Women and Wealth: The Journey Towards Financial Empowerment
How today’s women are taking charge of their financial well-being. The concept of women and money has undergone significant transformations over the years. Many female…
Read More
Blog
Financial Planning Essentials: Tax Preparation versus Tax Planning
While tax preparation and tax planning are both critical components of managing your financial health, they serve distinctly different purposes. It’s essential to understand the…
Advice to Graduates Mirrors Advice Offered by Fiduciary Financial Planners
We are in the midst of graduation season. While I do not have a graduate this year, I have been reading and listening to commencement addresses;…
Women and Wealth: The Journey Towards Financial Empowerment
How today’s women are taking charge of their financial well-being. The concept of women and money has undergone significant transformations over the years. Many female baby boomers, who often filled traditional roles in child-rearing and household management, found themselves financially dependent on their spouses. Comfortable taking a backseat in managing the family’s financial affairs, many…
Learn More
Learn More
Financial Planning Essentials: Tax Preparation versus Tax Planning
While tax preparation and tax planning are both critical components of managing your financial health, they serve distinctly different purposes. It’s essential to understand the difference between these two processes. Tax preparation focuses on reporting past financial activities. This involves compiling and submitting tax returns to the IRS to report income, deductions, and credits for…
Learn More
Learn More
Advice to Graduates Mirrors Advice Offered by Fiduciary Financial Planners
We are in the midst of graduation season. While I do not have a graduate this year, I have been reading and listening to commencement addresses; renowned speakers offering insight to students as they get ready to embark on the next phase of their journey, be it college, graduate school or entering the workforce. I cannot help…
Learn More
Learn More
What the Latest Social Security Report Means for Your Retirement Planning
For many, social security income, in conjunction with pension income and investment portfolio withdrawals, is relied upon to meet cash needs in retirement. For several years now, there has been concern that the social security system may not provide the benefits that many workers are counting on. First, for some background: Social Security is a pay-as-you-go program. This…
Learn More
Learn More
DOL’s New Fiduciary Rule Reiterates the Importance of Working with a Fiduciary Advisor
If you follow the financial news, the term fiduciary has come up repeatedly over the last several weeks, primarily due to the Department of Labor announcing a rule mandating that financial advisors put client’s best interests first when making recommendations for retirement plan rollovers to IRAs and annuities. There are many who oppose this rule; primarily advisors who…
Learn More
Learn More
Tax Planning Considerations for Baby Boomers
Baby boomers, the generation born between 1946 and 1964, are currently between the ages of 60-78. Most are retired or contemplating retirement. There are several planning considerations for baby boomers to be cognizant of in terms of cash flow and tax planning, both prior to and throughout the retirement years. Retirement Plan Contributions – Baby…
Learn More
Learn More
What Makes a NAPFA Advisor Unique
When seeking a financial advisor, you might come across recommendations from friends, podcasts, or online forums to look for a NAPFA advisor. But what exactly does NAPFA mean and why are its advisors highly regarded?
Learn More
Learn More
Five Questions You Should Ask to Ensure You Find the Right Fee-Only Advisor for You
Choosing a financial advisor is an important decision, as he or she will play a critical role in helping you achieve both your personal and financial goals. When considering a fee-only financial advisor, there are a few key questions you should ask to ensure you find the right advisor for you. What services do you…
Learn More
Learn More
Understanding the Banking Storm – From Crisis to Confidence
In light of the recent banking crises involving Silicon Valley Bank (SVB), Signature Bank, and the takeover of First Republic Bank by JPMorgan Chase, US policymakers have shown their commitment to “backstop” all deposits and created the Bank Term Funding Program (BTFP) to support vulnerable banks. These crises were likely due to a combination of…
Learn More
Learn More
New Year, New Perspective – 8 Steps to Get you Closer to Financial Freedom
