Articles and Videos

Capitalize

Are you doing the right thing to retire successfully? Interview with Dr. David Blanchett – Season 1: Episode 1

January 28, 2021

It was quite a ride in 2020. But regardless of where the markets are now, or have been, the financial goals for many people likely remain the same: enjoy retirement to the fullest, and don’t run out of money, before they run out of time. Of course, there are no guarantees that every one of your goals will be realized; life just doesn’t work that way. The key is to set yourself up so that the potential for success is there — and to enlist the help of someone who works toward making it happen. What are some of the most common mistakes people make in their financial portfolio?  If you have 10, 15 or more years to retirement, what are the steps YOU should take to strive to manage financial success? Dr. David Blanchett, CFP®,CFA® , and head of the retirement research division of Morningstar Investment Management, spoke recently with Lucia Capital Group advisor Chris Panagiotu, CFP® , CRPS® , about market strategies for 2021, maintaining focus on your goals, and how a financial advisor may add potential value to your overall retirement savings.

Managing Your Financial Future

Is a Roth Option in Your 401(k) Worth Considering?- Season 4: Episode 10

January 26, 2021

When it comes to retirement savings, you have a fair number of choices available to you. One of the more popular options comes in the form of your employer’s 401(k) plan. And these days, a growing number of employers are offering a Roth option to that plan. The question for some people is whether the… View Article

Managing Your Financial Future

How the Pandemic Affected Your Finances- Season 4: Episode 9

January 19, 2021

If it seems to you like 2020 was an unusual year, you’re right – in more ways than one!  Of particular concern to many people was their financial situation.  Whether it was dealing with a job loss or change of employment, working from home, unemployment benefits, stimulus checks, or something else entirely, there’s little question… View Article

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Is It Smart to Pay Off Your Mortgage?

January 7, 2021

If you’ve ever considered taking some extra money and paying down (or paying off) your home mortgage, you may have found that arriving at a decision wasn’t as easy as you thought. The choice usually is this: either put those funds toward the mortgage, or invest it and hope for greater net returns. There are two aspects to consider here: the emotional and the rational. And those two are often in conflict with one another.  How do you decide what to do?

Managing Your Financial Future

The Triple Tax Benefits of an HSA- Season 4: Episode 8

January 5, 2021

If there’s one thing most people can agree on when it comes to money, it’s probably this: we don’t like to pay taxes. If there’s a permissible way to avoid a higher tax bill, common sense would tell us that it’s wise to consider it. A Roth IRA, for example, gives us the potential for… View Article

Managing Your Financial Future

A Better Way to Take Your RMDs?- Season 4: Episode 7

December 22, 2020

Required minimum distributions (RMDs) are just a fact of life for most owners of an IRA or retirement plan account.  While RMDs are suspended for 2020, under normal circumstances, you typically must begin taking minimum withdrawals from those accounts (in most cases) at age 72. Given these circumstances, if you’re charitably inclined, you may be able to take advantage of a little-known strategy known as a Qualified Charitable Distribution from your IRA, and perhaps get some tax advantages that you otherwise would not have had. How does it work, and who can potentially use it? 

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Living Trust or Will? What You Need to Consider

December 17, 2020

When you’ve worked hard over your lifetime and you’ve done all you can to be a conscientious saver, it stands to reason that you’d want some control over what happens to your assets after you’re gone. Having an estate plan may ensure that your assets are distributed according to your wishes. But what should that estate plan include? Do you need a standard will, or should you have something that offers you a few more options? These are questions that should be considered by anyone who’s concerned about potential conflicts and costs for their heirs. Questions, of course, need answers.

Managing Your Financial Future

Let’s Strategize With Your IRA- Season 4: Episode 6

December 15, 2020

IRA’s, whether Traditional or Roth, have unique characteristics. Depending on the type of IRA you have, you may be able to manage your taxes or your income from your IRA by managing the taxes on the withdrawals. Roth IRA distributions are tax-free when the rules for taking withdrawals are all met. So sometimes the tricky part is getting the money into the Roth IRA in the first place. Do you make a regular contribution to your Roth? Should you convert your Traditional to a Roth?  When is it a good idea to do either of these, and when is it not?

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Beware the High-Yield Siren Song

December 10, 2020

Once upon a time in America, a married couple could afford to have one spouse stay at home and take care of domestic responsibilities while the other spouse went out and earned the income.  And while that scenario does still exist today, it’s far less common than it was 30 or 40 years ago. It would seem plausible that having two incomes instead of one would make a family more financially secure.  This is true, but only to an extent – especially for affluent households.  In fact, having two working spouses may in some cases have an adverse effect on a family’s financial situation.

Managing Your Financial Future

Dealing With Taxes on Your Social Security Benefits- Season 4: Episode 5

December 8, 2020

Taxes are a fact of life for most people.  Even your Social Security benefits – for which you had the pleasure of paying taxes to receive – are subject to taxation under certain circumstances. And this can hit you unexpectedly, putting a sizable dent in your benefit income. What to do about this?  First thing is to recognize when and how your Social Security benefits may become taxable to you.  This is where planning can play a key role, especially before you begin to take required minimum distributions at age 72.

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The Dual-Income Dilemma

December 3, 2020

Once upon a time in America, a married couple could afford to have one spouse stay at home and take care of domestic responsibilities while the other spouse went out and earned the income.  And while that scenario does still exist today, it’s far less common than it was 30 or 40 years ago. It would seem plausible that having two incomes instead of one would make a family more financially secure.  This is true, but only to an extent – especially for affluent households.  In fact, having two working spouses may in some cases have an adverse effect on a family’s financial situation. Are two incomes really better than one? 

Managing Your Financial Future

Don’t Make the Mistake of “Chasing Yield”- Season 4: Episode 4

December 1, 2020

If there’s one “rule of thumb” that every investor should know, it’s that there is a distinct correlation between risk and reward.  The greater the potential reward for an investment, the higher the risk.   Conversely, lower-risk investments tend to produce lower rates of return. This is something that many investors often forget — especially those who are new to the game.  If you pay attention only to a particular investment’s prior performance without looking at the potential risks involved, you may be in for a really unpleasant surprise down the road. Purchasing investments based solely on their rate of return is what’s known as “chasing yield,” and it’s a mistake that can and should be avoided.