Yes, April was a bad month for stocks, in fact, the whole year so far has been bad for stocks. This year has been the worst 4-month start to a year since 1939 and the worst April since 1970. The most important thing to remember in a market downturn like the one we are experiencing is to keep it cool, manage your own emotions, and continue to work your investing strategy. You don’t lose if you don’t sell, so don’t…
The last two years of history have had meteoric impacts on the finances and lifestyles of Americans: from housing prices skyrocketing, to inflation similar to the ‘70s, the COVID pandemic and learning how to work from home, older workers choosing simply to retire early instead of going back to work, the Russia Ukraine conflict, etc. It can become easy to let the news dictate the financial decisions of life, but there is a better way. Choosing to sell investments during…
As we have seen recently with the Russia/Ukraine conflict, geopolitical risk is a very real phenomenon that drives down stock values, because investors fear uncertainty. The uncertainty of how large or small the conflict will be is what makes stock prices so choppy. For example, in March 2020 when the world wasn’t sure how large-scale the pandemic would be, valuations sunk by 28%, but shortly after, they staged the largest and fastest stock market recovery we have ever seen. This…
The IRS specifies that you can only contribute to a Roth IRA if you make under a certain income limit. For 2022 you can make a full contribution if you are: Single and make under $129,000 or married and make under $204,000. You can make a partial contribution if you are: Single and make under $144,000 or married and make under $214,000. What if you made a contribution already earlier in the year and then made more than you expected…
It is not uncommon to be awarded company stock in your retirement account. When this happens and it becomes time for you to retire, there are certain moves you can make to achieve better tax outcomes. This is often referred to as “net unrealized appreciation” planning. Here’s how it works. When you are awarded company stock in your 401(k) it tends to appreciate over time. Let’s say you were awarded stock when it was $7/share 30 years ago and now…
With the new year comes new opportunities, new goals, and a fresh start. What a great time to get your finances back on track or do a little adjusting to make sure your financial house is in order. Here are 5 smart money moves you can make right now to kick off this year in a great way. Refinance your mortgage if you haven’t already taken advantage of the great interest rates right now. Rates are at all-time lows. My…
The recovery from the March 2020 low was the fastest and most dramatic in stock market history. Investors were already feeling more confident by May 2020 and then on top that, they were rewarded with lower interest rates, stimulus packages, greater home valuations, and a surge in cryptocurrency values. “There’s no way 2021 can be better than 2020, they surmised.” And then it was. Some investors tried to call the top and sell their house or cash out from the…
There are many, many advantages to owning a small business—unlimited upside, work your own hours, better free time, and tax deductions, just to name a few. Many professionals choose to have a side hustle in addition to their normal 9-5 simply for the tax and retirement strategies. I recently helped a client realize that she could save thousands of dollars in taxes and deferred taxes by starting her own LLC. She decided to implement this before year’s end so she…
I’ve had a few friends and clients reach out and ask about ESG investing so I wanted to write a blog about its importance in the investing space right now. ESG is an acronym that stands for an approach to investing that focuses on investing only in companies that align with one’s values in terms of the company’s environmental, social, and governance policies. The governance piece is not to be confused with the U.S government, but is more the way…
Keep contributing to an IRA. Did you know that you can keep contributing to an IRA no matter how old you are? The IRS changed the rules so that after 2020 you can continue contributing to an IRA at any age as long as you or your spouse has earned income (wages) for that year and it is under $125,000. At age 72 you have to start taking RMD’s (required minimum distributions) out of your account, but if you have…
