2017 Securing Your Financial Future Page 2 · mends you file a federal extension. Millions of Americans file for an extension with the federal govern-ment every year and in Montana,

2017 Securing Your Financial Future q Page 2

FEDERAL & STATE TAXES n 1031 EXCHANGESACCOUNTING n PAYROLL SERVICES

Michelle A. JolleyEnrolled Agent

P.O. Box 609Livingston, MT 59047

Ph: 406.222.9292Fx: 406.222.9291

[email protected]


Local experts offer tips on buying vehiclesBy Samantha Hill Enterprise Staff Writer

Whether you are buying a new or used vehicle from a dealership, Livingston car experts offer helpful advice

on the big step. Ryan Wagman, owner of RP Motors,

said when people come into his shop to look at a car, they should have a general idea of how much they would be willing to pay and the type of vehicle they are looking for, just as a baseline for an easier buying experience.

Once a person test drives a car and acknowledges the possibility of buying it, the experience can get bit more challenging.

Often someone purchasing a vehicle will need an auto loan. First, the car dealership will look at how old the vehicle is before lending money. Many banks won’t offer loans for cars older than 2004, because Wagman said people are less likely to pay back their cars if thy break down halfway through the life of the loan.

“The older the car, the shorter the loan length,” he said.

The most important part of a car loan is looking at the APR, which stands for annual percentage rate. Some banks offer a sliding scale of APR based on the vehicle’s age and a person’s credit

score, while other banks will offer a flat rate based on their credit history and the available good credit a person already has, such as good standing on a credit card or home mortgage.

American Bank of Livingston Branch Manager Andy Turner said the bank subscribes to the latter method of loans, offering 4.5 percent flat rate for loans

based on good credit standing.Turner said it is important that

buyers consult their bank or financial institution before purchasing a vehicle because they need to verify whether they would qualify and if there are any red flags on their credit.

“In general, I think that people should pull their credit scores once a year to

see if there have been any fraudulent charges to their account,” Turner said.

When putting money toward the down payment, Wagman said that people generally don’t need to supply more than about $1,000, but if their credit is poor, they will need to put down more.

Another issue that may arise is for those who are self-employed. Wagman said such individuals should be prepared to prove their employment using a tax return because it can sometimes be hard to verify employment otherwise.

During the purchasing process, there will be the option to purchase additions to the car, such as an extended warranty. These warranties range from covering a few months to a couple of thousand miles, or all the way up to 100,000 miles or five years of coverage — all of which can be added onto a person’s loan if they want the additional coverage.

Other than purchasing the vehicle, Wagman offered tips on making your car investment last and what kind of vehicles to look at to keep prices down. For example, although foreign-made cars could be cheaper on the lot, their parts can often be more costly — the same with diesel vehicles.

Wagman also recommends people visit to check for any other problems a vehicle might have.

Enterprise photo by Hunter D’Antuono

A line of new Dodge pickup trucks is pictured at Yellowstone Country Motors on West Park Street in Livingston, Monday afternoon.


206 East Callender StreetLivingston, MT 59047

(406)-222-0362www.amtitlemontana.com

Left to right: Julie Harris, Linda Glantz, Scott Gray, and Sherri Clark.

American Title and Escrow of Park County is focused on the needs of the Individual Customer. Our Experts make the title insurance process simple and personal. We customize our processes and products to meet your specific needs.

We will take care of the details and make the process of buying and selling real estate easy for you.

American Title and Escrow of Park County


Have you made out a will?

We can show you how to make sure the proceeds from your estate are distributed according

to your wishes.

Huppert, Swindlehurst and Woodruff PC420 So. 2nd Street • Livingston • [email protected] • [email protected]

• Our firm was established in 1954

• The firm has received the highest rating through Martindale-Hubbell

Accountant guides millennials through tax seasonBy Jordan P. Ingram

Enterprise Staff Writer

When the snow starts to melt and frozen engine blocks begin to thaw, it’s a sign of the times — tax season.

For most young people, the mere mention of filing taxes and dusting off financial ledgers can drain all the blood from their brains. But for those millennials eager to either reap a tax refund or to cut the IRS a check already and be done with it, local Cer-tified Public Accountant John Mabie has some suggestions. Mabie is a pro-fessional tax preparer and has filed more than a few returns during his 45 years on the job.

