- Ask an Advisor: Should a Financial Advisor Ask for My Risk Tolerance or Use Their Own ‘Proven’ Investment Strategy?
Should a financial advisor ask me for my risk tolerance, then invest accordingly? Or do they use their own proven strategy? -Chris This question sets up a false dichotomy. These risk-related investing considerations are not mutually exclusive. Many financial advisors… read more…
- Ask an Advisor: Do I Need More Life Insurance? I’m 40, My Partner’s Disabled and I Can’t Rely on My Current Life Insurance Policies Forever
I’m currently 40, and my existing 20-year term policy for $250,000 will expire at age 53. I also have about $100,000 in coverage through my employer, which I would lose if I switched jobs. My partner is disabled, unable to… read more…
- Ask an Advisor: I Want to Give Money to My Son and Daughter-in-Law. How Much Money Can I Give Away Without ‘Incurring a Tax Issue With the IRS?’
How much money can I give to my son and daughter-in-law without incurring a tax issue with the IRS? -Irwin For 2023, you can give your son and daughter-in-law each $17,000 without having to deal with the IRS. But even… read more…
- Ask an Advisor: Our Investment Portfolio Fell From $450K to $250K. Should I Cash in My Investments?
Our investments were $450,000 and are now $250,000. How much do I lose before I cash in investments? -Liz I’m sorry that you’ve experienced such a significant financial loss. I know that can be stressful and scary as you wonder whether… read more…
- Ask an Advisor: ‘Am I Too Late?’ I’m 68, Have No Investments and Only Have $60K Saved
At 68, I do not have any investments of any kind. My $80,000 condo is paid off, and I have $60,000 saved. Am I too late? -Bernhard It’s never too late to start investing and managing your money. But I… read more…
- Ask an Advisor: I’m in the Highest Tax Bracket and ‘Plan to Be There Moving Forward.’ Should I Do a Roth Conversion?
What are your thoughts on Roth conversions if you are in the highest tax bracket and plan to be there moving forward? -Joel If you ask some financial professionals, the answer to this question might be a resounding no, and… read more…
- Ask an Advisor: ‘I’m Strictly Into Bonds’ and Afraid of the Stock Market. Is This a Strategy I Should Stick With?
I’m afraid of the stock market. With my first investment, I lost 60% of my money. So I’m strictly into bonds. With interest rates low, what’s your advice? Should I stay or try something else? -Jerold It’s reasonable to be… read more…
- Ask an Advisor: I Want to Roll Over My Money to a Roth IRA. How Do I Avoid Paying Taxes?
If I have a tax-deferred 401(k). Can I convert it to a Roth IRA without paying the deferred taxes when I roll it over? -Tommy Generally, the answer here is no. There’s typically no method to totally dodge taxes on… read more…
- Ask an Advisor: ‘Prove Me Wrong.’ I Think Investing in CDs Is a Better Deal Than Working With an Advisor
Why hire a financial advisor who will take around 1% percent of your assets per year when you can get a certificate of deposit (CD) at over 5% with no fee? That alone amounts to a 6% return on your… read more…
- Ask an Advisor: I Don’t Need Them ‘Dumped Into My Checking Account.’ What Can I Do With RMDs?
I am approaching the time when I’ll take required minimum distributions (RMDs) from my individual retirement account (IRA). I am in a quandary about what I can do with this anticipated largesse of cash. I do not necessarily need the… read more…
- Ask an Advisor: I’m 65 Years Old and Going to Retire Soon. How Should I Structure My Portfolio?
I’m a 65-year-old preparing for retirement within the next three to five years. I’m looking at different types of retirement funds. Would adding stocks that are dividend-structured along with gold and cryptocurrencies be a good mixture? -Earl Shifting from building… read more…
- Ask an Advisor: ‘I Want Truly Independent Advice.’ How Can I Find a CFP Who’s Not Associated With a Brokerage House?
How can I find a certified financial planner (CFP) who is not associated with a brokerage house? I want truly independent advice and not steered toward selling me securities. I especially want tax advice. Everyone I have called turned out… read more…
- Ask an Advisor: ‘How Can I Mitigate This Situation?’ My Tax Bill Is Huge Because My Investment Accounts Don’t Withhold Capital Gains
My investment accounts don’t withhold taxes from my capital gains, which is causing me to owe large amounts when I file my returns. How can I mitigate this situation? -David As capital gains distributions are unpredictable and usually unknown until… read more…
- Ask an Advisor: I’m a 43-Year-Old Divorced Dad With $315K in an IRA, $90K in a Roth and Other Accounts. Can I Retire at 57?
