Posts by Mark Henricks
Investing
Stock Advisor Websites for Investors
Stock advisor websites provide individual investors with useful tools, research and guidance to build their wealth. Many investors count on these handy online sources for ideas and information on markets and individual securities. These sites offer stock screeners to identify opportunities, articles analyzing specific companies, model portfolios showing how to construct a diversified mix of… read more…
Investing
6 Stock Option Trading Strategies to Consider
Options give investors ways to profit whether stocks rise, fall or hold steady. But they also come with their own complexities and pitfalls. Options traders have developed an expansive set of strategies that aim to help them hedge against risk, generate income or profit from speculation while also not exposing them to undue risk. Strategies… read more…
Taxes
2024 IRS Tax Changes: What You Need to Know
The new year brings new tax brackets, deductions, and limits that will impact your 2024 federal income tax return. While 2023 did not see major federal tax reform legislation, the IRS has adjusted ranges for tax brackets, standard deductions, retirement savings contributions and more to account for inflation. These 2024 IRS tax code tweaks affect… read more…
Retirement
I’m 65 Years Old With $750k in an IRA. I’m Taking Social Security – Is It Too Late for a Roth Conversion?
If you’re 65 years old and collecting Social Security, you may wonder if it’s too late to convert your $750,000 traditional IRA into a Roth IRA. The short answer is no – there are no legal restrictions to Roth conversion based on age or income. Practically, however, the decision involves carefully weighing tax implications, healthcare… read more…
Retirement
Best Types of Annuities for Retirement
Annuities can provide retirees with a guaranteed stream of income, but choosing the right type is key to making the most of these products. Making the selection requires learning about the major features of the types of annuities most popular for retirement planning. It’s also essential to get an understanding your own needs for financial… read more…
Taxes
What Tax Rules Apply to an IRA Rollover?
Rolling over a 401(k) or other workplace retirement plan into an Individual Retirement Account (IRA) is very common when people change jobs or retire. Among other potential benefits, a rollover lets savers combine multiple accounts to keep better track of everything. But if the rollover isn’t done right, you could end up facing a big… read more…
Retirement
I’m 60 With $1.2 Million in an IRA. Should I Convert $120,000 Per Year to a Roth to Avoid RMDs?
If you’re 60 years old with $1.2 million saved for retirement in a traditional IRA, you may be starting to think about required minimum distributions (RMDs) and the hefty annual tax bill they can create once you turn 73. Converting a portion of your IRA to a Roth IRA each year can help you reduce… read more…
Investing
How to Find Rental Properties in Different Markets
Investing in rental properties can provide attractive returns and diversification for ordinary investors. But finding good rental real estate deals in other markets poses challenges. When location is a prime factor in determining whether a property is attractive, an investor based far away has some built-in disadvantages. A financial advisor can explain the basics of… read more…
Financial Advisor
Number of Ultra High Net Worth Individuals in the World
In order for someone to be considered an “ultra-high-net-worth individual,” they typically need to have at least $30 million worth of net investable assets to their name. However, this isn’t really a legal definition. As the name suggests, ultra-high-net-worth individuals are the wealthiest people on the planet, including the world’s billionaires. These individuals sit significantly… read more…
Estate Planning
Can a Nursing Home Take Our Savings? We Have a $250k IRA, a House and Other Assets
Long-term care costs like nursing home care can quickly drain retirement savings. Medicare provides little help paying these bills, but Medicaid can cover nursing home costs for those who meet strict financial eligibility rules. Certain strategies like special trusts, home equity transfers and annuities can help meet those eligibility rules and protect assets like your… read more…
Financial Advisor
I’m 70 With $1 Million in an IRA. How Do I Make Sure This Money Lasts the Rest of My Life?
Compared to many retirees, you are in an enviable position with $1 million socked away in your IRA at 70. Still, living a secure, comfortable retirement that can last two decades or more takes planning. Making sure your nest egg lasts requires assessing your personal situation, balancing risk, securing reliable income streams and understanding how… read more…
Investing
What Is Constant Proportion Portfolio Insurance (CPPI)?
Portfolio insurance strategies aim to limit losses in investment portfolios while still capturing some upside. Constant proportion portfolio insurance (CPPI) is a dynamic approach that adjusts asset allocation between risky and stable assets based on portfolio value. When values go down, it moves more money into safer places so your total portfolio doesn’t fall too… read more…
Advisor Resources
How Much Can Financial Advisors Make at Morgan Stanley?
