Articles

Welcome to our research center! We've put together a library of information on important financial topics that we believe you'll find helpful.

Simply click on one of the general financial topics below and you'll find a selection of easy-to-understand information sheets about related financial concepts and strategies. This information is updated regularly to reflect the latest facts, figures, legislation, and economic trends.

Market Commentary

Estates & Trusts

What Key Estate Planning Tools Should I Know About?

Wills and trusts allow you to spell out how you would like your property distributed, but they also go beyond that.
How Can a Living Trust Help Me Control My Estate?

A living trust can help control the distribution of your estate upon death.

Retirement

What Is a SIMPLE?

The SIMPLE plan may appeal to small business owners as it is easy to set up, administer, and allows for a tax deduction.
What Is a Roth 401(k)?

A Roth 401(k) is funded with after-tax money, and allows for tax- and penalty-free withdrawal of earnings if requirements are met.
What Is a Profit-Sharing Plan?

Profit-sharing plans give employees a share in the profits of a company and can help to fund their retirements.
What Is a Money Purchase Pension Plan?

A money purchase plan is a retirement plan where employer contributions are based on a fixed percentage of compensation.
What Is a 403(b) Plan?

A 403(b) plan is a tax-deferred retirement savings plan that can only be offered by a 501(c)(3) tax-exempt entity.
Why Do People Buy Annuities?

Annuities, an insurance-based financial vehicle, can provide many benefits that retirement investors might want.
How Much Do I Need to Save?

Many realize it’s important to save for retirement, but knowing exactly how much to save is another issue altogether.
What Does the Changing Pension Landscape Mean for Retirement?

With the changing pension landscape, it is important to take charge of your own retirement security.
Unforgettable Birthdays

There are key dates after you turn 59½ that can impact your taxes, Medicare eligibility, and retirement benefits.
Should You Bank Your Retirement on Your Business?

Allocating too much of your retirement investments to one company, even your own, can be a risky proposition.
What Is a Traditional IRA?

If you do not participate in an employer-sponsored retirement plan, you might consider a traditional IRA.
What Is a 401(k) Plan?

401(k) employer-sponsored retirement plans have many benefits, including that the funds accumulate tax-deferred.
Save Now or Save Later?

If you start saving for retirement sooner, the more money you are likely to accumulate and possibly retire sooner.
What Is a Roth IRA?

Qualified Roth IRA distributions in retirement are free of federal income tax and aren’t included in gross income.

Tax Planning

What Is the Capital Gain Tax?

Capital gains are profits realized from the sale of assets; a tax is triggered only when an asset is sold, not held.
What Is the Estate Tax?

Everything you own, whatever the form of ownership, is subject to federal, and possibly state, estate taxes.
What Is the Gift Tax?

The federal gift tax applies to gifts of property or money while the donor is living.
How Much Money Can I Put Into My IRA or Employer-Sponsored Retirement Plan?

IRAs and employer-sponsored retirement plans are subject to annual contribution limits set by the federal government.
What Is a Required Minimum Distribution?

Required minimum distribution is the annual amount that must be withdrawn from a qualified retirement plan/account.
What Are the Tax Benefits of Charitable Trusts?

For the grantor, there are a few potential tax benefits that can come with setting up a charitable trust.
When Must Taxes Be Paid on IRA and Employer-Sponsored Retirement Funds?

With traditional IRAs and most employer-sponsored retirement plans, taxes are not payable until funds are withdrawn.
What Happens If I Withdraw Money from My Tax-Deferred Investments Before Age 59½

Tax-deferred retirement account withdrawals before age 59½ generally triggers a 10% federal income tax penalty.
What Is Tax Deferral?

There can be a substantial benefit to deferring taxes as long as possible.
How Can I Benefit from Tax-Advantaged Investments?

Many traditional tax-advantaged investment strategies have gone away, but there are still some alternatives.
What Tax Deductions Are Still Available to Me?

Changes to the tax code have left a few key deductions for itemizers, like medical, dental and some business expenses.

Investing

What Are Dividends?

It is important to understand how dividends (taxable payments to shareholders) fit with your long-term goals.
What Is an Exchange-Traded Fund?

ETFs have unique attributes and attempt to track all types of indexes, industries, or commodities.
How Are Growth and Value Stocks Different?

The labels growth and value reflect different approaches that can be used when making investment decisions.
How Are Mutual Funds Taxed?

Mutual fund taxes can be cumbersome, but there are ways to help mitigate the amount of taxes you may owe.
What Is Stock?

Before investing in stocks, it is important to understand some of the basics and the risks involved in owning stocks.
How Do Mutual Funds and Stocks Differ?

The difference between purchasing an individual stock versus shares in a mutual fund to potentially earn dividends.
What Is a Mutual Fund?

A mutual fund is a collection of stocks, bonds, and other securities with certain benefits and risks.
What Investment Risks Should I Know About?

Understanding different types of investment risk can help investors manage their money more effectively.
What Is Asset Allocation?

Asset allocation is a method used to help manage investment risk; it does not guarantee a profit or protect against investment loss.
How Can I Save for My Child’s College Education?

There are several funding methods for a child's college education including mutual funds and Section 529 plans.
529 Lesson Plan: High Scores for 529 Plans

529 plans are tax-advantaged savings plans that generally allow people of any income level to contribute.

Cash Management

How Does Inflation Affect Me?

Historically, one of the best ways to fight the effects of inflation has been to utilize growth-oriented investments.

Risk Management

Why Purchase Life Insurance?

If you have a family who relies on your income, it is important to have life insurance protection.
Why Are Annuities Considered an Insurance Product?

An annuity is a contract between you and an insurance company to pay you future income in exchange for premiums you pay.
What Is Term Life Insurance?

Term life insurance differs from permanent forms of life insurance in that it offers temporary protection.
How Can I Insure My Future?

To help you choose insurance wisely, determine how much coverage and what kind of policy is best for your situation.
What Is the Difference Between an HMO and a PPO?

Selecting health insurance is often one of the most important decisions you will make. Do you know the different types?
What Are the Basic Types of Life Insurance?

When selecting a life insurance policy, examine all your options, as well as the positives and negatives of each type.

Lisa A. Schomer,CFP(R)

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Articles

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