Recent headlines have left me scratching my head so often that it’s starting to leave a mark. Here are a few things that are definitely making me go hmmmm.

As a quick follow up on my most recent column, a few days ago a judge in Texas put a hold on FinCen’s new beneficial ownership (BOI) filing requirement for millions of US businesses. This new government filing was intended to combat tax fraud and money laundering. Nonetheless, it’s been derailed with this new legal ruling that invoked the tone of “Don’t tread on me!” My advice to business owners who haven’t yet done their BOI filing is to remain prepared. If the government wins its appeal, you might have to disrupt your Christmas holiday to get it done in time.

Now, here’s a parting thought for the skeptics out there. Sometimes transparency isn’t just burdensome red tape. Don’t you think it’s sound public policy to do what we can to combat tax cheats and criminal activity?

Speaking of transparency, or complete lack thereof, we’re now just learning that Elon Musk reportedly spent $250 million of his own money during this past election cycle. Amazingly, that estimate is likely on the low side, when all things are considered.

We’ve likely just lived through the nightmare scenario many pundits warned us of when the Supreme Court legalized the injection of an unlimited amount of corporate and private money into our politics. To learn weeks after an election that the richest man on Earth invested this much of his own money in exchange for an unknown level of power and influence is nothing less than alarming.

For members of Congress and for his business competitors, Musk’s growing influence inside government circles feels like an existential concern. They are scrambling to stay in Musk’s favor to benefit from his unelected circle of influence. His appointment as the head of the new Department of Government Efficiency (DOGE) arms him with additional massive, unaccountable power. Musk’s growing influence over major industries and government policies is becoming very clear. When private ambitions start steering public policy so blatantly, it’s hard not to worry about the negative effects of outright crony capitalism. It’s simply not a good economic system.

You might be asking, what does my head-scratching have to do with your money? Well, I suppose it’s to say that we should all prepare for some turbulence ahead and you might want to proactively adjust your investment portfolio. Of course, since the future is always unknown, everything in moderation remains sage advice. But, with the stock market hitting record highs again and again, it’s probably also sage advice to remind you that an ounce of prudence might save you a pound of regret.

If you’re a business owner, you should know by now that there’s a new law that requires you to disclose your ownership details to the government. While this might feel like just another bureaucratic hassle, ignore it at our own peril. With big penalties and fines, this particular hassle deserves your attention! 

The Corporate Transparency Act (CTA) was passed way back in 2021 as part of an effort to combat money laundering, tax evasion, and other financial crimes. It requires that all incorporated businesses report their Beneficial Ownership Information (BOI) to the Treasury Department’s Financial Crimes Enforcement Network (FinCEN). That means most LLCs, S-Corps and C-Corps have to comply. For most, the deadline is right around the corner, by January 1, 2025. But if your business was new this year, you were required to file the report within 30 days of your start.

What’s driving all of this? Historically, shell companies have been used to hide illicit activities. In response, the U.S. is catching up to global standards, requiring transparency about who actually owns and controls businesses. While this does feel intrusive, the goal feels justified.

Fortunately, filing your BOI report is easy enough. FinCEN has an online portal (boiefiling.fincen.gov) and the process only takes about 15 minutes. Before you start, you’ll need some essential information: names, addresses and birthdates of all beneficial owners of your business, your EIN, and copies of IDs for everyone.

Not every business is required to file the report. If your company has over 20 employees, generates more than $5 million in annual revenue, the government already knows all about you. Similarly, nonprofits and truly dormant entities with no assets or activity can skip it. But, don’t just assume you are exempted. Check with your advisors.

Unless you are a true do-it-yourselfer, you’ve probably received a lot of mailings about this new filing requirement from your CPA and attorney. For many legal and capacity reasons, many CPAs are not handling these filings for their clients. Many are just referring their clients to attorneys. With the end-of-year deadline fast approaching, be aware that your CPA and attorney could be quite slammed. For most readers, you can certainly do the filing yourself, but if you’re in doubt, you should contact your advisors for some help. 

If you are rolling your eyes after reading all of this, let’s talk more about the penalties. The government isn’t messing around. Stubborn resistance could cost you $500 per day, up to $10,000, and could even lead to criminal charges. Clearly, it’s not worth the gamble for only 15 minutes of minor, emotional pain! Don’t let this slip through the cracks.  