Financial advisors at Morgan Stanley can make from $97,000 a year on the low end to $475,000 at the top, according to various sources for data on advisor pay. These figures are for total compensation including bonuses and commissions, which can vary widely depending on the individual advisor’s clientele, experience and other factors. Earnings from… read more…
Retirement
Should I Delay Social Security and Rely on My IRA for the Next 5 Years? I Have $500k and a Pension.
With $500,000 in an IRA and a pension, you may not need to immediately claim Social Security at age 62. By waiting until full retirement age at 67 or even 70, you can increase your monthly benefit by up to 24%. However, delaying Social Security means fewer cumulative checks over what could be a decades-long… read more…
Taxes
How to Hire Your Child as an Employee and Save on Taxes
Hiring your child to work for your family business opens the door to potential tax savings for both you and your child. Paying your child a salary allows you to deduct their wages as a business expense, reducing the business’ taxable income. Meanwhile, your child can earn up to the standard deduction amount tax-free. The… read more…
Taxes
I’m Not Sure How Giving to Charity Can Reduce My Taxes. Is It Really Worth It?
Donating money to charities you care about feels good. It can also lower your tax bill by reducing your taxable income in an amount equal to the amount you give. A number of rules and restrictions govern how much you can give and how you can do it, though. Understanding how this works so you… read more…
Retirement
We’re 67 Years Old With $1 Million in IRAs. Is It Too Late to Convert to a Roth?
At 67, you’re presumably at or near retirement. If you have $1 million in IRAs, it may be attractive to converting to a Roth because it can provide tax-free income in retirement. It’s not too late from legal or regulatory perspectives. The IRS does not restrict Roth conversions on the basis of age or income.… read more…
Personal Finance
What Is the Meaning of Median vs. Average Income?
You can get useful perspective about your financial condition and performance by benchmarking your income against peers using figures for average and median income. Each of these measures offers a somewhat different snapshot. While medians better reflect typical middle-of-the-road incomes, averages capture collective earnings across a group. Understanding the nuances helps savers and investors select… read more…
Financial Advisor
I Have $2 Million Invested With My Financial Advisor and Pay a 1% Fee. Am I Paying Too Much?
Paying a 1% annual fee to a financial advisor for managing a $2 million investment portfolio is pretty typical, but that doesn’t necessarily mean it’s the right amount for every investor. Even small-sounding financial advisor fees can seriously erode long-term returns when compounded over years or decades. A 1% annual fee on a $2 million… read more…
Investing
How to Open a Margin Account With Fidelity
Margin accounts allow investors to borrow against their portfolios to buy more securities. Margin can turbocharge your returns when stocks go up, as profits are made on the full position size including the borrowed money. However, trading stock on borrowed money also has serious risks, so margin privileges are reserved for active and experienced self-directed… read more…
Estate Planning
How to Avoid Probate in South Carolina
Inheriting an estate in South Carolina can be simplified by avoiding the probate process. While probate serves an important legal function, it can also create unnecessary costs and delays for beneficiaries. Fortunately, South Carolina law provides several methods to bypass probate and ensure your assets pass directly to your chosen heirs. Partner with an experienced… read more…
Retirement
Six Tools to Help You Plan for Retirement
Preparing financially for retirement takes diligent tracking of savings, investments and benefit projections over decades. Thankfully, the right tools exist to help chart progress toward various retirement goals. Many of these tools are available for low cost or no cost. Free tools and calculators from companies like SmartAsset, JPMorgan, Schwab and Fidelity offer good examples.… read more…
Taxes
How Can Estimated Taxes Be Paid?
If you earn income that doesn’t have taxes automatically withheld, such as income from investments or self-employment, you may need to pay estimated taxes. Estimated taxes are pay-as-you-go tax payments individuals make throughout the year, typically quarterly, to cover their expected tax liability. The quarterly payment approach can help avoid underpayment penalties. However, instead of… read more…
Advisor Resources
Financial Advisor Job Outlook for 2024 and Beyond
Over the next decade, the job outlook for financial advisors looks extremely promising, with abundant opportunities nationwide. The Bureau of Labor Statistics predicts employment of financial advisors will expand much faster than the average occupation. Growth is concentrated in cities with strong financial services sectors, but jobs can be found almost anywhere. An aging population… read more…
Estate Planning
Can a Nursing Home Take Our Assets? We Have a $1 Million IRA and a Trust to Protect Us
As we age, many of us will need some form of long-term care, whether at home or in a facility. With nursing home costs averaging over $90,000 per year, long-term care expenses can add up quickly. While Medicaid can help you cover these costs, it has strict eligibility requirements that may require you to spend… read more…