Question:
I receive disability insurance payments. Are they taxable?
Answer:
Generally, no. Most people pay the disability policy premium with their own after tax dollars. However, if your employer paid the premiums and did not include the amount paid in your gross income, then the disability benefits are taxable to you.
Question:
I’ve owned Baker Hughes Inc. since mid-December 2012. What is your outlook on this company? Would Noble Corp. be a better buy?
Answer:
Both Baker Hughes Inc. (NYSE: BHI) and Noble Corp. (NYSE: NE) are in the oil services industry. Baker Hughes is a supplier for oil drilling on land, while Noble is focused on offshore platforms. Noble’s fleet is older, and is currently under more pressure to have idle platforms. While Noble does not meet Henssler’s financial strength criteria, Baker Hughes does. However, we believe the oil services industry is difficult to play selecting individual companies. We think the best way to play this industry is through an exchange-traded fund like iShares U.S. Oil Equipment & Services ETF (NYSEARCA: IEZ). The ETF strives to track the industry very closely, and trades like a stock throughout the day.
Question:
How often do I need to review my estate plan?
Answer:
We recommend that you review your estate plan at least annually with your financial adviser. You should be taking a look at the events that have happened in the past year that may require you to revise your plan. Major changes, for example, the birth of a child, marriage or divorce, death of a spouse, generally, require a revision of your estate plan. Additionally, you may want to review the plan if you are an executive with stock options. You could easily find yourself in a higher tax bracket, which may require more planning. Likewise, business owners who continuously create new businesses may need to review their plans more often. There have been no major changes in the estate tax laws. If you have a plan from a year or two ago, the strategies should be sound. Ideally, your financial planner should have enough knowledge of estate tax laws and your plan to perform a review. Your financial planner should know when you need the assistance of an attorney to update your plan.
Question:
I’ve owned United Technologies since 2008. It’s still paying me a dividend. Is this worth holding?
Answer:
United Technologies Corp (NYSE: UTX) provides products and services for building and aerospace systems. In our opinion, it is a solid company and meets our financial criteria. It pays a good dividend at 2.10%. If you own United Technologies, we recommend holding it. If you are looking for an industrial holding, we suggest that you consider this stock.
At Henssler Financial we believe you should Live Ready, which includes understanding your stock holdings. If you have questions regarding your investments, 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.
