People are generally unaware of the fees attached to their 401K. Even when they are, that awareness is usually limited. Those fees can get pricey though, and many of them are hidden.
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What luxury cars made today will be the hottest collectibles of the future? From a valuation standpoint, a car becomes recognized as collectible once it is fully depreciated and has started increasing in value.
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The cost to travel to these three destinations Is now at an all-time low. TravelPulse's Founder and CEO Mark Murphy reveals there are a handful of regions around the world that are incredible values this year, where a strong U.S. dollar will go shockingly far.
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Emergency funds are necessary. We all need to be prepared for those unplanned rainy days. Therefore, it's not a question of whether or not we need an emergency fund, but how much of an emergency fund we really need.
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Forging a sustainable life is often as easy as it is trendy thanks to a bodysuit made from a decidedly old-school material: mushrooms. Now it's even easy after death.
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Ten great colleges that cost less than $20,000 per year. The average annual cost of a private college - including tuition, fees, and room and board - runs $43,921, according to the College Board.
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 Investors need to stop "catastrophizing." Instead, how about sticking to the long-term plan and considering the positive possibilities?
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What if instead of being restricted to the toys on the store shelf, your child could instead just print the toys they want at home? Mattel has just unveiled a printer that does just that.
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The demographic trends shaping American politics in 2016 and beyond: The U.S. is on its way to becoming a majority nonwhite nation, and at the same time, a record share of Americans are going gray.
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The top 20 grocery items driving up your bill. Food prices nationwide have increased 31.5 percent from 2005 through 2015, with some items in particular making a huge jump.
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 Do you follow technology trends? Perhaps you should. One of our articles (below), "It's crucial to keep up with these six digital trends in 2016," tells us why:
"Disruptive" innovations over the past few years are creating new opportunities for businesses and individuals. Digitalization is changing everything about life today - from consumer purchasing to how we conduct business.
 We've provided an excellent analysis of the major online tax preparation software that will help you make the best decision should you choose this method. See the article entitled "Which tax software is best for you?" below. However, Chornyak & Associates has a team of tax specialists who are well prepared to do your taxes for you. Just give us a call at 614-888-2121 or 877-389-2121 toll free.
This month's feature article from Commonwealth Financial Network deals with a critical issue that many people are facing today: the plight of millennial children who are experiencing harsh realities of adulthood in the 21st century. Today's youth are dealing with a frightening job market, one of the most serious market downturns in recent history, and backbreaking student loan debt. The article discusses how you should support your young adult children and related tax implications.
 Once again, in our links section in the left-hand column, we have a dynamite group of stories for you. What are the implications of putting off buying a new car? What does being "middle class' mean in today's economy? Which of the nation's colleges and universities are the most affordable, while offering a quality education? Which jobs will soon be performed by robots? Have a look!
We at Chornyak & Associates enjoy talking with you about your financial situation and helping you decide how we can assist you in investment planning, risk management, retirement planning, income tax planning, estate planning, and education funding. Please feel free to contact us at 614-888-2121 or 877-389-2121 toll free, or by e-mail at chornyak@chornyak.com.
Sincerely,
Joe
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Helping your adult children without
hurting your ertirement
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A large portion of the millennial generation has come of age during complex and challenging economic conditions. The older end of the generation entered the workforce just in time for the biggest market downturn and scariest job market in decades, while being saddled with more student loan debt than any previous generation.
While the economy and job market have since turned around, the headwinds that millennials have faced in starting their careers and making long-term financial plans have led to a few trends that are affecting their parents' generation as well. Many parents of adult millennial children find themselves wondering how much they should help their kids. For baby boomers in or near retirement, this is a big consideration, as providing financial support to a family member can affect their own retirement plans.
Staying in the nest longer
One way young adults are staying afloat is by staying in their parents' homes. By providing fledgling workers or entrepreneurs with free or cheap housing, parents arguably are preventing their young adult children from falling into greater debt-particularly in their early earning years when their incomes might not be enough to cover school loans and regular living expenses, let alone savings for the future. The expectation, of course, is that these young adults will progress in their careers and eventually have enough earning power to achieve financial independence. But can you really count on this happening? More important, what's the exit strategy?
