401(k) Rollover Opportunities and Pitfalls

Month: June 2016

June 30, 2016  |  

401(k) Rollover Opportunities and Pitfalls

Key Takeaways Consider all of the pros and cons of a rollover before making a move. Very high 401(k) fees may be a good reason to roll your account over to an IRA. Use “trustee to trustee” rollovers to avoid inadvertent tax traps. Suppose you’re about to receive a distribution from your 401(k) plan, and you’re considering rolling it over to a traditional IRA. While these transactions are normally straightforward and trouble free, there are […]

, , ,

June 23, 2016  |  

What Does Being a Fiduciary Really Mean?

The question of whether your financial advisor is a fiduciary has come up a lot in the financial media recently.  But what does that actually mean? As defined by the Cornell University Law Review, a fiduciary duty is “…a legal duty to act solely in another party’s interests.  Parties owing this duty are called fiduciaries…Fiduciaries may not profit from their relationship with their principals unless they have the principals’ express informed consent.  They also have […]

, ,

June 13, 2016  |  

What Is the True Value of a Financial Advisor?

Most people would consider Vanguard to be the prototypical “do it yourself” investment house.  However, Vanguard recently published a very interesting white paper summarizing how a good advisor can potentially add about 3 percent in net returns to a client’s portfolio every year.  The chart below illustrates how that potential 3 percent can be generated: While we agree these are many of the areas in which an advisor can add value, there are other important considerations, […]

, ,

June 1, 2016  |  

Is Airbnb a Source of Tax-Free Income for Property Owners? It Depends.

The rising popularity of online home sharing sites such as Airbnb, Homeaway and FlipKey have made vacations and other out-of-town trips more affordable than ever for travelers. If your home-town is hosting a major concert, sporting event or world leader’s visit like the Pope’s recent stop in Philadelphia, owners can rent out their residences at attractive prices to savvy travelers who don’t want to go the traditional hotel/motel route. While the home-sharing sites mentioned in […]

, , ,