The ability to contribute to Roth IRAs can represent one of the most beneficial financial planning decisions that people can make for their future. Roth IRAs were established by the Taxpayer Relief Act of 1997 and while most people are aware of the name, they may not be fully aware of all of the benefits. A Roth IRA is an …
Estate Tax Planning: Be Proactive and Know Your Options
The federal estate tax generally only applies to those who die with assets that exceed $5,490,000 (in 2017). While only about 0.2% of the population is subject to the estate tax, those who are impacted can be faced with a significant estate tax liability as the estate tax rate quickly exceeds the 40% mark! Here is a simple example of …
Sequence of Returns Risk: Considerations for New Retirees
Research has shown that the timing of one’s retirement can be important – especially as it relates to investment returns in the early years of retirement. Someone who retired just prior to the “Great Recession” could have experienced significantly larger portfolio “drawdowns” than someone who retired during a period of economic expansion and higher investment returns.
The Fear of Missing Out
In a recent BARRON’S, it was reported that the American Psychiatric Association recognizes more than 100 different types of phobias. But what’s causing widespread anxiety in the markets now is one that might not make that list of fears. That would be “The Fear of Missing Out.” While the Standard & Poor’s 500 index was mostly flat since March 1, …
Donor Advised Fund Comparison
In our article, Charitable Gifting Using Donor Advised Funds, we provided some insight into donor advised funds and listed some of the many benefits that the charitably-minded could garner from using donor advised funds as a component of their charitable gifting strategy. As a follow up to that article, we wanted to provide some information that could be helpful when vetting custodians who offer donor advised funds.
Teaching Your Grandchildren Money Values
If you’re a grandparent, you likely already offer support in a lot of ways including financial and emotional. But you can also provide practical help. A frequently overlooked area where you can definitely make a difference is with your grandchildren’s personal financial education. Some of us were lucky enough to have a grandparent who we considered a great friend. We …
2017 Tax Law Changes
Happy 2017! As we begin a new year, it’s always important to re-examine certain elements of your financial plan – especially things that relate to tax planning. Here are a few of the more common items that may impact your financial situation this year. Social Security & Medicare Part B For those receiving Social Security, there is a cost of living …
Part 2: 10 Years from Retirement, What is Your Financial Focus?
In Part 1, we discussed the importance of tracking and managing your living expenses, as well as, making projections around how much you will spend in retirement. We also stressed the importance of making strategic Social Security decisions. In this article, we wanted to spend some time addressing pension decisions, ideas for strengthening your personal balance sheet and helping you think through how much money you will likely need during retirement.
Republican or Democrat: A Historical Perspective on Stock Performance
Many of our clients have asked how what will happen to the stock market if Candidate(X) wins the election. Get a historical perspective of the impact an election may have on the stock market.
Charitable Gifting Using Donor Advised Funds
Donor advised funds can be a great tool in your charitable gifting strategy. This article discusses attributes and unique features of donor advised funds.
Should You Consider a Revocable Living Trust?
Revocable Living Trusts can serve an important role in your estate plan, but they aren’t for everyone. Find out more..
Tax Free IRA Gifts To Charities Are Now Allowed
For those of you who are charitably inclined and over the age of 70 ½, we have great news that could impact your charitable gifting strategy! In December 2015, Congress made permanent the ability for taxpayers to divert their required minimum distribution directly to a qualified charity. The ability to make this charitable election, technically called a Qualified Charitable Distribution …
Have You Reviewed Your Beneficiary Designations Recently?
Have you confirmed the beneficiary designations of your 401k, IRA, or life insurance policies recently? If not, you should! Find out why.
Common Social Security Questions
Here are answers to a number of common questions regarding your Social Security benefits.
2015 Market Review
U.S. blue chip stocks managed to squeak out a small gain in 2015, but required nearly a 7% advance in the fourth quarter to do so. Stock prices of smaller companies, on average, fell by about 4.5% for the year.
2016 Tax Planning Opportunities
Congress has given the gift of a new tax bill at the very end of the year. This article highlights several provisions included in the 2015 tax bill that could impact you.
2016 Contribution Limits for 401(k) plans, IRAs and Roth IRAs
Find out the maximum contribution limits that can be made to most retirement savings accounts including 401(k) plans, 403(b) plans, traditional and Roth IRAs for 2016.
Social Security and Medicare Changes for 2016
On November 2, 2015, President Obama signed into law the Bipartisan Budget Act of 2015, legislation that raises the federal debt limit and establishes the framework for a two-year budget deal. The legislation, necessary to avoid an impending default on U.S. debt, also contains multiple unrelated provisions, including an elimination of two Social Security retirement benefit claiming strategies and a …
Understanding Risk—Capacity, Tolerance, Perception & Risk Required
This article explores four elements of an investor’s risk profile – risk capacity, risk required, risk tolerance and risk perception. Understanding each type of risk is an essential element of building an investment portfolio that can both meet your specific investment needs, while allowing you to sleep easy during times of personal and financial stress.
Snow Day with CNBC
This winter was brutal—especially by North Carolina standards. Being snowbound for a couple of days, I found myself being drawn to CNBC (the business news network), where economist, portfolio managers and market pundits discussed the financial markets, the economy and a host of other financial topics.