Who's paying the bills?
Even if your kids have left your nest, are you feathering their new one? If you're still on the hook for financial support for your young (or not-so-young) adult child, you're not alone. According to a 2014 American Consumer Credit Counseling survey, more than one-third of U.S. households provide regular financial assistance to adult children, including:
- Paying rent
- Repaying student loan debt
- Covering car payments and cell phone bills
Even if you haven't dipped into your IRA to pay for your daughter's wedding (and, please, don't do that), these smaller amounts-a couple of thousand or even a few hundred dollars at a time-can have a detrimental effect on your retirement savings if they continue over the long term.
Is it a loan or a gift?
Another element to consider when providing substantial financial support to your child is the annual IRS gifting limit. At what point does your monetary support become taxable? For 2016, couples can gift up to $28,000 before having to report the amount to the IRS. In some instances, the same limit can be applied if you loan the money to your child (e.g., as a down payment on a house) but either consider it interest-free or charge below-market interest. For any amounts over these limits, you'll be on the hook for taxes.
It's important to note that gift and estate tax rules differ from state to state, and each situation is different. So it's crucial to consult with a qualified tax professional about the impact to your tax bill.
Continue reading the article here.
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Investor360°® makes filing easier
for Turbo Tax® users
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 If you're a user of either the web-based or desktop version of TurboTax, you can now import your tax information from Investor360.º With just a few short steps, all the key tax data you need is safely, accurately, and easily transferred directly into your electronic return. With Investor360º and TurboTax, you'll do away with: * The need to gather together a year's worth of
statements
* The task of keying in data from multiple sources
* The worry associated with either missing or
incorrectly transcribing important tax information
To see how easily Investor360º works with TurboTax,
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Which tax software Is best for you?
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A
 Kiplinger ran the numbers through the most popular online tax software programs to see what works and what doesn't.
In its current ad campaign, tax software giant TurboTax insists that you don't need to be a Nobel Prize-winning physicist-or any kind of genius-to do your taxes, as long as you use TurboTax. For once, we see truth in advertising: Indeed, TurboTax and its competitors simplify the chore of filing your taxes. They'll do the math for you, alert you to tax breaks you might overlook, and flag questionable data entries that could raise eyebrows at the IRS. But do-it-yourself taxpayers face numerous potholes when navigating tax-filing programs. Extra costs aren't always clearly disclosed, so you could end up spending more than you planned. Baseline prices may even rise by the time you finish filling out your forms. (All prices cited here are as of February 16.) Some programs rely too heavily on tax jargon or offload you to jargon-filled IRS documents, rather than explaining them in plain English for you. And despite recent efforts to improve security, hackers, and identity thieves continue to look for ways to penetrate these mother lodes of sensitive data. TaxSlayer and TaxAct recently disclosed that customer data was stolen in late 2015. Last year, identity thieves hacked into the IRS database of prior years' tax transcripts and stole information about 350,000 taxpayers. So it's more important than ever to use hard-to-crack passwords and update antivirus programs before you embark on this annual chore. This year, we reviewed five online versions of tax-filing programs. (You can download software versions rather than filling out your forms online, but doing so is generally more expensive unless you prepare more than one return.) We gave our hypothetical taxpayer a mortgage, some modest investments, and a health savings account (HSA), an increasingly popular tool for workers with high-deductible health insurance plans. HSA account holders who take money out for medical expenses are required to report it on their tax return; failure to do this could trigger a large penalty. Here's what we found: TurboTaxIntuit's product continues to impress with its easy navigation, clear instructions and ability to import thousands of documents from employers, investment firms and other institutions. Although other software programs also allow you to import documents, none are as comprehensive as TurboTax, which imports information from more than 1.4 million employers and financial institutions. TurboTax handled our hypothetical taxpayer's HSA with aplomb, which wasn't true of some of the other programs we tested. Similarly, the reporting requirements under the Affordable Care Act are easy to follow. Pros: TurboTax