When it comes to their retirement accounts, many investors often fail to think about required minimum distributions (RMDs). That oversight can lead to unnecessary tax burdens and other financial issues. In order to handle RMDs effectively, an understanding of the rules—and common errors people make—can be beneficial.
If you have worked at the same company for a long time, or received a large inheritance, it's likely that a significant portion of your wealth is tied up in a concentrated stock position. While this can certainly have monetary benefits when the company stock is rising, it also comes with a certain level of risk. A concentrated position means that you are reliant on the success of a single company—while the market as a whole might bounce back from a decline, an individual stock might not. Additionally, selling the entire stock position may result in a large capital gains tax bill.
There are several options for mitigating this risk. If you are charitably inclined, a donor-advised fund may be an attractive solution, because of its ease, convenience, and overall benefits.
As a Wealth Management Consultant, I'm often asked two questions "What is a financial plan?" and "Is a financial plan different from investment management?" In short, yes—financial planning and investment management are two distinct wealth management tools that work together to help you achieve your short- and long-term financial goals.
Most working Americans have only one source of steady income before they retire: their jobs. When you retire, however, your income will likely come from a number of sources, such as retirement accounts, social security benefits, pensions, and part-time work.
When deciding how to manage your various assets to ensure a steady retirement income stream, there are two main strategies to consider: the total return approach, or the investment pool—or bucket—approach.
While working with clients, I am often asked about social security benefits. To clarify the topic a bit, I've compiled the following list of my most frequently asked questions. This in-depth FAQ addresses common concerns about collecting social security retirement benefits, including the impact of part-time work and other earnings, the age at which you may begin collecting, and spousal benefits.
The sooner the better: it's a saying that applies to many facets of life, including educating children about money. By introducing sound financial habits early on, you'll give your child a head start on the path to becoming an informed investor. Here are some creative ideas, as well as book and website suggestions, for raising a financially saavy kid.
Given today's economy, it's fair to say that we are all more concerned about our financial situation than we have been in the past. Our awareness of the need to save and plan ahead has been heightened, and everyone, it seems, is looking for ways to economize.
As someone who works in the financial services realm, few things could give me more pleasure than this collective impulse toward saving, investing, and planning for the future. The focus on protecting your assets ties in nicely with the idea of protecting your income. You may have considered what would happen if you were downsized, but perhaps you've neglected to plan for what could happen if you became disabled. Understandably, this is not a popular subject, but it is one we must all consider.