As we embark on a new year, especially after coming off one that was challenging in so many ways (especially from a financial perspective), it is a great time to take a step back and assess your overall financial position. While it is natural to focus on account balances, we encourage you to think about why…
Learn More
Learn More
Takeaways from the FTX disaster
The rapid collapse and subsequent bankruptcy of FTX, a Bahamas-based cryptocurrency exchange, has consumed mainstream media outlets since mid-November. Many people, both professionals, and next-door-neighbors are talking about whether or not cryptocurrency is dead, and some of them are wondering whether they will ever receive their lost cryptocurrency again. Background FTX was a cryptocurrency exchange…
Learn More
Learn More
The Long-Term Outlook for Inflation
Earlier this month, the U.S. Bureau of Labor Statistics announced that the Consumer Price Index (CPI) for All Urban Consumers had risen 8.5% for the 12-month period ending March 31, 2022. This marked the fourth consecutive month where the annual CPI rate was 7% or more. When it comes to the reality of higher inflation,…
Learn More
Learn More
Investing versus Speculating
When it comes to determining how to allocate your savings, what is the difference between investing and speculating? Investing is characterized by: Productive capacity: An investment involves deploying capital in a company, property, or other entity that produces something of value. A stream of benefits: The value produced by an investment can ultimately be measured…
Learn More
Learn More
Social Security Update
On August 31, 2021, the Social Security Board of Trustees released its annual report, which included the latest projection for the Old-Age and Survivors Insurance (OASI) Trust Fund. According to the report, if Congress does not act, the fund is projected to become depleted by 2033, a year sooner than the estimate provided in 2020.…
Learn More
Learn More
What To Do About the Coming Inflation (or Deflation)
The annual change in the Consumer Price Index “CPI” exceeded more than 5% for the second month in a row, raising concern that we may be entering an inflationary period. How concerned should investors be? Before we get into that, we should begin with a short primer on what inflation is. Inflation refers to an…
Learn More
Learn More
The 2020 Election and Your Investment Portfolio
With election time now getting closer, we are inundated with opinions and prognostications about not only who will win but what that victory will mean for the markets. When you couple the uncertainties of the election with the other trials facing our country including, but not limited to, high unemployment, the economic and personal consequences…
Learn More
Learn More
The Economy vs. The Market
The terms “stock market” and “economy” are often used interchangeably, but they are not one in the same. Perhaps this has never been more evident than over the past several months. The state of the economy, according to most measures, is bleak, with economic activity contracting, an unemployment rate of more than 10%, and an…
Learn More
Learn More
What You Should Know About Retirement Plan Rollovers
Given the current economic environment where companies are laying off workers and, in some cases, going out of the business, the implications for employer-sponsored retirement plans are significant. Unfortunately, one of the consequences of the pandemic and the economic shutdown is that many companies are laying off workers and, in some cases, shutting down completely.…
Learn More
Learn More
Some Thoughts From A Financial Planner
At my core, I am a financial planner. Some may call me a money manager, or an investment advisor or a wealth manager….all terms that could apply, depending on your definition. But, I see myself as a financial planner. When I meet with someone for the first time, more times than not, they are looking…
Learn More
Learn More
Coronavirus – What Does it Mean for Your Investments?
Over the last several weeks, the coronavirus has grabbed global headlines. So far, U.S. markets have remained relatively immune. But should you try to dodge markets that have been exposed? The answer to that question is simple: breaking news should not impact your investment program. A portfolio that is invested according to an evidence-based investment…
Learn More
Learn More
5 Tips To Meet Your Financial Goals
In most aspects of our lives, taking action serves us well. We are conditioned from a young age to believe that if we want to succeed at any endeavor – climbing the corporate ladder, excelling at a sport, being a great parent, getting good grades – we must work hard, make tough choices, and put…
Learn More
Learn More
Cash in the Bank – How Much Is Enough?