is the most user-friendly program we tested. If you discover you've omitted something-a charitable contribution, for example, or interest from a small bank account-it's easy to go back and update your entries. Cons: Cost. We tested the online version of TurboTax Deluxe, which costs $34.99, plus $36.99 for a state tax return. If you have investment income, other than interest and capital gains distributions from mutual funds, you must upgrade to TurboTax Premier, which costs $54.99 for a federal tax return, plus $36.99 for a state tax return. Prices could rise as the tax filing deadline approaches. H&R BlockThis program is a breeze to navigate, and we especially like the checklists -- such as a list of commonly missed tax forms to look for prior to filing your return. Block wants to make sure you have the documents you need. The program also does an excellent job of explaining the new ACA requirements. Throughout most of our test drive, Block seemed to anticipate our questions and provide links to answers. The "Learn More" icons next to sections such as mortgage deductions and real estate taxes are clear and comprehensive. Pros: H&R Block's Deluxe version, which costs $34.99 for a federal tax return ($36.99 for a state return), allows you to report investment income, making it a better deal than TurboTax Deluxe. In the unlikely event that you're audited, Block will provide an enrolled agent, at no cost, to help you "manage the entire audit experience." Cons: The search function is disappointing. A search for "health savings accounts" produces a generic description of HSAs, instead of guidance on where to report contributions and distributions. TaxActTaxAct has long been popular with budget-minded taxpayers, but it's not as cheap as it used to be. If you itemize, you'll need to use TaxAct Plus, which costs $14.99, plus $14.99 for a state tax return. That's still a good deal compared with the cost of filing a state and federal return with some of its competitors. TaxAct's summaries of income, deductions, and credits allow you to review your work. However, if you realize you've left out some information, such as a charitable donation, you'll have to traverse some of the ground you've already covered before you can update the entry. Pros: New security features are rigorous and reassuring. For example, if you start the program and take a break to walk the dog, TaxAct will log you out after a few minutes of inactivity. TaxAct offers a "Price Lock Guarantee," which means the price of your program won't increase between the time you start the program and the time you file. Cons: Updating entries is time-consuming. TaxAct doesn't provide as much hand-holding as some other programs. Continue reading the article here.
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It's crucial to keep up with these
six digital trends in 2016.
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A new article in the SFgate tells us that Businesses, entrepreneurs and employees can benefit from a wide variety of digital technology set to explode in 2016.
The ability to leverage technological advances is a crucial element to the success of small businesses. Some of the most disruptive innovations over the past few years are creating new opportunities for businesses exploring the new digital frontier.
1. 3D printers
The quality and speed of 3D printers evolved a great deal in just the past year. These developments create an infinite number of applications for the 3D printing technology. According to Gartner Inc., international distribution of 3D printers will reach nearly 500,000 units in 2016. Gartner's forecast estimates this number will double every year reaching 5.6 million by 2019. 3D systems, an industry leader in 3D printing, produces a variety of 3D printers that fall under three main technology categories: Stereolithography (SLA), Laser Sintering (SLS) and Direct Metal Printing (DMP). While purchasing and maintaining a dedicated 3D printer may be too expense for some small businesses, many companies provide public 3D printing services to get you started, such as Staples and UPS.
The expanding market for 3D printers in 2016 brings a ton of new competition to the market which promise to be more affordable and attainable for small businesses. The best 3D printers for 2016, which vary greatly in cost, application and availability, include Autodesk Ember, BigRep One v3, E3D BigBox, DeltaWASP 20 40 and Peachy Printer. Arizona's Local Motors is set to begin 3D-printed car is set to launch its crowdfunding campaign in Spring 2016. Not Impossible Labs, a startup crowd-sourcing company, is dedicated to solving humanity's problems with do-it-yourself solutions and an emphasis on 3D printers. 2. Digital currencies and gold
Bitcoin is a form of digital currency created for instantaneous transactions over the Internet without the many limitations, regulations and fees of physical currencies. In 2009, Bitcoin released its open-source payment system providing an ecommerce solution for ideal for businesses operating all over the world. Offered by over 38 million merchants worldwide, Bitcoin is a viable currency in the modern world.
