Posts by Patrick Villanova, CEPF®
Data Studies
Where Baby Boomers Are Moving – 2023 Study
While many baby boomers have now entered retirement, many more remain in the workforce with retirement upcoming. As this generation transitions into retired life, many may choose to move to a city more suitable for their new cash flows and routines. Some places may offer better tax advantages, lower cost of living, proximity to family,… read more…
Data Studies
Cities Where Housing Vacancy Rates Are Highest – 2023 Study
For five years up until 2022, the housing vacancy rate in the largest U.S. cities fell from 9.3% to 7.3%. During that same period, the median sale price of a home in the U.S. jumped from $322,425 to $457,475, according to the Federal Reserve Bank of St. Louis. Vacancy rates may indicate an inefficient use… read more…
Data Studies
Where People Have the Most Graduate Degrees – 2023 Study
Despite the rising cost of higher education, a larger percentage of Americans are earning advanced degrees when compared with previous years. In fact, Census Bureau data indicates that the number of adults with a master’s degree jumped by more than 50% between 2011 and 2021. With these figures in mind, SmartAsset set out to identify… read more…
Data Studies
How Cost of Living in Each State Compares to European Countries – 2023 Study
While the Euro has long been more valuable than the American dollar, the cost of living in the United States is significantly higher than across Europe on average. Basic expenses for a single adult with no children in the U.S. is $2,508, compared to an average $1,746 per month in Europe. However, individual states and… read more…
Taxes
What Is the Limit on Taking the Foreign Tax Credit?
Double taxation can occur when laws from two distinct countries require the same income to be taxed. The Foreign Tax Credit (FTC) is a non-refundable tax credit designed to alleviate this burden for U.S. citizens who earn income abroad by offsetting taxes paid to foreign governments and reducing a taxpayer’s U.S. tax liability. A financial advisor… read more…
Taxes
What Is Non-Passive Income?
Non-passive income, also known as active or earned income, refers to the money that you earn through your active efforts, typically by trading your time and expertise for compensation. This is the inverse of passive income, which is earned with minimal effort or active involvement. However you earn your income, a financial advisor can help… read more…
Data Studies
STEM Cities: Where Science and Engineering Is Most Popular – 2023 Study
As the fields of science, technology, engineering and mathematics (STEM) continue to grow, more and more undergraduate college students are focusing on these areas of study. According to data from the National Center for Education Statistics, 42% more STEM degrees were conferred in 2020-21 than 10 years earlier. With this in mind, SmartAsset examined Census… read more…
Investing
Real Estate Crowdfunding vs. Real Estate Investment Trusts (REITs)
Investing in real estate is an attractive venture for both seasoned and novice investors due to its stability and the potential for substantial returns. However, the traditional approach of purchasing property isn’t the only way to add real estate exposure to your portfolio. Real estate crowdfunding and real estate investment trusts (REITs) are two popular… read more…
Investing
Investing in Private REITs vs. Public REITs
Real estate investment trusts (REITs) are a popular choice for investors looking to add real estate exposure to their portfolios without the hassle of owning physical properties. These entities pool money from investors to buy and manage real estate, and return a portion of the profits to those shareholders. However, it’s important to distinguish private… read more…
Retirement
What Is an Investment-Only Variable Annuity (IOVA)?
An investment-only variable annuity (IOVA) is a specialized type of annuity designed primarily for one purpose: investing. Unlike traditional annuities, which may provide lifetime income, an IOVA is primarily focused on growing your investment portfolio. Think of it as a tax-deferred investment account wrapped in an annuity structure. If you’re considering an IOVA, talk to… read more…
Estate Planning
Does Putting Your Home in a Trust Protect It From Medicaid?
An individual can protect their assets from Medicaid, including their home, by placing them into a trust. Essentially, the assets become owned by the trust and not by the individual. This mechanism can decrease the individual’s asset count for Medicaid eligibility, presenting a way to potentially conserve wealth and secure necessary medical care. However, like all… read more…
Estate Planning
How to Keep Money in the Family With an Inheritance Trust
Inheritance trusts take on critical importance in wealth management, particularly for multi-generational families. The term might come across as complex but in essence, inheritance trusts involve safeguarding assets while managing their distribution efficiently. Moreover, they provide potential tax benefits that can contribute significantly towards your family’s financial security. A financial advisor well-versed in this field… read more…
Taxes
What Are the Tax Consequences of Being Added to a Deed?
