INVESTOR EDUCATION
Provided By Gigi Laverge
Tax Prep Checklist
Check out this checklist for a general guide of what to gather as you prepare to complete your 2021 taxes
2021 Year's End Newsletter
As we wrap up the 2021 year, let's go over Three Ways to Play Defense in Your Stock Portfolio, what turning 65 has to do with Medicare, and Tax Tuesday at Valwood Park, FCU.
Last year was filled with twists, turns and surprises that kept investors, businesses, and families on our toes. From a pure investment standpoint, value stocks gave a powerful surge that rivaled growth stocks for the first time in years, and corporate earnings continued to break records despite inflation and supply chain pressures.
For the first time in nearly a decade, bond investors have had significant negative returns. I believe the selloff in bonds resulted from a robust economic recovery, elevated inflation risk, and a tightening fiscal policy outlook.
Looking ahead to the new year…while we are concerned about the COVID-19 pandemic, we expect fading coronavirus risks due to a higher community immunity rate compared to last winter. Tightening fiscal policy, supply chain issues, and elevated inflation risks are likely to be the primary market concerns for the first quarter. We still expect a positive yet more modest equity return in 2022.
Last year GDP growth was 5.6% and analysts are expecting 4% GDP growth this year. Earnings growth from the low of 2020 through 2021 was 45%. If we take that back to 2019 through 2021 we are still looking at over 25% in earnings growth. This year we are expecting 10 to 12%, which is still above the average 8% earnings growth historically.
Currently, markets are responding to rumored rate hikes expected this year. The Federal Reserve has more tools to use. Not just raising borrowing costs but by acting with a second lever and reducing the central bank's holdings of Treasury bonds and mortgage-backed securities thus reducing the balance sheet.
Three Ways to Play Defense in Your Stock Portfolio
Defensive investment strategies share a common goal — to help a portfolio better weather an economic downturn and/or bouts of market volatility.
- Tilt toward value - Value stocks are associated with companies that appear to be undervalued by the market or are in an out-of-favor industry. These stocks may be priced lower than might be expected in relation to their earnings, assets, or growth potential, but the broader market is expected to eventually recognize the company's full potential.
- Seek dividends - Stock prices are unpredictable and may be influenced by factors that do not reflect a company's fiscal strength (or weakness). Dividend payments tend to be steadier and more directly reflect a company's financial position. Comparing current dividend yields, and a company's history of dividend increases, can be helpful in deciding whether to invest in a stock or stock fund. The flip side is that dividend-paying stocks may not have as much growth potential as non-dividend payers, and there are times when dividend stocks may drag down portfolio performance. For example, dividend stocks can be sensitive to interest rate changes. When rates rise, the higher yields of lower risk fixed-income investments may become more appealing, placing downward pressure on dividend stocks.
- Temper volatility - All stocks have volatility to some degree. Certain mutual funds and exchange-traded funds (ETFs) labeled "minimum volatility" or "low volatility" are constructed with an eye toward reducing risk during periods of market turbulence. Low-volatility funds vary widely in their objectives and strategies. There is no guarantee that they will maintain a more conservative level of risk, especially during extreme market conditions.
New for 2022!
Health Insurance and Medicare
If you are turning 65 this year, please schedule a time to discuss your Medicare options. The standard monthly Medicare Part B premium for 2022 is $170.10. This is deducted from your social security payment. If you have not filed for social security benefits, then you will receive an invoice for premiums to be paid when you turn 65.
Valwood Park Federal Credit Union in Carrollton is hosting Tax Tuesday!
The 2022 tax filing season begins Jan. 24. This is the date the IRS will start accepting returns. Avoid delays by having all essential info before you file.
For more information, call our office at 972-546-0620.
Warmest regards,
Gigi Lavergne, CEP, LTCP
Financial Advisor
1. Data sourced from third party services including Ark Investments, Investing.com and Franklin Templeton
2. Source: US Bureau of Economic Analysis.
This article is for informational purposes only. Economic forecasts set forth may not develop as predicted and there can be no guarantee that strategies promoted will be successful. This information is not intended to be a substitute for specific individualized tax, legal or investment planning advice as individual situations will vary. The views expressed are not necessarily the opinion of SagePoint Financial, Inc., and should not be construed, directly or indirectly, as an offer to buy or sell securities mentioned herein. Past performance is no guarantee of future results.