After launching Bitcoin services in 13 countries last year, the San-Francisco-based Bitcoin exchange service -- Coinbase -- became an industry leader in the digital currency movement. Coinbase charges zero fees for the first $1 million in transactions and only 1 percent per transaction after the mark is reached. Considering that the average credit card processing fee is over 2 percent, more and more businesses are supporting digital currency transactions. Shift Card is a U.S.-issued Visa debit card you can use to make transactions almost anywhere Visa is accepted and can be entirely funded by Bitcoin.
BitGold, on the other hand, is an alternative to Bitcoin and is considered to be much less volatile. By means of a physical gold bullion, BitGold offers a tangible form of currency that you can actually hold in your hand. You can make transactions with BitGold anywhere MasterCard is accepted through the use of its pre-paid Gold card.
3. IoT
IoT is about using technology to control things that generally are operated manually. IoT means adjusting the home temperature by using your smartphone or connecting your TV or computer to your smartphone. Now, companies like Xped enable users to connect their devices to their smartphone just by tapping the device in question with one's mobile device. Another company in this space is Tekoia which has developed SURE Universal Remote platform that connects users, appliances and appliance vendors.
IoT is speeding up across the globe, and as Howdy Pierce wrote earlier this year, "companies that develop smart devices with autonomous operation that create additional value for the end user will be the most successful in the long run." Continue reading the article here.
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Markets stabilize . . .
After a dismal January, financial markets stabilized in February, ending the month at close to even following a drop of between 4 percent and 8 percent earlier in the period. The Dow Jones Industrial Average was up 0.75 percent, the S&P 500 Index dropped 0.13 percent, and the Nasdaq was down 1.03 percent. All major U.S. indices are still down for the year.
February's initial declines were caused by fears of a slowing U.S. economy, decreasing earnings, and political risks around the world. The recovery set in when news began to emerge indicating that those fears may have been overblown. For example, corporate earnings for the fourth quarter of 2015, though weak, came in somewhat stronger than expected. Per FactSet, earnings for the period, reported in February, declined 3.3 percent-a smaller decline than the 3.9-percent decline estimated at year-end. In addition, despite the effects of low oil prices on energy companies and the strong dollar on multinationals, 69 percent of S&P 500 companies have reported earnings for the fourth quarter of 2015 above year-end estimates while eight of ten sectors have shown higher growth rates than previously forecast for the period. Results have still been weak, but the improvement compared with the expectations is material.
Revenue growth for the last quarter of 2015, reported in February, was also weak, down 3.9 percent. Only four of ten sectors announced growth in revenue for that time frame, with one flat sector (consumer staples) and four declining. Sales data is important because it reflects actual customer demand, and higher sales-growth rates support the prospect of future earnings growth. For the fourth quarter of 2015, however, much of the damage resulted from poor performance in the energy sector. Excluding energy, revenue actually grew 0.3 percent, suggesting the potential for recovery when oil prices move back up.
Technically, because of the January declines, the markets started February below their long-term moving averages. And, although the markets have partially recovered, results remain well below the long-term moving averages, suggesting that risk remains. With improving but still weak fundamentals, the difficult technical outlook suggests that market risks are likely to be with us for the near term.
Developed international markets posted the worst returns of any major index in February, with the MSCI EAFE Index down 1.83 percent, below the results for U.S. indices. The discrepancy primarily came from European political concerns, notably a potential banking crisis in Italy and the possible exit of the United Kingdom from the European Union (EU). Meanwhile, the MSCI Emerging Markets Index did substantially better, down 0.15 percent, in line with U.S. indices, despite ongoing turbulence in China. Developed and emerging international markets continue to trail the U.S. for the year. Moreover, technically, both indices are still well below their long-term moving averages, also suggesting that risks are very present.