CoordinateMabie said it is important younger

taxpayers communicate with their family regarding their tax status, spe-cifically to determine whether or not their parents are still claiming them as dependents.

This simple oversight would not only require an amended return, but could potentially cost a college stu-dent an opportunity to receive an American opportunity tax credit (AOTC) of up to $1,000 refund in addi-tion to their regular tax return. Stu-dents in their first four years of high education may be eligible for an

AOTC, which provides a maximum annual credit of $2,500 to help with college expenses such as tuition and course materials and is refundable up to 40 percent.

“I swear I spend every summer amending returns because families didn’t coordinate and they left money on the table,” Mabie said.

Do-it-yourself? Use software There are a very few remaining

Americans who still file handwritten

taxes. For those who are tech savvy, tax assistance computer software such as TurboTax can eliminate errors and quicken your return.

If you thought doing your taxes was complicated 40 years ago, Mabie assures readers the tax code has only gotten more complex with advancing technology.

“I know people who have filed by hand for years, and my hat is off to them,” Mabie said. “Software will tell you when you’re making an error and can keep you from making costly mis-takes.”

And if you suspect there is money left floating in the vast wilderness of the tax code, a certified tax preparer can help you navigate through the financial brush and maximize your return.

Self-employed and unexpected costs

Many new college graduates are beginning to go into business for themselves. But as they may already know, being your own boss can have unexpected price tags. For example, many taxpayers receive a paycheck that already accounts for mandatory Social Security and Medicare pay-ments that are matched by the employer.

Mabie said new business owners and

independent contractors need to remember they are both employer and employee. And while some may be able to avoid income tax, it’s very pos-sible to take a big hit when it comes to Social Security and Medicare pay-ments. How much exactly? Fifteen percent of your net income.

“It catches people off guard, espe-cially in their first year of business,” Mabie said. “They say, ‘Oh wow, nobody told me about this.’”

Out of time? File an extension. Believe it or not,

some people just don’t have a lot of time to file taxes. And it’s understand-able. If you’re too busy to get your taxes in by April 15, Mabie recom-mends you file a federal extension. Millions of Americans file for an extension with the federal govern-ment every year and in Montana, one application gets you additional time for both state and federal taxes.

“If you’re expecting a refund, don’t be afraid to file for an extension,” Mabie said. “Don’t rush and make the wrong decision. Even if you owe taxes, you can get an extension until October 15.”

Need more help? Visit www.irs.gov for answers to frequently asked ques-tions or make an appointment to speak with a certified public accountant.

Enterprise photo by Hunter D’Antuono

John P. Mabie, CPA, is pictured in his office on the second floor of the Murray Hotel in Livingston on Mon-day afternoon.

504 E. Callender [email protected] [email protected] [email protected]

Peace of mind.That’s what you’ll get from our team who has over 70 years of combined

real estate experience.

Chances are very good your home will

be your biggest investment.

The team at Guardian Title

has the experience to make sure

the title to your home is free and clear.

A long standing Guardian Title tradition -Every month we donate to a local non-profit group


129 So. C 222-3301 [email protected]

With over 60 years of combined experience, Swandal Law PLLC and Mediation Center offers

top-notch estate planning, legal and mediation services.

No matter how large or small your estate is, having a will is the best thing for your family.

• Nels Swandal • Kendra Anderson• Rebecca Swandal

Monday, February 15, 2016 O Our Presidential HistOry O Page 12017 Securing Your Financial Future q Page 7

Preplan for cremation up to age 65 for $1588.00Please watch for our Seminars coming this fall!

Benefits of having your cremation or funeral prearranged:Taking the burden off of your loved ones, lock in costs, medicaid eligibility, knowing

where important documents are kept, & having Veterans benefits arranged.

You’ve always said you wouldn’t be caught dead in that outfit. You’d better tell them now.


(Livingston) - International Women’s Day, observed in March. It celebrates the social, cultural and political achievements of women. Yet, women continue to face many challenges. For one thing, women still encounter gender-specific obstacles to their important financial goals, such as a comfortable retire-ment. If you’re a woman, what can you do to get past these barriers? First of all, you need to rec-ognize them. Here are a few to consider:

• Longer life spans – A 65-year-old woman is expect-ed to live, on average, another 20.5 years, compared to 17.9 years for a 65-year-old man, according to the National Center for Health Statistics. That’s another 2½ years of life – and 2½ years more of expenses.

