s about investing smartly. Always stay informed and ask for help when you need it. Your future self will thank you!