I recently performed a financial review for a new client who used one of the largest brokerage firms in the U.S. The opportunities for improvement summarized below could result in a 57% higher ending balance from an equity portfolio over a 30-year retirement timeframe. On a $1 million opening investment this could result in a $2.3 million …
RETIREMENT INVESTORS – IS IT TIME FOR A FINANCIAL CHECKUP? YES! Read More »
The tax and cost efficiency improvements summarized below could result in 43% higher net investment income over a typical 30-year retirement timeframe. On a $100,000 opening balance this could result in $229,000 more net investment income over 30 years. Taxes – Stock investing in taxable accounts generates dividend and capital gains income taxes. However, tax efficient stock investing …
How does this work?: Create a 529 college savings plan account (New York has an excellent program) and set your child as the beneficiary. You can make a lump-sum contribution of up to five times the annual gift tax exclusion (5 times $15,000 is $75,000 in 2021), elect to spread the gift evenly over five …
CAN YOU LEGALLY AVOID ESTATE AND INCOME TAXES? YES, WITH THE ASSETS IN A LEGACY 529 PLAN Read More »
TO DO’S: Create a new non-deductible traditional IRA account and in January 2022, contribute $7,000 attributed to the 2021 tax year and $7,000 to 2022. Leave in cash. Convert this IRA to a Roth IRA as soon as practical thereafter (likely within a couple of weeks of funding). Since you just contributed it, there will be …
CAN YOU TURN A $14,000 INVESTMENT INTO $73,000 OF TAX SAVINGS? MAYBE, HERE’S HOW: Read More »
Many financial advisors recommend investing in annuities as they often include very generous commissions for the salesperson. Returns to investors are often not as good. However, certain annuities may have a place in a diversified portfolio as a replacement for fixed income. Below is an analysis of the after-tax cash flows from an investment in …
Should You Invest in an Annuity? Decide with Help from this Analysis Read More »
Warren Buffett, generally considered one of the world’s best investors earned his billions by (1) generating high investment returns and (2) taking very easy steps all of us can readily copy to compound investment gains into substantially higher wealth. Here they are: Do not pay any extra taxes – his company Berkshire Hathaway does not …
The Easily Copied Secrets to Warren Buffet’s Billions Read More »
As parents, we all want to provide for our kids and subsequent generations as well as we possibly can. The following plan may provide up to 522% more money to leave to your children / grandchildren and at the same time increase current income for you to spend in retirement. The Plan In the taxable …
Retirement Investors – Do you want to leave your kids 5 times more money? Read More »
As retirement investors, our 30 year plus investment horizon (a typical retirement), requires us to be very long-term investors. Proper asset allocation is vital, however present interest rates available on U.S. government bonds are so low, we can be certain we will lose money. What to do? The math The present annual yield on the …
Retirement Investors – Would you invest in something you knew is going to lose money? Read More »
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