I have designed hundreds of Financial Plans. Most of these plans are built around having different buckets of money. This article will explain those. Unfortunately, most only have 2. They are missing the 3rd.
According to the US Department of Education, the total amount owed in federal student loans was $1.37 trillion in 2017, and education costs continue to rise.1 Many people pursuing a college education may find themselves taking out student loans and may also wonder if they should refinance their student loans to save money on interest.
The new year is here, and your resolutions are probably well underway. While you may set goals to get more physically fit, it is also important to consider your financial fitness going into the new year. If your finances are not where you want them to be, or maybe they need a little tune-up, the six tips below will help you get your finances in shape.
Reaching retirement can feel like crossing the finish line at the end of a 30-, 40- or even 50-year-long marathon. Therefore, many of us look forward to the endless vacation days and the rest and relaxation of retirement. Although a life with no alarm clock is something we dream about, the truth is that retirement really throws a wrench in how we view our money, and the switch from receiving structured, employment-driven income to drawing down investment accounts can be harder than we realize.
When it comes to compensation, many companies are now providing equity and stock-based benefits to their employees. Each type of benefit has its own set of rules, and it’s essential to understand the nuances of each type. One form of equity-based compensation is restricted stock units (RSUs).
The estate planning process can feel overwhelming and forever ongoing - especially if you’re taking it on alone. As you try to address every possible question or pain point your heirs may encounter, here are a few questions of your own to consider.
There are a lot of questions about President Biden’s Build Back Better plan and potential tax law changes, including an adjustment to capital gains taxes. One of the proposals Congress is considering sets the top rate for taxing capital gains at 25%, up from 20% under current law. Another would raise the capital gains tax rate to 39.6% for taxpayers earning $1 million or more. Still another would make the change to capital gains tax retroactive, with a start date of April 2021.
To help raise revenue to pay for President Biden’s Build Back Better Plan, Congress is considering a number of tax law changes, including adjusting estate taxes. One of the proposals would reduce the estate tax exemption to anywhere between $3.5 and $5 million, with an effective date of January 1, 2022. Another proposal would bring new rules to grantor trusts, including a change to how life insurance held in a trust would be taxed.
When it comes to saving for retirement, the power of compounding interest should never be underestimated. And as a responsible investor, it can be helpful to know how long it would take to double your investment at a fixed rate of return. The Rule of 72 can be used as a quick rule of thumb to help determine this answer.
Did you know that October is National Estate Planning Awareness Month? The importance of proper estate planning shouldn’t be understated, as it can be a lasting gift for your loved ones after your passing.
At different periods of time, the stock market appears to favor one of two stock types - value stocks or growth stocks. Since the United States' 2008 market downturn, for example, the market has primarily favored growth stocks. The Canadian stock exchange has appeared to favor growth stocks in the past as well. But some big names are speculating that value stocks could be making a comeback due in part to big changes caused by the pandemic. These speculations, of course, do not guarantee performance.
You understand the importance of estate planning, but sometimes it’s a question of where to start. No matter your net worth, you need a plan set in place that can help your heirs understand your final wishes and distribute your estate properly. As you prepare to discuss with your financial advisor, here are a few tips and considerations to keep in mind.
