Kyle Nagy’s Four Common Investment Mistakes

Kyle Nagy’s Four Common Investment Mistakes

The stock market has caused some alarm as of late. Will investors wake up panicked or encouraged tomorrow? It’s hard to say.

But one thing is clear: basing your peace of mind on market signals is no way to live.

That said, I’d love to see my Kansas City clients be wise about how they are approaching their savings and investment strategies. For some, it’s a simple admonition: start investing.

And for others, it’s avoiding certain common mistakes. Tolstoy once wrote: “Everyone thinks of changing the world, but no one thinks of changing himself.”

Perhaps it’s time that we take a look in the mirror — together — and make some changes that would help you better build for the future.

So today let’s look at four mistakes you can avoid when it comes to stock market pitfalls.

Kyle Nagy’s Four Common Investment Mistakes

“Beware the investment activity that produces applause; the great moves are usually greeted by yawns.” -Warren Buffett

Before I get to these mistakes, I must hasten to add: every person’s situation is different. And without looking at the specifics of your financial picture, it’s impossible to make the right recommendation. And some recommendations require specific licenses in order to make them. So, consider this a disclaimer: nothing in this article is intended to be a specific piece of investment advice for your situation.

That said, here are some common mistakes I’ve seen when people begin financial investments…

1. Eggs in One Basket

You know the expression, but have you divulged in its (tempting) strategy? To research one company and invest in them alone is a mistake. Plain and simple. Especially if you think “but they’re doing great lately” is a good enough reason to invest.

This is where diversification (and sectors and asset classes) comes into play, and it’s vital to your wealth. The kind of investing you should pursue is another topic for another day.

But for now, please avoid the “all in on one approach”. Fretting over which individual stock to buy will only cause stress and limit your chance of investing success.

2. Playing the Compare Game

It’s been said to “never count another man’s money”. And the same goes with investing.

Yes, you can have mentors in this area, but this is ultimately YOUR money and YOUR investment. Stocks are so nuanced (especially when you get into international investments) that comparing your investments to other “seemingly successful” moves is not wise for your own strategy or psyche.

3. You’re Too Patient

Waiting for the right time to invest isn’t a problem at the beginning … but it does become a problem the longer you wait.

Although the market is volatile, many fret over when to buy or sell. As a result, many sell off their investments when the market is trending downward. But many also end up regretting that decision when the market inevitably rises again.

The key: it’s not the time you choose to enter the market — it’s the amount of time you’re willing to stay in.

4. Neglect

Don’t get 20 years down the line only to wonder, “What if I had started investing 20 years ago?” It’s one of the reasons investing in something like a 401(k) is so important now. It will only grow with time — which means patience on your part!

If you’ve never explored various investment strategies, perhaps now is the time to consult somebody who can come alongside you, with wisdom. I would hate for you to just not invest because you don’t understand some basic principles of investing. There are many Kansas City people who would love to help you.

I am definitely one of those people in your corner. Let me know if I can help in any way.

Warmly,

 

Kyle Nagy

(913) 693-7984

KPN ENTERPRISES LLC

Five Productivity Tips for Kansas City Busy Bodies

Five Productivity Tips for Kansas City Busy Bodies

With Labor Day behind us, fall is just around the corner.

(And a quick tax note: so are estimated taxes, if that applies to you. Due the 16th of this month. Consider yourself reminded. Though I will probably remind you once more.)

Now … fall. This can be a happy transition (as it is for many), though I do know that some of my Kansas City clients wish the summer never stopped. It’s a season that can get hectic with travel, weddings, and taking time off in general — and it should be a time to enjoy the outdoors. But fall can deliver routine again, and routine is a great step toward productivity.

So, with all that in mind, I thought I’d offer you some thoughts today about how I try to make sure that autumn is the start of something great.

It requires focus.

Five Productivity Tips for Kansas City Busy Bodies

“Until we can manage time, we can manage nothing else.” -Peter Drucker

Here are a few productivity tips to utilize as we step into a new season, as your routine continues (or starts?). And if you’re always in “scramble mode”, think of ways to incorporate these methods into your daily life.

1. Choose Your “Focus Times”
No one knows you quite like yourself. I can’t tell you when the best time of day is for work and productivity. However, it’s important you nail down that time. In the morning? As a night owl? Whenever you feel most productive, mark that time off on your calendar — no one else can touch it. That’s your time to buckle down and get your MOST IMPORTANT tasks done efficiently.

2. “Do Not Disturb”
The first two steps on this list go hand-in-hand, but this is so important, it warranted its own paragraph.

