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Wealthspire Advisors

Power of Attorney

Financial Dictionary
What is Power of Attorney POAs are legal documents that allow you to name an “agent” (also sometimes referred to as an “Attorney-in-fact”) to act on your behalf for financial or health care decisions and are key components of any estate plan. This agent is expected to place the principal’s interests ahead of his or her own, which is why it is important to pick a trustworthy agent. Different Types of POA There are many different types of Powers of Attorney (POAs), including a Financial POA, a Healthcare POA, Non-Durable vs. Durable POAs, General vs. Special POAs, and Springing POAs. …
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Diversification

Financial Dictionary
Diversification Definition Diversification is the process of owning different investments that tend to perform well at different times in order to reduce the effects of volatility in a portfolio, and also increase the potential for increasing returns. What is an Example of Diversification Strategy? A simplified example of a diversification strategy is a street vendor who sells both umbrellas and sunglasses, with the addition of some tourist trinkets. Having a mix of products like this ensures that he or she can earn money on both sunny and rainy days and is also selling some products that can generate income regardless…
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Margin Lending

Financial Dictionary
Margin Lending Definition Margin lending is the practice of borrowing money from a brokerage account while leveraging investment assets as collateral for the loan. Is Margin Lending a Good Idea? Margin borrowing is neither “good” nor “bad”, but rather a strategy that is better suited for some investors over others. Ideal candidates are those who have more substantial assets to use as collateral and those who wish to solve liquidity issues.  There are several potential uses for margin lending, including as a “bridge loan” (a short-term loan used to cover cash flow needs), as a loan to pay down another…
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Required Minimum Distribution

Financial Dictionary
What is RMD Required Minimum Distributions (RMDs) are withdrawals that the IRS requires you to take from tax-deferred accounts (such as IRAs) each year. These withdrawals can be done in a lump sum, or can be taken out gradually over the year, but the RMD must be reached by December 31st of that year. You must begin taking RMDs by April 1st of the year following your 72nd birthday and then annually thereafter. The RMDs are taxed at ordinary income tax rates. See more about RMDs on the IRS website. How Do I Calculate my Required Minimum Distribution? You can calculate your…
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Trust

Financial Dictionary
What is a Trust? A trust is a legal relationship where the owner, or trustor, gives another party, the trustee, the right to hold title to property or assets for the benefit of a third party, the beneficiary. A trust is traditionally used for minimizing estate taxes and offers other benefits as a part of an estate plan. What is the Purpose of a Trust? While most typically associated with estate planning, trusts are created more broadly for the purpose of achieving certain goals in the transfer of assets. Many common goals in creating a trust include the reduction of…
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Impact Investing

Financial Dictionary
What is Impact Investing? Impact investing is the process of aligning various preferred values with the generation of financial returns. There are a number of ways investors choose to approach impact investing, all largely dependent on what values investors choose to align with. While the most commonly understood use of impact investing is an emphasis on support for environmentally-friendly investments, other themes include: Negative investment screens to avoid companies conflicting with an investor’s personal values, such as companies that use harmful labor practices Incorporation of shareholder engagement that allows investors more of a say in how companies are run Integration…
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Equities

Financial Dictionary
What are Equities? Equities are shares issued by a company which represent ownership in the company. Ownership of property, usually in the form of common stocks, as distinguished from fixed-income securities such as bonds or mortgages. Stock funds may vary depending on the fund’s investment objective. Equities vs. Stocks While often used interchangeably, the terms “equities” and “stocks” actually refer to slightly different things. Essentially, a “stock” is one of the most common types of equity, with “equity” referring to the general concept of ownership. What are Examples of Equities? Some of the most common forms of equity include: Common…
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IRA

Financial Dictionary
What is An IRA? An Individual Retirement Account (IRA) is an account that allows you to save for retirement through tax deferred (traditional) or tax-free (Roth) growth. Traditional IRA vs. Roth IRA A traditional IRA allows you to contribute pre-tax income directly into your retirement account. This is called tax-deferred because instead of paying taxes currently, you’ll pay (income) taxes when you withdraw money out of the account. Roth IRA A Roth IRA allows you to contribute income that has already been taxed. This means that as you grow your money in your Roth IRA, you will not have to…
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Fiduciary

Financial Dictionary
Fiduciary Definition A fiduciary is a person (or entity) who acts on behalf of another party and who must put that party’s interests ahead of their own. Typically, people who make financial, medical, or legal decisions on another’s behalf are fiduciaries. What is Fiduciary Duty? For fiduciaries, their “duty of care” refers to an obligation to avoid being deceptive or misleading to clients and entails careful thought and critical review of all information before making decisions on their behalf. This includes complete disclosure of any and all facts or information that investors would consider to be important or could affect…
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summer reading list

Summer Reading List 2021

By Blog
Now that school is out and a holiday weekend is just around the corner, some may be looking to brush up on their summer reading. This set of recommendations comes from three of our advisors who found these books to be enjoyable, edifying, and well worth the read. Enjoy! “Uncharted – How to Navigate the Future” by Margaret Heffernan Recommended by Laura Barry, CFP® Uncharted: How to Navigate the Future is a great read for those who experience worry about their future, especially for those who constantly seek certainty. In her book, former CEO and TED speaker Margaret Heffernan gives…
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