Paying Estimated Tax Makes More Sense

April 1, 2012 | ipso

This article addresses the need to coordinate tax planning and retirement withdrawals. When an individual transitions from the workplace to retirement, there is a difference in terms of how taxes are and should be paid. During working careers, most individuals have taxes withheld incrementally from their paychecks. The goal is to try to break even […]

Reverse Mortgages

September 1, 2011 | ipso

We are not unalterably opposed to reverse mortgages, but we do consider them a poor alternative to many of the other options generally available to families of our older clients. Our main objections are that they have high fees and that it affects the liquidity of the family’s largest single asset, their home, with a […]

Be Careful When Making Family Loans

August 1, 2011 | ipso

It’s common for parents or grandparents to lend money to adult children. It’s also common for such family loans to make everyone unhappy — the lender, the borrower, other family members . . . even the IRS. The first clue as to whether a family loan could be trouble is the nature of the loan. […]

Why We Favor UTMA’s over 529’s

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Your options for saving for children’s college educations are numerous, and one size does not fit all. Below, we outline the major options. The right option depends on ages of your children, family income, potential for financial aid, expected cost of college, and other factors. Our analyses and experience, however, have us strongly recommending that […]

Differences Between Brokers and Financial Planners

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Sometimes it can be difficult to explain the cultural differences between financial planners and wirehouse brokers. However, at a financial services conference in San Francisco, author Michael Lewis–the celebrated author of ‘Liar’s Poker,’ ‘The Big Short’ and ‘Moneyball’–talked about his own experiences as a broker and as a writer about brokers and their world. Lewis […]

Why We Provide Insurance & Mortgages to our Clients

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Demming Financial Services Corp. is a full-service financial planning firm. As a fee-based advisory firm registered with the SEC with 3 CFPs® on staff, we embrace the fiduciary standards of conduct which most of the life insurance and mortgage industries have shunned. Insurance revenues for us constitute less than 2% of our corporate revenue and […]

Short Duration Funds – A Cash Alternative

January 1, 2010 | ipso

This is a discussion of why, in the current interest rate environment, we prefer using short or ultra-short duration bond funds in lieu of money markets. This is a type of mutual fund that invests only in fixed-income instruments with very short-term maturities (generally around one year). An ultra-short bond fund will pursue strategies aimed […]

A Primer on Medicare & Medigap Coverage

December 1, 2009 | ipso

Despite all the public discussion about health care, very few people under the age of 65 understand the basics of Medicare, the federal health program for seniors and certain disabled individuals, or Medigap, the supplemental private coverage many buy to cover treatment that shortfalls what the federal program doesn’t pay. Even if you have years […]

DFSC Commentary During the Great Recession – Spring 2009

April 1, 2009 | ipso

Dear Clients: It is now the spring of 2009, and the U.S. as well as the world has been in recession for well over a year. The bear markets, which originated in the U.S., have now reached 18 months with a severity that has not been seen in over 30 years. One must remember there […]

DFSC Commentary During the Great Recession – Winter 2008

December 1, 2008 | ipso

Dear Clients: As 2008 draws to a close, the US economy has been in a recession for over a year, making it one of the longest recessions we’ve had in 25 years. It is important to note that capital markets tend to lead the economy by approximately 6-9 months as a barometric indicator. As capital […]

DFSC Commentary During the Great Recession – Fall 2008

September 1, 2008 | ipso

Dear Clients: As the U.S. economy continues to limp along at the end of the third quarter, there is a conflict between the obvious recessions in the housing and financial services industries versus other sectors of the U.S economy that appear to be performing moderately better. The world economy, which had heretofore outperformed the U.S. […]

Watch Out for These Mortgage Mistakes

May 1, 2008 | ipso

Many families today have more wealth tied up in the stock market than in their homes, but a home remains an important financial asset. That’s why it pays — sometimes big dollars — to avoid some of the following mistakes involving the home mortgage. Assuming you should have a mortgage. Most of the time you’re […]

Should You Buy or Lease a Vehicle?

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Americans love their cars, and automobiles typically rank as one of the highest expenses in a family’s budget. That’s why many financial planners help their clients make automobile decisions. And there are many decisions to be made: Should you lease or own? If you own, should you buy new or used? Should you finance the […]

Financial Advisor vs. Financial Planner

April 1, 2008 | ipso

What is the difference between a broker and an investment adviser? How about a financial adviser and a financial planner? Many people use these terms interchangeably, yet in reality there are distinct differences. The distinctions are important because these financial professionals have different responsibilities under various federal regulations. An investment adviser gives advice to others […]

Borrowing from Your Home’s Equity

October 1, 2007 | ipso

Home equity lines of credit are the most consistently low-cost way to borrow money. HELOCs are contingent upon net equity in one’s home, less any primary mortgage. They can be up to 80-100% of available equity in a home. Interest is generally tax-deductible up to $100,000, with extensions for utilizing the funds for home improvements […]