IMPORTANT DISCLOSURES Securities and insurance services offered through SagePoint Financial, Inc., member FINRA / SIPC . SPF is separately owned and other entities and/or marketing names, products or services referenced here are independent of SPF. Certain insurance offered by Gigi Lavergne is independent of SagePoint Financial, Inc., which is not affiliated with SagePoint Financial, Inc. Retire Guides and Dave Ramsey's Financial Peace University are not affiliated with SagePoint Financial, Inc. The information presented here is not specific to any individual's personal circumstances. To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances. These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable—we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.
Quick Update
Password hacking is on the rise. And don't forget tax season is right around the corner!
- It’s that time of year!! It’s important to keep your digital life safe. Password hacking is on the rise. According to a cybersecurity alert published by the U.S. Homeland Security Department (DHS), a hacking group "sponsored" by Iran's government is launching disruptive cyberattacks against a wide range of U.S. companies, including healthcare providers and transportation firms.
Here are a few ways to keep your passwords secure:
- Don’t base your passwords on anything that’s relatable to you like street name, pets name or breed, family names or birthdates or even favorite foods.
- Use a different password for every online account. If a site you frequent has been compromised, that password will be targeted on other sites you frequent.
- The longer the password the better. Try to have your passwords 15 characters long.
- Do not use sequenced passwords or simple words. The most common password used in the US is ‘password’, with 123456 coming in at a close second. 25% of passwords used in the US contain ‘qwerty’ being the first 6 letters on a keyboard. This is easy to remember but also easy to hack.
- Always activate two-factor authentication on all accounts that offer it. Have the code sent to your phone instead of your email if possible.
- Tax Season is just around the corner! We will be mailing our tax clients a portfolio packet to mail back to our office tax documents via UPS. Please call if you have not received your packet or would like to become a tax client.
Securities and advisory services offered through SagePoint Financial, Inc.(SPFI), member FINRA / SIPC . SPF is separately owned and other entities and/or marketing names, products or services referenced here are independent of SPF. Insurance and services offered by Gigi Lavergne or TRI Planning is independent of SPFI.
Have 5 years or less to retire?
Here are 5 things to do now. It's never too late to start building!
Are you 5 years or less away from retiring? Do you know someone who has retired unsuccessfully? They’re either miserable or struggling with a very tight budget.
I work with my clients to build a foundation for a successful retirement. We talk about values and what’s important to them.
Of course, the earlier you can start building towards retirement the better, but for all of us late bloomers, it’s never too late to start building. Reach out to me today to get my 3 Pillars for Investing and, if you have less than 5 years until retirement, here are 5 things to do now:
- Get Organized- you may have assets and accounts spread out with multiple 401K’s at different companies that you left. Get all your things in one place. This doesn’t mean putting all your eggs in one basket. We’ll talk about diversifying your assets another time. What I mean is having everything where you can see it. An aggregator of sorts.
- Shift money to tax advantage accounts. Kids are out of the house and you may find you have extra money to put away. Are you maxing out your 401K? Reach out to me if you would like to know more about tax advantage accounts.
- Know your healthcare options. This has a big price tag. What does your employer offer compared to your spouses? What does medicare look like for you? Medicare has a lot of options to look at. Let me know if you are ready to take on the medicare system and we can see what plans best fit your situation.
- Income Allocation – where are the gaps in your retirement plan? When are you taking social security? We have calculators that can help determine what this looks like for you especially if you work with getting social security. You want to be away of the tax traps.
- Start living on a reduced amount to “practice” retirement. Not only will this help you save to build up, it will also help you see if you might want to get a part-time job or do what we call semi retire.
No matter where you are in your retirement journey we have tools that can help guide you through the road blocks.
Call or email us today to schedule a complimentary review or just to get more information. We also provide educational workshops and would love to invite you to an upcoming event. Our number is 972-546-0620. Email to: [email protected]
IMPORTANT DISCLOSURES Securities and insurance services offered through SagePoint Financial, Inc., member FINRA / SIPC . SPF is separately owned and other entities and/or marketing names, products or services referenced here are independent of SPF. Certain insurance offered by Gigi Lavergne is independent of SagePoint Financial, Inc., which is not affiliated with SagePoint Financial, Inc. Retire Guides and Dave Ramsey's Financial Peace University are not affiliated with SagePoint Financial, Inc. The information presented here is not specific to any individual's personal circumstances. To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances. These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable—we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.
Robo-Advisors vs. Human Financial Professionals
If an investor chooses a non-human financial advisor, what price could they end up paying?
