Articles

Green soccer field from above

A Guide to the 72(q)/72(t) Distribution Method

When planning for retirement, tax-advantaged accounts are some of the most common tools that individuals utilize as a vehicle for achieving their long-term goals. This includes IRAs, 401(k)s, 403(b)s, and non-qualified annuities. Each of these accounts have their own unique benefits and limitations, but one thing they all have in common is that they require you to reach age 59 ½ before being able to take penalty-free distributions. However, Section 72(q)/72(t) of the tax code provides a distribution method that will allow you the flexibility to draw on those funds, penalty-free, before the age of 59 ½.

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Saving for a Child… Which Account Type is Right for You?

So, you have decided to help your child or grandchild start saving and investing. That’s fantastic! It’s the first step on their road to financial success. But now you must decide what type of account to use, and you are confronted with a tangled mess of options.

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American flag waving in the wind against clear light blue sky

In Defense of America

On any given day, you might patrol with 15-20 American soldiers from your outpost through the grape fields doing your best not to trigger a booby trap that could blow off one of your legs. After making your way through the orchards, you might have ended up in a maze-like village composed of interconnected mud-walled compounds. The “streets” (although they were more like paths), might contain some mix of garbage, human waste, dead animals, or worse. It wasn’t uncommon to see children beating a stray dog (or each other) with rocks or sticks. From there, you might search a few

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Basket of eggs

Does Diversification Still Matter?

“Is the 60/40 Portfolio dead?!” I have seen some variant of this as an article title every few months for years. It’s a click-bait title and it is intriguing. The argument usually made in these articles is that investors can no longer rely on a diversified portfolio built primarily of traditional investment assets such as stocks and bonds to support retirement goals. I respectfully disagree with that assessment and today I’ll tell you why.

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The Emotional Biases that Drive Us

Investor Jim O’Shaughnessy said that “human nature is the last sustainable edge” due to its remarkable consistency over thousands of years. We may no longer be trading tulips in Amsterdam or speculating on the ticker tapes in bucket shops, but from a behavioral and emotional standpoint, we do not act differently than our forefathers.

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Lemon Tree

T-Bills: The Real Yield

We’re getting a lot of questions lately regarding Treasury Bills, also called T-Bills. Often, clients want to know why they shouldn’t just purchase a 6-month T-Bill at 5% yield. While parking some cash in a 6-month T-Bill can be a financially appropriate move, let’s talk about why it should only be part of one’s overall investment strategy.

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Man jogging up stairs in forest

The Slow Burn

This week, the Federal Reserve raised interest rates another .25% in its battle against inflation. In the weeks, and then ultimately days (in light of banking turmoil), leading up to the announcement, everyone everywhere seemed to take it upon themselves to offer Fed Chair Jerome Powell their own version of advice. And there were pretty sound arguments on both sides of the debate. Ultimately, the Fed did what we thought it would do—continue on its path of rate increases, albeit slower than what felt likely even just a few weeks prior (.50%).

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State of Banking

The State of Banking: How Concerned Should We Be?

Three banks have made headlines in recent days, Silvergate Bank and its holding company Silvergate Capital Corp (NYSE: SI), Signature Bank (Nasdaq: SBNY), and most notably Silicon Valley Bank and its holding company SVB Financial Group (Nasdaq: SIVB).  Silvergate Bank is a major bank of the cryptocurrency community and announced on March 8, 2023 that it would be winding down operations with plans to liquidate voluntarily.[1]  On Friday, March 10, 2023 California banking regulators announced that the FDIC would take over the liquidation of Silicon Valley Bank holding company SVB Financial Group.[2]  On Sunday night, March 12, New York banking regulators announced that Signature Bank would be placed into receivership of the FDIC.[3]

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The Stockdale Paradox

The Stockdale Paradox

Admiral James Stockdale was the highest-ranking American taken prisoner during the Vietnam War after his A-4 Skyhawk fighter was shot down over North Vietnam. Stockdale ejected, breaking a bone in his back. Upon landing in a remote village, he badly dislocated his knee, which subsequently went untreated. Shortly thereafter, he was captured by North Vietnamese forces.

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Diving In Again: Roth 2.0

Diving In Again: Roth 2.0

It seems the only things discussed these days in financial publications are interest rates, inflation, and labor markets. It makes sense. The disconnect between the stories the Fed officials are telling and the one the market seems to be sketching makes for a mesmerizing experience akin to staring into a campfire. It is hard to look away. One of these parties will have to be wrong, but which one?

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