UTMA accounts provide a way to gift money to minor children. Contributing funds to UTMA accounts constitutes an irrevocable gift. Once you gift the funds, they must be managed for the benefit of the minor and you cannot change the beneficiary. However, there is a lot of flexibility with this type of account. The custodian […]
A Roth IRA conversion and Roth IRAs in general can be powerful tools in a retirement saver’s toolkit. The potential to accumulate a bucket of funds to be used tax free in retirement is very attractive. This is especially true when you realize how much of your 401(k) or Traditional IRAs will be taxed in […]
There is a little confusion out there regarding Roth IRA contribution limits and rollovers. Complicating matters is that contribution limitations are different for a Roth 401(k) and Roth IRA. For a Roth IRA in 2019, you are limited to $6,000. For those age 50 or older, the limit is $7,000. However, there are phase outs […]
Investing vs gambling. We shouldn’t confuse the two but often do. And to be fair, some investment decisions look a lot like gambling. Investing gives you ownership of an asset with potential to increase in value over time. In most cases, this asset will provide some sort of income while you wait. This could be […]
What a year it has been! As we say goodbye to 2018, here’s a look back at some of the most popular posts on The Astute Advisor blog. Hopefully you find some of these articles helpful. I love reading your comments and feedback. Please don’t hesitate to reach out. You can reach me via email […]
Canceling PMI can save you thousands. If you own a home and you put less than 20% down, it’s likely you have Private Mortgage Insurance, or PMI. This is insurance that you, the borrower, pays to protect your lender if you default on your mortgage. Stated another way, the loan-to-value ratio (LTV) is too high […]
It isn’t lost on small business 401k trustees that these plans are not for the faint of heart. Endless changes in regulations and increased scrutiny leave some small business owners wondering why they even bother offering a plan at all. Keeping the plan in compliance and maintaining an investment platform can leave any seasoned business owner […]
Don’t under estimate the power of compound interest. It can work for you or against you. According to Investopedia the definition of compound interest is: Interest calculated on the initial principal and also on the accumulated interest of previous periods of a deposit or loan. This concept is so powerful that Albert Einstein is said to […]
In the early 2000s, property values were rising at a rapid rate and bringing with it newfound home equity. As property values rose and mortgage rates dropped, the temptation to refinance and take cash out became irresistible for many. This financial transaction is not so affectionately known as “using your home as an ATM.” It’s officially known as […]
Retirement saving doesn’t have to be painful, but the longer you wait, the harder it will be to catch up. That can be hazardous to your financial health. If you think it will be difficult coming up with the funds now, consider how hard it will be in the future. While this example assumes a […]
