-
Read more: Managing Unused 529 Plan Funds: Options When College Isn’t the Path
A 529 plan is a tax-advantaged savings vehicle designed primarily to fund qualified education expenses, such as tuition, fees, books, and room and board at eligible institutions. Contributions grow tax-free, and withdrawals for qualified purposes are exempt from federal income taxes, with many states offering additional incentives like tax deductions. However, life doesn’t always follow…
-
Read more: The Strategic Window for Roth IRA Conversions: Act Before RMDs Lock You In
One of the most powerful yet underused retirement planning moves is converting portions of a Traditional IRA to a Roth IRA during the years when your taxable income is unusually low. These “low-income” years create empty space in the lower federal tax brackets—space you can deliberately fill by triggering conversion income at today’s known tax…
-
Read more: The Smart Move: Setting Up Roth IRAs for Your Kids’ College and Your Early Retirement
As working parents, with two young children, you’re likely juggling a busy life—balancing careers, family time, and planning for the future. You’ve already taken a proactive step by setting up 529 college savings plans for your kids, ensuring they’ll have funds for higher education. But what if there’s a way to cover potential gaps in…
-
Read more: Nvidia: New Signals of Big Upside Ahead
With AI-related stocks experiencing dramatic price increases (see table below) there is increasing fear of an AI bubble (that could soon burst). However, considering the five new signals of growth for leading AI chip maker, Nvidia (NVDA), the risks of a bubble seem overblown. After reviewing the new signals and risks, as well as Nvidia’s…
-
Read more: Is Private Equity Even Worth It?
A lot of investors think Private Equity (“PE”) is some magical, uncorrelated, rich-person recipe for wealth. But in reality, it’s based on the same economy as public equities (i.e. stocks), the low correlation is largely a mirage (PE just provides less frequent/delayed valuations), the fees and expenses are higher, and the operational and opportunity costs…
-
Read more: Navigating Inherited IRAs: What You Need to Know
So, you’ve inherited an IRA—great, but now what? The rules for taking money out are tricky, but let’s walk through it to make things clearer. From a high level, it all depends on when you inherited the IRA, who you are to the original owner, and whether it’s a Traditional or Roth IRA. Plus, it…
-
Read more: Roth IRA Conversion: Benefits, Candidates, and Optimal Timing
A Roth IRA conversion involves transferring funds from a traditional IRA or similar pre-tax account to a Roth IRA, requiring payment of income taxes on the converted amount in the year of conversion. This strategy offers significant advantages for certain individuals when timed strategically. Below, I highlight the benefits, ideal candidates, and optimal timing. Benefits…
-
Read more: SCHD: When The AI ‘Flash Mob’ Is Not For You
The Schwab U.S. Dividend Equity ETF (SCHD) is increasingly popular (total assets have zoomed to over $70 billion), yet it has significantly underperformed the market and especially the tech-heavy Nasdaq 100. This report reviews the SCHD strategy, including its attractive qualities and big risks, and then concludes with my strong opinion on investing. About SCHD (Attractive Qualities) Lower-volatility blue-chip…
-
Read more: Bloom Energy: High-Growth Industrials Stock to Benefit from Datacenter Boom
The electrical equipment company I review in this report has emerged as a key player in the Artificial Intelligence (AI) energy boom (thanks to its solid oxide fuel cell technology, which provides efficient, low-emission, power solutions to hyperscalers). This report reviews the business, growth trajectory, valuation and risks, and then concludes with my strong opinion…
-
Read more: Attractive 9.9% Yield BDC, VC/Pre-IPO Growth
One of my biggest concerns for income-focused investors is opportunity cost. Specifically, they often concentrate their nest eggs in lower-growth sectors of the economy (because that’s where the dividends are) and/or in distressed companies (because that’s where the high-yield/junk bonds are at) and thereby sacrifice total returns. However, the internally-managed BDC I review in this…
Information presented is for educational purposes only and is not an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to first consult with your investment adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.