Investors have a choice today that they did not have a decade ago. They can seek investing and retirement guidance from a human financial professional or put their invested assets in the hands of a robo-advisor.
What exactly is a robo-advisor? Robo-advisors are a class of financial advisors that provide financial advice or investment management online with moderate to minimal human intervention. They offer digital financial advice based on mathematical rules or algorithms. Signing up walks the user through a series of questions, and based on their responses, creates portfolio choices for the investor.1
Which begs the question: why would you trust your finances to a robo-advisor?
Robo-advisors are an attractive option for those just starting out investing. Some robo-advisor accounts offer very low minimums and fees and can be a solution for younger investors who want to "set it and forget it."1
Even so, less than 8% of investors responding to a survey from data analytics firm Hearts & Wallets said they had used a robo-advisor. Out of the $43 trillion in the North American wealth management market, an estimated $410 billion is invested with robo-advisors. That number may grow to $830 billion by 2024.2
The inherent problem is robo-advisors lack the human element to ask questions and dig deeper. Investors in all life stages appreciate when a financial professional takes time to understand them and their situation. A software program struggles to gain that understanding, even with input from a questionnaire.
The closer you get to retirement age, the more challenges you may face with a robo-advisor. The software continues to evolve and understand retirement investing. After 50, people have financial concerns far beyond investment yields. Investment management does not equal retirement preparation, estate strategies, or risk management.2
Many investors are taking advantage of a hybrid model that has emerged. Per the Hearts & Wallets research study, more than half of investors use robo-advisors only as an extension of their existing wealth manager. Once their balance reaches a certain threshold, investors may transition to working with an actual financial professional.2
It appears the traditional approach of working with a human financial professional may be hard to disrupt. The opportunity to draw on experience by having a conversation with a professional who has seen his or her clients go through the whole arc of retirement is essential.
These responses point to uncertainty about the process of financial and retirement strategies. The process is quite worthwhile, quite illuminating, and quite helpful. It is not just about improving "the numbers," it is also about discovering ways to sustain and enhance your quality of life.
Gigi Lavergne may be reached at (972) 546-0620 or [email protected]
This material was prepared by MarketingPro, INC., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note - investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting, or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax, or legal advice and may not be relied on for the purpose of avoiding any federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, a, AND nd should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.
Securities and investment advisory services offered through SagePoint Financial, Inc. (SPF), member FINRA/SIPC. SPF is separately owned and other entities and/or marketing names, products, or services referenced her are independent of SPF.
1. FORBES.COM, JULY 16, 2020
2. BUSINESSINSIDER.COM, SEPTEMBER 10, 2020
Efficient Tax Strategies & important tax birthdays
Tax efficiency is the measure of how much an investment’s return you keep after taxes. Knowing your tax bracket is a good starting point, however today’s tax code is quite complex. Click below to learn about 3 major strategies that investors should consider as well as important tax birthdays.
Tax efficiency is the measure of how much an investment’s return you keep after taxes. Knowing your tax bracket is a good starting point, however today’s tax code is quite complex. Understanding the tax code rules, managing how you generate income, choosing your investments with an eye on taxable income generation and properly utilizing potential tax deductions can help you become more tax efficient. In general, there are three major strategies that investors should consider when they are attempting to manage their federal income taxes.
- Managing Taxes - Choosing the most appropriate investments for your situation is always your best choice. When considering your investment plan it is always helpful to keep an eye on taxes. For example, an investor can choose to place investments that generate the most taxable income in their tax-advantaged accounts. Tax efficient investments like municipal bonds or stocks you hold for long periods of time could generate lower tax bills than taxable bonds. Managing taxes can potentially help investors save money.
- Deferring Taxes - A powerful strategy for many investors can be tax deferral. In the investment world, "tax deferred" refers to investments on which applicable taxes (typically income taxes and capital gains taxes) are paid at a future date instead of in the period in which they are incurred. One of the most popular forms of tax deferrals is the use of a retirement account. IRAs, 401(k)s, 403(b)s and SEP plans are some of the more common ways that investors save for retirement in a tax deferred account.
- Reducing Taxes -Tax deferred accounts and even tax efficient investments may reduce your tax bill, but they do not eliminate taxes. There are a few strategies available to investors that potentially create income that generally do not generate federal taxes. The list includes certain municipal bonds, Roth IRAs and some college savings accounts.
