Irrevocable Life Insurance Trusts (ILIT)
Wednesday, September 11
An Irrevocable Life Insurance Trust (ILIT) is a type of trust specifically designed to hold a life insurance policy. Here’s a detailed breakdown of how it works, when and why it should be used, and the potential downsides: How It Works: 1. Creation: An ILIT is established by a grantor who trans...
Understanding Tax Lot Methods: An Essential Guide for Investors
Friday, August 23
When managing an investment portfolio, one of the crucial considerations is understanding how your assets are taxed. One of the key concepts in this area is the tax lot method, which determines how the cost basis of your investments is calculated when you sell a security. This has significant imp...
Understanding Rule 72(t) SEPP for Early Access to Your 401(k) or IRA
Tuesday, August 13
Accessing retirement funds before age 59½ can be a challenging decision due to the hefty penalties usually associated with early withdrawals. However, Rule 72(t) offers a way to take distributions from your 401(k) or IRA without facing the usual 10% early withdrawal penalty. How Rule 72(t) works...
Guide to Donor-Advised Funds (DAFs)
Monday, August 05
Donor-Advised Funds (DAFs) have gained popularity among philanthropists for their flexibility, tax advantages, and ease of use. If you're considering setting up a DAF, this guide will walk you through the process, help you determine if a DAF is right for you, and highlight the benefits of this ch...
Understanding the Rule of 72: A Simple Guide to Investment Returns
Friday, July 26
What is the Rule of 72? The Rule of 72 is a straightforward formula used in finance to estimate the number of years required to double the value of an investment at a fixed annual rate of interest. This rule states that you can divide the number 72 by your annual rate of return to get an approxi...
Understanding the Difference Between a Budget and a Financial Plan
Thursday, July 18
Managing your finances can sometimes feel like navigating a complex maze. Two essential tools that can guide you through are a budget and a financial plan. Although they are often used interchangeably, they serve different purposes. Let's discuss the distinctions between the two and explore how t...