- Ask an Advisor: Should My Wife Convert her $350k-$400k to a Roth IRA? She’s 65 But Isn’t Retiring Anytime Soon
My wife is currently working and has a traditional IRA with approximately $350,000 to $400,000. She is almost 65 but not looking to retire anytime soon. Should she roll over her IRA and take a tax hit and open a Roth IRA? I’m not sure if this is a smart move at this time in… read more…
- How Much Do You Need to Retire by 2060?
The year 2060 is a long time off, but now is not too early to start planning for retirement when it rolls around. With evolving economic landscapes, fluctuating inflation rates and changing life expectancy, determining the right amount to save can seem daunting. However, understanding the fundamentals of retirement planning can help demystify this process.… read more…
- How Much Do You Need to Retire by 2070?
Changes to the economic landscape, falling life expectancy and even potential changes to Social Security benefits all mean future retirees face challenges unlike those of past retirees. Even looking as far as 2070, however, some timeless retirement planning recommendations still hold. It remains essential to consider factors such as inflation, healthcare costs and lifestyle expectations… read more…
- What Is the Tax Amortization Benefit and How Does It Work?
Understanding the intricacies of financial strategies can be daunting. One concept that often piques the interest of savvy investors and business owners is the tax amortization benefit. At its core, the tax amortization benefit allows businesses to gradually deduct the cost of intangible assets, such as patents, trademarks, or goodwill, over a specified period. This… read more…
- How Much Do You Need to Retire in Your 50s?
Retiring in your 50s requires careful financial planning and, first and foremost, a clear understanding of how much you need to retire comfortably. The amount necessary to retire in your 50s can vary significantly based on lifestyle choices, healthcare needs and the cost of living in your desired location. It’s also crucial to consider factors… read more…
- Cash-on-Cash Return in Real Estate: Definition and Calculation
Investing in real estate can be a lucrative venture, but understanding the metrics that gauge profitability is crucial for success. One such metric is the cash-on-cash return, a tool for real estate investors to evaluate the performance of their investments. It provides insight into the annual return an investor can expect on their cash investment.… read more…
- RIA vs. Financial Advisor: Which Should You Choose?
Registered investment advisors (RIAs) and other financial advisors offer services like investment advice, wealth management and retirement planning. However, there are important differences in how they are regulated, how they earn their fees and the specific services that they can offer. Whether you’re beginning to invest, preparing for retirement or managing a complex portfolio, knowing… read more…
- How to Find a Financial Advisor for Retirees
Retirement is a major life change and it often raises questions about managing money during this stage. Some people feel comfortable handling their finances on their own, but others may find value in working with a financial advisor. The right advisor can help you create a plan to and support your financial needs and make… read more…
- Form 1045: How to Apply for a Quick Tax Refund
Form 1045 is a tax form that can allow taxpayers in certain situations to apply for a quicker refund of taxes paid in prior years. The form, officially known as the Application for Tentative Refund, can be used by filers who have unused general business credits, net Section 1256 contract losses or carryback of a… read more…
- Form 144: What Is It, Who Files It and Who Gets It?
Form 144 is a document filed with the SEC to notify the agency of an insider’s intention to sell restricted or control securities of a public company. These are securities acquired through unregistered, private sales from the issuing company or an affiliate. It’s necessary to submit Form 144 before the sale to ensure compliance with… read more…
- Form 4797: How to Report Gains From Business Property Sales
Selling business property—whether it’s real estate, equipment or other depreciable assets—can trigger a tax event. The IRS requires you to report the gain or loss from that sale on Form 4797: Sales of Business Property. This form is specifically used for reporting the sale or exchange of assets used in a trade or business, as… read more…
- Are All Financial Advisors Fiduciaries? How to Tell
Many people assume all financial advisors are fiduciaries, but that is not always the case. Some follow a fiduciary standard, meaning they must act in the best interest of their clients at all times. Others follow a less stringent set of rules and standards known as Regulation Best Interest. Whether a financial advisor is a… read more…
- What Is a Fiduciary Relationship? Definition and Examples
A fiduciary relationship is a legal or ethical bond in which one party must act in the best interests of another. These relationships often involve a high level of trust, such as a financial advisor and a client, or a trustee and a beneficiary. A fiduciary relationship stands out because one party owes the other… read more…
- Guide to Mark to Market: How Do Hedge Funds Use It?