This election has occupied my mind more than it deserved. My experience tells me to ignore the rhetoric and focus only on policy proposals. Yet, I’m equally aware that there is no truly reliable way to predict their impact on the economy and markets. I think most would agree, it’s an exhausting process that feels both wasteful and beneath us. Supposedly, it’ll be over very soon, right? One can only hope.

A few legitimate things have caught my eye, though. Namely, proposals that might impact inflation and future tax policy.

Voters seem confused about inflation. The post-pandemic fever broke and inflation has come down a lot. The global supply of goods and services simply caught up with the surge in pent-up demand after Covid. Inflation is now approaching the Fed’s official 2% target. The fight isn’t over yet, but it’s quite close.

Yet, many voters believe inflation remains sky-high. There’s clearly a fundamental misunderstanding. Declining inflation doesn’t mean prices are in outright decline. That would be called deflation. And believe me, deflation is not a desirable goal, especially for those who owe money. Lenders hoping to be paid back someday don’t want to see deflation, either. Low and steady inflation is the goal for a good reason.

Speaking of debt and inflation, Donald Trump’s campaign is filled with proposed tax cuts. He’s called for zero tax on tip income, zero tax on overtime, the elimination of taxes on Social Security benefits, interest deduction for car loans and large tax cuts for corporations. Recently, he even floated the idea of eliminating all income taxes. All these proposals are expected to be funded by higher tariffs on imports from China and others and faster economic growth. However, trained economists are clear that tariffs are ultimately inflationary and act just like a tax hike.

Kamala Harris has proposed some tax cuts and targeted tax credits, as well. Her proposals are standard fare for a Democratic candidate. These include higher tax credits for those with children, tax credits for business start-ups and first-time homebuyers. Not to be beaten in Las Vegas, however, she also called for the elimination of tax on tips. Her proposals are balanced by higher taxes on corporations and high-income households and, also, faster expected economic growth.

Naturally, neither campaign has informed the public about the cost of their tax proposals’ impact on future federal deficits and our debt burden. It’s about getting the votes, first. Yet, with the 2017 tax cuts expiring in a little over a year, I do think voters deserved a much deeper discussion about tax policy. But, alas, this isn’t the world we live in today.

Despite all the noise, tension and fury, I’ll now add to the unbelievable cacophony of calls, texts, and mailers that we’ve all been receiving: Go vote. It does matter.

Q: This election has me worried about the stock market. Is it rational for me to take my required minimum distribution (RMD) from my IRA now rather than wait until the end of the year? Having some cash on the sidelines seems wise to me. 

A: First, it’s almost impossible to know what the stock market will do after the election. If I had to guess, its short-term move will likely depend on which party controls which branches of government. Even then, the margin of victory in the Senate and House will also matter. One thing feels likely; no party will have much control.

But, really, the election is irrelevant to your question. Nothing is stopping you from selling investments to raise cash for your RMD. Whether you actually take your RMD now or wait until later in December doesn’t need to be part of the decision to raise cash. After you raise some cash in your IRA, the timing of the actual distribution from your IRA doesn’t really matter from a portfolio management perspective. 

Now, if you haven’t yet completed your IRA donations for the year, I’d say waiting to process your RMD is a wise move. Get those donation checks out the door first. It’ll lower your tax bill. 

Q: My Social Security number has apparently been leaked and floating around somewhere on the “dark web.” Of course, this makes me uncomfortable. What should I do now? 

A: This is an irritating reality in today’s world. Besides closely monitoring your banking and credit card transactions, there are a few other things you can do to mitigate the possible impact. 

First, I suggest you freeze your credit files with Transunion, Experian and Equifax. It’s a bit of a pain to do, but it prevents a bad actor from opening a new credit card or applying for a loan in your name. If you can’t do this yourself, ask someone to help you.

Next, consider visiting or calling your local Social Security office and ask them to block any online access using your Social Security number. This move will prevent someone from going online to change your current direct deposit information. If you ever need to change your banking information with Social Security, you’ll just need to visit the local office to make the change. 

Finally, to prevent a crook from fraudulently filing a fake tax return using your Social Security number, you can also get an Identity Protection PIN from the IRS. Your PIN will then be required to e-file your tax return. It might be a little cumbersome to manage as a new PIN is issued to you each year. And, your new PIN is accessible online. It’s only mailed to you if you are a confirmed victim of tax-related identity theft.