If you ever worked for a company or organization outside of the Social Security pension system, you may have earned a non-covered pension that may impact the amount of your monthly Social Security benefit. This is called the Windfall Elimination Provision. You can refer to this article for more information about how it's calculated and how it impacts the worker’s Social Security benefit. … [Read more...]
Is the Consumer Getting Good Unbiased Education About Fixed Indexed Annuities?
Recently I found myself wondering what consumer education on annuities is really like and if people are getting a good, unbiased education about them. It’s important to know that there are 3 kinds of annuities: Fixed Annuities Fixed Indexed Annuities (or Indexed Annuities) Variable Annuities … [Read more...]
Commission or fee based investment management – which compensation model is better for the client?
Commission or fee based investment management - which compensation model is better for the client? In my last post, I explained how commission-based investment advisors make their money since they don’t directly charge clients a fee. In this post, I’m going to explore if the difference in compensation models present any conflicts of interest between client and advisor and which is best for you. Let’s look at an imaginary investment advisor named John. If John sells an A Share Class … [Read more...]
What Everyone Should Know About How Commission-Based Investment Advisors Work Part 1
What Everyone Should Know About How Commission-Based Investment Advisors Work Recently I had a conversation with a client where we reviewed their investment accounts and the topic of investment management fees came up. This client had previously worked with an investment advisor who worked on a commission basis so they weren’t used to seeing these fees on a statement. Of course I’m very transparent about the way I am compensated as an investment advisor, but when you come from working … [Read more...]
Is it better to contribute to a Roth account or a non-Roth account?
Many people ask if it is better to contribute to a Roth IRA/401k or a Traditional IRA/401k. Before I get into the breakdown of the numbers, we need to cover some definitions. Contributions to a traditional IRA or 401k can be taken as tax deductions in the tax year they are made. These deductions reduce your gross income, thus reducing your tax burden for the year. Both contributions and earnings are tax-deferred until the funds are withdrawn. That means that when you withdraw the funds, they … [Read more...]
