When I decided to start a blog, it wasn’t the idea of writing that was most daunting to me. It was the idea of naming the blog that almost gave me hives. If you know me personally, you know that creativity, in this vein, isn’t a strong suit of mine. Fortunately, I managed to come… Continue reading Weird Name for a Financial Blog
The Mega Backdoor Roth is a common planning strategy for high income earners looking to allocate money to Roth accounts. In most cases, their income exceeds the contribution threshold, which disqualifies them from making Roth IRA contributions. High-income earners can circumvent the income limitations by utilizing the Backdoor Roth strategy. While the backdoor Roth gets… Continue reading How to Use The Mega Backdoor Roth Strategy
Since marginal tax rates are at a historical low, Roth conversions are all the hype right now. Many investors are doing their research to decide if they should jump on the conversion train. If you're in this group or are just learning about the strategy, here are three reasons to consider a Roth conversion. You… Continue reading 3 Reasons to Consider a Roth Conversion
In RCs and I Ain’t Talking Cars, I explained what a Roth conversion is, how to complete the process, and why you may want to consider it. But I didn't talk about the backdoor Roth. While it's technically a Roth conversion, the execution is slightly different. If you’re unfamiliar with the differences between Traditional IRAs… Continue reading The Trojan Horse of IRAs – The Backdoor Roth
One of the most frequent questions I hear from investors is ‘should I contribute to tax-deferred accounts, like a Traditional -401k, Individual Retirement Account (IRA), or Simplified Employee Pension (SEP) or should I contribute to my Roth -401k or IRA?’ Before we get there, let’s do a quick refresher on both options. Tax-Deferred Accounts You… Continue reading Traditional or Roth – Which Should I Choose?
Early this year, I signed up for my first two ultramarathons, a 50k (31miles) and a 50-mile race. An ultramarathon (ultra) is any race over the traditional marathon distance of 26.2 miles. In the process of training, I’ve discovered that these longer races are the perfect length of time to let my mind wander. This… Continue reading Life Isn’t a Marathon, It’s an Ultra
During market turmoil, many investors turn to news sources for answers – advice, guidance, or a new idea to capitalize on the turmoil. This can be a dangerous strategy. Enter stage right, Hertz. A few days ago, I was watching CNBC when a breaking news alert came across the bottom of the screen. It said,… Continue reading Don’t Buy the Headlines
"If social distancing is successful it will be viewed by most people as unnecessary in retrospect. This is the essence of risk management, and why so few successfully manage risk" - Jess Bost In asset management, allocation and diversification are the lifeblood of risk management. Your portfolio should include different types of assets to reduce… Continue reading Risk in Retrospect
After completing phase 1 of dive training, I received orders to Panama City, FL where I would start Phase 2 at the Naval Diving and Salvage Training Center (NDSTC). Phase 2 of training is roughly six months. The training consists of classroom, controlled diving evolutions in pools and tanks, and open water diving. The attrition… Continue reading Becoming An Army Diver – Part 2
When someone is looking at lending options, occasionally their 401(k) is one of them. Why wouldn’t you take a loan from your 401(k); you’re technically paying yourself interest, right? Unfortunately, it’s not that straightforward. In most cases, an investor can distribute money from their 401(k) as a loan. The loan value can be up to… Continue reading 401(k) Loans – Are You Really Paying Yourself Interest?
Many people own a trust as part of their estate plan. Prior to 2020, it was common to have the beneficiary of an IRA be a trust. A See-Through Trust allows individuals to pass IRAs, via a trust, to their trust beneficiaries. There are several reasons to name a trust as the beneficiary of an… Continue reading How the SECURE Act Could be Detrimental to Your Beneficiaries