Answering your financial questions
Our panel of Certified Financial Planners for Monday, January 11:
Ted Sarenski, Blue Ocean Strategic Capital
Dennis Hebert, Hebert Financial Strategies
Grace Gezzi, Benefit Consulting Group
Among the questions and concerns answered:
>When is a business a hobby, and when is it a business? The IRS says it has to make a profit during at least three of the last five tax years, including the current year — at least two of the last seven years for activities that consist primarily of breeding, showing, training or racing horses.
>Long-term care insurance. People worry about their portfolio devaluing, but the fact is, long-term care can siphon off even more of your savings: in Central New York, a year of long-term care costs 80-90 thousand dollars a year, and about 70 percent of individuals over age 65 will need some. There are lots of options available.
>Capital gains on house sales. There are several ways to figure this, if you've gifted the home to a loved one for use.
If there is a profit, it will either be figured at 0, or 15% taxes, depending on your bracket.
And, a trust is another way to ensure tax 'sheltering' on a home that parents or others live in.
>The market. ALCOA is the first of major companies to announce its fourth quarter profits, and it was five cents a share value below what was expected. That may make potential investors think twice about the value of stock they're buying--over the next two weeks more companies will be reporting their earnings.
>QDRO (pronounced QUADRO) stands for Qualified Domestic Relations Order, and is a document that needs to be part of divorce settlements, to allow a spouse to receive a portion of retirement incomes. Even if there's an agreement as part of the settlement, if there's no actual document, companies cannot release the funds, and another court session will be needed.
We answer your questions live every Monday, 5 - 6:30pm--and you can also email us at money@cnycentral.com 