Hedge funds are known for their sophisticated strategies and dynamic approaches to investment. The mark-to-market accounting method is one of the tools that hedge funds employ. This approach involves valuing assets based on their current market price rather than their purchase price. This provides a real-time snapshot of a fund’s financial health. Mark-to-market lets hedge… read more…
- Ask an Advisor: Should I Move Some of My $650k from Stocks to Precious Metals?
My total investment value is approximately $650,000, mostly in stocks. Should I keep a percentage of my portfolio in precious metals? – Rex Investing a portion of a portfolio in precious metals is a common practice. If you keep the allocation modest — around 5% — I think it’s okay to use precious metals for… read more…
- Form 1099-Q: What Is It, Who Files It and Who Gets It?
The Form 1099-Q tax document goes out to taxpayers involved in educational savings plans, such as 529 plans or Coverdell Education Savings Accounts. Financial institutions issue these forms to report distributions made from these accounts. Typically, the financial institution managing the account has the responsibility of filing the form with the IRS. The institution also… read more…
- How Much Do You Need to Retire at 35 Years Old?
Retiring at 35 is a bold financial goal and one that requires a high level of planning, aggressive saving and a lifestyle that aligns with early financial independence. Whether you are drawn to the principles of the FIRE (Financial Independence, Retire Early) movement or simply want more freedom in life, figuring out how much you… read more…
- Risk Appetite vs. Risk Tolerance: What Are the Differences?
Risk appetite and risk tolerance are often used interchangeably, but these financial terms represent distinct concepts. They also play somewhat different roles in shaping investment strategies and financial planning. Risk appetite refers to the level of risk an entity is willing to pursue to achieve its financial goals. It is a strategic choice that aligns… read more…
- Risk Appetite: Types, Purpose and How to Determine It
Risk appetite is a term for the level of risk an individual or organization is willing to accept in pursuit of their goals. This concept is relevant to investors as well as businesses aiming to align their strategies with their risk management frameworks. Understanding and addressing risk appetite enables individuals and companies to better navigate… read more…
- Ask an Advisor: I’m 69 With $370k in Equities, But I’m ‘Getting Nervous’ About the Stock Market. What Should I Do?
I am a healthy, active 69-year-old with $370,000 in equities but I’m getting nervous that stocks are overvalued. My portfolio has no bonds. I am interviewing financial planners but due to a negative experience with a firm a few years ago, I am having a hard time trusting anyone else with my hard-won savings. What… read more…
- Corporate Income Tax: How It Works and Deductions
Understanding how corporate income taxes work is crucial for companies aiming to optimize their financial strategies and ensure compliance with tax regulations. At its core, corporate income tax is a levy placed on the profit of a corporation, calculated as the company’s revenue minus the costs of goods sold, general and administrative expenses and other… read more…
- Social Security Fairness Act: Are Payments Retroactive?
The Social Security Fairness Act addressed long-standing concerns related to the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO). The WEP and GPO had reduced Social Security benefits for millions of public sector employees. The act’s provisions have significant implications for retroactive payments and the anticipated timeline for benefit adjustments. Consulting a financial… read more…
- Installment Sale: What It Is and Tax Benefits
An installment sale is a way of selling an asset that calls for the seller to receive payments over time rather than in a single lump sum. This type of sale is commonly used in real estate and business transactions. It can allow the seller to spread out capital gains taxes and potentially reduce their… read more…
- Personal Banker vs. Financial Advisor: Who to Work With?
When it comes to managing your finances, choosing the right professional to guide you can make all the difference. Two common options are personal bankers and financial advisors, each offering distinct services tailored to different financial needs. A personal banker typically works within a bank, assisting with everyday banking needs such as opening accounts, securing… read more…
- I Have $3 Million Invested With My Financial Advisor and Pay a 1% Fee. Am I Paying Too Much?
“Financial advisor” covers a wide range of services, ranging from simple counsel and budgeting to tax preparation, long-term planning and portfolio management. What you pay, and how much, will depend on the services you engage and the kind of firm you hire. You’ll generally pay less for smaller and more discrete services. For example, a… read more…