Archive - October 2016

1
Estate Planning is for Everyone
2
Roth 401k – Is It Right for You?
3
Asset Location
4
5 College Planning Questions You Should Ask Yourself
5
Free Financial Advice has Hidden Costs: Motivations Matter

Estate Planning is for Everyone

Family Walking In The ParkSince it is “National Estate Planning Awareness Week,” Forbes.com is offering some advice for estate planning in “5 Documents You Need to Avoid Costly Estate Planning Errors.” In agreement with National Association of Estate Planners and Councils, the organization behind this week of awareness, Forbes.com wants to be clear that estate planning is for everyone. Estate planning is not just for people who are of advanced age nor is looking ahead to secure a financial legacy only for people of great wealth.

Forbes.com recommends that adults have:

Durable power of attorney: This names a designee to take

Read More

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 …

Read More

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 …

Read More

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 …

Read More

Free Financial Advice has Hidden Costs: Motivations Matter

Here is a common retirement investment scenario for Baby Boomers.  Mr. Jones is retiring and has different options available in his pension plan.

  • Option 1 – Accept a large lump sum, transfer it tax-free to an IRA and invest it for his future. He is personally accepting the risk of investing the money to help provide for the rest of his and his wife’s life.
  • Option 2 – Begin receiving guaranteed monthly payments for the rest of his life (and his wife’s life with survivor benefits).  This option places the risks and rewards of investing solely on the pension plan.
Read More

Copyright 2014 FiGuide.com   About Us   Contact Us   Our Advisors       Login