Question:
So I read that Boeing announced that it was acquiring AerData Group. What do you make of this acquisition?
Answer:
AerData Group B.V. provides software for lease management, engine fleet planning and records management, so this acquisition should make The Boeing Company (NYSE: BA) more efficient. However, we already believe Boeing will surpass its competition based on its new 787 Dreamliner fleet, because the plane cuts fuel costs by 20%. We also feel many investors overlook Boeing’s drone development, of which the U.S. military is a major buyer. We believe that Boeing is a good long-term holding.
Question:
I am about to be a divorced stay-at-home mother of four children. I should be receiving child support for the children and alimony of $30,000 per year. I don’t have any other income. Thinking about the future, is there any sort of tax advantaged retirement plan available for someone like me?
Answer:
Your alimony is considered earned income for IRA contributions, so you should be able to save to a traditional or Roth IRA. You can contribute up to $5,500 ($6,500 if 50 or older) in 2014. Your contributions cannot exceed your alimony. Before you begin putting your money into an IRA, we recommend you meet with a financial adviser.
While we do not know your full financial situation, we do not want to recommend investing money into an IRA that you may need to access before you are 59 ½. You may also consider working with a Certified Divorce Financial Analyst™ before the divorce is final. Such an expert can help you determine what it will cost to run the household each month; provide you a better understanding of the marital debt if any, and work with you and your lawyer on the division of assets.
Question:
What do you think of Amgen Inc. or Celgene Corp.? I would like to add a little to the health care sector and I thought these looked like interesting stocks. Do you prefer one over the other?
Answer:
Both Amgen Inc. (NASDAQ: AMGN) and Celgene Corp. (NASDAQ: CELG) engage in the development and manufacturing of biotechnology drugs and therapies. We think Amgen is at the end of its growth curve. Its two main drugs, Enbrel and Epogen are off patent.
Celgene, however, is a newcomer to biotechnology and is making strides with their cancer and immune-inflammatory therapies. We prefer Celgene even with its price to earnings ratio of 22. Because the company is growing at 25%, Celegene’s price-to-earnings-to growth ratio is less than 1; therefore, on a PEG basis, Celgene is cheaper than Amgen.
Question:
I was the executor of my father’s estate. I distributed everything according to his will, but I just learned he has some taxes due, and there is no money left in the estate to pay them. What happens now?
Answer:
Unfortunately, as the executor of an estate, it was your responsibility to satisfy all debts before you distributed assets. As the personal representative of the estate, the IRS deems you personally liable for the unpaid taxes. Hopefully, you will be able to contact your family and raise the money to pay the IRS.
When settling an estate, taxes due to the government take priority over other debts. Generally, the IRS has three years after an estate tax return has been filed to assess tax and demand payment for any deficiencies.
Not knowing what triggered this unpaid tax, we advise you to consult a C.P.A. or estate planning attorney.
Question
Both Whirlpool and Electrolux came as recommendations. Of the two, do you have a favorite?
Answer:
Electrolux AB (OTC Markets: ELUXY) sells on the OTC markets, and information on the company is difficult to find. With no Value Line reports or S&P ratings, this stock does not meet our criteria.
Whirlpool Corp. (NYSE: WHR) is a great international company that is estimated to grow 20% in the next three to five years. Its PEG ratio is 0.57, making it a great buy. However, the company is very cyclical. When the housing market is growing, Whirlpool sees an increase in sales. Of the two, we recommend Whirlpool.
At Henssler Financial we believe you should Live Ready, and that includes consulting experts for financial matters you do not understand. If you have questions regarding your financial situation the experts at Henssler Financial will be glad to help. You may call us at 770-429-9166 or email at experts@henssler.com.
Disclosures
This article is meant to provide valuable background information on particular investments, NOT a recommendation to buy. The investments referenced within this article may currently be traded by Henssler Financial. All material presented is compiled from sources believed to be reliable and current, but accuracy cannot be guaranteed. The contents are intended for general information purposes only. Information provided should not be the sole basis in making any decisions and is not intended to replace the advice of a qualified professional, such as a tax consultant, insurance adviser or attorney. Although this material is designed to provide accurate and authoritative information with respect to the subject matter, it may not apply in all situations. Readers are urged to consult with their adviser concerning specific situations and questions. This is not to be construed as an offer to buy or sell any financial instruments. It is not our intention to state, indicate or imply in any manner that current or past results are indicative of future profitability or expectations. As with all investments, there are associated inherent risks. Please obtain and review all financial material carefully before investing. Henssler is not licensed to offer or sell insurance products, and this overview is not to be construed as an offer to purchase any insurance products.
