Posts by Keith Singer

Modified endowment contract update

Over the past few years, many of you have taken advantage of liquid modified endowment contracts as a way to safely grow your money without stock market or interest rate risk. These insurance contracts, which have similar properties to deferred annuities, can be designed without upfront loads or back-end surrender charges and with full liquidity.…

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Are Qualified Retirement Plans a Bad Deal for Business Owners?

I recently met with two owners of a manufacturing business, who were each contributing approximately $30,000 into their company’s 401(k) plan. They indicated one of the main reasons for setting up their company’s retirement plan was to fund their own retirement on a tax favored basis. Although the owners were each saving almost $10,000 annually…

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Protecting your Most Valuable Asset

For those who are working full time trying to accumulate wealth, their ability to work and make money is often their most valuable asset. For instance, someone who is 35 and earning $150,000 per year will typically earn almost $10 million dollars by the time they are age 65. This statistic assumes an annual 5…

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Should you do a partial Roth IRA conversion?

Almost everyone who I meet with has at least some money in an Individual Retirement Account. Conventional wisdom encourages people to save as much as they can into retirement accounts because contributions get a tax deduction and grow tax deferred. However, despite these great tax benefits, ordinary income tax is due on all funds when…

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Financial resolutions

At the beginning of each year, many people resolve to change their lives for the better. To those who are looking to improve their financial situation, please find some useful recommendations:   Increase your systematic savings: If you are still working and you are trying to achieve financial goals such as retirement, funding college expenses…

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Bear market blues

If you have been paying attention to your investment accounts, you may have noticed that the stock market has fallen dramatically this quarter. The S&P 500 closed at 2,924 on Oct. 1, and by Christmas it was down to 2,351. This represents an almost 20 percent decrease. Consequently, the value of your investments likely significantly…

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Is cash a thing again?

For many years, clients stopped asking how much they would earn on their money market accounts because for quite a while, money market accounts weren’t paying any interest at all. However, with the Federal Reserve raising interest rates over the past year, our clients can now earn north of 2 percent on their money market…

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Market Volatility

The last quarter of 2018 has been very volatile for stocks, compared to the last several years of relative calm. This has made many investors nervous and potentially caused them to rethink their investment strategy. However, any investor who is surprised by recent volatility doesn’t really understand the historical movement of stock markets.   It…

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Will your Kids Blow their Inheritance?

For most people who spend a lifetime prudently managing their wealth and their spending habits, the thought of their children recklessly and rapidly blowing their inheritance is disconcerting. According to a study by the National Endowment for Financial Education, 70 percent of all people who suddenly receive a large sum of money will use it…

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Conservation Easements

There is a section in the IRS tax code, designed to preserve certain U.S. lands, permitting wealthy investors to significantly reduce their income tax liability. Landowners who are willing to grant a permanent restriction on the use of their property to a qualified organization exclusively for conservation purposes will get a big tax deduction even…

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