Friday Financial Five – January 31st, 2014
Dan Forbes, GoLocalProv MINDSETTER™
Friday Financial Five – January 31st, 2014
The big financial news coming from the State of the Union address is the White House’s push to implement a government-sponsored savings account called “MyRA”. The account would be treated similar to a Roth IRA in that it would be an after tax contribution and would grow tax deferred. The funds would be invested in government bonds, which seems like a good way to make sure there’s always a market for the government’s debt. For employers that participate, the proposed threshold would allow contributions for households that make below $191,000. There would also be a maximum balance of $15,000, at which point the worker would be forced to roll the funds over to privately held Roth IRA. This isn’t a cure, but it brings renewed focus to workers’ lack of retirement savings.
Taper, taper, taper
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTIn the lexicon of finance, “taper” has seen a compounded level of importance to the point that it may be the most important word for markets globally. The market’s abysmal week may have been a direct result of the anticipation of Wednesday’s Fed meeting. To their credit, the FOMC stayed the course and reduced bond purchases by another $10 billion, without any dissenting votes. This should continue throughout the year, while keeping the target interest rate near zero and reducing the market’s reliance. And at some point, the public will be able to hear “taper” and simply go about their day.
The intricacies of Roth conversion
All people with a traditional IRA can convert to a Roth, but some may shy away from doing it because of the steps or analysis involved. The primary concern is that converting will cause a taxable event. Any amount that is moved from traditional IRA to Roth will be included as income in the year of conversion, and it’s best that funds to pay that additional tax come from outside of retirement accounts. Converting is also not necessarily the end of the story. If an individual’s situation changes or the account value drops dramatically, the IRS allows a recharacterization of the IRA, reversing the process. Traditional IRA holders should review income, tax brackets, and financial goals to see if a Roth conversion makes sense.
Penalties for not having health insurance
With the Affordable Care Act dependent on young people enrolling, the IRS recently detailed possible penalties for non-compliance. The fine line here is making it painful enough that people will be inclined to join but not so burdensome that people go broke just trying to pay for insurance coverage. The penalty for lack of coverage starts out relatively affordable this year at $95 per month. It then jumps to $325 monthly in 2015 and $696 monthly in 2016. After that, the penalty will adjust according to inflation. The government will accept “minimum essential coverage” as proof of insurance, and the cost of this coverage can’t exceed 8 percent of an individual’s household income or the person is exempt.
Save the yacht owners!
Yacht owners and boat builders are uniting to save a tax deduction that currently allows the classification of yachts as second homes, which allows some owners to deduct financing interest. Democrats in congress are targeting this deduction as an unnecessary loophole, pushing the “Ending Subsidies for Yachts Act”. Currently, the IRS requires a camp stove, temporary toilet, and occupancy for 14 nights a year for yachts to qualify as a “second home”. This is a small portion of the overall interest deduction, but it’s expected to be included in a grander revision of the tax code.
Dan Forbes is a regular contributor on financial issues. He is a CFP Board Ambassador. He leads the firm Forbes Financial Planning, Inc in Providence, RI and can be reached at [email protected] .
25 Movies Filmed in Rhode Island
Moonrise Kingdom
2012
Director: Wes Anderson
Cast: Bruce Willis, Edward Norton, Bill Murray Frances McDormand
This Oscar nominated film features many local landmarks including Fort Wetherill State Park, Bayfield Farm, and the Conanicut Lighthouse.
Mr. North
1988
Director: Danny Huston
Cast: Anthony Edwards, Robert Mitchum, Lauren Bacall
Shot in Newport, this comedy-drama features Anthony Edwards as a con man attempting to break into the 1920s Newport social scene.
There's Something About Mary
1998
Directors: Peter and Bobby Farrelly
Cast: Cameron Diaz, Matt Dillon, Ben Stiller
Filmed partly in Providence, this movie was the highest-grossing comedy in 1998.
Federal Hill
1994
Director: Michael Corrente
Cast: Nicholas Turturro, Anthony DeSando, Libby Langdon
Set in Providence's Federal Hill neighborhood, the movie marks the directorial debut of Pawtucket native Michael Corrente.
Age of Innocence
1993
Director: Martin Scorsese
Cast: Daniel Day-Lewis, Michelle Pfeiffer, Winona Ryder
This Oscar winning drama was partly filmed in Portsmouth.
True Lies
1994
Director: James Cameron
Cast: Arnold Schwarzenegger, Jamie Lee Curtis, Tom Arnold
The ballroom scenes in the movie were filmed at the Rosecliff Mansion in Newport.
High Society
1956
Director: Charles Walters
Cast: Bing Crosby, Grace Kelly, Frank Sinatra
Nominated for two Academy Awards, the movie's opening shot features a flyover of Newport’s oceanfront mansions.
