- Ask an Advisor: What Should I Do With the Annuity I’m Inheriting? Take a Lump Sum, Roll it Over or Defer Payments?
I recently learned that I am the beneficiary of an annuity in the amount of $54,845 from a friend. I was given choices on how to receive the money: lump sum, roll it over or defer the payments over a certain number of years. I don’t have anything saved for retirement and I don’t know… read more…
- Personal Representative vs. Executor: Key Differences
Personal representatives are tasked with managing estates when people die, either according to the terms of their will or the state laws that govern certain successions. An executor is a type of personal representative who’s specifically designated in someone’s will to carry out their final wishes and distribute their assets. A financial advisor can be… read more…
- What Financial Advisors Have to Say About the ESG Controversy
Environmental, social, and governance (ESG) investing has become a fiercely debated trend within the financial sector. While some view ESG factors as crucial considerations, others argue these criteria are politically motivated and detract from returns. Financial advisors say that personal values, such as ESG, can guide a viable investment strategy. However, they add, investors focused… read more…
- Are Trust Distributions Taxable?
Dealing with trusts and their tax implications can seem like a labyrinth of legal terms and financial jargon. Trust distributions might be taxable, with the tax liability potentially varying based on factors such as the type of trust, the kind of distributions and a beneficiary’s tax bracket. With the help of a capable financial advisor,… read more…
- Ask an Advisor: I’m 49 With $500k in Savings But ‘I’m Concerned’ About Retirement Income and Annuities Are ‘Too Expensive.’ What Are My Options?
I’m 49 years old and I’ve had a steady job for over 15 years now as a government contractor. I plan to retire at around 65. I have $500,000 in savings between my 401(k), IRA and individual savings accounts. I’m renting, I don’t have any debt and I have a small family of three. I’m… read more…
- What Is GDC for Financial Advisors?
A gross dealer concession (GDC) gets paid to a brokerage firm when a financial product is sold by a salesperson or financial advisor on commission. These products include securities like stocks, bonds or mutual funds, as well as insurance products like annuities or long-term care. A percentage of that GDC will also get paid to… read more…
- Ask an Advisor: Is it Better to Work With an Independent Advisor or One From a Large Firm?
Is it best to work with an advisor who’s independent or part of a large firm? I am not investment savvy and I’m entering retirement. I need to make sure I hire someone or a firm that is going to help and maybe is somehow insured. -Sharon That’s a great question, Sharon. I’ll provide some… read more…
- Family Offices and Ultra-High-Net-Worth Families
Does your wealth management strategy feel inadequate? In the complex world of wealth management, ultra-high-net-worth families often find themselves needing more personalized and comprehensive services than traditional wealth advisory firms can provide. This is where the concept of family offices comes into play. Family offices are private wealth management advisory firms catered particularly to ultra-wealthy… read more…
- Ask an Advisor: I’m 67 with $750K in a 401(k). How Can I Preserve This Money for the Rest of My Life?
I am in a quandary about how to invest $750,000 that’s in my 401(k). I’m 67 years old, retired and I have not started taking Social Security yet. What is the best way to preserve this money for the rest of my life that doesn’t have high fees? -Terry As you know, the big challenge… read more…
- AUA vs. AUM: How Do They Differ?
Assets under management (AUM) refer to assets on an advisor’s platform that they can directly manage and execute trades for, either on a discretionary or non-discretionary basis. In contrast, assets under advisement (AUA) are assets the advisor provides guidance on but cannot trade due to logistical limitations, such as 401(k) accounts. Here’s an overview of… read more…
- Can Financial Advisors Accept Gifts From Clients?
The financial advisory industry has rigorous rules that apply specifically to the acceptance of gifts from clients. These regulations help uphold a transparent and ethical financial advisor-client relationship, which can minimize potential conflicts of interest. Financial advisors who dismiss these rules may face repercussions, including fines and license suspensions or revocations. Here’s what you need… read more…
- Finding a Financial Advisor as an American Expat Overseas
Living abroad introduces new layers of complexity to personal finance, especially when managing investments, taxes and retirement across borders. An expat financial advisor can help address issues that are unique to Americans living overseas, such as FATCA compliance, foreign income reporting and where to bank. An advisor may also offer insight into cross-border estate planning… read more…
- Where Airfare Increased the Most Year Over Year – 2023 Study
Finding a flight at a reasonable price is easier said than done, whether for summer travel, family visits or trying to book ahead of holiday surges. However, data shows that what you pay largely depends on where you live: Flight prices at some airports are increasing much more than others. To track where people and… read more…
- Which Professional Do I Need for the Tax Calculation of a Roth Conversion? A CFP, Financial Advisor or Tax Preparer?