Turbulence in the stock markets was good for the fixed income sector. The Barclays Capital Aggregate Bond Index was up 0.71 percent in February. The gain was driven by lower bond yields, as interest rates dropped across the board and the 10-year U.S. Treasury yield declined 20 basis points to end the month at 1.74 percent. High-yield bonds, reflected in the Barclays Capital U.S. Corporate High Yield Index, returned a low but positive 0.57 percent. Treasury yields were down on the expectation that the Federal Reserve would be less likely to increase interest rates soon, given financial turbulence and signs of an economic slowdown around the world. . . . And the economy shows signs of improvement
Signs of a slowing domestic economy were apparent throughout the fourth quarter of 2015 and the start of 2016, but February started to show a thaw. The month began with strong employment data, including a good but not great headline number supported by very strong details. A longer work week added significantly to labor demand, and wage growth hit its highest level in some time.
The improvement in jobs and wages was clearly reflected in the personal income and spending releases. Although the figures in early February were relatively weak, those at month-end more than made up for them. Personal income growth ticked up to 0.5 percent, and spending growth matched it (unlike recent months when consumers tended to save rather than spend).
The positive spending trend extended to housing. Existing home sales were stronger, up to 5.47 million, the highest level since October 2007 on a 12-month average basis, and home prices continued to increase. This improvement in demand, combined with rising prices, is a positive indicator for the housing sector. While consumers continued to spend, industry, a source of weakness for the economy, also showed improvement. Industrial production figures surprised to the upside, hitting their highest growth level since November 2014, and the numbers included growth in manufacturing output, a sign of stabilization. The improvement was ratified by the strong durable goods orders report, which swung from a decline of 0.7 percent in the previous reporting period to a gain of 1.8 percent for core orders. Industry appears to be stabilizing, and perhaps even starting to grow, which could provide a boost for the economy going forward. Global recovery continues but may be slowing
Economic reports for the rest of the world were mixed. China's economy still showed growth at lower-than-historical levels, even as the government slowly increased policy stimulus. In addition, China's currency, which is managed by the government, continued a pattern of decline, raising concerns about political conflicts-as other nations, including the U.S., protested China's aggressive currency policy-and capital flight. Europe's economic situation continued to stabilize, with Germany and other major countries still evidencing signs of growth. Smaller countries also showed general signs of progress. Nevertheless, serious issues remain, including the Syrian refugee situation and a growing potential banking crisis in Italy. Politically, the scheduling of a referendum in the United Kingdom on exiting the EU has also generated uncertainty.
Oil continues to generate fear
Another factor still rocking the markets is the price of oil. With substantial declines and recoveries in January, the volatility has driven fears that the global economy is headed into recession. As of the end of February, however, prices were almost back to where they had been at the start of the year, suggesting that they may have bottomed out. If so, that could be a positive factor for markets going forward.
Nevertheless, even if prices have recovered somewhat, they are likely to remain low enough for the immediate future to continue to stimulate spending. U.S. car sales, for example, are still at high levels, largely driven by low gasoline prices, and other areas of the world are benefiting from low oil prices even more than the U.S. If prices continue to stabilize, the potential for the gains to outweigh the pain will continue to grow.
Politics a growing risk factor
Even as the U.S. economy expands, politics are a risk factor. With the unprecedented presidential election dynamics, the policy choices on offer have expanded dramatically-and with them uncertainty. These dynamics have quite possibly been another cause of this year's market turbulence, and the situation appears likely to continue. Outside the U.S., a rising concern, as previously noted, is a pending referendum in the United Kingdom over whether or not to leave the EU. If Britain were to vote to leave, the political shock waves could be severe.
Enjoy the stability but don't be surprised by more volatility
February's market recovery was a relief following a difficult January, and improving economic reports offered encouragement to investors, but the ongoing U.S. election, along with events in Europe and China, highlights that risks remain.
Although we expect the U.S. economy to continue to grow, last year's weak fourth quarter shows that this is by no means guaranteed. In short, although markets have started to recover from the fear so prevalent at the start of the year, substantial uncertainty abounds.
Therefore, we believe that it is important to maintain a disciplined investment process. Through good times and bad, this is the key to achieving long-term financial goals.
Authored by Brad McMillan, senior vice president, chief investment officer at Commonwealth Financial Network.
All information according to Bloomberg, unless stated otherwise.
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