Placing investments in the most tax efficient account may sound complex, but sometimes the choices are easier. For example, some assets like equities you hold for a long term (that qualify for capital gains treatment) or municipal bonds may generate smaller tax bills than taxable bonds that generate ordinary income. You could consider holding those assets in a taxable account. While tax implications should not dictate your final decisions a qualified financial professional can keep you aware of their impact.
Currently, investors face a multi-dimensional tax system. There are seven different Federal ordinary income tax brackets (10%, 12%, 22%, 24%, 32%, 35% and 37%), three different capital gains tax brackets (0%, 15% and 20%), a 3.8% net investment tax income tax (NIIT), and Personal Exemption Phaseout (PEP) eliminated till 2025. Investors not considering the tax impacts of their financial decisions may end up keeping less than those who do.
When it comes to taxes, don’t procrastinate.
Many taxpayers do not look at the tax implications of their investment holdings. If you spend some time up front thinking about tax planning, you can potentially maximize your opportunities and minimize your tax bill. A skilled financial professional can help with this process. Knowledge, strong organization and proper planning can help you comply with the tax laws and at the same time could allow you to take advantage of tax saving options. If you have any questions regarding your situation, call us or bring them up during your next review.
Tax efficient strategies could include:
- Maximizing retirement accounts
- Charitable gifting
- Tax deferred and tax free accounts
- College savings accounts
- Roth IRA or Roth IRA conversions
- Tax loss harvesting to offset gains
- Matching investments with the right account type
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Age 50 |
Allows for catch-up contributions to retirement plans. |
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Age 55 |
Allows retirement plan distributions to terminated employees without the 10% penalty. |
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Age 59½ |
Allows distributions from an IRA, annuity, or other retirement plan without penalty. |
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Age 60 (if widowed) |
Allows for start of widow/widower benefits from Social Security. |
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Age 62 |
Allows for starting early Social Security benefits. |
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Age 65 |
Allows for enrollment in Medicare and the government drug plan. |
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Age 66-67 |
Allows for full retirement benefits from Social Security (depending on your year of birth). |
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Age 72 |
To avoid penalties, a mandatory required minimum distribution from retirement accounts must be taken no later than April 1st of the year following the year you turn age 72. |
The table above contains some important tax birthdays (after the age of 50) that can dramatically affect your income taxes. It is very important that as you plan for or reach any of these milestone birthdays that you work with a qualified financial professional who can review your specific situation to determine what tax reduction strategies would be best for you.
Here are more specifics on a few of those ages:
Age 50: If you are age 50 or older as of the end of the year, you can make an additional catch-up contribution to your 401(k) plan (up to $5,000 for 2020), and Section 403(b) tax deferred annuity plan (up to $6,500 for 2020). To do this you must first check to see that your plan permits catch-up contributions. You can also make an additional catch-up contribution (up to $1,000) to a traditional IRA or Roth IRA.
Age 55: If you permanently leave your job for any reason after you turn age 55, you can receive distributions from your former employer’s qualified retirement plans without being socked with a 10% premature withdrawal penalty tax. This is an exception to the general rule that distributions received before age 59 ½ are hit with a 10% penalty.
Age 59½: You can receive distributions from all types of tax-favored retirement plans and accounts (IRAs, 401(k)s, pensions, and the like) and from tax-deferred annuities without incurring the 10% premature withdrawal tax.
Age 72: You generally must begin taking annual Required Minimum Distributions (RMD) from your tax-favored retirement accounts (traditional IRAs, SEP accounts, 401(k) accounts, and the like. However, you do not need to take any RMD from your Roth IRA). You must calculate your minimum distribution and if you do not take out the minimum distribution, the difference between what you should have taken out and what you actually took out is usually subject to a 50% penalty!
These tax laws are very important because if you choose to ignore the RMD rules there can be dire consequences. Planning for this event is critical and provides a great opportunity to seek the advice of a knowledgeable professional. The IRS can assess a penalty tax equal to 50% of the shortfall between the amount that you should have withdrawn for the year and the amount that you actually took out. While these rules may seem simple, they are often more complex. For example, your first RMD is for the year you turn 72. However, you can postpone taking out your first RMD until as late as April 1st of the following year. If you chose that option, however, you must take two RMDs in that following year (one by April 1st, which is for the previous year) plus another by Dec. 31st (which is the one for the current year). There's one more exception. If you're still working after reaching age 72 and you don't own over 5% of the business that employs you, the tax law allows you to postpone taking any required minimum withdrawals from that employer's plans until after you've retired.
