How do you know if your investments go through probate? When a person dies, what is left behind is an estate. Contrary to popular belief, this includes everyone, not just the rich. Whether a deceased person had significant wealth or was of more modest means, they are likely to leave behind assets and liabilities that […]
Author Archive | David Waldrop, CFP®
Does Behavioral Finance Matter?
Investing success relies more on patience and discipline than return on investment. It can also require pain and sacrifice. Yet, many focus so intently on potential returns and trying to predict the future. Instead, focus on what you can control. The biggest risk to investing success is our own behavior. Behavioral Finance Defined Behavioral finance is the […]
Do You Need IRS Tax Form 5500-EZ?
IRS tax Form 5500-EZ is usually required for one-participant plans like Individual 401k plans. This type of plan is often called a Solo 401k. When a small business is considering a retirement plan for their employees, there can be some big obstacles to overcome. Small businesses are often short on time and money. A retirement […]
Coverdell Education Savings Account (ESA)
Is a Coverdell Education Savings Account right for you? With so many college savings options, it’s hard to know which accounts to use. The first thing to realize is that the various accounts out there are not in competition with each other. In fact, they complement each other. There are important differences between these accounts, […]
SECURE Act 2.0
With just days remaining in 2022, SECURE Act 2.0 is here. If there’s any constant in retirement planning, it’s change. As soon as you make financial plans based on current laws, they change. It’s like deja vu all over again. The first SECURE Act became law in the final days of 2019. The Setting Every […]
What is Diversification?
Diversification is an important principle that prudent investors and advisors adhere to. It is best explained by the expression “don’t keep all of your eggs in one basket.” If XYZ stock is the basket you put all your eggs into and it goes haywire, all your eggs are gone. And that isn’t good. Diversifying requires an investment […]
529 College Savings Plan
Putting together a college savings plan can be daunting. The rapidly rising cost of higher education can be intimidating, but don’t let the numbers scare you off. According to the College Board, the average per year cost of a private four-year college is $39,400 compared to $10,950 for a state school. If college expenses continue […]
How To Reduce Taxes In Retirement
We hear a lot about the need for diversification when talking about our investments. You know the expression “don’t put all your eggs in one basket.” In the investment world this most often refers to the idea that you shouldn’t put all of your investment in one stock. But what about taxes when planning for […]
Required Minimum Distributions – The IRS Loves It When You Turn 73
The IRS loves it when you turn 73, but you won’t get a gift or even a card. The Internal Revenue Service can’t wait to get their hands on your hard-earned dollars. This might be why the IRS is sometimes referred to as the Infernal Revenue Service. Happy birthday and get ready to pay more taxes thanks to […]
Starting a Business – What You Need To Know
Starting a business is not for the faint of heart. When I joined the ranks of the self-employed, my good friend and fellow business owner said, “Don’t think of it as being self-employed, it’s more like being self-inflicted!” Joking aside, after 14 years of running my own business, I wouldn’t have it any other way. […]