• Lower incomes – Women working full time in the United States typically are

paid 80% of what men earn, according to Census Bureau data.

• More time away from the workforce – Men work an av-erage of 38 years, compared to just 29 for women, ac-cording to the Pew Research Center and the Social Security Administration. The gap is largely due to women taking time off to care for young children and elderly parents. Women who work substantially fewer years than men will miss out on hundreds of thousands of dollars in earnings and many years of contributions to 401(k)s or other retirement plans. These statistics certainly are sobering – but they don’t mean you are powerless to im-prove your financial security. In fact, you can do quite a lot, including the following:

• Boost your retirement plan contributions – Put in as much as you can afford to your 401(k) or other employer-sponsored plan, and increase your contributions whenever you get a raise. And even if you have a 401(k), you may still be eligible to contribute to an IRA.

• Invest for growth – Some studies have shown

that women may invest less aggressively than men. If you invest mostly in conservative vehicles, you may run the risk of falling short of your finan-cial goals. To achieve these goals, you’ll need a reasonable amount of growth potential in your portfolio.

• Extend your working life – If you like your job, you may want to consider sticking with it a couple of years past when you initially thought you’d

retire. You’ll be able to add to your retirement accounts, and the extra years of work may help you increase your Social Security benefits. These payments are based on an average of your highest 35 years of earnings, so if you have a zero in some of these years, it will pull the aver-age down. Consequently, your extra years of work may help erase those zeros. But even if you have a long, unbroken work record, your extended career can help you in regard to Social Security, because the extra money may mean you can afford to delay collecting benefits – and the longer you wait past 62, the bigger your checks will be – at least until you turn 70, when they “max out.”

You’ll help yourself by be-coming familiar with the special issues women face in meeting

their long-term goals. As you know, women have met chal-lenges successfully for a long time. After all, Ginger Rogers did everything Fred Astaire did – except backwards, and in heels.

Submitted by Edward Jones

Women must act to overcome financial challenges

Women have “another 2 1/2 years of life”

Top 5 Things to Know About Driving in a Funeral Procession

(Livingston) -• Please have your four way hazard lights flashing. This makes other aware there is a procession.• You will be driving very slowly – usually 20-40 mph on roads, depending on the normal speed limit, and no more than 65 mph on the highway.• You will need to stay close to the car in front of you in the procession – do not allow room for a vehicle not in the procession to cut in.• Stay in line and with the procession at all times – even if means you are going through a red light at an intersection. Local traffic ordinances give a funeral procession the right-of-way, and other motorists must yield until the procession has passed. • Once you arrive at the cemetery, an attendant will lead the procession to the gravesite.

What To Do When You Encounter a Funeral Procession Just remember that funeral processions have the right-of-way. Here are some additional Do’s and Don’ts on how to handle a funeral procession that passes through an area where you are driving:• Do be respectful.• Do yield – once the lead car has entered traffic, such as going through an intersection – the entire procession will follow without interruption. Even if their traffic light is red and yours is green, you must stop and allow the procession to continue through the intersection until all cars in the procession have passed.• Don’t cut into or cut off a procession.• Don’t honk at a car in a funeral procession.• Don’t pass a funeral procession on the right side on a highway, unless the procession is in the far left lane.

Submitted by Colin Zeman,Franzen-Davis Funeral Home & Crematory


(BPT) - Don’t give up on buying a home as winter nears. In fact, December through February may be better for buyers than the busy season in spring and summer. Enjoy less competition and lower prices. Fewer properties are typically available during the winter, as sellers and buyers aim to complete transactions before the school year begins. You can turn that to your advantage. “In winter, there are fewer properties, but it’s less competitive, with fewer buyers per property,” says Greg Jaeger, president of USAA Residential Real Estate Services Inc., and former real estate agent. The more favorable supply-demand balance can lower prices. In the winter, “negotiations are slower-paced and there is more negotiating room,” Jaeger says. Also, winter sellers may be more motivated, especially if they’re forced to sell by divorce or by corporate or military transfers. In January and February, homes cost 8.45 percent less on average than in June through August, according to NerdWallet research conducted using Realtor.com data from 2014 and 2015. That’s in line with what Jaeger sees, particularly in competitive real estate markets where supply is limited.

