The next step is for them to work with an advisor whose experience, business model, training and education allow clients to believe absolutely in their advisors’ objectivity and professionalism in managing their portfolios, he added. “There is no behavior that is irrational around investing when we understand [clients’] underlying thoughts and beliefs,” said Rick Kahler,
The new federal tax-reform law made some substantial changes to the U.S. tax code and obviously has a major impact on American taxpayers’ financial plans. We spoke with several members of the CNBC Digital Financial Advisor Council and had them weigh in on strategies they are recommending to their clients based on the new tax
Now that the Trump administration’s highly anticipated new tax legislation is airing out, some living in high-tax states such as California, New Jersey or New York are probably weighing the pros and cons of staying put or pulling up stakes and retiring to lower-tax states, like Florida or Texas. I am actually seeing plenty of
Preparing the next generation for leadership includes guidance on managing resources and wealth. This lesson is gender neutral despite the gender-specific reference made by King T’Chaka. In another poignant scene T’Challa’s mother, Queen Ramonda, also affirmed the parental and community influence in grooming T’Challa for his ascension to the throne. The state of affairs for
Gen X is the first generation to lose several retirement benefits the previous generations had taken for granted. It’s the first generation that can no longer rely on employer pensions for a secure retirement, and will be the first generation unable to rely on full Social Security benefits, which are on track to be depleted
You might find it bizarre that people are actually falling for the scam. Well, don’t be. Taxpayers are taking the bait and losing significant amounts of money, according to the Treasury Inspector General for Tax Administration. The Treasury Department reports that more than 10,000 victims have collectively paid in excess of $54 million as a
Americans have more than doubled their spending on so-called “drunk shopping”— or making purchases under the influence of alcohol — say researchers at personal finance comparison website Finder.com. According to the site’s 2018 survey, U.S. drinkers now spend an average $447.57 per person a year while blitzed, up from $206 a person last year, totaling
If you’re a financial advisor who is already serving as a fiduciary, you need to be using that to your competitive advantage when working with clients. “Most clients have no clue that right now the law doesn’t require advisors to put their clients’ best interests first, like a doctor, like a lawyer,” Josh Robbins, chief
What does the current market environment favor? One sector is financials, as measured by Financial Select Sector SPDR ETF (XLF) and iShares U.S. Regional Banks ETF (IAT), which are up by approximately 5 percent and 8 percent, respectively, this year. There are a few important lessons I’d like to share with investors about rising interest
John J. Miller Photogrpahy | Getty Images In Indianapolis, the nation’s 15th largest city, homeowners need only earn the median area income in order to afford the median priced home. Record-low inventory is causing home prices to rise across the U.S., so higher salaries are now required to afford monthly housing payments, according to SmartAsset.
However, for many people with hefty state and local tax bills, the new federal tax law gives municipal bonds some appeal. The new law caps the state and local tax deduction that can be claimed on federal returns at $10,000. For many households, that cap will outweigh any potential benefits from other changes in the
A period of very calm and quiet trading has lulled investors into a sense of complacency that, by some measures, has not been seen in years, according to some financial advisors. The recent sharp movements in markets have been a wake-up call for complacent investors, experts say. From February 2016-January 2018, volatility in the stock
PeopleImages | Getty Images Whether a variable annuity is a good option depends on all sorts of related financial considerations, including other sources of income in retirement and your individual situation and goals. It isn’t every day that an older client might consult experts to help him become impoverished as he prepares for long-term care.
It’s important to think about how you to deal with the bequest versus letting it just happen, according to Mendels, because moving too quickly can result in poor decisions, such as spending it all or taking advice that may be regretted later. It can be hard to say no, he warned, so plan on how
Amid the latest stock market volatility, a renewed interest in diversification and rising inflation are putting more focus on commodities. After being regarded as moribund in recent years, the category, led by precious metals, delivered positive returns in 2017 for the second straight year in a row, as measured by the broad Bloomberg Commodity Index.
