Posts by Becca Stanek
401(k)
Can You Roll Over a 401(k) Into a 403(b) Account?
The IRS does permit rollovers between these 401(k) and 403(b) plans, allowing you to consolidate retirement savings when appropriate. However, not all 403(b) plans accept rollovers from 401(k) accounts. This decision is up to the individual plan administrator. While both 401(k) and 403(b) accounts are tax-advantaged retirement plans, they serve different employer types. 401(k)s are typically… read more…
RMDs
Can You Reinvest Your RMD into a Roth IRA?
Reinvesting a required minimum distribution (RMD) into a Roth IRA isn’t allowed directly, since RMDs are considered taxable income. However, if you have earned income and fall within the IRS income limits for Roth contributions, you can contribute to a Roth IRA using funds from any source—including money withdrawn to satisfy your RMD. RMDs can… read more…
Investing for Beginners
Mutual Funds vs. Stocks: Which Is Better for Your IRA?
The debate between mutual funds and stocks for your IRA is common among investors at all levels of experience. Mutual funds offer diversification and professional management, spreading risk across multiple securities while requiring less hands-on attention. Stocks, on the other hand, provide direct ownership in companies with potentially higher returns, though they come with increased… read more…
Investing for Beginners
Capital Stock vs. Treasury Stock: Which Should You Buy?
Capital stock represents shares that a company has issued to raise funds, including both common and preferred stock available to the public. These shares give investors ownership rights and potential voting power in company decisions. Treasury stock, on the other hand, consists of shares that were previously issued but have been repurchased by the company… read more…
Investment Taxes
How to Avoid Taxes on CD Interest
Certificates of deposit (CDs) are a popular low-risk savings vehicle. But it’s important to consider that the interest they earn is fully taxable as ordinary income. Even if you don’t withdraw the interest until the CD matures, the IRS still expects you to report and pay taxes on it annually. While avoiding taxes altogether may… read more…
Investing for Beginners
Net Tangible Assets: How to Calculate, Formula, Examples
Net tangible assets represent a company’s physical assets minus its liabilities and intangible assets. For investors, lenders and business owners, net tangible assets can offer a clearer picture of a company’s core value — namely, what would be left if all debts were paid and only tangible, sellable items remained. This can be helpful when… read more…
Tax Policy
California vs. Florida: Which Is Better for Taxes?
When comparing California vs. Florida for taxes, the absence of a state income tax in Florida often draws attention. However, this doesn’t mean Florida offers a lighter tax burden across the board. Many low- and middle-income families pay similar or even higher overall tax rates in Florida than in California. This is in large part… read more…
Financial Advisor
Cash-on-Cash Return in Real Estate: Definition and Calculation
Investing in real estate can be a lucrative venture, but understanding the metrics that gauge profitability is crucial for success. One such metric is the cash-on-cash return, a tool for real estate investors to evaluate the performance of their investments. It provides insight into the annual return an investor can expect on their cash investment.… read more…
Financial Advisor
Form 144: What Is It, Who Files It and Who Gets It?
Form 144 is a document filed with the SEC to notify the agency of an insider’s intention to sell restricted or control securities of a public company. These are securities acquired through unregistered, private sales from the issuing company or an affiliate. It’s necessary to submit Form 144 before the sale to ensure compliance with… read more…
Financial Advisor
Form 4797: How to Report Gains From Business Property Sales
Selling business property—whether it’s real estate, equipment or other depreciable assets—can trigger a tax event. The IRS requires you to report the gain or loss from that sale on Form 4797: Sales of Business Property. This form is specifically used for reporting the sale or exchange of assets used in a trade or business, as… read more…
Financial Advisor
Corporate Income Tax: How It Works and Deductions
Understanding how corporate income taxes work is crucial for companies aiming to optimize their financial strategies and ensure compliance with tax regulations. At its core, corporate income tax is a levy placed on the profit of a corporation, calculated as the company’s revenue minus the costs of goods sold, general and administrative expenses and other… read more…
Financial Advisor
Who Actually Has to Pay the Alternative Minimum Tax (AMT)?
