- Ask an Advisor: Will Capital Gains and Dividends in My Brokerage Account Impact My Social Security Benefits at 62?
Does the interest, dividends and capital gains from assets owned in my taxable brokerage account count toward the Social Security earnings limit? Only wages from employment or self-employment count toward the exempt earnings limit for those who file for early Social Security. Investment income won’t result in benefit withholdings, but it can influence the taxation… read more…
- 6 Warning Signs You Hired the Wrong Financial Advisor
A financial advisor should help you make informed decisions, but there are warning signs of a bad financial advisor that could indicate when they are doing otherwise. These signs generally include pushing unsuitable products, lacking transparency about fees, or being unresponsive to your questions or concerns. If you’re unsure about sticking with an advisor, here… read more…
- Ask an Advisor: I’m over 59 ½ and Did a Roth Conversion Over 5 Years Ago. Should I Worry About Taxes and Penalties?
I have had a Roth IRA and a Traditional IRA for well over five years and want to start converting the traditional IRA to the Roth IRA. My belief is that I could start withdrawing the converted funds without any penalty, since the Roth has been open for over five years and I am over 59… read more…
- Ask an Advisor: I Inherited $80k in Roth Accounts and $80k in an IRA. How Much Will My RMDs Be?
I have two inherited Roth accounts that total around $80,000, and an inherited IRA account with around $80,000 from my partner’s 401(k) account. My partner sadly passed away this year at age 45. I am 70 years old. What are my RMD requirements for this year and the next few years? – Jose First of all,… read more…
- I Am Paying My Advisor 0.75% of My $2M Portfolio. How Do I Know If I’m Getting My Money’s Worth?
An advisor fee of 0.75% of assets under management (AUM) is not outside the range of normal. That doesn’t necessarily mean you are getting your money’s worth, however. To further evaluate your advisor, you can take a step back and decide whether you’re getting the right value out of them and whether you’re a good… read more…
- Ask an Advisor: I’m 66 With $300k in My Old 401(k). What Are My Rollover Options?
I am a 66-year-old retired woman. I left my 401(k) with my old employer – roughly about $300,000 – but now I’m thinking about rolling it over and don’t know where to begin. Can you advise me? -Renee Rolling over a 401(k) after retirement is a decision many people face, and while the process isn’t… read more…
- 7 Benefits of Hiring an Independent Financial Advisor
An independent financial advisor is a professional who offers personalized financial guidance without being tied to a specific financial institution or product provider. This independence can allow them to recommend a broader range of financial products and strategies, which may align more closely with client goals and preferences. Additionally, many independent financial advisors operate as… read more…
- How to Find an Independent Financial Advisor
Finding a good independent financial advisor involves evaluating their qualifications, understanding what services they offer and determining their compatibility with your financial goals. Independent advisors don’t work for larger financial services firms that sell products to advisory clients, and as a result, may have fewer potential conflicts of interest. However, the process of finding and… read more…
- How the High-Low Method Works and How to Calculate It
The high-low method is used in cost accounting to estimate fixed and variable costs based on a business’s highest and lowest levels of activity. By focusing on these extremes, the high-low method helps determine the variable cost per unit and the total fixed cost. This provides insight into how expenses fluctuate with production. The high-low… read more…
- I’m 54 and Retiring Soon. How Should I Structure My $1.6 Million Portfolio?
Early retirement is different. Every retirement plan is based on a combination of goals, risks and personal budget. You want to build a portfolio for security, so you never need to worry about money again, while also generating the returns that you need to maintain your lifestyle. Often, this means restructuring your portfolio in retirement… read more…
- What Is a Non-Tariff Trade Barrier?
A non-tariff trade barrier is a regulatory measure other than traditional tariffs that governments use to control the flow of goods and services across borders. These barriers include licenses, quotas and sanctions, which are often employed to protect domestic industries, safeguard public health and safety, or promote national security. For the average investor, non-tariff trade… read more…
- How to Vet a Potential Financial Advisor
A financial advisor can play a pivotal role in managing your investments, planning for retirement and helping you navigate complex financial decisions. Vetting potential advisors ensures you find someone who aligns with your goals and understands your needs while providing transparent, professional guidance. Knowing what to look for, from credentials to costs, is key to… read more…
- 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…