Earlier this year, the IRS provided long-awaited guidance related to the SECURE Act of 2019 on the treatment of retirement accounts inherited after December 31, 2019. The rules are complex, and we strongly encourage anyone who has inherited an IRA to work with their financial advisor or tax professional to understand their options. This article…
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There are many approaches when it comes to investing. At one end of the spectrum is passive investing. Passive investors believe that because markets are basically efficient, it is extremely difficult to outperform the markets over time, especially after fees and costs are taken into account. Therefore, rather than try to beat the market, own the market. On the opposite end of the spectrum is active investing. Active investors believe that through research and analysis, they can identify what and when to buy and sell, and as a result, outperform the market.
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One of the key investment principles we emphasize at Core Wealth Management is that investing solely in US large company stocks does not provide sufficient diversification. True diversification requires spreading investments across different asset classes that behave differently at various times. This means building a globally diversified portfolio that includes US large company stocks (such…
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By strategically managing your tax payments, both in amount and timing, you can significantly enhance your chances of achieving your financial goals. This is why tax planning is such an integral part of financial planning. In this article, we will explore five essential tax concepts that the planners at Core Wealth Management consistently utilize. While…
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Despite rising mortgage rates, real estate prices in Florida continue to climb, leaving many Florida homeowners feeling trapped in their current homes. As real estate prices increase, so do property taxes. However, homeowners can mitigate this through the Homestead Exemption. This article explains how the Homestead Exemption works, how property taxes are calculated, and the…
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Many had predicted that 2023 would be an extremely difficult year for the financial markets, but instead, both the stock and bond markets demonstrated remarkable resilience adapting to the new realities of higher interest rates and persistent inflation. After a challenging 2022, we saw a strong rebound with the Russell 3000 up over 25%, the…
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The Internal Revenue Service (IRS) has announced the new contribution limits for retirement plans for 2024. Workers will now be able to elect for up to $23,000 of salary deferrals to 401(k) plans, 403(b) plans, most 457 plans, and Thrift Savings Plans. If you are age 50 or above, you can elect for an additional $7,500…
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The end of the third quarter of 2023 brought some challenges in the financial markets. The S&P 500 fell -4.9% in September and the MSCI All Country World index dropped -5.08% for the month, driven by a sudden spike in long term interest rates. That was in the context of some dour headlines, including: And that…
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Understanding the Federal gift tax is essential for sound financial planning. This article aims to explain key concepts, debunk some common misconceptions, and outline some practical strategies for those who wish to incorporate gifting into their financial plan. A gift is a transfer of property. The IRS considers a gift to be any transfer of cash…
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Qualified tuition plans, more commonly known as “529 accounts,” are tax-advantaged savings accounts designed to help families save for future education expenses. These accounts are named after Section 529 of the Internal Revenue Code and are sponsored by states, state agencies, or educational institutions. 529 plans come in two forms: prepaid tuition plans and college savings…
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