- Ask an Advisor: Do I Have to Take RMDs from the IRAs That I’m Inheriting from My Mother?
I inherited an IRA from my mother who was already taking RMDs when she passed away. Am I required to take RMDs from the inherited IRA, or does the IRA simply need to be depleted by 10 years from the date of inheritance? I don’t have any special needs or disabilities. Similarly, are RMDs required… read more…
- Advisor Advice: How Often Should I Follow Up With Prospects and How Should I Frame Those Conversations?
Written by Michael Collins, CFA® In today’s fast-paced world, getting the attention of potential clients isn’t easy, especially when connecting with someone over the phone. As you work to grow your client base, it’s not just about generating leads; it’s about making sure those leads actually respond and engage with you. Making monthly follow-ups with… read more…
- How Much Would I Have Now if I Invest $1,000 in $NVDA During the 2020 Stock Market Crash?
An investor who “buys the dip” might take advantage of market volatility or short-term events to ideally get a better return on investments. While timing the market and individual equity investments have their own risks, buying the dip can be a good way to invest in good assets while they’ve temporarily lost value. For example,… read more…
- Ask an Advisor: We Own Millions in Real Estate Through Self-Directed IRAs. How Do We Transfer it to Our Sons?
My wife and I own five senior homes in our self-directed IRAs. How do we transfer them to our two sons after we die? Under the new IRS rules it appears that the boys have only 10 years to take the money out. The houses are worth about $1.75 to $2 million in total now.… read more…
- How to Find a Fiduciary Financial Advisor to Work With
Choosing a financial advisor is an important financial milestone. That is why you need to know whether they follow a fiduciary standard. A fiduciary advisor is required to act in your best interest, offer unbiased advice and clearly explain any fees or potential conflicts. This can help you get trustworthy support when planning for retirement,… read more…
- Ask an Advisor: Can My Wife Collect Social Security on My Earnings Record and Switch to Hers at Age 66?
I’m 57 and my wife is 48. Both of us work, but my wife makes much less money than I do (almost 1/3 of what I make). I am planning to retire at age 66 and start collecting Social Security benefits. It is my understanding that I will be eligible for full benefits ($3,653 per… read more…
- 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…
- Ask an Advisor: I Want to Roll Over $60k to a Roth, But Need Help Tax Planning. Can I Offset Part of My Tax Bill By Donating Some of the Money?
I’m interested in converting a traditional IRA into a Roth IRA and want to know if taxes are due at time of the rollover. Currently, I have $95,566 in a traditional IRA and would like to roll over $60,000 to a Roth IRA. Also, is it possible to have part of the taxes designated as… read more…
- On-the-Run Treasuries: Are They Safe?
When investors seek safety in the bond market, U.S. Treasury securities often top the list of considerations. Among these government-backed investments, on-the-run Treasuries represent the most recently issued bonds. These are bonds of a particular maturity and are distinct from their older “off-the-run” counterparts. But just how safe are these popular securities? Investors consider on-the-run… read more…
- Beneficiary Rules for CD Accounts and Estate Planning
Certificate of deposit (CD) accounts offer a secure way to save money with fixed interest rates. However, many people overlook the importance of properly designating beneficiaries for these financial instruments. If you want an estate plan to avoid the risk of probate, take the time to understand CD beneficiary rules. Unlike wills, which must go… read more…
- Can Any Person Serve as a Fiduciary? Eligibility Requirements
A fiduciary is someone responsible for acting in another person’s best interest, such as a trustee, guardian, financial advisor or executor of a will. Whether someone can serve as a fiduciary depends on the role, qualifications and any legal or institutional rules that apply. In many situations, a fiduciary does not need to hold a… read more…
- Ask An Advisor: I Want to Build a New House for $700k. Should I Use Roth Savings or Get a Mortgage?
I am 60 years old and want to build a new house for $700,000. We have $1.5 million in 401(k) plans, including $500,000 in Roth funds, which I could withdraw to pay a big chunk of the house. We have a pension of $70,000 a year and Social Security of $44,000 per year. Also, the… read more…
- 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…
- How to Buy Gold and Silver as Physical Investments
Investing in precious metals has long been considered a reliable way to diversify portfolios and hedge against economic uncertainty. If you are wondering how to buy gold and silver as physical investments, you are joining a tradition that spans centuries of wealth preservation. Unlike stocks or bonds, physical gold and silver offer tangible assets you… read more…
- How to Calculate Rental Income for Your Taxes
Property owners need to understand how to calculate rental income. Otherwise, they will struggle to stay compliant with IRS regulations while maximizing their deductions. Rental income can include more than just monthly rent payments. Security deposits, advance rent and even services provided by tenants instead of rent should be recorded. However, there is good news.… read more…
- How to Minimize or Avoid Paying Taxes on Severance Pay
Receiving a severance package after leaving a job can provide crucial financial support during your transition period. However, that relief might be dampened when you realize how much of your severance pay could be claimed by taxes. Severance payments are typically subject to income tax. However, there are legitimate strategies to minimize or eliminate taxes… read more…
- Ask an Advisor: Where Should I Put the $110k I’m Getting from My Divorce to Avoid Taxes and Medicare Increase?
I’m getting $110,000 from a 401(k) through a divorce QDRO. Where should I put the money to avoid excess tax and IIRMA implications? I’m 70 and my only income comes from Social Security. – Ran You have a few options, but be mindful that the tax impact and IRMAA implications of each won’t necessarily be… read more…
- 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…
- 5 Popular Investment Types and Strategies for Young Adults
Choosing the best investments for young adults can feel overwhelming for those just starting their financial journey. Yet, the earlier you begin, the more time your money has to grow. Today’s investment landscape offers everything from traditional options like stocks and bonds to newer alternatives such as cryptocurrency. Whether you’re saving for retirement, planning to… read more…
- 5 Roth IRA Investments for Young Adults to Consider
For young adults looking to build wealth over time, a Roth IRA is a smart choice. It offers a powerful vehicle with unique tax advantages that can help them throughout their lives. Unlike traditional retirement accounts, Roth IRAs allow your investments to grow tax-free. Qualified withdrawals in retirement also come with no tax obligations. This… read more…
- Can You Retire at Age 53?
Dreaming of an early exit from the workforce? Many Americans wonder if they can retire at age 53, which is well before the traditional retirement age of 65 or even the earliest Social Security eligibility at 62. While retiring in your early fifties is certainly possible, it requires careful planning and consideration of several key… read more…
- 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…
- 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…
- What Are Investment Account Options for Your Kids?
As parents, we have several investment account options to help our kids build wealth. These investment accounts for kids provide financial benefits and powerful teaching tools about saving, investing and financial responsibility. The choices can seem overwhelming, from custodial accounts that transfer to your child at adulthood to education-specific savings plans like 529s. Each option… read more…
- Ask an Advisor: Should My Wife Convert her $350k-$400k to a Roth IRA? She’s 65 But Isn’t Retiring Anytime Soon
My wife is currently working and has a traditional IRA with approximately $350,000 to $400,000. She is almost 65 but not looking to retire anytime soon. Should she roll over her IRA and take a tax hit and open a Roth IRA? I’m not sure if this is a smart move at this time in… read more…