Small-Cap Value Funds: An Investment Strategy for Long-term Vision
Small-Cap Value Funds are part of a diversified portfolio for a very important reason - this article attempts to illustrate what Small Cap Value funds are and their importance in your portfolio. First, let’s discuss the Cap reference. Cap is derived from the term market capitalization which is the market’s estimated value of the total company’s public stock. Stocks are classified into several levels of market capitalization – generally: Small, Mid, and Large. Small-cap stocks are shares of companies where the total market value ranges between $300 million to $2 billion while Large-cap stocks are shares of companies where the...
5 Biggest Tax Planning Mistakes
And How You Can Avoid Them Can you pay less tax? As you file your tax return for 2022, the last thing you want to think about is next year’s tax return. However, it's never too early to start tax planning. Even if you have a handle on your finances, there’s a good chance you don’t know about all your options to make sure you are making the wisest decisions regarding your tax planning. We’re here to answer your tax planning questions. At Financial Strategies Inc. (FSI), we want to help you pay taxes strategically– so you are paying less,...
It’s a Bear Market – Should I Run?
Absolutely not. They say if you encounter a bear, you should never run away; rather stand your ground and stay calm.1 The same is true for a bear market. While it may be scary, panicking and running is not your best option. Investors who withdraw their money from the stock market may miss some of the decline, but they also risk missing the recovery and gains that historically follow a bear market. The Risk of Running Away Peter Lynch once stated, “Far more money has been lost by investors trying to anticipate corrections, than lost in the corrections themselves.”2 In...
Qualified Charitable Distributions
What is a QCD? If you are over the age of 70 ½ and charitably inclined, a QCD (Qualified Charitable Distribution) is a strategy to discuss with your financial professional. A Qualified Charitable Distribution is a distribution from an IRA that goes directly to a qualified charity. Up to $100,000 per year may be given through a QCD. Other limits may apply if you are still working and contributing to your IRA. Who is eligible to give using a QCD? To be eligible to give via a QCD, you must be at least age 70 ½. QCD’s can be given...
3 Reasons Why You Should Choose a Fee-Only Financial Planner
Trust is the foundation of any strong relationship, and your relationship with your financial advisor should not be any different. With so many financial advisors out there, how do you know who to trust? The best way to ensure that your financial advisor is making recommendations that are truly right for you is to work with a Fee-only advisor such as Financial Strategies, Inc. Fee-only advisors deserve your trust for these three reasons: 1. We always have the best interest of the client in mind. Fee-only advisors have the fiduciary responsibility to always act in the clients’ best interest without...
What should I know about Medicare?
If you are considering retiring soon or have already retired, it is important to have a health insurance plan. Many people depend on employer health insurance, so what do you do when you retire? Although Medicare is a well-known program, you may be wondering how to apply and what is covered. How to apply for Medicare Medicare is available to people age 65 and over, and to some people under age 65 with qualifying disabilities. Even if you are not yet retired, you can apply for Medicare. You can apply online through the Social Security Administration by filling out the...
The Silver Lining to Market Declines: Tax-Loss Harvesting
Business Concept It may sound crazy, but there can be some benefit to market declines. While no one is ever hoping to lose money, market volatility is inevitable. The good news is, if you work with a Wealth Management firm such as Financial Strategies, Inc., we can help you implement a Tax Loss Harvesting strategy in which you may be able to use the decline to your benefit by reducing your tax liability. What is Tax-Loss Harvesting? A Tax-Loss occurs when a security such as a stock or a mutual fund is sold for less than its purchase...
Considering a Roth Conversion?
financial analysis concept What is a Roth Conversion? Roth conversions are a way of transferring funds from a retirement account, such as a Traditional IRA or SIMPLE IRA, to a Roth IRA. In most cases, the amount transferred is taxed in the year of the conversion. Typically, taxes are paid on funds when transferred to the Roth account, but once withdrawn, neither the principle nor the gains are taxed. This allows you years of tax-free gains during your retirement. How to Do a Roth Conversion The easiest way to do a Roth conversion is through a trustee to trustee...
Coronavirus Relief for Small Business Owners
Recent legislation like the Families First Coronavirus Response Act and the Coronavirus, Aid, Relief, and Economic Security (CARES) Act have been signed into action to encourage business owners to maintain their staff and keep paying wages through tough economic times. As a small business owner, here’s what you need to know: Payroll tax credit Payroll credit for required paid family leave The Emergency Family and Medical Leave Expansion Act (EFMLEA) requires employers with fewer than 500 employees to give leave to employees who need to take care of a family member experiencing Coronavirus symptoms or take care of a child...
What the CARES Act Could Do For You
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is an economic relief bill that is pumping $2.2 trillion into the economy to counter act the affects the pandemic has had on our economy. The intent is to help individuals and businesses who have economic hardships due to the virus. There are three main ways the CARES act could give you and your family economic relief. You May Receive a Stimulus Check Approximately $300 billion will be distributed to citizens through checks of up to $1,200. How much you will receive depends on your Adjusted Gross Income (AGI) from 2019....