Investments

We believe in well-diversified investment portfolios. That means we are invested across many sectors of the economy, many geographical locations, and different sized companies. We meet with our clients to understand their goals, experience and comfort with investments before allocating their investment portfolios. Ongoing meetings with clients are important to make sure we are making the appropriate adjustments to the portfolio as life circumstances evolve.

We use a portfolio of mutual funds for most of our clients. Mutual fund manager(s) and their teams of investment professionals have resources and access to company information at a level most individuals could never replicate. And because we are using an institutional platform as an RIA firm, we are not tethered to a single fund family, trying to reach breakpoint levels to avoid up-front sales charges. There are no up-front sales charges. We charge a flat advisory fee. And we do everything possible to minimize any trading fees imposed by the custodian we use. Additionally, institutional shares typically provide the lowest expense ratios that the fund families offer.

We also have access to a myriad of institutional wealth manager models, as well as the ability to hold individual stocks, bonds, or ETF securities in client portfolios. Each investor comes with their own unique situation and we design a solution that works for each client.

NON-QUALIFIED INVESTMENT ACCOUNTS

These are accounts that have no tax-deferred benefits. They could include Individual account, Joint accounts, Trust accounts, or UTMA/UGMA accounts for minors. While there is no tax-deferred treatment of gains, there are also no restrictions on how much and when you can add funds to the account(s). Dividends and gains are taxable on an annual basis and subject to short-term and/or long-term capital gains rates.

TRADITIONAL AND ROTH IRAS

Individual Retirement Accounts (IRA) are tax qualified retirement plans that were established as a way for individuals to save for retirement with the benefit of tax favored treatment. There are two primary kinds of IRA accounts: Traditional and Roth.

The traditional IRA allows for contributions to be made on a tax deductible basis (for those investors who qualify) and to accumulate investment gains without current taxation of earnings inside the account. Distributions from a traditional IRA are taxable at the time of withdrawal. Distributions from traditional IRAs are taxed as ordinary income and, if taken prior to reaching age 59 ½, may be subject to an additional 10% federal tax penalty.

Roth IRAs are different in that the contributions are never tax deductible, but the earnings growth is tax-free when you withdraw the funds in retirement. To qualify for tax-free and penalty-free withdrawals of earnings, a Roth IRA must be in place for at least five tax years, and the distribution must take place after age 59 ½ or due to death, disability, or a first-time home purchase (up to a $10,000 lifetime maximum). Depending on state law, Roth IRA distributions may be subject to state taxes. In addition, Roth IRAs allow for distributions of the amount invested at any time after the account has been open for five years or longer for any reason, as long as you do not tap into the investment gains.

The above is a brief (hopefully easily digestible) description of IRAs. For detailed description of the tax treatment of IRAs, consult your tax advisor and/or Internal Revenue Service Letter Serial No. K180055c.

COLLEGE SAVINGS

There are many ways to save for children’s future education costs. Some of the traditional investment programs include College529 plans and Coverdell Education Savings Accounts. But you can also use UTMA/UGMA accounts, non-qualified investment accounts, IRAs, and other financial products. Each option comes with its own set of trade-offs. We can walk through the myriad of options together, talk about the advantages and disadvantages of each, and find a solution that fits best for your situation.

GROUP RETIREMENT AND SAVINGS PLANS

For business owners, group retirement and savings plans can play a key role in attracting and retaining quality employees.

Just like you, your dedicated employees are working towards a safe, secure future. Either provided independently or paired with group benefits, a group savings plan is a convenient, flexible and affordable way to help your employees reach their long-term financial goals.

Employees gain instant tax savings by contributing to an employer-sponsored retirement plan, since they can be made using pre-tax payroll deductions. They also receive the peace of mind that comes from knowing every month they are building towards their retirement.

I can help you and your valued employees choose group retirement and savings products. We will design an investment plan tailored to fit the needs of everyone involved. Choose from products like:

401(k) – contributory, profit-sharing, or both
SIMPLE or SEP retirement plans
Defined Benefit Pension plans
Deferred Compensation Plans