An integral component of a financial plan is making sure that you have adequate cash reserves set aside. But exactly how much is enough? Cash in the bank has several purposes: (1) to fund living expenses; (2) to fund short-term planned expenses (upcoming trips, home improvements, new car, etc.); and (3) to fund unanticipated expenses.…
Learn More
Learn More
How “High” Are High Yield Savings Rates
When looking for a place to stash your emergency reserves, a visit to bankrate.com is probably your best bet. The popular site provides an up to date list of the banks that are currently paying the highest rates on fully liquid, FDIC insured savings accounts, making it easier than ever for savers to find the…
Learn More
Learn More
All Investment Risk is Not Created Equal
We all know that risk and return go hand-in-hand. As investors, we are encouraged to think about how much risk we can/want to assume and then build a portfolio that reflects our risk tolerance and objectives. But, investment risk is not a straightforward concept. There are two, broadly different kinds of investment risks: avoidable, concentrated…
Learn More
Learn More
Three Reasons Not to React to Financial News
Stock prices change as new information becomes available. It’s not surprising that many investors believe that it is crucial to follow financial news carefully and then act quickly on news that might be relevant to their investments. While this may sound like a good idea, the reality is that you cannot expect to consistently improve…
Learn More
Learn More
Money Management Lingo
Doctors write prescriptions. Auto mechanics perform tune-ups. Lawyers prepare briefs. Financial advisors help you manage your money. Ultimately, it’s that simple. But like any other profession, we sometimes have a funny way of saying it. Following are a few of the most common terms related to money management. Assets Your assets sustain your financial being…
Learn More
Learn More
Holidays, Gifts and Your Happiness
As a financial planner, I am always intrigued by the behaviors regarding money that I routinely witness during this time of the year. As soon as the Thanksgiving dinner is cleared from the table (sometimes even before), conversations center around the holidays – the perfect gift for your spouse, tokens to remember colleagues and teachers, the…
Learn More
Learn More
CFP® and CFA: Credentials to Consider When Hiring a Financial Advisor
If you have ever met with a financial advisor, it is likely that they have several letters after their name. As a consumer, it is important to understand exactly what these designations mean – they are not all the same and they do not all indicate the same type of expertise or accomplishment. Some require…
Learn More
Learn More
Why Estate Planning Should Begin At 18
As a financial planner, one of the topics that I always bring up with my clients, although most of them don’t like to discuss it, is estate planning. Estate planning is relevant for everyone, no matter how much money you have or how old you are. Typically, people think of Wills when it comes to…
Learn More
Learn More
How Today’s Spending Habits Impact Your Retirement
When helping people plan for their financial future, the overriding principle that governs the advice we give is to “control what we can.”, and one of the things we have the most control over is how much we spend and how much we save. For those that are preparing for retirement, so much focus is…
Learn More
Learn More
Investing is Simple, But It Isn’t Easy
We all know that to receive a return on your investment, first you must invest and then, you must stay invested. Investing 101 teaches us that risk and return are related – to earn returns, you must put your assets at risk in ventures that are expected to compensate you for your faith that they…
Learn More
Learn More
The Benefits of Using a Fiduciary
As you may recall, under the Obama administration, the Department of Labor passed the Fiduciary Rule which addressed the standard of care that an advisor has to their clients in regard to retirement plan accounts. A fiduciary standard means the advisor is ALWAYS required to act in the client’s best interest, whereas a suitability standard…
Learn More
Learn More
What Does It Mean To Be A NAPFA Financial Advisor?
Most people do not even know what NAPFA stands for let alone why NAPFA advisors are recommended. As a NAPFA advisor since 2009, I wanted to take this opportunity to tell you about the organization.
Learn More
Learn More
Our Take on Current Market Conditions
As a fiduciary advisor, you might already be able to guess what our take is on current market news: Unless your personal goals have changed, stay the course according to your personal plan. Still, it never hurts to repeat this steadfast advice during periodic market downturns. After all, we understand that thinking about scary markets
Learn More
Learn More
Top 10 Financial Action Items for 2018
Here are the top 10 action items that will help energize your wealth management efforts and get you closer to reaching those goals of yours.
Learn More
Learn More
Are You Behaving Yourself?
Whether the market is in a bit of turmoil or when it has been performing quite well, it’s important to revisit some of the common behavioral mistakes that can potentially derail even the most well thought out financial plans. Below are six behaviors that we should all look to avoid. Fear and Panic Perhaps the…
Learn More
Learn More
Holidays, Gifts and Your Happiness
As soon as the Thanksgiving dinner is cleared from the table (sometimes even before), conversations center around the holidays – the perfect gift for your spouse, tokens to remember colleagues and teachers, the hottest new games and gadgets for the children, ideas for those on your list who already have “everything.” It’s all about the…
Learn More
Learn More
Perspective
With Hurricane Irma now in the rearview mirror, I can gratefully say how lucky we were. My home sustained minimal damage and we thankfully never even lost power. However, we had no internet, we had no cable, our cell service was spotty at best and we had no landlines. As we were busy trying to
Learn More
Learn More
Financial Freedom – It’s Not All About The Size of Your Bank Account
The way in which we respond and react to events that unfold in our daily lives are often the result of our past experiences. This is especially true when it comes to money. Whether you grew up in an affluent household, you grew up in a home where having food on the table was not
Learn More
Learn More
The Art of Investment Management
Many people mistakenly believe that investment management is simply selecting the investment or combination of investments that will generate the highest yield or highest long-term return. In reality, sophisticated investment management is actually much more complicated than that as it integrates several interrelated components of which specific investment selection is only one facet.
