Glossary – Asset Management
and Retirement Planning Terms
Retirement Account Contributions Analysis
Our financial planning team uses sophisticated analytical techniques to develop a cash flow and investment strategy that is designed to increase the chances that the client will have sufficient retirement income. We can help you make sense of all the retirement account options you have to choose from (403b, 457(b), Roth options, IRA, Roth IRA,…
Retirement Account Distributions Analysis
Required minimum distributions (RMDs) can be an important part of your retirement-income plan. It’s important to understand that RMDs come with some specific rules about the timing of when distributions are taken and a formula based on your age for the amount you have to take. Your withdrawal strategy should accomplish 2 goals: (1) Having…
Risk-Reward
This involves understanding the valuation and return potential of an investment. There are many good businesses to invest in but if their stocks are priced too high they may not make good investments.
Social Security Analysis
Maximizing your Social Security income is an important building block for retirement. United Income, a financial-planning advisory service, released an important study in 2019 called, “The Retirement Solution Hiding In Plain Sight.” Using government data and proprietary software, it calculates how much money retirees have lost, and are losing, by making mistakes about when to…
Tax Advantage Account Strategies
In order to increase tax efficiency and help clients’ long-term wealth goals, we utilize the appropriate taxable and nontaxable accounts. Just as we focus on allocating our investments between stocks, bonds, real estate, etc., to reduce volatility, it’s also important to think about the tax consequences of where we locate our funds. Asset location means…
Tax Efficiency
Our financial advisor team may use tax reduction strategies that include: tax loss harvesting, asset location (by account type), mutual fund turnover ratio analysis, distribution strategies, long term capital gains tax bracket analysis, roth conversions, and managing required minimum distributions. Our objective is to ensure that our clients’ investments are optimized while reducing their overall…
Tax Loss Harvesting
Tax loss harvesting is a tax-efficient investing strategy that can help minimize the amount of current taxes you have to pay on your investments. Under current federal tax law, you can offset your capital gains with capital losses incurred during that tax year or carried over from a prior tax return.
Trust Accounts
To manage your estate planning needs, we often recommend exploring the possibilities of using a trust to minimize estate taxes and avoid the legal probate process as your estate passes to your heirs at the end of your planning horizon. There are numerous types of trust accounts available based on your unique goals and circumstances.
Trust Planning
One of the primary goals of estate planning (in addition to minimizing estate taxes) is giving the surviving family members and beneficiaries less stress and some privacy. Estate planning will ensure that your physical assets, investments, cash, etc. are transferred to your beneficiaries with minimal legal and tax complications and help protect your estate from…