Zero-Based Budgeting Applied to Personal Finance

If you have ever run a businesses or worked in corporate finance, you are likely familiar with the concept of zero-based budgeting (ZBB) as an alternative to traditional budgeting.  The traditional form of budgeting - and the one most commonly used in corporate America - uses the amount spent last year in each category (or [...]

Asset Location: The High Cost Mistakes People Make

Earlier this month, we published an article explaining why investors would be well served to organize their portfolios like their kitchens.  This process, one that the finance industry calls ‘asset location’, is simply intended to make the most of the existing tax code.  The IRS sets the rules with different tax treatment for different account types [...]

Asset Location: Organize Your Portfolio Like Your Kitchen

My family’s kitchen will not be profiled on HGTV as a model of organization.  We face the practical limitations of 25-year old builder-grade cabinets and constrained space.  We also face the reality confronted by many parents of young children.  That is, the focus of children emptying a clean dishwasher is on getting it done quickly [...]

Potential Death of Backdoor Roth, Stretch IRA, and Other Financial Planning Strategies

President Obama unveiled the Fiscal Year 2017 Budget last Tuesday (February 9th) which included several unexpected first-time proposals in addition to many crackdowns and “loophole closures” that have become annually recurring proposals.  Experts contend there is little likelihood of any substantial tax change in the final year of the President’s term.  However, we could see [...]

Best and Worst Questions to Ask a Financial Advisor

There should be natural skepticism when a financial advisor creates a list of the best and worst questions to ask a financial advisor.  It sounds a little like game show fixing of the 1950s where some contestants knew the questions before they were asked.  However, experience provides a unique advantage.  We have heard insightful questions and we have [...]

Roth 401(k) or Traditional 401(k)?

An important issue that often arises for working professionals seeking to save for retirement is whether to utilize a Traditional 401(k) or Roth 401(k) for retirement savings.  Although this dilemma may seem utterly confusing and resultantly receive less thought than the decision of whether to accept an old co-worker’s Facebook friend request, it can have a [...]

11 Retirement Plan and IRA Beneficiary Designation Mistakes

A married couple pays a local attorney to draw up estate documents.  The attorney drafts wills and lays out the well-conceived plan for testamentary trusts to be created upon death, distributing assets just as the husband and wife desire.  The couple signs the documents with appropriate witnesses and goes home to the relief that their estate [...]