Learn More
Learn More
Half of a Whole: When You Lose a Spouse
Whether it’s sudden and unexpected, the culmination of a lengthy illness or merely the result of old-age and the normal cycle of life, there’s nothing that can prepare you for losing your spouse.
Learn More
Learn More
When You Know Better …
“When you know better, you do better.” These words, famously spoken by Maya Angelou, suggest that the more knowledge we have, the better we can do for ourselves. If we know something is bad for us, we will avoid it, if we know something can enrich our lives, we will seek it out and as
Learn More
Learn More
Give Yourself Permission To Hire a Real Financial Advisor
Setting goals are important. It gives you something to work towards. But there is a huge misconception about goals that most people don’t figure out until it is too late. Achievement of your goal will not bring you happiness. Having a certain amount of money in the bank, getting a promotion, owning your dream home,
Learn More
Learn More
Insights
Understanding the New Inherited IRA Distribution Requirements
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,…
The Realities of Trying to Outperform Market Returns: What Investors Need to Know
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…
This is No Time to Abandon Diversification
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…
Understanding the New Inherited IRA Distribution Requirements
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…
Learn More
Learn More
The Realities of Trying to Outperform Market Returns: What Investors Need to Know
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
Learn More
Learn More
This is No Time to Abandon Diversification
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…
Learn More
Learn More
Five Tax Concepts Central to Comprehensive Financial Planning
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…
Learn More
Learn More
Understanding Florida Property Taxes: Calculations, Exemptions and Portability
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…
Learn More
Learn More
Market Review 2023: Rising Stocks Left Predictions Grounded
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…
Learn More
Learn More
2023-2024 Contribution Limits for Retirement Accounts
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…
Learn More
Learn More
3Q2023 in Review – On the Bright Side
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…
Learn More
Learn More
Demystifying the Gift Tax
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…
Learn More
Learn More
529 College Savings Plan – Options for Unused Balances
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…
Learn More
Learn More
Market Volatility in Retirement: Addressing Sequence of Return Risk
Deciding to retire during market volatility can be a tough call. Do you stick it out for another year, or take the plunge? Even with a well-diversified global portfolio, the timing of retirement can expose an investor to “sequence of return risk,” which is the risk that a market downturn will occur early in retirement. When a…
Learn More
Learn More
Unnerving Headlines: This is Why We Diversify
In Q1 of 2023, global stocks gained nearly 7% in the first quarter, continuing the upward momentum that we saw in Q4 of 2022. Bonds also posted healthy returns, with the US Aggregate Bond Index returning almost 3% in just three months. Despite these investment returns, the quarter will be more remembered for a series of unnerving…
Learn More
Learn More
Secure Act 2.0: Provisions Affecting ROTH IRA Accounts and What They Mean for You
There are several provisions in Secure Act 2.0 that relate to ROTH IRAs and ROTH accounts within workplace retirement plans. ROTH AccountsFirst, as reminder, ROTH accounts are funded with after-tax dollars. In other words, no tax-deduction is taken when funds are contributed to the account. The funds within the account grow tax-free and when they are withdrawn…
Learn More
Learn More
Secure Act 2.0 – Tax Planning Opportunities Related to Delayed Required Minimum Distribution Requirements
Those who reach age 72 in 2023 or beyond now have more time to opportunistically take distributions from their tax-deferred accounts in efforts to minimize their tax liability over their retirement years.1 For those who will turn 72 in 2023-2031, RMDs must begin at age 73; for those who turn 72 in 2032 or later, Required…
Learn More
Learn More
Series I-Bonds
What is an I-Bond? US Treasury Series I-Bonds (I-Bonds) are inflation-adjusted savings bonds. Interest compounds every six months (May and November), and the rates are also reassessed at that time. The annual interest rate for I-Bonds purchased from November 2022 through April 2023 will be 6.89%. The stated rate applies for the first 6 months…
Learn More
Learn More
Core Wealth Management Quarterly Market Update – 3Q 2022
As the market accepted the reality of higher interest rates, a likely recession, and heightened uncertainty, both equity and bond markets continued their decline. Below are the asset class returns for 3Q of 2022. The news media would like us to believe that these declines are the result of a world spinning out…
Learn More
Learn More
US Stocks Continued to Dominate in 2021, but What Does That Mean for the Future?