Property deeds are not just pieces of paper – they hold the power to impact your fiscal situation considerably. Property deeds are legal documents that provide proof of ownership. When you extend ownership rights by adding someone to your property deed, there are tax implications and potential risks associated with the transaction. A financial advisor… read more…
Investing
Differences Between Active and Passive Mutual Funds
Mutual funds are available in two main variants: active and passive. Active funds are managed by professional portfolio managers who frequently buy and sell assets in an attempt to outperform the market or a specific benchmark index. Passive funds, commonly known as index funds, aim to replicate the performance of a specific market index. It’s… read more…
Investing
What Are Tax-Free Municipal Bonds and Should You Invest?
Tax-free municipal bonds are not just a source of investment but also a significant contributor to public projects such as roads, schools and hospitals. These debt instruments are issued by local or state governments, attracting investors for their provide tax-advantaged income. The interest earned from these bonds is typically exempt from federal taxes and, potentially,… read more…
Investing
How to Invest in Foreign Stocks
Investing in foreign stocks offers the opportunity to diversify your portfolio, tap into emerging markets and potentially reap higher returns. However, the journey is not without its challenges. Foreign stocks can be sensitive to currency fluctuations, potential political instability and market regulations. But armed with the right knowledge and strategies, you can navigate these challenges… read more…
Retirement
How to Invest in Real Estate for Retirement Income
While traditional retirement accounts like 401(k)s and IRAs are valuable, investing in real estate for retirement can also provide a reliable and stable income stream in your golden years. Real estate has historically been a consistent wealth generator, offering retirees an added layer of security and stability. But market fluctuations, property management issues and unexpected… read more…
Investing
How to Choose an ETF for Your Portfolio
Exchange-traded funds (ETFs) have gained immense popularity among investors for their simplicity, diversification and low fees. Like individual stocks, ETFs are traded on stock exchanges. But unlike individual investments, ETFs provide investors with exposure to diversified portfolios without the need to buy assets individually. However, with a vast array of ETFs available, selecting the right… read more…
Data Studies
Best Community Colleges for 2023
After community college enrollments plummeted during the Covid-19 pandemic, attendance at two-year public colleges started to rebound in spring 2023. Enrollments ticked up 0.5%, according to the National Student Clearinghouse Research Center, marking the first time in years that community colleges saw even modest growth. To find the best community colleges in the country, SmartAsset… read more…
Retirement
What Is an Indirect Rollover?
When it comes to managing your retirement savings, an indirect rollover is one of the tools available to you. This financial transaction involves you – the account holder – personally receiving and moving funds from one retirement account to another within a specific timeframe. However, it’s crucial to understand the tax implications of this maneuver… read more…
Financial Advisor
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…
Financial Advisor
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…
Retirement
What a Retirement Lifestyle With $7 Million Looks Like
Imagine retiring with $7 million in your 401(k) or IRA. What kind of lifestyle might that size nest egg support? Picture owning a luxurious home in a high-end neighborhood, driving top-notch vehicles, regularly vacationing in exotic locations and availing best-in-class healthcare without worrying about rising costs. When planning a $7 million retirement it’s important to… read more…
Taxes
Tax Planning for Ultra-High-Net-Worth Individuals and Families
Proper tax planning is essential for managing and preserving wealth. For ultra-high-net-worth individuals and their families – people with $30 million in investable assets – efficient tax management requires an in-depth understanding of tax laws, methodical utilization of tax benefits and strategic planning. The support of a specialized financial advisor is often beneficial in ultra-high-net-worth… read more…
Retirement
What Is an Annual Reset of a Fixed Index Annuity?
A fixed index annuity (FIA) or equity indexed annuity is an insurance contract that combines principal protection with potential market-linked returns. If the chosen market index that’s linked to the annuity performs well over the course of the year, the annuity holder enjoys a portion of those gains as interest. An annual reset is the mechanism… read more…