Author - Anthony Farella, CFP®

1
The Million Dollar Question: Pension Lump-Sum Or An Annuity?
2
401(k) Fee Disclosure Coming To Your Statement
3
A Financial Advisor’s Greatest Value
4
Top 4 Investment Resolutions for 2011
5
How To Tell If Converting To a Roth IRA Makes Sense For You

The Million Dollar Question: Pension Lump-Sum Or An Annuity?

If you are fortunate enough to have a defined benefit plan at work, you may have a very important upcoming decision to make.  The task of deciding between a lifetime monthly payment or a seven figure one-time payment can be daunting. To compound the complexities, there are various different annuity options factoring in spousal payments and fixed term guaranteed payments.

Before stressing over the details, the first step is to understand the advantages and disadvantages of each option.   The table below objectively compares the two:

Annuity payments Lump-sum payments
Your monthly income is fixed, you have no investment decisions, and
Read More

401(k) Fee Disclosure Coming To Your Statement

Your next 401(k) statement may not look much different, but it will contain some very interesting and powerful information.  During the last several years, increased focus has been given to the expenses and fees charged to retirement plan participants.  The Department of Labor (DOL) recently published regulations under the Employee Retirement Income Security Act of 1974 (ERISA), as amended recently by congress.  The new regulations require retirement plan sponsors to disclose the fees associated with your retirement plan including all 401(k) plans.

The retirement savings landscape has changed dramatically over the last 2 decades.  In 1983, 88% of workers were …

Read More

A Financial Advisor’s Greatest Value

One of the many benefits of owning an iPhone is free subscriptions to interesting podcasts.  Recently, I listened to Matt Ridley give a talk at the Long Now Foundation’s Seminar of Long Term Thinking called “Deep Optimism”.  Ridley is the author of The Rational Optimist. In his book he argues that we all collectively prosper through trade and that we only productively trade with those we trust.

How Much Time Does it Take?

In his talk on “Deep Optimism”, Ridley presented a well-researched and documented case for progress in all areas of our lives. In one very illuminating …

Read More

Top 4 Investment Resolutions for 2011

At the start of each new year, many of us make resolutions to improve our lifestyles.  It’s a natural time to take stock of the past year and look to make some beneficial changes for the future.  Tops on most lists are shedding pounds, getting fit, quitting bad habits, or learning something new.

In this spirit I’ve come up with my top 4 investment resolutions for 2011.

1) Ignore economic forecasts

We are constantly bombarded with contradictory economic predictions.  Markets are forward looking and incorporate all known information into a security’s price.  Generally good economic news, such as we see …

Read More

How To Tell If Converting To a Roth IRA Makes Sense For You

Individuals are permitted to convert their Traditional IRA’s (“TIRA”) to Roth IRA’s if they meet current income limitations set by the IRS.  In 2010 the income limits are removed allowing anyone to convert.  I set out to examine when OR if a client should convert their traditional IRA to a Roth IRA.

Facts:

1)  Individuals converting to Roth IRA’s must add the amount of conversion to their income and pay federal and state taxes on the converted amount at their highest marginal tax rates.

2)  For any conversions in 2010, tax liability can be spread equally over the 2011 and …

Read More

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