Monday, December 26, 2016

Being smart with $$ -- Low Income This Year? Maybe Convert.


Are you in a lower-than-usual tax bracket this year?  Consider a Roth IRA conversion.  This involves moving money from a pre-tax IRA to a Roth (after-tax) IRA and watching your money grow tax free until you need it in retirement.  No tax will be due in the future but you do need to come up with money today to pay taxes.  However, if your tax bracket is low this year then it may be worthwhile.  Ask me for more details. And hurry because it must be done by Friday to count for 2016.

- Larry Pike, CFA, Client Priority Financial Advisors LLC

- www.clientpriority.com 

Friday, December 16, 2016

Being smart with $$ - Look Forward Not Backward

"I'm not selling my losing stock until I get back to even." You've heard people say this right? But is that a way to determine what to own? Your cost basis has nothing to do with what's an appropriate investment for you or whether a position has value. Does the stock seem cheap or expensive at its current level? If may have fallen because of bad news or bad earnings and may not be cheap even at the lower level. But the tax loss does have value (if not in a retirement account.) So take the loss and invest in what's right for you. Still love your oil holding but want the loss? Sell it and buy a similar oil stock to take the loss and still have your desired exposure. (But don't sell and rebuy the same stock or the loss won't count). Remember, where you bought an investment might have little to do with what it's worth today so look forward not backward when deciding what to own.
- Larry Pike, CFA, Client Priority Financial Advisors LLC
- www.clientpriority.com

Sunday, December 11, 2016

Being smart with $$ - Take your RMDs. Inherited Accounts Too

Have you taken your Required Minimum Distributions for this year on your IRA? If you're not yet in your 70's you're off the hook. But If you inherited an IRA then you still must. Don't delay. The penalties can be severe for not doing so. Call me with questions.