Archive - October 17, 2016

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Roth 401k – Is It Right for You?
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Asset Location
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5 College Planning Questions You Should Ask Yourself

Roth 401k – Is It Right for You?

Many employers are now offering a Roth 401k option in addition to the traditional 401k option. And with this new choice comes many questions: What is the benefit? Is a Roth 401k a good idea for me? How can I choose between the traditional 401k and the Roth?

Benefits of Roth 401k

Much like a Roth IRA, the Roth 401k can provide you with tax-free income when you retire. This benefit comes to you in exchange for no tax deduction when you contribute your funds to the Roth account.

Contributing money to a traditional 401k account results in a reduction …

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Asset Location

300px-Diversity-Discrimination-05Diversification and asset allocation are important components to any investment plan. Additionally, where assets such as stocks and bonds are held, also called asset location, should also be considered.

Asset location refers to the type of account that asset classes are held. Such accounts are generally traditional and Roth IRAs, employer-sponsored plans such as 401ks, etc., and after-tax, non-qualified investment accounts.

The reason asset location becomes important is to help make use of tax efficiency in an investment portfolio. For example, stocks held in after-tax, non-qualified accounts for longer than one year as well as qualified dividends are taxed at …

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5 College Planning Questions You Should Ask Yourself

For many families, college planning consists of:

  • Saving as much for college as we can
  • Hoping it’s enough money to meet our children’s college goals
  • Waiting until high school to learn that it probably isn’t enough

While this might be oversimplifying the process, it does seem that a lot of families treat college planning like a ‘save first, plan later’ process.  There are a couple of concerns with this approach, which don’t normally manifest themselves until later in the planning process.  By this point, it’s too late.

What if there was another approach?  What if your college planning started much …

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