In today’s highly complex and rapidly changing world, investors are faced with an incredible array of investment choices. Many financial advisors are happy to help you invest your hard-earned dollars, but that is only one part of achieving your overall financial goals. Choosing an advisor that is well versed in certain critical areas or working with someone who has access to other professionals that may coordinate those areas for them can be helpful as you reach each of these important tax birthdays. If you have any questions on your situation call us or ask at your next review.
Interesting Tax Facts
- The Gettysburg Address is 269
- The Declaration of Independence is 1,337
- The Holy Bible is 773,000
- Tax law has grown from 11,400 words in 1913 to over 7 million words today.
- There are at least 480 different tax forms each with many pages of instructions.
- Even the easiest form, the 1040E, has 33 pages of instruction – all in fine print.
- American taxpayers spend $200 billion and 4 billion hours working to comply with federal taxes each year. That is more than it takes to produce every car, truck and van in the United States.
“The hardest thing in the world to understand is income tax.”
Albert Einstein
If you’d like a copy of this article sent to someone else who would benefit from this information, please contact us at 972-546-0620.
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Help us grow in 2021! This year, one of our goals is to offer our services to several other people just like you! Many of our best relationships have come from introductions from our clients. We would be honored if you would:
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This article is for informational purposes only. This information is not intended to be a substitute for specific individualized tax, legal or investment planning advice as individual situations will vary. For specific advice about your situation, please consult with a tax professional or financial professional.
Bonds are subject to market and interest rate risk if sold prior to maturity. Government bonds and Treasury bills are guaranteed by the US government as to the timely payment of principal and interest and, if held to maturity, offer a fixed rate of return and fixed principal value. The market value of corporate bonds will fluctuate, and if the bond is sold prior to maturity, the investor’s yield may differ from the advertised yield. All examples are hypothetical and not representative of any specific investment. Your results may vary.
The Roth IRA offers tax deferral on any earnings in the account. Withdrawals from the account may be tax free, as long as they are considered qualified. Limitations and restrictions may apply. Withdrawals prior to age 59 ½ may result in a 10% IRS penalty tax. Future tax laws can change at any time and may impact the benefits of Roth IRAs. Their tax treatment may change. Roth IRA account owners should consider the potential tax ramifications, age and contribution limits in regards to funding a Roth IRA.
This article provided by APFA, Inc. © APFA Inc.
Securities and investment advisory services offered through SagePoint Financial, Inc. (SPFI) member FINRA/SIPC. Insurance services offered by Gigi Lavergne are independent of SPFI. Lavergne Financial is not affiliated with SPFI or registered as a broker/dealer.
HANDLING MARKET VOLATILITY
Conventional wisdom says that what goes up must come down. But even if you view market volatility as a normal occurrence, it can be tough to handle when your money is at stake. Though there's no foolproof way to handle the ups and downs of the stock market, the following common-sense tips can help.
Conventional wisdom says that what goes up must come down. But even if you view market volatility as a normal occurrence, it can be tough to handle when your money is at stake. Though there's no foolproof way to handle the ups and downs of the stock market, the following common-sense tips can help.
Don't put your eggs all in one basket
Diversifying your investment portfolio is one of the key tools for trying to manage market volatility. Because asset classes often perform differently under different market conditions, spreading your assets across a variety of investments such as stocks, bonds, and cash alternatives has the potential to help reduce your overall risk. Ideally, a decline in one type of asset will be balanced out by a gain in another, though diversification can't eliminate the possibility of market loss.
One way to diversify your portfolio is through asset allocation. Asset allocation involves identifying the asset classes that are appropriate for you and allocating a certain percentage of your investment dollars to each class (e.g., 70% to stocks, 20% to bonds, 10% to cash alternatives). A worksheet or an interactive tool may suggest a model or sample allocation based on your investment objectives, risk tolerance level, and investment time horizon, but that shouldn't be a substitute for expert advice.
Focus on the forest, not on the trees
As the market goes up and down, it's easy to become too focused on day-to-day returns. Instead, keep your eyes on your long-term investing goals and your overall portfolio. Although only you can decide how much investment risk you can handle, if you still have years to invest, don't overestimate the effect of short-term price fluctuations on your portfolio.
Look before you leap
When the market goes down and investment losses pile up, you may be tempted to pull out of the stock market altogether and look for less volatile investments. The modest returns that typically accompany low-risk investments may seem attractive when more risky investments are posting negative returns.
