Blog posts by Rodgers & Associates on the subject of investing in the stock market and bonds, including topics like mutual funds, municipal bonds, interest rates, volatility, portfolio balancing, and investment strategy
These misperceptions can end up costing you a lot of money, and more importantly, years of your life working for someone else rather than pursuing your passions.
Don’t leave money on the table.
It’s just as important to diversify how funds are saved as it is to diversify how they are invested.
Widows and widowers whose spouses were younger than 72 at the time of death need to examine their options carefully before rolling over their spouse’s IRA.
Do not spend money that has been accumulated for financial independence. Invading long-term savings extends the time it will take to achieve a goal.
When Inheriting an IRA there are complex rules you will need to follow to avoid costly errors.
Time is the most important word in our investment vocabulary. If financial independence is the goal, starting today beats waiting until tomorrow.
A premium bond has a coupon rate higher than the prevailing interest rate for that particular bond maturity and credit quality. A discount bond, in contrast, has a coupon rate lower than the prevailing interest rate for that particular bond maturity and credit quality.
Until you reach age 59 ½, attempting to access tax-deferred retirement accounts could trigger taxes and penalties.
With the passage of the SECURE Act inherited IRAs from those who passed after December 31, 2019 are no longer allowed to stretch the withdrawals over their life expectancy.
The difference can be summed up in two words: intraday trading. Unlike mutual funds, ETFs can be bought and sold anytime throughout the day.
Only 51% of Pennsylvanians have tried to figure out how much they need to save for retirement—and just 31% are satisfied with their current financial condition.
One way is determining your risk tolerance.
Learn why we use time-weighted return as a reporting metric and see how it gives you an accurate picture of portfolio changes over time.
Many people believe all they need to do for retirement is defer as much money as they can. This is rarely the case.
The Three Things That Matter Most in Our Retirement Investment Strategy: Allocation, Allocation, Allocation
The myth that security selection and market timing are keys to investment success may drive many to make poor investment decisions.
A better overall strategy is to invest for total return.
Even if the probability of success for a 4% withdraw rate is less than some thought, it’s still strong when your portfolio is monitored actively.
Income earned by one spouse can be used to fund retirement accounts for both spouses.
59½? 70½ ? How does the IRS come up with these?
Gains from gold and gains from investments are taxed differently.
A stock split is when a company decides to increase the number of shares outstanding.
A well-diversified portfolio of stock market indices has a history of recovering after each downturn.
Learn about different types of annuities and understand how they can become a valuable component of your retirement plan.
It’s best to approach tax-loss harvesting cautiously and keep your broader financial plan in mind when making any tax planning decisions.
If you own large quantities of company stock held within a retirement plan, rolling it into a tax-deferred IRA may not be the best strategy. Learn when a Net Unrealized Appreciation (NUA) transaction is the right choice to maximize your tax efficiency.
If you’re investing in mutual funds at the end of the year, exercise extra care to avoid paying tax on gains that are earned internally by the fund.
While presidential elections can influence market performance, many other factors do, too. It’s important to recognize the complexity of the stock market and be careful not to confuse correlation and causation.
Does your employer-sponsored retirement plan offer brokerage services? If so, you may gain access to expanded investment choices, including a range of mutual funds.
Traditional IRAs are subject to a unique set of complex rules. Here are 6 significant differences between IRAs and other financial assets.
Our approach to retirement planning combines the seven-step process outlined by the Certified Financial Planner Board of Standards with our own unique focus on maximizing tax efficiency, managing risk, and minimizing expenses throughout retirement.
Look for opportunities created by lower markets, which include evaluating employer stock, performing Roth conversions, and investing before the market rebounds.
While it can be tempting to borrow from your 401(k) in the event of an emergency, it’s important to consider the impact of reducing the balance of your retirement plan.
It’s never too early to start planning for retirement. By setting a strategy— and sticking to it—you can help achieve your goal of financial independence sooner.
Converting your paper savings bonds to an electronic format allows you to access their current rate and value, which is especially important as you plan for retirement.
Learn how to weigh the benefits and drawbacks of taking a lump-sum cash payout from your pension plan.
Use these tips and strategies about spending, saving, and asset allocation to reach your retirement goals.
The Presidential Election Cycle Theory states the stock market is weakest in year one of a presidential term and then improves. Is it a theory you can rely on?
Are you saving enough for retirement? Read about target savings rates and see our strategies for closing the retirement savings gap so you can achieve financial independence.
As a result of the Tax Cuts and Jobs Act, the vast majority of taxpayers began taking the increased Standard Deduction. Because of this, most taxpayers will no longer get a tax benefit from their charitable giving.
Managing an investment portfolio efficiently requires knowledge of income taxes and your tax bracket specifically.
Since his deceit was revealed, there are still many unanswered questions. Despite these questions, there are lessons that fraud can teach all investors to avoid becoming victims of the next Madoff.
You only need to look at historic returns for equities to see that this has been true. Yet it appears that despite this evidence, whenever the equity market is falling, many investors start selling.
What happens when the paychecks stop, and retirement begins? It is one of the most pressing questions we hear from people approaching retirement.
Complexity abounds with respect to a RSU or option decision.
When investors take a step back and view the stock market over a long period of time, we observe that bear markets are a natural occurrence in the never-ending market cycle.