As the global pandemic extended into 2021, the markets continued the remarkable run that began the third week of March 2020. Since that time, US large company stocks, as measured by the S&P 500 Index, have more than doubled in value. For 2021, the broad US stock market generated a positive return of more than…
Learn More
Learn More
Florida Homestead Exemption
Florida residents can file for a homestead exemption on their primary residence as a means to reduce property taxes. What is the Florida Homestead Exemption? By filing for the Homestead Exemption, it can result in exempting up to $50,000 of your home’s assessed value from property tax liability. The first $25,000 of the home’s assessed…
Learn More
Learn More
Rules for Inherited Roth IRAs
A Roth IRA is perhaps the most tax-friendly asset that an heir can inherit. However, the rules regarding distributions can be somewhat complicated. The Q&A below provides a brief overview of the rules regarding Inherited Roth IRAs. If I inherit a Roth IRA, what are my options? Since the passage of the SECURE Act in…
Learn More
Learn More
Calculating the Payback Period on a Mortgage Refinance
As explained in our article on “How to Evaluate a Mortgage Refinance”, the decision to refinance comes down to evaluating the benefit of the interest savings against the costs of the refi. A traditional approach to evaluating this tradeoff is to calculate a payback period, which is defined as the number of months it takes…
Learn More
Learn More
How to Evaluate a Mortgage Refinance
With interest rates at historic lows, many homeowners are considering refinancing their current mortgage. But making the decision to refinance or not can be tricky given the costs involved. Here are some factors to consider when considering a mortgage refinancing (“refi”). Is It Worth It? The decision to refinance comes down to evaluating the benefit…
Learn More
Learn More
2020 Education Funding Provisions
Beginning at the end of 2019 with the passage of the SECURE Act and then continuing with the CARES Act which was passed in response to COVID-19, there are important provisions that those with 529 plans and/or student loans should be aware of. 529 Plans Tuition Refunds In response to the pandemic and the fact…
Learn More
Learn More
2020 Q1: The Quarter in Review
After a surprisingly strong year for stocks in 2019, the new decade got off to a rough start for investors with one of the most abrupt and rapid stock market declines on record. In just 5 weeks, the S&P 500 declined by more than 33%. Overall, U.S. stocks ended the quarter down about 20%, while…
Learn More
Learn More
CARES Act: IRA and Retirement Plan Provisions
There are several provisions in the CARES Act, which was signed into law on March 27, 2020, that provide flexibility to retirement account owners. In a previous blog post, we discuss the suspension of Minimum Distribution Requirements for 2020. But perhaps the most significant change to IRAs under the CARES Act was the establishment of…
Learn More
Learn More
CARES Act: Changes to Minimum Distribution Requirements for 2020
Included in the CARES Act, which was signed into law on Friday, March 27th, 2020, are provisions related to tax-deferred retirement plans/IRAs and minimum distribution requirements for 2020. Specifically, regardless of your age, all minimum distribution requirements from tax-deferred retirement plans and IRAs have been suspended for 2020. Of course, you can take withdrawals if…
Learn More
Learn More
The SECURE ACT’s “10-Year Rule” for Inherited IRAs
On Friday, December 20, 2019, the Setting Every Community Up for Retirement Enhancement (SECURE) Act was signed into law. The broad intent of the legislation is to make it easier for families to save more for retirement, but it also includes several unfavorable provisions intended to offset the loss of tax revenue likely to result…
Learn More
Learn More
2019: Year (and Decade) in Review
After a down year in 2018, the outlook for stocks in 2019 was not positive. The markets had experienced an abrupt decline in the last quarter of 2018, and many thought the bull market that had begun in March of 2009 was coming to an end. But those who stayed invested were rewarded with a…
Learn More
Learn More
How Do Capital Loss Carryforwards Work?
