New Direction Financial Strategies, LLC
Certified Divorce Financial Analyst, Financial Planner
J.F. Kennedy said, ”If not I, who? if not now, when?” Michelle Buonincontri was moved and inspired by this quote when she first heard this and joined her children's School Board - more than 17 years later it is still her call to action.
“Belief” is Michelle's number one Gallup strength - her beliefs, in conjunction with this message, drive life her choices. Those with this theme “have certain core values that are enduring. .. your Belief theme causes you to be family-oriented, altruistic, even spiritual, and to value responsibility and high ethics both in yourself and others. These core values affect your behavior in many ways... it also demands that you find work that meshes with your values. Your work must be meaningful; it must matter to you" In 2009 when her divorce began, too many friends, family members, her children and herself were adversely affected by the divorce process.
At this time, Michelle founded her own firm, FOAL Planning, Inc, inspired by the vision of being and having a Faith-filled, Overflowing, Abundant Life; specializing in Investment Management and tax preparation After her divorce, she left her New York State Registered Investment Advisory firm in 2012 and moved to Arizona; worked with Schwab Private Client Investor Advisor, Inc., as an Portfolio Manager, and then joined a small RIA as a CERTIFIED FINANCIAL PLANNER™ (CFP®), where she provided clients with Financial Planning, Investment Management and Retirement Income planning services.
Now, after 20+ years in Financial services, working with corporate/business clients and individuals to define goals/objectives and implement solutions, she is nudged again - this time to found Being Mindful in Divorce, so that she can use her own personal and professional experiences to support couples, and professionals during the divorce process – to be a contribution to others.
Michelle holds the CERTIFIED FINANCIAL PLANNER™ (CFP®) designation, and has experience in Financial Planning, Investments, and taxation with specialized training as a Certified Divorce Financial Analyst (CDFA™) to address her clients concerns before, during and after divorce. Additionally, she is a registered Tax Preparer, is a contributing writer for Credit.com, trained as a mediator and a life coach, and volunteers as a presenter and financial coach at Fresh Start Women’s Foundation in Phoenix. Currently, serve as a WINS Advocate for the CFP Board, and have served as Director of Public Relations for the Financial Planning Association of Greater Phoenix, and as the Director of Communications for the Financial Planning Association's Long Island Chapter. Michelle is also a member of the Maricopa County Association of Family Mediators, The Institute for Divorce Financial Analysts, The Association of Divorce Financial Planners and on a more local note a member of the Anthem Area Chamber of Commerce.
Michelle has the privilege of creating a life she loves to live, and she wants to help her clients do that as well!
BAS, Business Administration and Communication, Adelphi University
The information, tools and material presented by the Author are provided to you for informational purposes only and are not intended to be and should not be used or considered as an offer, recommendation or a solicitation to sell or an offer, recommendation or solicitation to buy or subscribe to any financial instruments, investment management services or advisory services. The Author does not intend to provide investment, tax or legal advice. Third-party information that is reproduced on this website is purely for informational purposes and does not constitute any endorsement of the Author’s viewpoint. Decisions based on information contained on this website are the sole responsibility of the user and the user agrees to hold Being Mindful in Divorce and New Direction Financial Strategies (also known as "NFDS") harmless against any claims for damages arising from any decision the user makes in reliance on information provided on the website. Prior to the execution of any transaction involving information provided by this website, the user should consult its business advisor, attorney and/or tax and accounting advisors with respect to the price, suitability, value or other aspects of any stock, bond, mutual fund, security or other investment. Depending on the user’s specific investment objectives and financial position, the investments discussed may or may not be suitable. It is up to the user to weigh any decision carefully.
It has been my experience that repayment of the depreciation (known as depreciation recapture) falls on the “owner” of the property when the property is sold, as the cost basis is decreased by the depreciation taken in previous years and the property potentially has capital gains as a result of this at sale.
Depreciation recapture is one of those “hidden” tax pitfalls that attorneys, mediators, and other non-financial folks forget to look for and negotiate when dividing assets in a divorce settlement. Typically, in a situation with real estate depreciation, some sort of credit or offset is negotiated and given to the “owning” spouse to help compensate for the potential future taxes incurred due the depreciation recapture that was created by the depreciation tax savings enjoyed by both during the marriage. If this is not addressed in your divorce settlement and you were not compensated another way, I don’t know what kind of recourse you would have since you agreed to the settlement (and it sounds like it does not address the depreciation).
I am not an attorney, I suggest you collaborate with a tax professional proficient in working with divorced folks to see what can be done in your case with your specific details.
Yes, keeping income low will reduce taxes. However, we don't have enough information to know if that will prevent any income taxability. Having and making “qualified” withdrawals from “after-tax” assets like a Roth IRA, and a Health Care Savings accounts (H.S.A.) can help to reduce taxes in retirement, and this can be significant if you are in a single tax bracket. Just make sure you follow the IRS rules to ensure the distributions are “qualified” and NOT subject to taxes and a possible penalty. See https://www.irs.gov/retirement-plans/roth-iras and https://www.irs.gov/pub/irs-pdf/p969.pdf for more information on Roth IRAs and HSAs.Your Tax professional or financial advisor should be able to help you estimate any tax liability based on the specifics of your situation.
As a general rule, “investing” is for money needed 5 years or more into the future. We should never invest in the market, either in a Roth IRA or a brokerage account if we need the money sooner than that 5 year time horizon. Of the two mentioned, the Roth IRA currently offers great long term tax benefits that can equate to more money in your pocket over the long run if you follow the rules on contribution limits and withdrawals AND if you are eligible to contribute. If you are not eligible to contribute to a Roth IRA, see if your employer has a Roth 401(k) option.
Your advisor is correct. Basically losses on your investments are first used to offset capital gains of the same type. For example, short-term losses are first deducted against short-term gains, likewise long-term losses are deducted against long-term gains. Net losses of either type can then be deducted against the other kind of gain. If losses exceed gains, then after offsetting taxable gains, losses can then reduce taxable ordinary income (like wages) up to $3,000 per year, $1,500 per year if married filing separately. See https://www.irs.gov/uac/irs-reminds-taxpayers-they-can-use-stock-losses-to-reduce-taxes for more information.
It is believed that more is better when looking to diversity. 2 stocks in a sector are better than 1. Likewise 50 are better than 2. When looking to diversify, you may also want to consider company capitalization, as different capitalizations perform differently during points in the business life cycle and depending on what is happening in the economy. I would guess you are most likely focusing on Large-cap Value domestic stocks, as these are traditionally dividend paying. You may want to consider a dividend paying mutual fund, Index fund, or ETF with low-cost or no-load fees to achieve greater diversification. A fund with 400+ stocks would further increase diversification, and in theory, reduce company and sector specific stock market risk.