Posts by Mark Henricks
Roth & Traditional IRAs
What Tax Bracket Does It Make Sense to Start Converting Traditional IRA to a Roth?
Your current tax bracket is an important consideration when evaluating whether to convert a tax-deferred retirement account to a Roth account. However, it’s just one of several elements to keep in mind. For example, your tax bracket in retirement is just as important as the one you’re in now. If you’re in a lower tax… read more…
Growth Investing
Bond Mutual Funds vs. Stock Mutual Funds
Bond mutual funds pool investors’ money to purchase various debt securities issued by governments, municipalities or corporations. They typically offer stable and regular income through interest payments, making them attractive for conservative investors or those nearing retirement. On the other hand, stock mutual funds invest in shares that provide ownership of individual companies. This approach… read more…
Investing for Beginners
Stocks vs. Options vs. Futures: What Are the Differences?
Stocks, options and futures represent three distinct ways to participate in financial markets, each offering different structures, risks and strategies. Stocks give investors ownership in a company, while options grant the right—but not the obligation—to buy or sell an asset at a specific price. Futures, on the other hand, are binding contracts to buy or… read more…
401(k)
How to Withdraw From Your 401(k) After Age 60
Reaching age 60 is a major financial milestone, particularly when it comes to your 401(k) retirement savings. While you can access your 401(k) without penalties after age 59.5, there are important rules, strategies and tax implications to keep in mind. As you near or enter retirement, you’ll likely begin to consider how and when to start… read more…
401(k)
Can 401(k) Participants Also Make SEP IRA Contributions?
Many people who contribute to a 401(k) wonder if they can also make SEP IRA contributions. The answer depends on factors like employment status, income sources and how the SEP IRA is structured. Business owners and self-employed individuals often have more flexibility, while traditional employees generally cannot contribute directly to a SEP IRA unless they… read more…
Investing for Beginners
Stock and Bond Allocations by Age
Building a portfolio often involves adjusting stock and bond allocations by age to reflect changing financial goals and risk tolerance. While age is only one of several factors that drive asset allocation decisions, investors of a similar age frequently have portfolios that resemble each other in important ways. Younger investors typically hold a higher percentage… read more…
Financial Planning
How to Become a Millionaire By Age 40: Steps and Examples
Most people never achieve a net worth of $1 million, but it’s possible to reach that wealth goal at the relatively early age of 40 even from humble beginnings. Many who become millionaires by 40 start investing while still quite young, are willing to take calculated financial risks and prioritize acquiring assets that can grow… read more…
Retirement Planning
How Much Should I Have in My 403(b) to Retire?
Wondering how much you should have in your 403(b) to retire comfortably? It’s a common question for educators, healthcare workers and employees of non-profit organizations who rely on these tax-advantaged retirement plans. The answer varies based on your desired retirement lifestyle, expected expenses, other income sources and retirement age. While financial advisors often suggest aiming… read more…
Investing for Beginners
Should You Invest $100k in Stocks or Real Estate?
Choosing between investing $100,000 in stocks or real estate requires considering your priorities. Stocks provide liquidity, allowing quick access to funds. They also historically average around 10.5% annual returns, though they’re subject to market swings. Real estate offers tangible assets with potential rental income and tax advantages, but requires active management and time to sell.… read more…
Income Investing
What to Invest $100k in for a Diversified Portfolio
Wondering how to build a diversified portfolio with $100,000? With this amount of capital, you have many options to spread your investments across different asset classes. A balanced approach might include a mix of stocks through index funds or ETFs, bonds for stability, real estate investment trusts (REITs) for property exposure and perhaps alternative investments… read more…
Pensions & Other Retirement Accounts
What Are the Pros and Cons of a Defined Benefit Plan?
Defined benefit plans, often referred to as traditional pensions, offer a reliable stream of income in retirement. These plans can provide peace of mind with guaranteed income, but they also tend to be less flexible than defined contribution plans like 401(k)s. They are also not available to most private-sector workers. Whether you’re evaluating a job… read more…
Financial Advisor
How to Invest $10k in Real Estate: Strategies and Examples
Even $10,000 can be enough to start investing in real estate, a historically stable asset class that also offers appealing income and appreciation potential. Whether you’re looking to generate passive income, diversify your investment portfolio or participate in real estate appreciation without direct ownership responsibility, there are strategies suited to your needs. From fractional ownership… read more…
Income Investing
How to Invest $500k for Monthly Income
Investing $500k for monthly income involves choosing a mix of assets that can provide steady cash flow while managing risk, liquidity and taxes. Common strategies include putting portfolio funds into dividend-paying stocks, bond ladders, real estate investment trusts (REITs) and annuities. No single approach is optimal for all income investors. The goal is to balance… read more…
How to Invest
What Are Inverse/Short Gold ETFs?
