I have a question about asset location. I currently have 85% in equity and 15% in bond allocation. I understand that bonds are not tax-efficient and that it’s best to keep them in tax-advantaged accounts. I have a much larger percentage of my portfolio that is taxable, so that means that my tax-deferred accounts are almost entirely in bonds. That means that my tax-deferred accounts will most likely grow at a much lower rate than my taxable which is all equities. This doesn’t sit well with me. Is this the proper approach?
We build income-focused portfolios for our clients with a buy and hold, long term time horizon in mind. We allocate fixed income to Qualified Accounts (IRA and 401k) because this shields the client from paying ordinary income taxes on the income being generated on a monthly or quarterly basis. They only pay the ordinary taxes […]
Can individuals still perform the backdoor Roth IRA in 2018?
It is our understanding that under the new tax plan you will still be able to take advantage of the backdoor Roth conversion strategy in 2018.
Is it better to take a lump sum or monthly pension?
I think your question gets into a very significant topic of what you need versus you want and where those sources of income are coming from. Some important factors to consider are: Family longevity Is the pension inflation adjusted or stagnant over the life Risk tolerance as an investor Long-Term Care planning When do you […]
How am I going to retire in a few years? What do I need to have in place then that I don’t have today?
Build an investment plan that “fills the buckets,” identifying how much you need allocated to an income strategy to YIELD the income you need in retirement so you are not basing the success of your retirement plan on the outcome of equity returns and the stock market’s success. The income portion of the portfolio is […]
How do I take all of my savings and convert it into a supplemental income stream during retirement?
1. Investments Build an investment plan that “fills the buckets,” identifying how much you need allocated to an income strategy to YIELD the income you need in retirement so you are not basing the success of your retirement plan on the outcome of equity returns and the stock market’s success. The income portion of the portfolio […]