Lower prices help at closing - and over the life of your mortgage. A lower price eases your home purchase in many ways, Jaeger says. It lowers your down payment, any closing costs that are calculated as

a percentage of the home’s sale price and your mortgage payments. There’s also less of a seller’s agent commission bundled into the sales price. These savings help when you buy, and they add up over the life of your mortgage. The right agent can help. When supply is limited, the right agent can help you get a jump on other buyers. Agents who are well connected learn about properties before they are listed. The right agent understands the market where you are buying. That includes doing competitive market analysis so you understand what the house is worth. Look for an agent who suits your style. For example, if you’re a statistics geek, you need an agent who’ll provide them. “Just having access to statistics doesn’t mean they have analytical skills and will use them,” Jaeger says. He recommends USAA’s Real Estate Rewards Network as a source for seasoned agents who deliver great service to USAA members. Many resources are available to help consumers find the right agent, including USAA Real Estate Rewards Network, a free program that gives members access to USAA’s network of real estate agents and rewards when they buy or sell.

3 reasons why winter is a smart time to buy a home


Children should develop saving habits early in life

(Livingston) - Financial literacy and savings habits are important skills to develop, beginning at a young age. While many banks participate in programs that encourage financial literacy, such as the American Bankers Associations programs Teach Children to Save and Get Smart About Credit, there are several ways that you can interact with your children to help teach them important life-long savings strategies. By setting the example, and including your children in savings strategies and goals, children not only feel more included, they are likely to take the lessons you are attempting to teach them to heart. Remember, experience is a wonderful teacher. Do not be afraid to visit with your children regarding savings strategies, budgets, and other financial long term goals. Speak candidly with them regarding a “save some, spend some and share some” plan. Remind them to pay themselves first, in the form of putting some money away in savings, or a college savings account or remind them that when they are old enough they can begin saving for retirement. Discuss with your children the concept of “needs vs. wants” and explain to them the importance of saving for a rainy day. For older children, explain to them the importance of saving for unexpected expenses or emergency need. Older children can begin to learn the importance of saving to pay for that new car they would like and begin to learn what a budget is by including them in the discussion about their insurance for the car. Setting long-term goals can also be a family affair. Include your children in discussions about saving for the next fun filled family vacation and include them in the savings plan for it. Also, understand that experience and hands on learning is important for your children to learn savings habits.

Submitted by Jennell Huff,Bank of the Rockies, Clyde Park

(BPT) - Your smartphone, your tablet, your computer - they are some of your most important and most used possessions. They are the daily tools you use for research, to connect with others and make purchases. You take them everywhere and fill them with your important, personal information. And all of that makes them the perfect targets for a cyber attack. The number of cybercrime incidents in the United States grows each year, and as Americans move into an increasingly digital society - thanks to smart phones, smart cars and smart in-home technologies - cybercrime is expected to grow in frequency again in 2017. Protecting yourself, your family and the vital information on your devices means increasing your focus on your own cybersecurity. That starts with these five tips.

• Recognize you’re not immune Cyberattacks increase in frequency and severity every year, so don’t make the mistake of believing it can’t happen to you. “It’s important to protect yourself by taking personal responsibility for your data; we can’t expect banks or other institutions to do it for us,” said Jim Karagiannes, Ph.D., professor in DeVry University’s

College of Engineering & Information Services. “We lock our doors and take other security measures to protect our home and car. We need to also take precautions with our personal security and information.”

• Don’t store your username, password or credit card information with awebsite The convenience makes it tempting, but websites are a popular target for cybercriminals because a successful hack gives them access to hundreds or thousands of files, including yours. Even storing this information on your own computer can expose it in a cyberattack, and if your credit card information is captured, criminals can use it to gather your social security number. That exposes you to identify theft. Keep this information off your devices and, instead, create complex passwords and write down all of your usernames and passwords on a piece of paper that you keep in a safe place, such as a deposit box.

• Use only a credit card, not a debit card, when making online purchasesUsing your credit card instead of your debit card allows you to keep better track of the purchases you have made.