The alternative minimum tax (AMT) was designed to ensure that high-income individuals and trusts pay a minimum level of tax, even if deductions and credits would otherwise significantly lower their tax liability. While originally aimed at the ultra-wealthy, the AMT now affects a broader range of taxpayers, particularly those with high earnings, numerous deductions or… read more…
Financial Advisor
Florida Corporate Tax: What It Is and How It Works
Florida, known for its business-friendly environment, offers a unique corporate tax structure that can be advantageous for companies operating within its borders. Unlike many states, Florida does not impose a personal income tax, which can be a significant draw for entrepreneurs and corporations alike. However, businesses must still contend with the Florida corporate tax, a… read more…
401(k)
What Is a Self-Directed 401(k)?
Self-directed 401(k) plans let savers decide how to invest their pre-tax retirement contributions. Rather than being limited to the pre-approved funds typically offered by traditional 401(k) plans, self-directed 401(k) plans allow you to choose exactly where you’ll invest your money.… read more…
401(k)
The Average 401(k) Balance by Age
It can be hard to know if your retirement savings are on track, but comparing your balance to where others similar in age are can help. In particular, taking a look at the average 401(k) balance by age is a good place… read more…
Financial Planning
What Is a Fiduciary Financial Advisor? Definition, Types and Examples
In legal terms, a fiduciary is an individual or organization that has taken on the responsibility of acting on behalf of another person or entity with honesty and integrity. For example, bankers, attorneys and officers of public companies are all… read more…
Mortgage
Where Rich Generation Xers Are Moving
Making a decision to move to a particular place involves taking into account many factors, including career opportunities and what mortgage payments might look like. But does the choice of a particular locale say anything about trends across a specific socioeconomic class and generation? While wealthy people of Generation X, for example, are headed down… read more…
Relocation & Moving
Where Rich Millennials Are Moving in 2019
A number of factors can influence your decision to move to a new place, including where your peers are headed. While some older generations like rich retirees and rich Gen Xers are moving to Florida, wealthy millennials are still seeking out sunny locales, but in other states. Moving and taking out a mortgage in a… read more…
Checking Account
The Happiest Places in America – 2019 Edition
The U.S. is the 19th-happiest country in the world, according to the 2019 World Happiness Report that the Sustainable Development Solutions Network for the UN released. Though this is a one-spot drop since last year, there are still plenty of places to find happiness in America. We looked within the U.S. to determine which counties… read more…
Checking Account
Where Upper-Middle-Class People Are Moving 2019
Moving to a new home can be a difficult undertaking, even though it might bring your life a much-needed change, especially when you have significant financial costs to consider. As you look to make intelligent decision that can help boost the balance in your savings account, it’s important to do your research before you eliminate… read more…
Brokerage
Ken Fisher: Everything You Need to Know
Ken Fisher, an investment analyst and self-made billionaire, is perhaps best known for founding Fisher Investments. The financial advisor firm based in Camas, Washington manages more than $96 billion for more than 40,000 clients, mostly high-net-worth individuals and institutional investors. Fisher currently serves as the firm’s executive chairman and co-chief investment officer. However, he has… read more…
Advisor Basics
11 Questions to Ask a Financial Advisor
The aid of a financial advisor can be helpful regardless of whether you’re young, retired or somewhere in between. There is a wide range of financial advisors you can work with, as they can specialize in taxes, retirement, financial planning,… read more…
Advisor Fees & Costs
How Much Does a Financial Advisor Cost?
As you strive to reach your financial goals and prepare for retirement, you may consider turning to a financial advisor. In this case, knowing how much a financial advisor’s services normally cost is crucial. Depending on the size of your… read more…
Brokerage
Form ADV: What It Is and How to Read It
If you’re looking for a financial advisor, the Form ADV is an essential point of reference. In fact, this publicly available paperwork must be filed with the U.S. Securities and Exchange Commission (SEC) by all financial advisor firms with more than… read more…
Brokerage
What Is a Wealth Manager?
A wealth manager is a subset of financial advisor that primarily offers high-net-worth and ultra-high-net-worth clients wealth management services. But a wealth manager’s role is far more comprehensive than just offering investment advice. They focus on a holistic suite of services… read more…