Reprinted with permission from Schanel and Associates, CPA. www.schanelcpa.com. Original Post: October 04, 2019 When an investor sells a stock or mutual fund that produces a loss, this capital loss reduces taxable income by first offsetting any capital gains, and then by reducing taxable income up to $3,000. Net capital losses in excess of…
Learn More
Learn More
Market Corrections, Bear Markets, and Recessions: A Primer
As the markets continue to move up and down and as the media continues to have a field day playing with our emotions, it is no wonder that many investors find themselves questioning what lies ahead. While no one can predict what the markets will do or how people will react to the news of…
Learn More
Learn More
What is Tracking Error Regret?
A central tenet of our investment philosophy is diversification. Furthermore, we advocate for “real diversification”, which means owning thousands of stocks in companies of all sizes (large and small), geography (U.S. and non-US) and investment style (value and growth). This type of diversification represents the only “free-lunch” there is in investing. But real diversification also…
Learn More
Learn More
Group Intelligence and Investing
In 1906, statistician Francis Galton attended a livestock fair where villagers were invited to guess the weight of an ox. No villager successfully guessed the correct weight, but Galton noticed that the average of all the guesses was 1,197 pounds — the exact weight of the ox. A famous experiment asked 56 students to guess…
Learn More
Learn More
Investing in Publicly Traded Equities vs. Direct Real Estate (Part 2)
In Part 1 of this series, a brief list of the advantages and disadvantages of investing in publicly traded equities vs. direct real estate was provided. In this article, I will try to more directly answer the question, “which is better, stocks or real estate”? First of all, that is probably the wrong question to…
Learn More
Learn More
Investing in Publicly Traded Equities vs. Direct Real Estate (Part 1)
Some investors choose to invest their savings in stocks while other others favor investing in directly real estate. Below is a brief list of the advantages and disadvantages of each. Advantages of Directly Owned Real Estate Leverage: The primary advantage of real estate is the ability to use leverage. Leverage is an investment strategy where…
Learn More
Learn More
Health Savings Accounts – The Best Retirement Account of All?
In the hierarchy of tax-preferenced savings vehicles, the Health Savings Account (HSA) sits at the top. Unlike an IRA or 401K, an HSA offers a triple tax benefit: contributions to the account are tax-deductible, earnings grow tax-deferred and distributions are tax-free as long as they are used to pay for qualified health expenses. In contrast,…
Learn More
Learn More
Dimensional Fund Advisors and Vanguard (Part II): Dimensional’s Advantages
As I discussed in a previous article, Dimensional and Vanguard are similar but are different in some key respects. While neither fund family relies on forecasting or individual security analysis, Vanguard funds are index funds while Dimensional funds are not. Both fund families are great options for investors. However, Dimensional provides several advantages that may…
Learn More
Learn More
Using Donor Advised Funds to Maximize the Value of Charitable Gifts of Appreciated Stock
Through a Donor Advised Fund (DAF), a donor can make a charitable contribution, get an upfront tax deduction, and then recommend what charities to support and when. Funds can be distributed immediately or over time. In addition to the upfront tax deduction, DAFs also offer an added tax advantage when a donor makes a gift…
Learn More
Learn More
Using a Donor Advised Fund for Charitable Giving
In the past, when it came to income taxes, people who were charitably inclined could make charitable gifts to reduce their taxable income. While that opportunity is still available under the new tax law, the standard deduction is now much higher ($12,200 for single and $24,400 for couples under 65 in 2019) and, as a…
Learn More
Learn More
Why Are Stocks So Volatile?
I had a discussion with someone about the recent stock market decline and he observed that despite the drop in stock prices, corporations seemed to be healthy and were still making lots of profits. He then said: “That’s what I don’t get. How can the market go down so far and so fast, when nothing…
Learn More
Learn More
What Is the Yield Curve?
The “yield curve” is a term that is used frequently when discussing the state of the economy. But what is a yield curve to begin with, and what does it have to do with you and your investments? Yield curves typically depict the various yields across the range of maturities for a particular bond class.…
Learn More
Learn More
How Long Does it Take for a Bond Portfolio to Recover from a Rise in Rates?
Interest rates and bonds prices are inversely related; when interest rates rise, the value of a bond falls. Given that rates on US Treasury Bonds have climbed to levels we have not seen since 2011, bond prices are down year to date. As of November 1, 2018, the YTD returns on the Vanguard Total Bond…
Learn More
Learn More
How to Use Asset Location to Increase After Tax Returns
Most of us have heard of asset allocation – the process of dividing a portfolio’s assets across various parts of the market according to an investment plan that takes into account an investors goals and risk tolerance. Asset location, on the other hand, is a tax minimization strategy that takes into account how different…
Learn More
Learn More
How Are Your Investment Accounts Protected?