The agency next issued a warning to taxpayers on Feb. 13 after reports of the incidents ”mushroomed” from a few hundred potential victims nationwide to thousands, said Terry Lemons, an agency spokesman. ”This one is really worrisome to us,” Mr. Lemons said. ”Scammers are getting a government deposit into your account.” In the past few
Bitcoin had its coming-out party in 2017. With all the excitement and opportunities around cryptcurrency, it might be easy to forget about crypto taxation. Almost every bitcoin or other “altcoin” transaction — mining, spending, trading, exchanging, air drops, etc. — will likely be a taxable event for U.S. tax purposes. Without a doubt, 2018 will
When people start investing money, one of the exercises they engage in is determining their own risk tolerance. Usually, this process is handled by filling out some sort of questionnaire, such as the one below, that has multiple-choice questions: If you had $10,000 to invest, would you: • Be willing to chance earning 30 percent
In the wake of the new law, Rick Kahler, CFP, owner of Kahler Financial Group, received some questions that stunned him. “I had two clients ask me if I would start charging commissions so they can deduct them pretax,” he said. “I am fee-only, and my fees are no longer deductible. Both of their accountants
The Tax Cuts and Jobs Act passed by Congress late last year represents the most significant changes to the tax code since 1986. The changes are biggest for corporate taxpayers. C corps will see their statutory tax rate decline from 35 percent to 21 percent, and pass-through corporate entities — partnerships, sole proprietorships and S
As we move farther and farther down the road toward a cashless society, consumers can use credit cards to pay for nearly everything, everywhere these days. But just because you can doesn’t mean you necessarily should, warns credit reporting agency Experian. Outstanding card debt has now hit its highest point ever, surpassing $1 trillion in
Getty Images Chris Mazdzer of the United States reacts during the Luge Team Relay on day six of the PyeongChang 2018 Winter Olympic Games at Olympic Sliding Centre on February 15, 2018 in Pyeongchang-gun, South Korea. Fresh off of an Olympic win, luge athlete Chris Mazdzer is already eyeing a second career in financial planning.
Investors looking to evaluate potential financial advisors can avail themselves of many lists of sample questions, such as those suggested by the Financial Industry Regulatory Authority, for interviewing practitioners. But just how to interview references, as is frequently suggested, is less clear. What kinds of questions should a reference expect? “Getting a reference from a
But the blockchain technology still has some significant kinks to work out, according to technology experts in the financial advisory industry. Aaron Klein, CEO of Riskalyze, a technology company that helps advisors assess clients’ risk tolerance, said he is “long-term optimistic, short-term pessimistic on blockchain.” “Here is the challenge with blockchain today: It is handling
If anything, Buffett, the chairman and CEO of Berkshire Hathaway, is famous for the ultimate statement on dip buying: Be fearful when others are greedy and greedy when others are fearful. But these Buffett-isms may mask the fact that, throughout his life, Buffett has offered many wise words on just how much inflation can ding
Technologically advanced and social media-connected financial advisors are what Gen X and millennial clients want. So says a study from Global X, which found that strong technological capabilities would make it more likely for 93 percent of millennials and 71 percent of Gen X investors to work with an advisor. Advisors have been successfully attracting
People today are living their lives online, but many estate plans fail to make provisions for that. Photographs that are typically stored on social media websites are vulnerable, Edelman said, as many social media websites will shutter an account once they find out a user has died. “You have to incorporate into the estate plan
These funds — whose assets start out in riskier assets like stocks and automatically shift into more conservative investments as you approach retirement — also are often the default option when an employee does not specify investment choices in their 401(k) plan. More than $1 trillion is parked in target-date funds, according to research firm
You may be tempted to move your investments to cash in light of the more than 1,100 point-drop the Dow Jones industrial average suffered in one day that put the index in correction territory. Yet financial advisors say you shouldn’t let this development spook you from staying the course when it comes to your investment
Should you pay off that mortgage before heading into retirement? For the average American, owning a home outright is a major objective in life from both a financial and a psychological perspective. However, it may not always be the best strategy. “The question comes up all the time with clients and for most preretirees —