HOW do you pick stocks to buy? Well, it depends on your overall strategy: short or long-term holding, value or growth, your aversion to risk, among other things. For now, let’s talk about the length of time you plan to hang on to your holdings — short or long term. Short-term traders hold stocks for one…
DOES this sound right? It’s almost incredible, but it’s true. California Governor Gavin Newsom signed Assembly Bill 1885 into law and it is the current law on homestead exemptions effective in 2021! This is monumental because the old law provided the following homestead exemptions: If single, $75,000. If below 65 with another family member in…
AS we all know, California has the perfect weather and scenery for those of us who enjoy riding bicycles. Besides using bicycling as a form of exercise, it is also environmentally friendly. California communities are leading the charge in promoting the use of bicycles for short trips rather than cars by creating bicycle-friendly streets and…
A STOCK is overvalued when its price can’t be justified by its fundamentals and earnings outlook. Overvalued stocks are risky and subject to selloffs. Specifically, stock is overvalued stocks when: P/E ratio over 50. PEG ratio over 3. P/S ratio over 10. P/B ratio over 10. Price/Free Cash Flow ratio greater than 50. D/E ratio…
Q: MY work requires personal interaction with several people on a daily basis. We are getting back to the worksite after working from home for over a year. My employer sent a company-wide memo saying that employees must be vaccinated to return to work. I am not sure I want to get the vaccine. Can…
A postnuptial agreement is a contract between you and your spouse entered into after you get married resolving issues in your marriage. It is similar to a prenuptial agreement except it occurs after your marriage. For couples that get married without a prenuptial agreement, it is not too late to have an agreement dealing with…
IS there a constitutional right to file for bankruptcy? Yes, there is. The United States Constitution adopted 250 years ago provides for the creation of bankruptcy courts and the power to administer them. Our founding fathers believed that people should be given a chance to have a fresh start in life to become productive again…
FACING difficult financial times can be a frightening thing for a lot of people. When bill collectors are hounding you, at some point, you realize that something must be done but you just don’t know where to begin or where to go for help. Often, options can also be confusing unless you get the right…
Unemployment benefits are fully taxed by the IRS. However, the recent American Rescue Plan makes the first $10,200 of unemployment benefits tax-free for 2020. President Joe Biden signed the Plan into law as of March 11, 2021. At that time, millions of Americans had already filed their taxes without knowledge of this new tax break….
THIS is one thing I hear from people all the time: “If you ask me, I really hate doing this, but I feel I have no choice.” Of course, no one ever wakes up one morning and decide to just file bankruptcy without seriously thinking it over. Usually, people spend a lot of time going…
IF you live in Los Angeles County, or in Southern California — including the counties of Orange, Riverside and San Bernardino County — and you own the house that you live in, now is a good, no, now is a very good time to file for Chapter 7 bankruptcy for a fresh start. Why? Because…
YOUR credit card payments are past due. You’re confused and don’t know what to do. The bill collectors are calling you non-stop and writing you threatening letters. What do you do? Should you just file bankruptcy? Or are there other options? Most people are unaware that credit card companies will negotiate with you if they…
THE client is 71. Her husband died five years ago, so she lives with her unmarried son who does not have full time or steady employment. She has a large equity in her residence of about $400,000. For her age, the equity exemption for homestead is $175,000. She was a registered nurse when she was…
Q: My spouse and I are expecting a baby and we are trying to figure out how much family leave we are entitled to so we can each spend quality time with our new baby. My spouse works at a small office and I work at a medium sized company in Los Angeles. What are…
PRESIDENT Joe Biden’s $6 trillion budget proposal offers new major initiatives like child and elder care subsidies, generous tax credits for families and the working poor, and free community college. His huge social programs provide a new safety net for the poor and middle class, courtesy of corporations and the wealthy taxpayers. President Biden’s spending…
Q: I WORK as a “team member” in the service industry in Los Angeles. Before we clock-in for our shift, we are required to attend a “huddle,” or a meeting where we discuss events during prior shifts, our assignments, etc. These “huddles” last 15 to 20 minutes every day. Should we be paid for these…
LET me give you the background on this case. The husband is 81 but still looks active. He is slim and sprightly. The wife is 79 and looks nervous. Normally, spouses are on the same track and agree with what has to be done. But in this case, I’m not sure what is going on….
THE IRS was underfunded under the Trump Administration. It didn’t have enough personnel to accomplish its goal. With skeleton force, audit rate declined to only 1/2 percent (less than half the returns they audited in 2010). Even with super low rates, you may still be a target if your tax return contains red flags. Let’s discuss…
CHAPTER 13 is the section of the US Bankruptcy Code that allows individuals in the United States to reorganize their finances. If you are having difficulty paying your debts (credit cards, medical bills, personal loans, taxes, late mortgage payments and property taxes- all kinds of debts) due to insufficient income, there is hope for you….
1. Failing to report some income Failing to report subcontract, interest, or dividend income are easy ways to attract an audit. I know that it’s tempting not to report income without W2s or 1099s but it’s not worth it. Many audits that I’ve handles even have 1099s but are lost or misfiled. IRS received copies…
Q: I WORK as a nurse at a facility that has a strict policy of no unapproved overtime. We don’t often ask for approval since we risk being written up for “too much overtime.” We just clock out and go back to work to finish our charts. Do we have remedies? A: Yes. You should…
THE highest-profile cases of bankruptcy filings are Walt Disney, Milton Hershey, Orange County, a certain Catholic diocese in the USA that was hit by the child molestation cases, the Trump companies during the 90s wiping out billions of debt, Toys “R” Us, and Hertz car rentals, among many others. A distinction can be made between…
ARE you seriously in debt and don’t know what to do about your situation? Are you afraid that unless you do something about it, thing will just continue to get worse every day? When people are going through financial difficulty and are unable to pay their bills, their first reaction is often to ignore their…
WITH a bigger budget, IRS recently hired new personnel to increase their historic low audit rates. Here are 7 targets for IRS audits: 1. Non-filers IRS estimates that nonfilers represent $39 billion in lost revenue annually. To make even worse, nonfilers leave the tax system for good. The IRS has restarted its delinquent return investigation and…
Q: I worked in a company for over 5 years. A client accused me of making a mistake in a big order. This was not true. But the new manager, who did not like me and wanted to bring in his best friend to do my job, used the client’s complaint as a reason to…
BITCOIN and other cryptocurrency has become popular lately as a new store of value. It is decentralized and not subject to regulation in any jurisdiction. It can be stored in a digital wallet or hard drive. Due to its lack of regulation, it is easy for one to assume that it is not necessary…
A DEBTOR who is 50 has accumulated credit card debt at the rate of $6,000 a year for the last 20 years. Now, he owes $70,000 of credit cards. He needs $2,400 a month of minimum credit card payments to keep all $70,000 current. His mortgage payment is $2,500 with a mortgage balance of $400,000….
WE are facing challenging times brought about by the coronavirus. Since March of last year, millions of people have lost their jobs. A lot of business owners have been forced to shut down. Surprisingly, bankruptcy filings have been down with so many people still waiting to see what happens in the next several months. Unfortunately,…
Q: I worked in healthcare in Los Angeles. Several months ago, I was pregnant. My doctor ordered me to take leave from work because my pregnancy was high-risk. My employer granted me leave. However, two weeks into my leave, I miscarried, and due to complications, I had to have surgery. My doctor advised me to…
SCAMMERS become more active during tax filing season — their hunting season. The prey: your own tax preparer who has troves of social security numbers, birthdays and bank account numbers. Thieves from the dark web have become more active again this 2021 tax filing season. The IRS warns tax pros not to respond to the…