If you are an executive at a large company, you may receive stock in your company at some point as a form of compensation.
Experts say target-date funds are the primary default investment attracting nearly 50% of new assets into these retirement plans.
Should you sell when the stock market is high or buy more? We’ll help you plan an investment strategy on this edition of Project Wealth.
Understanding how your assets are titled is a major tool to protect your wealth.
How to pay it forward in 5 easy steps
Funding the tax-free side of the New Three-Legged Stool for retirement can be more difficult for taxpayers with higher incomes. In 2018, joint filers can only make a partial Roth IRA…
The primary goal of income tax planning is to pay the least amount of tax possible. Good tax planning should include avoiding paying tax on the same income twice. One…
The Tax Cuts and Jobs Act of 2017 (TCJA) eliminated the ability to use recharacterization to reverse the conversion of a Traditional IRA into a Roth IRA. The process of undoing a Roth…
We all know that regularly maintained vehicles are more reliable, more durable, and have a higher resale value. What about your financial plan? Is a once a year check up on your investment…
The Dow Jones Industrial Average has just passed 23,000 as I am writing this newsletter. Clients typically ask if there are any good places to invest, and this topic comes up…
The Rodgers & Associates logo includes “The Retirement Specialists.” The home page of our website says we “specialize in financial planning for those who are retired or expect to retire within…
President Donald Trump was sworn into office on January 20, 2017, beginning the important first 100 days in office. The stock market had already greeted the incoming president with a rally…
Last fall The Washington Post reported that 71% of American’s aren’t saving enough for retirement. The article was based on a national survey commissioned by Experian in collaboration with Get Rich…
Americans are worried about what inflation might do to their retirement finances. The Allianz Life 2016 Inflation Study was conducted in March of 2016 that looked at Americans’ perceptions of…
The New Three-Legged Stool A Tax-efficient Approach to Retirement Planning was published in June of 2009. People had been told for years that they would be in a lower tax bracket…
The Uncertainty is Behind Us – Time to Rally?
(And why it might not be so good for you.)
The IRS Statistics of Income (SOI) program recently released data on taxpayers who hold IRAs for the tax year of 2013. The SOI program was mandated by the Revenue Act…
Withdrawing extra funds from your retirement account can diminish your future income stream.
Unfortunately, it is not uncommon to meet prospective clients who attended an “informational” seminar, got a nice steak dinner, and ultimately purchased an annuity that may cost them thousands of dollars…
It doesn’t mean you missed something when you filed your taxes.
Know your options and follow these rules to help prevent costly rollover mistakes.
Nearly 200 companies have made significant changes to their pension plans over the past 10 years. Plan terminations, freezes and benefit formula adjustments are some of the changes companies are…
Deposit insurance depends a lot on what kind of account you have and what is actually held inside the account. You should understand how accounts are insured before you make a deposit.…
Volatility often causes people to make decisions that may not be in their best interest.
The IRS announced the inflation-adjusted deduction limitations for annual contributions to health savings accounts (HSA) beginning in 2016 through Revenue Procedure 2015–30. HSA deduction limits are updated annually to reflect…
Tax efficiency is another important key to assuring you don’t outlive your money.
When comparing results between retirement projections make sure you understand the assumptions of each plan.
Would you be surprised to learn the financial services industry doesn’t follow a uniform standard of care? The financial advice you receive from a bank, credit union, brokerage firm, or independent financial…
The benefits of choosing a single financial custodian.
Want to Retire Early? Consider the Benefits to Converting Your IRA Assets to a Roth IRA Before Drawing Social Security
Be aware of this window of opportunity and all the specifics.
No one wants to think about 2014 tax planning when the 2013 tax season is finally ending. However, tax planning should be a year round activity if your goal is to…
More frequently asked retirement questions.
Improve your odds of achieving financial independence by investigating these strategies now.
Investors are questioning the wisdom of holding bonds during what looks to be a rising interest rate environment.
How do you get money into this valuable retirement tool?
This summer I started a series on planning for retirement. Many people find retirement planning scary and intimidating. Hopefully you only retire once and you want to get it right the first…
Planning for retirement can be very difficult. Interest rates are at historic lows, pensions are scarce and those with pensions are concerned about their solvency, the financial stability of Social…
The year 2013 brings some new taxes for upper income taxpayers as well as a return of the higher tax rates from 2001. The American Taxpayer Relief Act of 2012 (ATRA12)…
The American Taxpayer Relief Act of 2012 (ATRA12) prevented higher taxes for many taxpayers but those in the top two tax brackets will experience an increase in taxes in 2013…
Have you recently inherited an IRA account? Did you know that the IRD deduction may help reduce the income tax you owe on taxable distributions? Income in respect of a decedent…
Last week I talked about the double taxation of dividends. Corporations pay tax on their earnings which are taxed a second time when they are distributed to the shareholder as dividends. The…
See Part 1 and Part 2 in this series. Even a novice investor has heard of the importance of diversification as a tool to lower risk. Diversifying among investment classes and diversifying…
See Part 1 and Part 3 in this series. Last week we began a discussion on how to build a retirement income strategy that would provide an increasing stream of income over…
Does this sound familiar?
All capital gains are reportable and subject to tax.
Doing so could be a serious liability if not done properly.
It was my dad who taught me to look for the silver lining in every cloud. Don’t sit around complaining about the rain, he told me many times, but find…