- What Is an Investment Club and How Could It Work for You?
If you’re interested in learning more about investing or simply gathering with like-minded individuals, you may want to consider joining an investment club. An investment club is a group of individuals who come together to pool their money, knowledge and resources to invest collectively. These clubs offer a collaborative way to learn about investing while… read more…
- Who Is Responsible for Debt After Divorce in Indiana?
Divorce can be a challenging and emotional process, especially when it comes to distributing financial assets and responsibilities. In Indiana, debt acquired during the marriage is generally considered part of the marital estate and is subject to division during divorce proceedings. However, the specifics of who is responsible for what debt depends on factors such… read more…
- 6 Tips for Creating a Financial Safety Net
A financial safety net protects against unexpected expenses, income disruptions or life-changing events. Without a financial net, even minor setbacks can spiral into significant issues. Building one involves budget planning, thoughtful spending and smart use of financial tools. If you’re just starting to think about creating a financial safety net, a financial advisor can help… read more…
- Ask an Advisor: Social Security at 67 ($2,231) or 70 ($3,008). Will COLA Continue to Increase the Payout If I Wait?
I’m about five years away from 62 and wondering if my estimated Social Security benefits factor in inflation/cost of living increases? If I retire at age 62 and my benefit estimate ($1,708) is correct, I will get eight cost-of-living adjustments (COLAs) by the time I reach age 70. If we apply the historical average COLA… read more…
- What Is the Cost of Changing Financial Advisors?
The exact expense of changing financial advisors can vary depending on factors like account types, investment holdings and advisory agreements. When switching advisors, common expenses can include exit fees, which some firms charge when transferring accounts, along with potential tax consequences if any investments are sold during the process. New advisor fees may also arise,… read more…
- What to Do When Your Financial Advisor Switches Firms
When your financial advisor changes companies, it can be a moment of uncertainty, leaving you with questions about the future of your investments and financial plans. This situation is not uncommon, as advisors may switch firms for various reasons, including better opportunities, changes in company culture or personal growth. As a client, it’s important to… read more…
- What Does It Mean If a Pension Plan Is Underfunded?
For many retirees, a pension plan is a financial safety net, providing guaranteed income during retirement. However, not all pension plans are fully funded. When a pension plan is underfunded, its liabilities (promises made to current and future retirees) exceed its assets or the funds set aside to fulfill those promises. This shortfall can raise… read more…
- Gross Profit Margin vs. Net Profit Margin
Understanding the financial health of a business often begins with analyzing its profit margins. Two metrics normally used in this analysis are the gross profit margin and the net profit margin. Each provides specific insights into a company’s financial performance. The gross profit margin measures the percentage of revenue that exceeds the cost of goods… read more…
- What Is Overnight Trading and How Does It Work?
Overnight trading refers to buying and selling financial instruments outside of the standard market hours, typically in after-hours or pre-market sessions. In other words, this type of trading refers to activity that occurs when major stock exchanges are closed. Prices during overnight trading can be influenced by global events, news releases and economic data, making… read more…
- Gross Settlement vs. Net Settlement in Banking
Payments between financial institutions are commonly resolved using one of two distinct methods: gross settlement vs net settlement. Each method has unique characteristics that impact its speed, efficiency and risk, and knowing the differences between the two is key to understanding how banking systems work. A financial advisor can help you assess how these methods… read more…
- How to Break Up With Your Financial Advisor
Deciding how to leave a financial advisor can be a challenging decision. But it is sometimes necessary to maintain your financial goals. Whether you need a change in strategy, are dissatisfied with services, or want a fresh perspective, parting ways will require careful consideration and clear communication. It’s important to review any contractual obligations, such… read more…
- Ask an Advisor: Will My Roth IRA Benefit from This Tax Loophole?
Do funds in a Roth IRA get the benefit of a stepped-up basis for my heirs when I die? – Ed No, the cost basis of the assets held within your IRA will not step up or reset to their current market value when you pass away. A step-up in basis only applies to assets… read more…
- Ask an Advisor: My Husband’s RMDs Start in 2027, and He Has Multiple IRAs. What’s the Best Strategy?
