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November Performance Dashboard

By | December 2nd, 2019|Markets|

  • Amid optimism that U.S.-China trade issues will be resolved amicably, U.S. equities showed strength in November. The S&P 500® was up 4%, its biggest monthly gain since June, while the S&P SmallCap 600® and the S&P MidCap 400® gained 3%.
  • International markets also gained, with the S&P Developed Ex-U.S BMI up 1%.
  • The resurgence in Value continued, as Enhanced Value was the best performing factor. Year-to-date, Quality was the top performing factor index, up an impressive 29%; not unrelatedly, Information Technology was the best performing sector.
  • dashboard-us-2019-11

Video series: Retirement Readiness #3 – How should I Invest?

By | November 26th, 2019|DFA, Dimensional Fund Advisors, Markets, retirement|

How much retirement income can YOUR portfolio support? Have you considered interest rate and inflation risk? Focusing on a final number doesn’t tell the whole story. It’s important to have discussions with a financial planner about income streams and cost of living in your retirement years.

Top 8 Reasons to Choose a Solo 401k – SIGN UP BELOW BY 12/31/19!

By | November 21st, 2019|Markets|

8 REASONS TO BEAT THE DEADLINE! SIGN UP FOR A CONSULTATION HERE!

I want to set up a Solo 401k and Save!

Please contact me to set up a consultation, and help me set up my Solo 401k before the December 31st deadline!


Solo 401ks are cost-effective, powerful retirement vehicles. They are designed for self-employed workers who have no employees other than a spouse. They allow small-business owners to stash away much more for retirement than they could stash in a traditional IRA or a SEP IRA, while avoiding the expense and paperwork of setting up a full traditional 401(k) plan.

1) Generous Contribution Limits

For the plan year 2019, a participant under the age of 50 can make a maximum employee deferral in the amount of $19,000. This is also called an “employee” contribution. Age 50+ can contribute up to $25,000.

2) Ability to Self-Direct

With a Solo 401k, you can act as your own trustee. This eliminates the need for a bank or trust company to serve as a trustee. The plan participant (you) is in control of the plan.

We have established many Solo 401k’s for individuals in our firm. Charles Schwab’s user friendly platform makes it easy to save aggressively.

3) Profit Sharing Provision

On top of the allowed employee deferral, the participant can also contribute up to 25 percent of total compensation to a profit-sharing component of the plan. This is often called an “employer” contribution.

Total combined plan contributions (employer and employee) cannot exceed the lower of $57,000 or 100 percent of compensation (plus any catch-up contributions if over the age of 50).

4) Contributions are Elective

Contributions to a solo 401k plan are entirely discretionary. A participant has the option of contributing to the plan and can reduce or even suspend plan contributions as necessary.

5) Ability to Take Out a Loan

A solo 401k allows participants to borrow up to $50,000 or 50% of their vested account value (whichever is lower). This loan can be made for any purpose with a payback period of up to 5 years.

This offers significant flexibility and provides flexibility against having to take a withdrawal that would be subject to a tax penalty. This flexibility is in contrast to an IRA that offers no participant loan feature.

6) Minimal Tax Filing Requirements

There are no annual filing requirements unless the solo 401k plan exceeds $250,000 in assets. The Solo 401k is extremely easy to administer.

7) Roth Contributions

Solo 401ks can include a Roth component. Just like Roth IRA contributions, Roth 401k contributions are made on an after-tax basis. Unlike a pre-tax contribution, there is no upfront tax deduction. However, a distribution of Roth 401k contributions (along with earnings) is tax-free.

Individual taxpayers are disallowed from contributing to a Roth IRA based on income restrictions. These same restrictions do not apply to Roth 401k contributions. A Roth 401k contribution has the same limitation as an employee deferral of $19,000. This is substantially more than the limit of a Roth IRA.

8) Rollover Provision

One key advantage is rollover flexibility. A solo 401k can accept rollovers from other retirement accounts, such as an IRA, a SEP, or a 401k from a prior employer. However, Roth IRAs cannot be rolled into a solo 401k.

SIGN UP FOR A FREE CONSULTATION BEFORE DECEMBER 31ST!

Video series: Retirement Readiness #2 – How Much Should I Save for Retirement?

By | November 19th, 2019|DFA, Dimensional Fund Advisors, retirement|

Check out this second installment of the Retirement Readiness series! How much should you save for retirement? Marlena Lee, PhD, discusses important factors that can help you meet your goals, like determining your savings rate, monitoring your progress, and making adjustments over time. This My Retirement Income Calculator can help give you a sense of how much income your savings could provide in retirement.

Video series: Retirement Readiness #1 – Monitoring Your Progress

By | November 14th, 2019|Dimensional Fund Advisors, Markets, retirement|

When planning for retirement, it’s important to keep in mind how much spending your savings can support. The decisions you make today can help improve your retirement readiness.

Beyond determining how much money to save, it’s useful to think about retirement in terms of how much income you’ll need after you stop working. Dimensional’s My Retirement Income Calculator can help give you a sense of how much income your savings could provide in retirement.

Enjoy our Retirement Readiness series to help you set and achieve your retirement goals.

Announcing our Retirement Services Division

By | November 5th, 2019|retirement|

Grimme release

What Happens When you Fail at Market Timing?

By | November 4th, 2019|DFA, Dimensional Fund Advisors, Markets|

 

The impact of missing just a few of the market’s best days can be profound, as this look at a hypothetical investment in the stocks that make up the S&P 500 Index shows. A hypothetical $1,000 turns into $138,908 from 1970 through the end of August 2019. Miss the S&P 500’s five best days and that’s $90,171. Miss the 25 best days and the return dwindles to $32,763. There’s no proven way to time the market—targeting the best days or moving to the sidelines to avoid the worst—so history argues for staying put through good times and bad. Investing for the long term helps to ensure that you’re in the position to capture what the market has to offer.

October Performance Dashboard

By | November 1st, 2019|Markets|

  • U.S. equities posted gains in October, bolstered by optimism around trade talks with China, strong earnings, and easing from the Fed, although Chairman Powell signaled a likely pause on future rate cuts. The S&P 500® and the S&P SmallCap 600® both gained 2%, while the S&P MidCap 400® gained 1%.
  • International markets also gained, with the S&P Developed Ex-U.S. and the S&P Emerging BMI both up 4%.
  • Enhanced Value continued to outperform in October, and Value again outperformed Growth. Year-to-date, Low Volatility remains the top performing factor index, up an impressive 26%.
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Kids’ future or yours? 6 Tips to Balance College and Retirement

By | October 8th, 2019|College Planning, retirement|

Get the facts about saving for retirement and college at the same time. Understanding that funding each is equally important, and that even a late start is a good start. Every dollar saved is a dollar you don’t have to borrow.

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Quarterly Market Review Q3 – 2019

By | October 8th, 2019|DFA, Dimensional Fund Advisors, Markets, Quarterly Market Review|

This report features world capital market performance and a timeline of events for the past quarter. It begins with a global overview, then features the returns of stock and bond asset classes in the US and international markets.

The report also illustrates the impact of globally diversified portfolios and features a quarterly topic.

Click HERE to download this quarter’s breakdown!

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