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Investing Archives | Page 3 of 8 | Wealthspire Advisors

roth ira

What is a Mega Backdoor Roth IRA?

By Blog
Most people have heard of Roth IRAs. Those that qualify typically contribute and those that do not qualify can sometimes find a way to do so, as Zach Gering indicates here. In either case, you can do MORE. Take a step back and understand plan types and limits Depending on your current occupational status and business structure, you may or may not be able to open any of the accounts noted above. For starters, any individual can open an IRA (with certain age/income requirements). All of the other plans must be company sponsored. An optimal retirement plan design permits annual…
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investment letter

2019 Q1 Investment Letter

Market Commentary
Markets rebounded sharply from their 4th Quarter 2018 swoon. A balanced equity/fixed income investor is now flat or slightly positive for the two quarters from September 1, 2018 through March 31, 2019. Most major asset classes and strategies posted strong 1st Q 2019 performance. The US survived the longest Federal government shutdown in history in January, trade negotiations with China do not appear to be getting worse, different UK constituents seem to be unable to get on the same page negotiating with the EU regarding Brexit. Three months ago, investment headlines cried “December was the worst December since 1931.” Well,…
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Avoid Common Planning Mistakes with Executive Compensation

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Whether you work for a budding start-up or a well-established Fortune 500 company, it’s imperative to have a firm understanding of the components of your executive compensation plan—along with the inherent risks and rewards. Creating and maintaining a thoughtful strategy to integrate your executive benefits into your overall financial plan can help you maximize your wealth and achieve your goals in a tax-efficient manner. Still, even the most accomplished and organized executives can fall into some very common traps when incorporating complex aspects of their compensation into an overall plan. Here, we outline common mistakes we see and key considerations…
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quarter recap

2018 4th Quarter Review: “Holidays, Goldilocks, Resolutions and Strolling Along the Laffer Curve”

Market Commentary
In the grand scheme of things, this holiday season was probably no different from those of the past. Like many others, my family went through some combination of joy, distress, kindness, alienation, reconciliation and everything in between (sometimes all in a matter of minutes). Ultimately, the kids were happy to be out of school and together with the family, and although they occasionally fought and complained, there were still glimpses of heartwarming Rockwellian moments. On the other end of the spectrum, the adult dinner conversations were probably more Orwellian in nature, highlighting how polarized any discussion can become. The topics…
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plan participants

Market Volatility for Retirement Plan Participants

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How you should think about recent stock market activity In recent years, U.S. Stocks have experienced the longest bull market on record, and investors have become accustomed to portfolio returns that are higher than what has been historically expected. But with some volatility returning to markets in early 2018, followed by several notable drawdowns in the last few months of the year, many Americans are increasingly revisiting their 401(k) holdings with some level of anxiety. If you, like many Americans, are a 401(k) participant, should you be doing anything? We’ve answered a lot of questions for our clients recently, so…
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investment letter

2018 Year-End Investment Letter

Market Commentary
Few asset classes were positive in 2018 – the one “bright” spot among the asset classes we allocate to was Municipal Bonds, up .50% to 1.25% in 2018 depending on the strategy Equity and fixed income markets now offer more attractive valuations – the S&P 500 P/E is now at a reasonable 16.5x (lowest since 2014) after peaking at 23x earlier in 2018; fixed income yields are off the November highs  still materially higher than this time last year The underlying economy looks OK to good – corporate earnings were up over 20% in 2018, banks are lending and have…
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Opportunity Zones: Tax-Advantaged Investments to Bring Capital to Disadvantaged Communities

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The Tax Cuts and Jobs Act of 2017 created a new tax-preferred opportunity that seeks to reinvigorate certain depressed communities while providing tax incentives to investors. According to the IRS, an Opportunity Zone, popularly dubbed “O-Zone,” is an “economically-distressed community where new investments, under certain conditions, may be eligible for preferential tax treatment.” Localities qualify as Opportunity Zones if they have been nominated for that designation by the state, and that nomination has been certified by the U.S. Secretary of the Treasury. Investing in an Opportunity Zone through “Qualified Opportunity Funds,” or business entities that invest in tangible property within…
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investment letter

Recent Market Volatility: Our Investment Committee’s Take

By and Blog
October 2018 was a volatile month for markets. When there was similar market volatility in February 2018, we reached out to clients to provide perspective on what we viewed as a healthy pause in an otherwise lengthy bull market. The decline in February caused mild concern amongst investors, but the speed and precipitous nature of the more recent decline has caused a great number of investors to feel unsettled. Prior to this year, we discussed how common it is to experience drawdowns of varying depth, as shown in the following table: While we can share plentiful data on the commonality…
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investments taxed

Do You Know How Your Investments are Taxed?

By Blog
Investors generally pay close attention to portfolio allocation, performance, strategy and even fees.  The impact of taxes, however, is often overlooked when evaluating an investment portfolio. This blog post will highlight various ways that investors are taxed, including the capital gains tax, capital gain distributions, net investment income tax, and what the difference is between qualified and non-qualified dividends. There are a few quiz questions along the way so pay attention! Capital Gains and Losses When you sell an asset for more than you paid to acquire it (i.e. your cost basis), the government shares in your appreciation. An asset…
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investments note

2018 Q3 Investments Note

Market Commentary
Third quarter 2018 saw US equities continue their upward march. At +7.65% the S&P 500 had its best quarterly gain since Q4 2013. Large Cap US equities are now up more than 10% YTD. The difference between US equities and our typical portfolios is explained by the fact that international equities, fixed income, and alternatives are all negative YTD. While we of course always want all of our investments to do well, that is unreasonable for a diversified portfolio. Looking at each of these negative asset classes in more detail, the performance of our managers is consistent with their respective…
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