STA Wealth Management, LLC
Partner and Executive VP of Financial Planning
Scott Bishop is a Partner and is Exec. Vice President of Financial Planning at STA Wealth, a Houston based RIA Firm. In this role, Scott guides clients through the process of identifying and realizing their personal financial planning goals while working with them to help develop, implement and monitor strategies to help assure the long-term coordination of their overall financial, retirement, business planning.
Scott is also the host of STA's radio show, "Financial Planning Fridays" on The STA Money Hour, on 950AM KPRC Radio in Houston at 12pm Central where he frequently discusses tax and financial planning topics and hosts interviews of industry experts.
Scott graduated from the University of Texas at Austin with a Bachelor of Business Administration in Accounting and received his Master of Business Administration from the University of St. Thomas.
Currently, Scott is a CFP® and a CPA and also holds a PFS® designation. Scott has been active as a member of the American Institute of Certified Public Accountants (AICPA), the Texas Society of Certified Public Accountants (TSCPA) and its Houston CPA Society as a member of its Board of Directors. He has also been recognized for excellence by being named the Young CPA of the Year for 2002-2003 by the Houston CPA Society, one of the largest and most prominent CPA chapters in the United States.
In addition, Scott has both authored and has been interviewed for numerous articles in financial related publications and websites such as the Wall Street Journal, MarketWatch, CNBC, USA Today, Washington Post, The New York Times, Investopedia, Houston Chronicle, Investment News, Kiplinger, The AICPA Tax Section, BankRate.com, the Houston Business Journal and the CPA Forum. Scott is also a member of the Houston Business and Estate Planning Council.
BBA - Accounting, University of Texas at Austin
MBA - Finance, University of St. Thomas
Assets Under Management:
AUM information provide is for the firm STA Wealth Management, LLC of which Scott Bishop is a partner/shareholder. The information herein has been obtained from sources believed to be reliable, but we do not guarantee its accuracy or completeness. Neither the information nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by STA Wealth Management, LLC), or any non-investment related content, made reference to directly or indirectly in this presentation will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this presentation serves as the receipt of, or as a substitute for, personalized investment advice from STA Wealth Management, LLC. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. STA Wealth Management, LLC is neither a law firm nor a certified public accounting firm and no portion of this article should be construed as legal or accounting advice. A copy of the STA Wealth Management, LLC’s current written disclosure statement discussing our advisory services and fees is available for review upon request. ALL INFORMATION PROVIDED HEREIN IS FOR EDUCATIONAL PURPOSES ONLY – USE ONLY AT YOUR OWN RISK AND PERIL.
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STA Wealth Planning Process - Scott Bishop
Here is a great summary from www.IRS.gov:
The length of time you should keep a document depends on the action, expense, or event which the document records. Generally, you must keep your records that support an item of income, deduction or credit shown on your tax return until the period of limitations for that tax return runs out.
The period of limitations is the period of time in which you can amend your tax return to claim a credit or refund, or the IRS can assess additional tax. The information below reflects the periods of limitations that apply to income tax returns. Unless otherwise stated, the years refer to the period after the return was filed. Returns filed before the due date are treated as filed on the due date.
Note: Keep copies of your filed tax returns. They help in preparing future tax returns and making computations if you file an amended return.
Period of Limitations that apply to income tax returns
- Keep records for 3 years if situations (4), (5), and (6) below do not apply to you.
- Keep records for 3 years from the date you filed your original return or 2 years from the date you paid the tax, whichever is later, if you file a claim for credit or refund after you file your return.
- Keep records for 7 years if you file a claim for a loss from worthless securities or bad debt deduction.
- Keep records for 6 years if you do not report income that you should report, and it is more than 25% of the gross income shown on your return.
- Keep records indefinitely if you do not file a return.
- Keep records indefinitely if you file a fraudulent return.
- Keep employment tax records for at least 4 years after the date that the tax becomes due or is paid, whichever is later.
The following questions should be applied to each record as you decide whether to keep a document or throw it away.
Are the records connected to property?
Generally, keep records relating to property until the period of limitations expires for the year in which you dispose of the property. You must keep these records to figure any depreciation, amortization, or depletion deduction and to figure the gain or loss when you sell or otherwise dispose of the property.
If you received property in a nontaxable exchange, your basis in that property is the same as the basis of the property you gave up, increased by any money you paid. You must keep the records on the old property, as well as on the new property, until the period of limitations expires for the year in which you dispose of the new property.
What should I do with my records for nontax purposes?
When your records are no longer needed for tax purposes, do not discard them until you check to see if you have to keep them longer for other purposes. For example, your insurance company or creditors may require you to keep them longer than the IRS does.
I guess that will work if you want to just mirror the S&P 500. But if you do that, why not just buy a low cost index fund or ETF and save the transaction costs? By the way, buying the index will not beat the index. I would suggest having a bit more diversificaiton than just having all your money (eggs) in one index (basket).
Even if you like the indexing approach, what about: International (develiped and emerging markets), bonds, commodities, real estate, etc?
Instead of trying to beat the market, why don't you focus on the returns needed to meet the objectives in your financial plan - check out my article on knowing your "Hurdle Rate".
It really depends on the state law where the will is being probated. If a will is contested during probate, the estate's assets will typically not be distributed until the will contest is done. If the executor distributes assets during a will contest, they could be held liable.
In most states, you can not shelter assets AFTER the rise of liability (like a legal lawsuit/contest) as that would be considered a fraudulent transfer.
There is very little that you can do to protect/shelter your assets that you receive (if distributed) as they can be clawed-back (a court order to return assets) if the will-contest succeeds.
That is one of the reasons that I recommend that any person creating a will create good no contest clauses that if they contest and lose, they get disinherited.
That is a very prudent question (and I discussed it in my Layoff Survival Guide). Part of it would depend on:
- How much after-tax savings you have,
- How much taxable income you will make in the year of layoff (tax benefit of 401k)
- How much you spend a month,
- Vesting of the match (would you get to keep it), and
- How much time you would be unemployed if laid off (job search time)
If you were very fearful of a job loss and had a high likelihood of not having a job for an extended period, I would like you to have a MINIMUM of 6 months spending in after tax accounts. If you didn't have that, then I would definitely put more into savings. The 6% match (if vested) would be a plus, but would not be worth not being able to pay your mortgage! Also, the lower your income, the less beneficial the tax dedctuion for the deferral into the 401k.
Great question. Where a 401(k) loan is always preferable to a distributtion (as you don't have to pay taxes or penalties on the money), the biggest downside is that you have to re-pay it with interest back in post-tax dollars. This is usually done with payroll deductions over a period of time selected in the plan document (check out the summary plan descritipion or SPD for your plan). FYI - the interest goes to your account and NOT to the 401k plan provider (it is a loan to yourself). Please note that if you default on a loan, you have to pay taxes and penalties (the penalties are if you are under age 55).