But before you leap into a different investment strategy, make sure you're doing it for the right reasons. How you choose to invest your money should be consistent with your goals and time horizon.
For instance, putting a larger percentage of your investment dollars into vehicles that offer asset preservation and liquidity (the opportunity to easily access your funds) may be the right strategy for you if your investment goals are short term and you'll need the money soon, or if you're growing close to reaching a long-term goal such as retirement. But if you still have years to invest, keep in mind that stocks have historically outperformed stable-value investments over time, although past performance is no guarantee of future results. If you move most or all of your investment dollars into conservative investments, you've not only locked in any losses you might have, but you've also sacrificed the potential for higher returns. Investments seeking to achieve higher rates of return also involve a higher degree of risk.
Look for the silver lining
A down market, like every cloud, has a silver lining. The silver lining of a down market is the opportunity to buy shares of stock at lower prices.
One of the ways you can do this is by using dollar-cost averaging. With dollar-cost averaging, you don't try to "time the market" by buying shares at the moment when the price is lowest. In fact, you don't worry about price at all. Instead, you invest a specific amount of money at regular intervals over time. When the price is higher, your investment dollars buy fewer shares of an investment, but when the price is lower, the same dollar amount will buy you more shares. A workplace savings plan, such as a 401(k) plan in which the same amount is deducted from each paycheck and invested through the plan, is one of the most well-known examples of dollar cost averaging in action.
For example, let's say that you decided to invest $300 each month. As the illustration shows, your regular monthly investment of $300 bought more shares when the price was low and fewer shares when the price was high:
Although dollar-cost averaging can't guarantee you a profit or avoid a loss, a regular fixed dollar investment may result in a lower average price per share over time, assuming you continue to invest through all types of market conditions.
(This hypothetical example is for illustrative purposes only and does not represent the performance of any particular investment. Actual results will vary.)
Making dollar-cost averaging work for you
- Get started as soon as possible. The longer you have to ride out the ups and downs of the market, the more opportunity you have to build a sizable investment account over time.
- Stick with it. Dollar-cost averaging is a long-term investment strategy. Make sure you have the financial resources and the discipline to invest continuously through all types of market conditions, regardless of price fluctuations.
- Take advantage of automatic deductions. Having your investment contributions deducted and invested automatically makes the process easy and convenient.
Don't stick your head in the sand
While focusing too much on short-term gains or losses is unwise, so is ignoring your investments. You should check your portfolio at least once a year — more frequently if the market is particularly volatile or when there have been significant changes in your life. You may need to rebalance your portfolio to bring it back in line with your investment goals and risk tolerance. Rebalancing involves selling some investments in order to buy others. Investors should keep in mind that selling investments could result in a tax liability. Don't hesitate to get expert help if you need it to decide which investment options are right for you.
Don't count your chickens before they hatch
As the market recovers from a down cycle, elation quickly sets in. If the upswing lasts long enough, it's easy to believe that investing in the stock market is a sure thing. But, of course, it never is. As many investors have learned the hard way, becoming overly optimistic about investing during the good times can be as detrimental as worrying too much during the bad times. The right approach during all kinds of markets is to be realistic. Have a plan, stick with it, and strike a comfortable balance between risk and return.
IMPORTANT DISCLOSURES Securities and insurance services offered through SagePoint Financial, Inc., member FINRA / SIPC . SPF is separately owned and other entities and/or marketing names, products or services referenced here are independent of SPF. Certain insurance offered by Gigi Lavergne is independent of SagePoint Financial, Inc., which is not affiliated with SagePoint Financial, Inc. Retire Guides and Dave Ramsey's Financial Peace University are not affiliated with SagePoint Financial, Inc. Broadridge Investor Communication Solutions, Inc. does not provide investment, tax, or legal advice. The information presented here is not specific to any individual's personal circumstances. To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances. These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable—we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice. This message and any attachments contain information, which may be confidential and/or privileged, and is intended for use only by the intended recipient, any review; copying, distribution or use of this transmission is strictly prohibited. If you have received this transmission in error, please (i) notify the sender immediately and (ii) destroy all copies of this message. If you do not wish to receive marketing emails from this sender, please reply to this email with the word REMOVE in the subject line.
10 Roth IRA Strategies to hedge the risk of higher taxes
The current tax environment and potential for higher tax rates in the future create an opportunity for tax-smart planning.
Investing with Confidence
In a time when many unscrupulous individuals are looking for opportunities to defraud investors, it is more important than ever to be educated in the potential dangers.