I am a 43-year-old divorced father. I have $315,000 in a traditional individual retirement account (IRA), $90,000 in a Roth IRA, $22,000 in a health savings account (HSA), $8,000 in a 529 college savings account, $30,000 in a traditional 401k,… read more…
- Ask an Advisor: I’m 81, Have a $118K Mortgage and a $110K IRA. Should I Withdraw From My Investments to Pay off My Mortgage?
I am 81 years old. I have a home mortgage balance of $118,300. I also have a $110,000 rollover individual retirement account (IRA) invested with a bank. Should I withdraw the money from my investment and put the money to… read more…
- Ask an Advisor: ‘Am I Getting Fleeced?’ I’m 66, Contributing $272 Per Month to an IRA and Paying $136 Monthly in Fees. That’s 50% of My Contribution
I am 66 years old, still working and with very good health insurance. My company does not have a 401(k). I do have an individual retirement account (IRA) with approximately $120,000 invested. I contribute $272 per month, yet my program… read more…
- Ask an Advisor: Should I Pay off My Mortgage or Invest in CDs? I Refinanced My Mortgage at 2.375%, But I Can Get a CD at 4%. Plus, I Want to Retire in 7 Years.
I’ve been debating whether to pay off my mortgage. I’ve refinanced at 2.375% and can get a certificate of deposit (CD) for a year at 4%. I was adding to my mortgage payment by about $1,000 a month to pay… read more…
- Ask an Advisor: Can a Single Financial Advising Firm Address ‘My Complete Spectrum of Financial Concerns?’
Can one individual or organization cover my complete spectrum of financial concerns, including investment diversification and maximum returns, income tax optimization, required minimum distribution (RMD) management, and steady income cash flow? Is there a good way to survey fiduciary candidates… read more…
- Ask an Advisor: ‘I Am Giving Away 25% of My Return.’ Why Does a Financial Advisor Earn a 1% Fee, Even in a Bear Market?
Why does a financial advisor get a fee of 1% or more? That seems really high. If my return is only 4% (for example, in dividends), I am giving away 25% of my return, which is even worse with a… read more…
- Ask an Advisor: ‘I’m Depending on That Money.’ How Can I Plan to Retire When Republicans Are Threatening to Cut Social Security?
How can I plan to retire fully when the Republicans are threatening to cut Social Security? I’m almost 73, still working part-time and I’ve paid into Social Security my entire life. I’m depending on that money! -Karen Social Security benefits… read more…
- Ask an Advisor: I Am 60 Years Old, Have $1.1M Cash, $880K in a 401(k), Several Pensions and Social Security. Should I Retire Now?
I am 60 years old, married, with no mortgage. We also have $1.1 million in liquid cash and $880,000 in a 401(k). I will have two pensions, which have not started yet, and my wife will have one pension, all… read more…
- Ask an Advisor: Should I Cash Out My Annuities?
I have a significant sum invested in several annuities. I would like to switch that money into index funds and pay taxes as the money is withdrawn. Is this recommended? How would I do this? -Vlad Transferring any amount of… read more…
- Ask an Advisor: We Are 70 Years Old, Have $99K in Retirement Income, a $1.4M IRA and Other Investments. Is It Too Late to Convert to a Roth?
My wife and I are 70 years old. We’ve paid off everything, including the house. Between my pension of $29,000 and Social Security, we’re getting a gross of $99,000 a year in income, which is more than enough. Our current… read more…
- Ask an Advisor: What Documents Should I Bring to My First Meeting With a Financial Advisor?
For our initial consultation with a financial planner, they are asking for documents that include mortgage debt and the worth of all our real estate. When I call and speak to my mortgage company, what kind of information do I… read more…
- Ask an Advisor: My Investments Are ‘Dwindling Away Slowly.’ Should We Flee to Cash?
My wife and I currently have roughly $250,000, with half in our Roth individual retirement account (IRA) and a few small annuities, and the other half in various checking accounts and a money market account. We are both retired, have… read more…