Last night Bill and I had the pleasure of celebrating my former colleague and friend Rich's retirement from Deloitte. He and his wife Sue opened their lovely home to welcome colleagues who have worked with Rich over his 35 years in consulting.
We heard testimonials from his partners, colleagues and his two wonderful sons. Next, Rich did something so touching, he shared his thoughts about his career and something meaningful about each person in attendance.
It has been about 15 years since we worked together. The reflections Rich shared about our working relationship startled me. I knew he had a big impact on me personally, I had no idea that I had such an impact on him. What a wonderful gift he gave each of us all. It truly made my day!Enjoy your 4th of July!
We'll be celebrating the birth of our great nation while watching Duxbury's annual parade
, complete with bands, floats, politicians and tons of candy thrown at the spectators. -PaulaTime to Share. Create a Buzz.
One of our greatest pleasures each summer is attending the
Summer Breakfast Series at the Major John Bradford Homestead
Come out and enjoy good food in the setting of their 17th-century homestead. Join the loyal followers for a relaxing, congenial
Sunday breakfast under the trees, tent... or if weather requires, in
the barn. Proceeds benefit the Bradford
Homestead the Jones River Village Historical Society
20 freebies for your birthday Dinner (or dessert or a small gift) is on the house, if you know where the deals are. And if you're planning a Disney visit, the parks' perks are cause for celebration.
|401(k) fixes for every age
No matter how close to retirement you are, there are ways to regrow -- or plant the seeds for -- your savings in the changing economic landscape.
Stocks 103: Investing for the long run
In the lesson Stocks 102, we noticed that the difference of only a few percentage points in investment returns or interest rates can have a huge impact on your future wealth. Therefore, in the long run, the rewards of investing in stocks can outweigh the risks. We'll examine this risk/reward dynamic in this lesson.
11 businesses you can start in your pajamas in 2009For these entrepreneurs, wearing pajamas for a day at the office isn't far from reality. From pet care to virtual assistants and even online dating, we found entrepreneurs who are not just enjoying work from their living rooms and bedrooms, but they are also making a good living at it. Here's a look at the hottest industries for home-based entrepreneurs -- illustrated with some fun CEO self-portraits.
8 major benefits of new credit card law
On May 22, President Barack Obama signed the Credit Card Accountability, Responsibility and Disclosure, or Credit CARD, Act of 2009 into law. The legislation will improve consumer disclosures and end some egregious practices in the credit card industry but stops short of capping interest rates and fees. Most of the provisions go into effect Feb. 22, 2010, unless otherwise stated.
Here's an overview of the major changes the law will enact.Read on...
15 ways to choose the road less traveledJust because everyone's visiting a famous attraction doesn't mean it's the best of its kind. These alternatives will help you steer clear of the tourist traps and avoid the crowds.
What is a Build America Bond (BAB)?
have a new mechanism for investing in municipal bonds, courtesy of the
American Recovery and Reinvestment Act of 2009. As part of the Obama
administration's economic stimulus program, the bill authorized a
subsidy for local and state governments that issue what are known as
Build America Bonds (BABs) to finance capital expenditures.
most municipal bonds issued by a state or local government, the
interest payments on a Build America Bond are taxable on your federal
income tax return. However, the federal government subsidizes 35% of
the interest payments on a BAB, which typically have relatively long
maturities and must be issued before January 1, 2011. Those subsidies
enable state and local governments to offer a higher interest rate to
attract investors while at the same time reducing the cost of borrowing
money to fund construction and infrastructure projects. Because of the
subsidies, many muni bonds issued over the next two years are expected
to be BABs.
There are several types of BABs; the governmental
body that issues one determines which it will be. A Tax Credit BAB
offers the bondholder a 35% federal income tax credit on the net coupon
interest. A Direct Payment BAB pays the 35% subsidy directly to the
issuer. Still a third type, known as a Recovery Zone Economic
Development Bond, is a Direct Payment BAB that provides a 45%
refundable tax credit to the governmental issuer.
Why buy a Build America Bond?
BAB may offer some advantages that ordinary taxable municipal bonds
don't. The most obvious benefit comes from a Tax Credit BAB. Even
though a BAB is a taxable bond, the 35% tax credit means that your
after-tax return will be higher than the bond's stated coupon rate.
Also, the 35% tax credit may be especially valuable to investors whose
marginal tax bracket is less than 35%, for whom the tax benefits of
muni bonds may not previously have been as valuable. In some cases, a
BAB's net return may be as good or better than an equivalent corporate
bond or an ordinary tax-free municipal bond. Your tax bracket will
determine the extent to which you benefit from a Tax Credit BAB.
a BAB whose federal subsidy is paid to the issuer may provide benefits.
The federal subsidy may enable an issuer to offer a higher coupon rate
than it might otherwise have been able to afford. And though default is
not impossible, munis have traditionally had a lower default rate than
corporate bonds; the federal subsidies should enhance governments'
ability to meet their financial obligations.
Factors to Consider
investing, make sure you understand whether a given BAB offers you the
35% tax credit and what that will mean given your tax bracket. Remember
that the balance of those interest payments will be included as part of
your taxable income, unlike most muni bonds. You may want to get
assistance in determining whether a BAB makes sense for you.
BABs may be challenging for individuals to invest in. Some BAB auctions
have focused on large institutional investors to the exclusion of
individuals; it may be easier to find BABs being resold on the
secondary market. As with any bond, BABs are affected by changes in
interest rates. If interest rates rise, the value of an existing BAB
with a lower coupon rate is likely to drop.
WH Cornerstone Investments, LLC provides wealth management services to
a select group of clients. Regardless of their background or future
vision, all of our clients commit to a plan that targets their
long-term financial growth and stability. While some of our clients
concentrate on one part of their investment strategy, others opt for a
more holistic approach.
WH Cornerstone clients demand customized objective, expert advice,
which they know can come only from a firm that is truly independent-a
firm not tied to financial institutions. As an independent Registered Investment Advisory firm, we are fee-only and therefore free from any outside institutional
Paula Harris and Bill Harris, CFP
WH Cornerstone Investments
Sound, visionary stewardship