We wanted to share this important information from our friends over at Bond & Company for those of you that are affected:

In response to rising gasoline prices, the IRS has raised the standard mileage rate for business use of an automobile from 51 cents per mile to 55½ per mile, effective July 1. The medical and moving standard mileage rate is increasing from 19 cents per mile to 23½ per mile, also on July 1.

The new optional standard mileage rates will apply until superseded by future guidance and can be used by taxpayers to calculate the deductible costs of operating an automobile. Alternatively, taxpayers can instead use their actual costs, but must maintain adequate records and be able to substantiate their expenses.

The former rates (51 cents per mile for business use, 19 cents per mile for medical and moving expenses) continue to apply to expenses incurred before July 1, 2011.

Want to help make a big difference in your child’s or grandchild’s life?

Help them focus on saving for retirement at an early age. Multiple studies have shown that people who develop good money habits early on in life are financially more successful as they get older.

Here are some great resources we found to help you in this discussion and education process:

• Teaching Children About Investing
• 5 Ways to Stunt a Child’s Financial Growth
• Investing for Kids
• Investing ABCs: teaching your children about stocks

You may also consider making IRA or Roth IRA contributions for them if they have earned income. How about making this a graduation gift that they will never forget?

As we all know, even small contributions made at a young age can add up to big savings at retirement thanks to the power of compounding over time. So, help your child or grandchild get a head start today!

If you’re contemplating whether or not you should draw your Social Security benefits before your full retirement age, you may want spend some quality time determining if this is the best idea. If you elect(ed) to take Social Security benefits before your full retirement age and now realize you need more income, you might not be able to change your benefit amount.

• WHY?

Effective December 8, 2010, Social Security recipients no longer have the option to re-apply for full benefits after receiving reduced payments, unless this application for retirement benefits is withdrawn within 12 months of the first reduced payment. In addition, only one re-application is allowed in a person’s lifetime.

• WHAT CAUSED THE CHANGE?

Many affluent households began drawing reduced Social Security benefits at age 62 and then reapplied at their full retirement age for full benefits. They paid back the money they had received, but this cost the federal government and Social Security trust fund too much money. No interest was charged so individuals that did this received a tax-free loan from the government, potentially over several years.

• TIP TO REMEMBER
  

Although you can collect Social Security benefits between age 62 and your full retirement age, if you do your benefits will be lower. For example, if you began receiving Social Security payments at age 62, four years before your full retirement age of 66, your benefit would be reduced by 25 percent. So, if your full benefit would have been $1,000 a month, it would be reduced to $750.

We are proud to announce that Sharon Ballinger has become the newest member of Richmond Brothers’ family. Sharon will be taking over the very important job of completing clients’ summaries so that they are up to date on the performance of their total portfolio. Sharon is a life-long resident of Jackson and has been married to her wonderful husband, Corey, for nine years. They have two children, Logan and Emily. Sharon attended JCC, is an avid reader and is a big fan of tennis. She and her family are quite active and love to go camping and canoeing.

We couldn’t be happier to have Sharon as part of our team. Next time you are in the office, please make sure to welcome Sharon to the family as well!