Broker Check

April 18, 2000

We`re Not Only Feeling Old...

           We are getting older fast.  In 2015, 15% of the population in 33 states will be at least 65 years of age.  Just 5 states meet the threshold now.  By 2025, 48 states will pass the test.  Oldest states then: Fl, WV, MT, OR, AK.

           Many states will see a 50% hike in elderly population by 2025, some even more.  MN and NV will see an 80% increase in seniors.

           This means solid growth for businesses catering to the senior market.  Tougher times for those catering to children.

Summer Employment and Children

           Some tax reminders as the end of the school year approaches.  Many students can avoid income tax withholding for summer jobs:

  • They must not have owed tax last year and expect not to owe any in "00
  • If student can be claimed as a dependent and has unearned income of $250 or less, withholding can be avoided if total income does not exceed $4,400.
  • But, if investment income is greater than $250, total income cannot top $700.
  • Write EXEMPT on Form W-4.  Eliminates the need to file for a refund in `01.

           `99 W-4s claiming full exemptions from withholding have expired.  Must be refiled for `00, or employers face penalties for not withholding.  Old W-4s not requesting complete exemption from withholding remain valid.

Hiring Your Child Can Pay Off

           No social security tax is due when sole proprietors or husband and wife partnerships hire their children under the age of 18.  FUTA isn`t owed until the children are 21.

           Tax Preparers Can Speak For Taxpayers

           Next year, filers will be able to check a box on their 2000 tax returns so the IRS can call the tax preparer to handle issues arising during processing.  Powers of attorney will still be needed for audit and collection matters.

           We will, as a default, check the box so we can help process your tax return.  Only if you specifically tell us not to check the box will it be unchecked.

NYC Commuter Tax Repealed

           On April 4, the New York State Court of Appeals upheld the State Legislature`s repeal of New York City`s commuter tax and further ruled that the commuter tax could not be applied to out of state residents effective July 1, 1999.

           Since 1996 New York City had imposed the tax on the earnings of individuals who worked but did not live in New York City.  Last year, the State Legislature, with Governor Pataki`s approval, repealed the tax for New York State residents but maintained it for commuters who live outside the state.  The states of New Jersey and Connecticut filed suits challenging the selective repeal for New Yorkers only.  These groups said that the law violated the privileges and immunities and commerce clauses of the U.S. Constitution.  The highest court in NYS agreed.

           If you feel you are entitled to a refund for 1999 New York City taxes, please contact us.

Is There a Gender Gap in Investing?

  • Women tend to hold less risky positions then men in their common stock portfolios.
  • Average annual portfolio turnover for men was approximately 77%, while the average turnover for women was 53%.
  • Women earn gross returns that are similar to those earned by men, but men do so by investing in smaller stocks with higher market risk.
  • Both men and women detract from their returns by trading, men simply do so more often.
  • The net returns earned by single women are approximately 2.3% higher annually than those earned by single men.
  • Single women trade substantially less than single men and their married counterparts, and portfolio turnover decreases with age in both groups.
  • 52% of working women lack pension coverage.
  • On average, women`s pension annuities replace only 18% of pre-retirement income.
  • Only 35% of women say they are very optimistic about their financial future.
  • At some point, 80% to 90% of women will most likely be the sole financial decision maker for their households.
  • 46% of women believe investment advisors treat women worse than they treat men (39% of men agree).
  • 80% of women in a couples relationship say they share or take sole responsibility for making finance or investment decisions (63% of men agree). 

(Investors Business Daily)