It also limits the effects of any possible theft to just the one card instead of several. If you have no choice but to use a debit card for an online purchase, do not use your pin number online.

• If it feels like a trick, it probably is Cybercriminals often engage in “social engineering” or other non-electronic methods to try and trick you into surrendering your data. If you get a phone call about a banking or credit card issue or if your computer tells you to call a number because it just caught a virus, be cautious. Do not divulge any personal history or credit card details. Hang up or ignore the computer-generated notices and call the customer service number of the institution’s website with any questions.

• Replace your existing credit cards with chip cards as soon as possible Chip cards are becoming the new normal these days, and if your current credit card does not have a silver square chip on its front, consider replacing it quickly. Popularized in Europe, chip cards possess the necessary encrypted information to eliminate delays in the transaction process. Doing so closes the window criminals need to steal your personal information, thus protecting you from identity theft. You have no intention of abandoning your devices, of course, so protect them. Following the tips above will help better secure your technology and personal information from the threats of cybercrime so you can enjoy your devices with greater peace of mind.

5 tips to protect your devices from cybercrime


(BPT) - Life changes often mean tax changes. Whether it’s getting married, buying or selling a home, moving abroad or having a baby, misunderstanding the tax and financial implications of these life changes can lead to taxpayers making mistakes or leaving money on the table. Depending on your situation, there are new tax implications that will impact your benefits, tax bill and how you file. If you experienced a life change in 2016, here is a list of tax implications and how they will affect you.

Marriage Many couples close the book on their “wedding to-dos” once the last thank you card has been sent, but looking at your new tax situation is an important first step in your married life. There are some instances when getting married can have negative implications for a couple’s tax situation. Once you’re married you must file either as married filing jointly or married filing separately. In some cases, a couple where one spouse earns most of the household income will benefit because their overall tax bracket may decrease. However, a couple with two high earners may find they face a higher tax rate than if each paid tax only on their own income and added the taxes paid. However, there are some ways to protect against potential negative tax

implications. After your marriage is official, update your W-4 with your employer to account for your new marital status. If you’re self-employed or a small business owner, make sure to adjust your quarterly estimated tax payments.

Buying a house Purchasing a home may open the door to more deductions through itemizing if you weren’t already doing so. Once you become a homeowner, you can deduct many of your home-related costs, including your qualified home mortgage interest, points paid on a loan secured by your home, real estate taxes and private mortgage insurance premiums paid on or before Dec. 31, 2016. If you choose not to itemize, you may benefit from other tax advantages such as penalty-free IRA withdrawals if you are a first-time home buyer under the age of 59 and a half, or residential

energy credits for purchases of certain energy efficient property. New home buyers should be on the lookout for Form 1098 Mortgage Interest Statement, which is used to report mortgage interest. This form can help you identify these deductions when completing your Form 1040.

Moving abroad Are you excited to move abroad, but have no idea what will happen to your taxes and how to file? Many Americans

living and working overseas will not owe tax to the IRS because of the foreign earned income exclusion and foreign tax credit. However, even if you qualify for those benefits, you

have to file a U.S. tax return each year if you received income over the normal filing threshold. It is also important to understand your Social Security coverage before moving abroad. Knowing whether your earnings overseas will be subjected to

Social Security taxes in the U.S. or the country you are residing in will be an important factor when analyzing the economics of your move.

Having a baby A new baby means you may be able to take advantage of tax breaks, including the Child Tax Credit (CTC). The CTC is worth up to $1,000 for each qualifying child younger than 17, a portion of which may be refundable as the Additional Child Tax Credit (ACTC) depending on your income. A tax preparer can help you understand the qualifications to determine whether a child is considered qualified for purposes of the CTC. Some of those qualifications include but are not limited to their relationship and residency. You may also qualify for the Earned Income Tax Credit (EITC) which is a benefit for working people with low to moderate income that reduces the amount of taxes you owe. However, it’s important to note that due to the new “Protecting Americans from Tax Hikes ACT” or PATH Act, this year the IRS is required to hold any refund from those claiming the EITC and ACTC until at least Feb. 15. This delay will be widely felt by tax filers who typically file as soon as the IRS accepts e-filed returns and who normally expect to receive their refund by late January.

