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Investing Archives | Page 6 of 9 | Wealthspire Advisors | Page: 6

Roth IRA

Converting to a Roth IRA: When Does it Make Sense and What are the Benefits?

By and Blog
When does it make sense to convert a Traditional IRA to a Roth IRA? Most of us are familiar with Traditional IRAs, where money is invested pretax and taxes are due when money is withdrawn. Traditional IRAs also require regular distributions (required minimum distributions or RMDs) in retirement. The newer Roth IRA was introduced just over 20 years ago (followed a little later by the Roth 401k) and allows retirement savers to put away money for retirement without a tax deduction on the contribution up front. Roth IRAs allow tax-free withdrawals and no requirement that RMDs be taken. This can…
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Don’t Panic, Prepare: What To Do Before the Next Market Correction

By Blog
Before the most recent market correction of late-January and early-February this year, investors hadn’t experienced 10% (or greater) retreat in market prices since January 2016.  The bull market that seemingly produced a new record high each week in 2017 was confronted with historic market realities in early 2018. Now that we have experienced some volatility in 2018, we need to prepare ourselves for the next market correction.  There’s no telling when it will come, but a savvy investor is one who is aware of the market’s history of volatility and has a game plan for achieving long-term investment goals, even…
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investment letter

2018 Q1 Investment Letter

Market Commentary
Key Takeaways of 2018 Q1 Investment Letter Equity and fixed income markets were both slightly negative in Q1 2018, while alternative managers were slightly positive. Risk and volatility are increasing, so are fixed income yields as the US Treasury issues significantly more debt. Performance Recap What a difference a (new) year makes. With a rise in volatility and headlines about macro and market risks, the S&P 500 was negative in February and March, ending the first quarter of 2018 down -.76%. Fixed income markets were generally down in concert with equities as the Barclays Aggregate Bond Index returned -1.46%. 1994…
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college savings

An Unconventional College Savings Account

By Blog
If you are looking to set money aside for your child or grandchild’s education you are likely considering a 529 plan, a custodial account, or possibly a trust. Each of those accounts have positive and negative qualities, which my colleague, Eric Dostal, highlighted in a previous blog post. However, there is another option that is a bit unconventional for college expenses – a Roth IRA. I am a big fan of Roths and I have previously written how individuals over the income limit can fund an account annually via a backdoor contribution. Roths offer tax-free growth, virtually unlimited investment options,…
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quarterly review

2018 1st Quarter Review: “Protectionists Hide in Your Wallet”

Market Commentary
It is often fun (at least for us) to go back and re-read some of our prior quarterly missives. One of our favorites from a couple of years ago was about “Andrew Jackson” and the parallels of his presidential bid in the late 1820’s to the then impending election. If you remember, he ran on an economic platform of: Protect the American people from the rich and powerful. Reduce the national debt and reduce the government. Strip the Second Bank of the United States of its central bank status and charter. Use protective tariffs to protect vital industries to the country’s…
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health savings accounts

Strategies for Use of Health Savings Accounts

By Blog
Health Savings Accounts (HSAs) are an increasingly popular way to pay for healthcare expenses, especially as employers continue to look to shift ever rising insurance costs onto their employees.  Why are they popular? Because they are a fairly easy way to save for medical expenses while reducing your taxable income at the same time. General Rules for Health Savings Accounts So how can you qualify for an HSA? If you are enrolled in a high-deductible health insurance plan (HDHP) as defined by the government, you can qualify for an HSA. For 2018, the Internal Revenue Service (IRS) defines a HDHP…
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early 401(k) withdrawals

Early 401(k) Withdrawals: What You Need to Know

By Blog
401(k) plans are designated as tax-efficient retirement savings vehicles, with the idea that funds contributed will be used only to fund retirement. Following the rules of your 401(k) means you can enjoy pre-tax contributions and tax-deferred growth that maximize your assets later in life. That said, instances can come up where you may wonder how easily you could access those funds in a pinch. Individuals thinking about early withdrawals from their 401(k) accounts should know that this process can severely limit the growth of your portfolio and subjects you to penalties. Here we examine what those penalties are and under…
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cryptocurrency

The Cryptocurrency Question

By Guides & Whitepapers
The most common financial question that we have been asked over the last six months or so relates to Bitcoin1 (or any type of other cryptocurrency). Is it real? How is it valued? Should we invest in it? Can it keep going up in price? The answers to these questions are not easily answered, are complex, and are dynamic over time. To start, Crypto comes from the Greek Kruptos, which means “hidden.” Because of the complexity of the subject matter, we would prefer to hide from making an opinion on cryptocurrencies in general. However, they (and the technology surrounding them)…
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investment letter

2017 Year-End Investment Letter

Market Commentary
2017 saw a remarkable juxtaposition between 1) headlines around the globe and here in the US presaging very significant political, social and geopolitical risks and 2) investment markets which were universally positive. The schematic in the Appendix provides a nice trip down memory lane for just the political headlines. Yet despite the above, 2017 marks the first year in memory that the S&P 500 (total return) was positive in every month of the year. In fact, its positive streak now extends to 14 months. And it was not just equities that performed well in 2017 as each of our three…
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investing mistakes

Common Investing Mistakes to Avoid

By Blog
When the markets experience such a positive year, as they did in 2017, investors rejoice in their smart asset allocation and strategy. But good market years make even the rookie investor look savvy. But investing is a long game – investment strategies that grow your income and wealth over a 40-year period require calm, sober patience. While investing mistakes are common, most are completely avoidable with the proper advice and guidance of a wealth manager or financial advisor. No matter how well your portfolio performed in 2017, consider these common investing mistakes. Mistake 1: Investing without a plan Without a…
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