Whether you are in the middle of a “focus time” or not, get in the habit of using the “Do Not Disturb” mode on your phone or computer while you work. It’s no surprise that technology is distracting. But consider this: according to research from the University of California, it takes an average of 25 minutes to regain focus after your first distraction.

Think checking in on social media takes just a few seconds? Think again, and make “Do Not Disturb” a part of your routine.

3. Don’t Accept Pointless Meetings

In the past, we’ve discussed how to run effective meetings — something easier said than done.

But there are many statistics that discuss the ramifications of unimportant meetings. An Inc. Magazine article, highlighting a survey from Doodle, cites the following:

  • “Poorly organized meetings mean I don’t have enough time to do the rest of my work” (44 percent)
  • “Unclear actions lead to confusion” (43 percent)
  • “Bad organization results in a loss of focus on projects” (38 percent)
  • “Irrelevant attendees slow progress” (31 percent)

If you are the recipient of costly meetings, start a new routine of saying “no” if you see it as unimportant to your job success (and you’re in the position of having permission to voice that opinion). Not only will shedding meetings help your productivity, it will inevitably save others time as well.

4. Accept Help From Others!

Exclamation added because many do not use this to their advantage.

We often think asking for help means burdening others. But it often has the opposite effect. Think about who you ask to take you to the airport, or help you move into a new house. Those are your closest friends!

You have people that care about you, and productivity sometimes looks like not doing it all on your own.

5. Small Breaks

Remember those social media distractions? That’s not what we mean by “small breaks” here.

But scheduling a few daily breaks into your routine can greatly increase productivity.

Again, as long as the breaks are purposeful and consistent.

Maybe every day at 10AM you walk outside around the block. Maybe everyday at 2PM you water the plants. Something to keep your mind sharp without mindlessly drifting into cyberspace — only you will know the perfect activities to fill these breaks, but I highly encourage a regular mind refresh so that you stay as productive as possible.

How are those five for a start?

Even if you focus on one or two this week, try them out! We all need productivity reminders from time to time. Let’s keep refining our days so that friends, family and ourselves benefit from better practices.

Warmly,

 

Kyle Nagy

(913) 693-7984

KPN ENTERPRISES LLC

Estate Planning For Kansas City Singles

Estate Planning For Kansas City Singles

Many of our Kansas City clients are married. What I have to say today is still relevant, conceptually (and even in some of the details).

So don’t skip on by.

As I have talked about before, estate planning is something that many families continue to neglect.

I’m not here to toot that horn again today. But there is actually more to the story for the “unattached” out there than you might think, so I’m picking up that ball today.

One thing I WILL say to those families, many of whom are sending children back to school: this school year, make your children’s FINANCIAL education a priority. Many schools don’t ever cover these topics in any kind of substantive detail … the ball is in your court.

So if you don’t have finances on the syllabus, add it yourself. Your future generations will thank you.

And speaking of future generations…

Estate Planning For Kansas City Singles

“Defeat is not the worst of failures. Not to have tried is the true failure.” -George Edward Woodberry

In reality, estate planning is just as important for single people as it is for couples and families.

In fact, many estate planning attorneys believe that singles need it more. For married people, it is pretty much assumed that a spouse, even in the absence of any planning, is going to be the person that the court is going to appoint as the guardian over your personal and health care decisions and conservator over your financial matters.

But, if you’re single, you need to appoint someone to make your personal, health care, and financial decisions, or the court will decide for you — and it may not be the person you would want.

A common misconception among most singles is that they don’t have much money, so they don’t need estate planning.

But typically they find they have more assets than they think. Singles often have a life insurance policy through an employer, perhaps a retirement account fed by their paychecks, equity if they own a home, and sometimes accidental death benefits from credit cards. Once their estate has been settled, a parent, sibling, niece or nephew will most likely end up with this modest inheritance.

However, it is important for anyone, single or married, to create a real plan in order to designate who will be responsible for our health care and financial decisions when we are no longer able to do so ourselves. You may have every intention of leaving your nephew your “vintage” Xbox, but without estate planning in place, the court may sell it off in an estate sale so the money can be distributed.

Besides, your nephew probably doesn’t want it anyway.

Warmly,

 

Kyle Nagy

(913) 693-7984

KPN ENTERPRISES LLC

Three New Tax Implications for Buying or Selling a House in the Kansas City Area

Three New Tax Implications for Buying or Selling a House in the Kansas City Area

Sometimes real estate is more art than science.

Because every homebuyer’s situation is nuanced from home to realtor to geographic location, there’s no cut-and-dried way to go about it, and that’s whether you’re investing, moving or selling.

But there are a few things you should know about — whether you’re a long-time homeowner or just beginning your search. Because buying a home is one more thing the Tax Cuts and Jobs Act (TCJA) affected last year — so it’s time for a little homebuying update and explanation of the changes that have occurred.

