Pay Attention to Expense Ratios!

Investing in mutual funds and exchange trade funds is simultaneously easier and more complex than you would believe. That’s because with investing comes a slew of new financial jargon that most investors overlook. When selecting a fund, one often overlooked feature is the expense ratio. But what is an expense ratio and how does it affect you as an investor? While an expense ratio isn’t the only thing you should consider when selecting a fund, it’s something that can dramatically…

Three U.S. Banks Have Failed…What Does This Mean for Me?

You may have already seen the headlines about the recent collapse of three U.S. banks: Silicon Valley Bank, Signature Bank, and Silvergate. On the whole, this is a pretty big deal in the financial world. Whenever we entrust our hard-earned money to a bank, we want to know that it’s safe. So, what does this mean for the average person? Should we head for the banks and start hiding money under our mattresses? We don’t think so. First, we want…

Market Downturn: It’s Time To Manage Your Emotions and Your Strategy

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…

A Lifestyle-Driven, Durable Financial Plan

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…

Investing Amid Geopolitical Risk

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…

I contributed to a Roth IRA, but make too much money. What do I do now?

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…

What to do with Company Stock in your Retirement Account (Net Unrealized Appreciation)

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…

5 Smart Money Moves for the New Year

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…

Beware of “Calling the Top.” There’s more room for growth in this market.

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…

How Having a Side Hustle Can Boost Your Finances and Lower your Taxes

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…