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The Sequence of Returns

The Sequence of Returns

A look at how variable rates of return do (and do not) impact investors over time. What exactly is the “sequence of returns”? The phrase simply describes the yearly variation in an investment portfolio’s rate of return. Across 20 or 30 years of saving and investing for the future, what kind of impact do these…

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Guarding Against Identity Theft

Guarding Against Identity Theft

Take steps so criminals won’t take vital information from you. America is enduring a data breach epidemic. The latest annual study of the problem from Javelin Strategy & Research, a leading financial analytics research firm, says that 16.7 million people across the nation were impacted by I.D. theft in 2017 – an all-time high.1 The…

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The Snowball Effect

The Snowball Effect

Save and invest, year after year, to put the full power of compounding on your side. Have you been saving for retirement for a decade or more? In the foreseeable future, something terrific is likely to happen with your IRA or your workplace retirement plan account. At some point, its yearly earnings should begin to…

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Tax Changes Around the Home

Tax Changes Around the Home

How the Tax Cuts & Jobs Act impacted three popular deductions. Three recent tax law changes impact homeowners and home-based businesses. They may affect your federal income taxes this year. The SALT deduction now has a $10,000 yearly limit. You can now only deduct up to $10,000 of some combination of (a) state and local…

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What People Overlook When Shopping for Life Insurance

What People Overlook When Shopping for Life Insurance

A few realities that must be acknowledged. Shopping for life insurance means paying attention to detail. In scrutinizing these details, however, some fundamental, big-picture truths may be ignored. If you want to renew or upgrade coverage later in life, the terms could be less than ideal. You may be healthier than most of your peers,…

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Why Do People Put Off Saving for Retirement?

Why Do People Put Off Saving for Retirement?

A lack of money is but one answer. Common wisdom says that you should start saving for retirement as soon as you can. Why do some people wait decades to begin? Nearly everyone can save something. Even small cash savings may be the start of something big if they are invested wisely. Sometimes, the immediate…

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Should You Leave Your IRA to a Child?

Should You Leave Your IRA to a Child?

What you should know about naming a minor as an IRA beneficiary. Can a child inherit an IRA? The answer is yes, though they cannot legally own the IRA and its invested assets. Until the child turns 18 (or 21, in some states), the inherited IRA is a custodial account, managed by an adult on…

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Are Financial Advisory Fees Tax Deductible?

Are Financial Advisory Fees Tax Deductible?

The miscellaneous itemized deduction is gone, but effective tax breaks remain. Before 2018, you could partly or fully deduct investment advisory fees on your federal income tax return. When the Tax Cuts and Jobs Act was passed, however, the miscellaneous itemized deduction for investment fees and expenses vanished.1 This deduction seldom mattered for taxpayers in…

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How New Tax Laws Affect Small Businesses

How New Tax Laws Affect Small Businesses

A recap of the major changes impacting corporations and closely held firms. The Tax Cuts & Jobs Act changed the tax picture for business owners. Whether your company is incorporated or held closely, you must recognize how the recent adjustments to the Internal Revenue Code can potentially affect you and your workers. How have things…

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The Backdoor Roth IRA

The Backdoor Roth IRA

A move that high earners can make in pursuit of tax-free retirement income. Does your high income stop you from contributing to a Roth IRA? It does not necessarily prohibit you from having one. You may be able to create a backdoor Roth IRA and give yourself the potential for a tax-free income stream in…

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