Which professional do I need for the tax calculation of a Roth conversion? A CFP, financial advisor or tax preparer? I’ve reached out to tax preparers before but they seemed to have no idea what I was talking about. My income right now is very low so I would like to take advantage of this… read more…
- What Is a Trade Signal?
Investing in the financial markets can be a challenging endeavor. Trade signals are one tool that traders, investors and financial advisors use to navigate the complexities of the markets. These signals, which can indicate when it might be profitable to buy or sell a security, can help investors and financial professionals make informed, objective decisions. … read more…
- Ask an Advisor: I’m Selling My House and Netting $400k to Pay Off My Retirement Home. Do I Have to Pay Capital Gains Tax?
I am selling my house and the price is $504,999. After paying off this house I will net $400,000. Do I have to pay a capital gains tax as I’m planning to pay off my retirement home with the money I netted? – Thomas The answer is solidly “it depends,” both in terms of whether… read more…
- Ask an Advisor: How Do I Pay Off $31K in Credit Card Debt in 2 Years? I Have $14K in Cash and $9K in Retirement Savings
I am 37 years old, married with three children. I have a credit card debt of $21,000 with a 24% interest rate. I also have a time-limited, no-interest credit card balance of $10,848 that is due September 2023. I have $14,000 in liquid cash and $9,000 accessible in a retirement plan. My net income is… read more…
- What Are the Qualified Charitable Distribution (QCD) Rules?
An individual retirement account owner aged 70 ½ or more may be able to withdraw money from the account tax-free and use it to support favorite causes with a qualified charitable distribution (QCD). However, a number of rules govern QCDs, including age requirements and restrictions on the types of retirement accounts. A financial advisor can… read more…
- Ask an Advisor: Is it Wise to Convert 10% of My 401(k) into a Roth IRA Each Year to Avoid Taxes and RMDs?
Is it wise to start converting my 401(k) into an IRA (and then Roth) by 10% per year in order to avoid having to claim too much income each year when converting and also avoid RMDs as much as I can? -Cathy It’s definitely smart to be thinking about this, Cathy. Systematic Roth conversions like… read more…
- Ask an Advisor: I Have $1.15 Million Saved and Will Collect $3,500 Per Month in Social Security. Can I Retire at 62?
I am 57 and have $1.1 million in my 401(k) and $50,000 in a high-yield savings account. I earn $300,000 per year and put $30,000 in my 401(k) each year plus a match on the first 6%. I have a $220,000 mortgage on a home valued at $550,000. I would like to retire at 62… read more…
- How Quickly You Can Borrow From Your Life Insurance Policy
Borrowing from your life insurance policy can be a quick and convenient way to get cash in hand whether you need the money for an emergency expense or an impromptu vacation. Below, we’ll explore how quickly you can borrow from your life insurance policy, the potential benefits and drawbacks of life insurance loans, as well… read more…
- Cost of Living Shakeup: How Price Changes Affected U.S. Cities This Year – 2023 Study
Red-hot inflation pushed the cost of living in the U.S. higher and higher over the last two years. But as inflation abates and Americans continue to migrate to different parts of the country, the relative expense of different areas may still change with demand. To see where the cost of living has gone up the… read more…
- Are You Happy With Your Financial Advisor? If Not, Here Are Some Tips for Switching
If you’re looking to build wealth, get ready for retirement or anything in between, you may find it helpful to work with a financial advisor. Not only can these experts guide your investments and saving during your working years, their advice can be vital to managing the complicated questions of taxes and withdrawals after you… read more…
- What Are the Differences Between RIAs and IARs?
When it comes to managing your hard-earned money, would you rather entrust it to a registered investment advisor (RIA) or an investment adviser representative (IAR)? An RIA often refers to a firm that is registered with the SEC or their state’s securities agency while an IAR refers to individuals working at the RIA, who provide… read more…
- The Series I Bond Frenzy is Dying Down. Is Now the Time to Cash Out?
Inflation has begun to cool, and that may translate to some assets. The Treasury’s Series I Bonds, or “ I bonds,” are no longer the prized savings tool they were 12 months ago. As cost increases slowed over the past year as Federal Reserve raised interest rates, it was inevitable that this inflation-tied asset would… read more…