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 […]
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 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. […]
Estate planning is much more than setting up a trust. The broadest description of estate planning is the process of preparing to dispose of your assets when you pass away. At least, that’s the textbook definition. Understandably, that gives many people the impression that estate planning is for the rich or those taking required minimum […]
Mutual fund share classes can often be confusing for investors looking to save for retirement. Understanding how they work is key to making smart investing decisions. If you’re socking money away in a retirement account, the odds are you’re investing in mutual funds. Mutual funds allow investors to pool their money together and receive professional […]
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 […]
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 […]
If you’re looking to improve your financial wellness, it can feel like a tall order. Taking on any challenge is daunting and the first step is usually the hardest. Knowing where to begin is hard enough and sometimes we can be our own worst enemy. When it comes to our financial well-being, it can be […]