My husband will turn 73 on Nov. 16, 2027. How much of an RMD does he have to withdraw in 2027 and should he do it between Nov. 16 and Dec. 31, 2027? What percentage of his retirement assets should he withdraw every year thereafter? Also, is it correct that he needs to make the… read more…
- Antitrust Laws: What Are They and How Do They Work?
Antitrust laws prevent large corporations from engaging in practices that reduce competition or harm consumers. These laws are enforced through regulations and legal actions to maintain fair competition. Business owners, financial advisors and consumers can use these laws to operate and compete fairly in the marketplace. A financial advisor can help you understand and follow… read more…
- How 529 Plans Are Treated for Estate Planning and Taxes
A 529 plan can play a strategic role in estate planning, especially for families looking to reduce taxes while saving for education. Contributions to a 529 plan may be excluded from your taxable estate, potentially lowering future estate tax liability. In addition, the plan offers tax-free growth and tax-free withdrawals when used for qualified education… read more…
- What Is Wage Push Inflation and What Causes It?
Wage push inflation happens when rising wages cause businesses to increase prices for goods and services. Employers may raise wages to attract or retain workers, especially during labor shortages, which benefits employees but raises business costs. These costs are often passed on to consumers, making everyday goods and services more expensive and increasing the cost… read more…
- 5 Ways to Pay Yourself First
“Paying yourself first” is a simple strategy to prioritize savings and investments by setting aside a portion of your income before covering other expenses. This approach helps you consistently work toward financial goals like retirement, emergency savings, or building wealth, while encouraging disciplined saving habits and reducing impulsive spending. A financial advisor can help you… read more…
- What Type of Insurance Do You Need for a Yacht?
Yacht insurance is an essential consideration for anyone who owns or is planning to purchase a yacht. Given the significant investment involved, yacht insurance protects the owner against a range of risks, from accidents and liability claims to natural disasters. Yacht insurance policies are designed to cover various aspects of yacht ownership, including damages to… read more…
- How Much Does Yacht Insurance Cost?
Yacht insurance is an important consideration for yacht owners, helping to protect both their vessels and themselves from financial risks associated with boating. Yacht insurance costs vary widely based on factors like the yacht’s value, size, intended use and cruising area. On average, yacht insurance costs per year are around 1% to 5% of the… read more…
- 4 Reasons Why You May Want to Buy an Annuity
Annuities are a popular option for individuals looking to secure a stable income in retirement. By providing regular payments over a specified period, annuities offer peace of mind and financial security. For those considering retirement planning, annuities can be an effective way to ensure predictable income that is shielded from market volatility. However, annuities come… read more…
- 7 Value Investing Books You May Want to Read
Value investing is a popular investment strategy focused on identifying undervalued stocks with strong long-term growth potential. For investors who want to deepen their understanding of this approach, the best books on value investing are an excellent way to learn from experts and refine their strategies. These books provide insight into the fundamentals of value… read more…
- How Is Debt Divided During a Divorce in Illinois?
Divorce involves emotional and legal challenges, including how debt gets divided. As an equitable distribution state, Illinois divides debt and assets fairly, though not always equally. The court considers factors like each spouse’s financial situation, contributions to the marriage and the purpose of the debt. Marital debt, incurred during the marriage, is usually shared, while… read more…
- What Is a Financial Counselor and How Can You Hire One?
A financial counselor is a professional who helps individuals and families manage their personal finances by offering guidance on budgeting, debt repayment and financial goal-setting. Unlike financial advisors who may focus on investments and wealth management, financial counselors typically work with clients to improve their financial stability and address immediate concerns like credit issues or… read more…
- Ask an Advisor: I Maxed Out My Roth IRA Earlier This Year and Then Got a New Job. Can I Participate in the Company’s 401(k)?
I am a new college graduate who had a part-time job and earned $8,000 with no benefits during my final spring semester. I put my first $7,000 of earnings into a Roth IRA. After graduation, I got a full-time job with benefits including a 401(k) plan with 50% company match. Am I allowed to participate in the… read more…
- How to Amend a Florida Will With a Codicil
In Florida, one of the most efficient ways to update a will without rewriting the entire document is by using a codicil. A codicil is a written document that allows you to make specific changes to your existing will. The Florida codicil to will form is available online, which makes the process even easier for… read more…