Four life changes that affect your taxes and how to tackle them

You should review your beneficiary designations (BPT) - Baby boomers have been planning and saving for retirement for decades. They are also planning their legacy - creating wills, trusts and other sophisticated estate planning strategies to transfer their wealth to the next generation. However, most people may not realize their IRAs and qualified retirement plans - a large part of their estate - are not subject to probate nor affected by the terms of a person’s will. These assets will pass to the next generation determined solely by a person’s beneficiary designation form. Accordingly, the beneficiary designation form is one of your most important estate planning documents but it is often overlooked when creating a legacy plan.

Here are some common beneficiary designation mistakes to avoid Estate as a beneficiary. Many people unintentionally name their estate as beneficiary of their retirement accounts. Some people will actually direct their retirement assets to be paid “pursuant to the terms of my

will.” Others simply fail to complete their beneficiary designation form or forget to name a new beneficiary after a beneficiary dies. When this happens, the assets are usually paid to the person’s estate by default, which is probably the worst beneficiary for IRAs and retirement plans. IRAs and qualified retirement plans - assets that normally avoid probate - will become subject to probate when paid to the estate. The probate process can be long, cumbersome and expensive. Further, these assets may have to be liquidated and paid to the estate within five years after a person’s death. While individual beneficiaries can elect to have IRA assets paid over their lifetime, thereby “stretching” their tax liability over many years, estates cannot. Finally, estates are subject to a much higher income tax rate than individuals. This can result in more money going to the IRS than necessary. To avoid this mistake, make sure you have an up-to-date primary and contingent beneficiary designated for all your retirement accounts.

Trust as a beneficiary Many people like to use trusts to facilitate an effective transfer of wealth and maximize all available gift, estate and generation skipping tax exemptions. However, there are several dangers to having retirement assets paid to a trust. First, the IRS generally requires the assets to be paid to the trust within five years after the death of a person. The “stretch” rules generally do not apply to trusts unless the trust is drafted to be a “look through” trust. If the trust is a “look through” trust, the IRS permits you to “look through” the trust and “stretch” the IRA to the trust over the life expectancy of the oldest trust beneficiary. Trusts that fail to be a “look through” trust include those that have beneficiaries that are not individuals, such a charity, estate or another trust. Second, it can be expensive to establish and maintain these trusts. If an IRA is “stretched” to a “look through” trust, a lifetime of legal, trustee and administrative fees can significantly reduce the amount the ultimate beneficiaries will receive.

Third, trusts become subject to the 39.6 percent tax rate (currently the highest) as soon as the income exceeds $12,400. By comparison, married taxpayers filing jointly do not reach the 39.6 percent tax rate until their income exceeds $366,950. That means if the IRA is worth more than $12,400, more than a third can be lost to the IRS. Unless there is a compelling non-tax reason to name a trust as beneficiary of an IRA or retirement plan, you should avoid making a costly mistake. You should speak with an estate planning attorney about the pros and cons to naming a trust as a beneficiary of a retirement account.

Ex-spouse as a beneficiary Few people really intend to leave IRA and retirement assets to an ex-spouse, but this happens all the time. People fail to update their beneficiary designation form after a divorce. Often, they are under the mistaken belief the divorce decree will automatically negate their prior beneficiary designations.

www.edwardjones.com Member SIPC

Matthew A Blades,AAMS®Financial Advisor.

115 W Callender StreetLivingston, MT 59047406-222-4803

MKD

-865

2A-A

Investing is about more than money.At Edward Jones, we stop to ask you the question: “What’s important to you?” Without that insight and a real understanding of your goals, investing holds little meaning.

Contact your Edward Jones fi nancial advisor for a one-on-one appointment to discuss what’s really important: your goals.


Stephanie CunninghamFinancial Advisor.


MK

D-8

652A

-A



Matthew A Blades,AAMS®

Financial Advisor

115 W Callender St. Livingston, MT

59047 406-222-4803

Stephanie CunninghamFinancial Advisor

115 W Callender St. Livingston, MT

59047 406-222-4803


Matthew A Blades,AAMS®Financial Advisor.


MK

D-8

652A

-A



MK

D-8

652A

-A


Documents

2017 Securing Your Financial Future Page 2 · mends you file a federal extension. Millions of Americans file for an extension with the federal govern-ment every year and in Montana,