There are three, in particular, that you should keep in mind.

Three New Tax Implications for Buying or Selling a House in the Kansas City Area

“The ache for home lives in all of us, the safe place where we can go as we are and not be questioned.” -Maya Angelou

If you have any additional questions about the following information, please reach out with a phone call. I’d love to discuss these tips and more in greater detail: (913) 693-7984

Lower Deduction Cap

Currently, Kansas City homebuyers are only allowed to deduct mortgage interest they spend on up to $750K in debt for a new home. If the buyer is filing separately while married, the total is $375K.

Prior to the TCJA, total mortgages (of up to $1M) were fully deductible if they were owned as primary residences.

Also, if you bought your home before the TCJA went into effect, and plan to refinance your home, the “up to $1M” of total deductible mortgages rule still applies.

Property Tax Deduction

We’ve talked a little in the past about state and local tax (SALT).

In short, there is a $10K SALT deduction limit that applies to items like real estate and local income taxes. Before the TCJA there was no limit. Now, homebuyers need to pay a little more attention when it comes to SALT regulations.

(I’m here to help with this too!)

Tax Breaks for Sellers
This is kind of a “bonus” tip, but I figure if you or someone you know is buying a home, there is a chance that selling a house also applies to the situation.

In that case, the tax implications of selling a house can be positive.

Something the TCJA did not affect was the fact you don’t have to pay capital gains taxes on the profit you make from selling a home. Now, you still need to meet the requirements for living in the house long enough to earn money from the sale. But this perk could make the stress of buying and selling a house worthwhile for your bank account.

I hope these brief tips help you or someone you know.

Even though the TCJA shifted some laws around, note that the law is liable to change in 2025. It’s not set in stone, and things could change in just a few years’ time.

All the more reason to form a relationship with a trusted Kansas City expert for all the changes (most likely) to come.

Warmly,

 

Kyle Nagy

(913) 693-7984

KPN ENTERPRISES LLC

A Powerful Example of Tax Planning For Kansas City Families And Individuals

A Powerful Example of Tax Planning For Kansas City Families And Individuals

It’s wild to think that there are only four more months in 2019.

As we get older, time sure does fly. And unfortunately, many get stuck in a rut from year to year. Specifically related to taxes — many do not look at, or even think about, their tax situation until the winter or early spring. But if you can take just one piece of advice from today:

Not only can you start planning your taxes in advance, it is by far the wisest thing you can do for an accurate, stress-free April (or at least less stress than usual).

And if planning ahead is the first item of importance, having someone to plan with is a close second. If you are planning your taxes alone, please give me a call so we can meet and discuss everything from strategy to accuracy when addressing your taxes.

Let’s examine a hypothetical situation, and the kind of strategy we could put in place together…

A Powerful Example of Tax Planning For Kansas City Families And Individuals

“Stop setting goals. Goals are pure fantasy unless you have a specific plan to achieve them.” -Stephen Covey

Pretend you were considering taking money out of a pension (401k) to finance a down payment on a house. This kind of strategy happens all the time. However, to complete the transaction without consulting a knowledgeable Kansas City professional beforehand might result in a four- (or five-) figure mistake.

In this specific situation, I would ask you a few simple, necessary questions. And then, depending on the answer, would likely advise you to roll the money ($10,000) into a Traditional IRA. That way, you could withdraw the money at a savings of $1,000. This is because money used for a first home, up to $10,000, is penalty-free when taken from an IRA but not a 401K.

That’s called strategy. When you benefit from that kind of strategy, it’s called tax planning. It’s not only related to housing, 401K or IRA allotment — I want to help you experience all-around financial success moving forward.

While we’re on the topic, here are other “penalty-free” retirement account withdrawal opportunities (Note: these are NOT “tax-free” — only penalty-free):

* Unreimbursed Medical Bills
* Total and/or Permanent Disability
* Health Insurance Premiums After 12 weeks of Unemployment
* Death
* Higher Education Costs
* Pending Senate Approval: Qualified Birth And Adoption Expenses

Also note that there are specific caveats to each of these options. We can discuss your best route when we talk about your individual situation. There are a few other obscure situations available, but again — these decisions are best made under consultation.

Although, when working with us, there’s no certified promise of saving money (because every situation is so nuanced and unique to each Kansas City client). But I can guarantee this: If you don’t speak with us in advance, we won’t have the chance to save you all we possibly could on your 2019 taxes.

Don’t wait until winter. Please don’t wait until spring. Let’s get some strategy started … right now.

Warmly,

 

Kyle Nagy

(913) 693-7984

KPN ENTERPRISES LLC

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