Thirteen Days
2000
Director: Roger Donaldson
Cast: Kevin Costner, Bruce Greenwood, Steven Culp
This docudrama about the Cuban Missile Crisis was partly shot in Newport.
Little Children
2006
Director: Todd Field
Cast: Kate Winslet, Patrick Wilson, Jennifer Connelly, Jackie Earle Haley
Shot partly in Providence, this critically acclaimed drama received three Academy Award nominations, including a Best Lead Actress nod for Kate Winslet.
RIPD
2013
Director: Peter M. Lenkov
Cast: Ryan Reynolds, Jeff Bridges, Kevin Bacon
A car chase for this action-comedy was filmed in downtown Providence.
Amistad
1997
Director: Steven Spielberg
Cast: Morgan Freeman, Anthony Hopkins, Dijimon Hounsou, Matthew McConaughey
Shot at the Rosecliff Mansion in Newport and the State House in Providence, this drama received four Academy Award nominations in 1998.
Outside Providence
1999
Director: Michael Corrente
Cast: Shawn Hatosy, Amy Smart, Alec Baldwin
Filmed in multiple locations throughout Rhode Island, this movie is an adaptation of Peter Farrelly's 1988 novel of the same name.
Me, Myself & Irene
2000
Directors: Peter and Bobby Farrelly
Cast: Jim Carrey, Renée Zellweger. Chris Cooper, Robert Forster, Richard Jenkins
Filmed in Newport, Narragansett, Jamestown, and Galilee, this comedy centers on a Rhode Island State Trooper played by Jim Carrey.
Evening
2007
Director: Lajos Koltai
Cast: Vanessa Redgrave, Claire Danes, Toni Collette, Meryl Streep
The film was primarily set in Newport and included large portions shot at Gooseberry Beach.
The Great Gatsby
1974
Director: Jack Clayton
Cast: Robert Redford, Mia Farrow, Sam Waterston, Bruce Dern
This Academy Award-winning drama was filmed in Newport at the Rosecliff Mansion on Bellevue Ave.
Self Storage
2013
Director: Tom DeNucci
Cast: Eric Roberts, Jonathan Silverman, Michael Berryman, Tom DeNucci
Filmed in a self storage facility in East Greenwich, this horror-comedy marks the directorial debut of Cranston native Tom DeNucci.
27 Dresses
2008
Director: Anne Fletcher
Cast: Katherine Heigl, James Marsden, Malin Åkerman, Ed Burns
Shot throughout Rhode Island, locations included the Rosecliff and Marble House mansions in Newport and a beach in Charlestown.
Dan in Real Life
2007
Director: Anne Fletcher
Cast: Steve Carell, Juliette Binoche, Dane Cook, Alison Pill
Filmed primarily in Jamestown, the movie also features the Point Judith Lighthouse in Narragansett.
Hachi: A Dog's Tale
2009
Director: Lasse Hallström
Cast: Richard Gere, Joan Allen, Jason Alexander
Filmed primarily in Bristol and Woonsocket, other locations included the Columbus Theater in Providence and the University of Rhode Island in Kingston.
The Education of Charlie Banks
2007
Director: Fred Durst
Cast: Jesse Eisenberg, Jason Ritter, Eva Amurri
Shot partially in Brown University in Providence, the movie marks the directorial debut of Limp Bizkit frontman Fred Durst.
Meet Joe Black
1998
Director: Martin Brest
Cast: Brad Pitt, Anthony Hopkins, Claire Forlani
Warwick's Aldrich Mansion served as the residence of Anthony Hopkins' character in the film.
Reversal of Fortune
1990
Director: Barbet Schroeder
Cast: Jeremy Irons, Glenn Close, Ron Silver
Jeremy Irons took home the Oscar for Best Actor for this drama, which was partly shot in Newport.
Underdog
2007
Director: Frederik Du Chau
Cast: Jason Lee, Peter Dinklage, Patrick Warburton, Amy Adams
Shot entirely in Rhode Island, filming locations included Hope High School on the East Side of Providence.
Tanner Hall
2009
Directors: Francesca Gregorini, Tatiana von Furstenberg
Cast: Rooney Mara, Georgia King, Brie Larson
Shot in Providence and Newport, the film marks the the directorial debut of Brown University graduates Francesca Gregorini and Tatiana von Furstenberg.
Dumb and Dumber
1994
Directors: Peter and Bobby Farrelly
Cast: Jim Carrey, Jeff Daniels, Lauren Holly
Scenes from the beginning of this comedy were filmed on location in Providence, including a shot of the Big Blue Bug.