When you deposit money into a bank account, the bank uses those funds to make loans. In the unlikely event that too many loans go bad or the banks become insolvent, the FDIC (Federal Deposit Insurance Corporation) will make account holders whole up to $250,000 per account. That is why you may have heard that…
Learn More
Learn More
What You Need to Know about Roth IRA and 401K Distribution Rules
When saving for retirement, ROTH accounts are becoming increasingly popular. Unlike traditional IRAs or 401k plans, while contributions to ROTH IRAs and ROTH 401k plans are not tax deductible, distributions are tax-free (so long as certain requirements are met). If you have ROTH accounts, it is important to understand Minimum Distribution Requirements as they differ
Learn More
Learn More
How Market Indices Provide Perspective on Portfolio Performance
As an investor, it’s perfectly natural to ask, how are my investments doing? Most people look at their account values and if they are up, they are happy and if they are down, they begin to ask questions. But if you really want to know how your investments are doing, you need to consider how…
Learn More
Learn More
3 Ways to Get Tax Benefits from Charitable Contributions
One of the major changes that were made to the tax code by the Tax Cuts and Jobs Act of 2017 was the expansion of the Standard Deduction to $12,000 for individuals and $24,000 for married couples. This means that going forward, many more taxpayers will be taking the standard deduction rather than itemizing.
Learn More
Learn More
Payment of Investment Advisory Fees After TCJA
One of the major changes resulting from the passage of the Tax Cuts and Jobs Act was the elimination of all miscellaneous itemized deductions. This category of deductions included unreimbursed job expenses, tax preparation fees, and investment advisory fees.
Learn More
Learn More
Retirement and How it Impacts Your Social Security Benefit
In the video When Should You Begin Collecting Social Security Benefits, we’ve discussed considerations to take account when determining when to begin collecting social security benefits. Specifically, we discussed the fact that delaying collection allows your benefit amount to grow by 8% per year plus inflation from Full Retirement Age to Age 70 while collecting…
Learn More
Learn More
Rising Interest Rates and Your Investment Strategy
It’s been approximately a decade since the Great Recession began. By year-end 2008, the Fed had lowered the target federal funds rate to almost zero and embarked on an aggressive quantitative easing campaign. Now, after several years of economic recovery, the Fed has begun to reverse course, restoring its policies and targets closer to historical
Learn More
Learn More
What Does it Mean to Have a Balanced Investment Portfolio
Your investment portfolio is most likely comprised of different types of investments, balanced in such a way that takes into consideration both your overall return objectives as well as your risk tolerance. It is useful to understand the purpose and role each investment plays within a diversified, balanced portfolio. Stocks or equity, whether owned through…
Learn More
Learn More
5 Steps to Maximize the Benefits of Your 401k Plan
A 401k plan can be a wonderful savings vehicle, but many employees don’t know how to navigate the plan to maximize the benefits it can offer in retirement. Contribution levels, matching opportunities, investment options and costs are all factors that need to be considered. Here are five steps to help you optimize the potential benefits…
Learn More
Learn More
Should You Offer a 401K Plan?
Offering a 401K plan can be a great benefit for both the owner of a business and its employees. But a 401K requires time, money and some human resource acumen to set up and maintain
Learn More
Learn More
How Are Social Security Benefits Calculated?*
The purpose of social security is to replace a portion of the income you earned over your life once you are retired. How exactly your social security benefit amount is calculated is dependent upon several factors.
Learn More
Learn More
The Sources of Retirement Cash Flows
When you hear the word “diversification” in the context of investing, one thinks of owning multiple holdings across asset classes, geographical locations, and industry sectors. The concept of diversification also applies to the sources of cash flows that are generated from an investment portfolio. Michael Kitces, a well-renowned author, and industry thought leader, suggests that
Learn More
Learn More
Preparing for a Market Downturn
Warren Buffett’s annual Berkshire Hathaway shareholder letters often offer sage advice. His most recent 2016 letter was no exception, including this powerful insight about market downturns: “During such scary periods, you should never forget two things: First, widespread fear is your friend as an investor, because it serves up bargain purchases. Second, personal fear is
Learn More
Learn More