Inverse or short gold ETFs are investment vehicles designed to profit when the price of gold declines. Unlike traditional gold ETFs, which track the price of gold and increase in value when gold prices rise, inverse gold ETFs move in the opposite direction. These funds are popular among traders and investors who want to hedge… read more…
Financial Advisor
Gold ETFs vs. Physical Gold: Pros and Cons of Each
Investing in gold has long been considered a reliable hedge against inflation and economic uncertainty. Modern investors interested in using gold as a hedge can choose between purchasing physical gold or investing in gold ETFs (Exchange-Traded Funds). Both options offer exposure to this precious metal, but each comes with distinct advantages and disadvantages that can… read more…
Financial Advisor
Tangible Assets: Definition, Classifications and Examples
Tangible assets are physical items with concrete worth that can be touched, seen and quantified on a balance sheet. Unlike their intangible counterparts, such as patents or goodwill, tangible assets have material substance and typically play key roles in a company’s day-to-day operations. From the buildings that house businesses to the equipment that powers production,… read more…
Financial Advisor
Types of Long-Term Care Insurance: Traditional vs. Hybrid
Long-term care insurance helps cover costs associated with extended medical care that aren’t typically covered by health insurance, Medicare or Medicaid. As healthcare costs continue to rise, these policies have become increasingly important components of comprehensive retirement planning. Each type has distinct advantages and potential drawbacks depending on your financial situation, health status and long-term… read more…
Financial Advisor
How Much Do You Need to Retire by 2060?
The year 2060 is a long time off, but now is not too early to start planning for retirement when it rolls around. With evolving economic landscapes, fluctuating inflation rates and changing life expectancy, determining the right amount to save can seem daunting. However, understanding the fundamentals of retirement planning can help demystify this process.… read more…
Financial Advisor
How Much Do You Need to Retire by 2070?
Changes to the economic landscape, falling life expectancy and even potential changes to Social Security benefits all mean future retirees face challenges unlike those of past retirees. Even looking as far as 2070, however, some timeless retirement planning recommendations still hold. It remains essential to consider factors such as inflation, healthcare costs and lifestyle expectations… read more…
Financial Advisor
How Much Do You Need to Retire in Your 50s?
Retiring in your 50s requires careful financial planning and, first and foremost, a clear understanding of how much you need to retire comfortably. The amount necessary to retire in your 50s can vary significantly based on lifestyle choices, healthcare needs and the cost of living in your desired location. It’s also crucial to consider factors… read more…
Tax Policy
New Jersey vs. New York: Which Is Better for Taxes?
Comparing New Jersey vs. New York taxes highlights differences in how income, property and sales taxes affect residents on both sides of the Hudson River. New York typically imposes higher income tax rates, especially on high earners, while New Jersey’s property taxes rank among the highest in the country. Sales tax rates are also different,… read more…
Financial Advisor
Form 1045: How to Apply for a Quick Tax Refund
Form 1045 is a tax form that can allow taxpayers in certain situations to apply for a quicker refund of taxes paid in prior years. The form, officially known as the Application for Tentative Refund, can be used by filers who have unused general business credits, net Section 1256 contract losses or carryback of a… read more…
Market News
Timing the Bottom: Is It Still a Good Time to Invest in NVDA?
Investors may be able to achieve superior returns with less volatility from investments in NVDIA stock by timing their investments over a long period rather than investing all their funds immediately. Dollar-cost averaging, a popular strategy for timing investments, generally leads to slightly lower returns compared to investing a lump sum. However, investors who use… read more…
Financial Advisor
Form 1099-Q: What Is It, Who Files It and Who Gets It?
The Form 1099-Q tax document goes out to taxpayers involved in educational savings plans, such as 529 plans or Coverdell Education Savings Accounts. Financial institutions issue these forms to report distributions made from these accounts. Typically, the financial institution managing the account has the responsibility of filing the form with the IRS. The institution also… read more…
Market News
Tesla Delivery Numbers Q1 2025: What Investors Need to Know
Tesla’s first-quarter deliveries slumped to 336,000 compared to 387,000 in the first quarter of 2024, a 13% drop. Meanwhile, it produced 362,615 cars for a -16% decrease year over year. Energy storage products saw deployment growth at 156% since last year, with 10.4 GWh delivered in Q1. The electric-car maker’s shares tumbled in the hours… read more…