Author - James Shagawat, CFP®, ChFC®, MBA

1
What Is The Best Retirement Plan For Your Small Business?
2
Asset Allocation With No Reservation
3
Bonds Away!
4
How Many Lumps Do You Want
5
5 Things You Need To Know About The New Tax Laws

What Is The Best Retirement Plan For Your Small Business?

Self-employed people have several special retirement plans from which to choose, including a Simplified Employee Pension (SEP), a Keogh, a SIMPLE, or an individual 401(k). All of the plans allow you to deduct your contributions from your income, and the money grows tax deferred in retirement.

SEP-IRA

The SEP is designed for self-employed individuals and small business owners, typically with 25 employees or less.

SEPs work well for family-run businesses. All must be given the same match. Once you hire outside of the family, it begins to not work as well.

SEP is the appropriate plan option when the employer …

Read More

Asset Allocation With No Reservation

Did you review your portfolio this year?

Before coming into this business, I thought I was diversified by having my investments in a Vanguard S&P500 index mutual fund. I figured. Hey, I’m across 500 stocks, that’s diversification. In reality, all my holdings were in one asset class, large-cap domestic stocks. Real diversification includes many categories of investments including but not limited to small stocks, large stocks, international stocks and bonds.

As far as asset-class winners and losers, the last time large stocks gave the highest return was in 1998. Since then, bonds and international stocks performed better. So why diversify? …

Read More

Bonds Away!

Joey: “So, Ross. If you had a million dollars, what’s the first thing you’d buy?” 

Ross: “I’d probably get some municipal bonds, and then put the rest of the money in the bank and live off the interest.” 

Joey: “Well, we’ve heard from Dr. Fun.” 

–        From Friends, Season 3 Episode 18: “The One with the Hypnosis Tape”

A bond is an investment to receive the repayment of a “loan” at a certain interest rate. The way you invest in bonds matters now more than ever because of low interest rates.

Bond mutual funds are attractive for ease of use, …

Read More

How Many Lumps Do You Want

Deciding whether to take a lump sum or monthly payments from your defined benefit plan can be one of the most important financial decisions of your retirement.  

A defined-benefit plan is the promise of a monthly salary substitute after retirement. The employer funds the plan fully.

The amount you’ll receive from pension depends, first of all, on whether you work for a company that offers one. Most of us don’t. In fact, only 35 percent of Americans have such a benefit. In 1975, 88 percent of workers with workplace retirement plans had defined-benefit pensions.

If you are among the lucky …

Read More

5 Things You Need To Know About The New Tax Laws

When I was twenty years old in college, I calculated that the biggest lifetime expense I’ll have is not a mortgage or my college education but it is income taxes. From then on, I read everything I could about the tax code and how to get the most after-tax mileage out of every dollar I earn and save. The new tax law is the “American Tax Relief Act of 2012”. Essentially, the new act extends many of the tax breaks we have been using for years.

There are new income thresholds for ‘high income earners’. High income earners are joint …

Read More

Copyright 2014 FiGuide.com   About Us   Contact Us   Our Advisors       Login