Client Update Spring 2021
Dear Clients and Friends, I hope this letter finds you and your family healthy and doing well. As the uncertainty caused by the pandemic and other factors continues, I wanted to keep you updated on our latest thinking.
Does an IRA Really Perform Better than a Brokerage Account?
We all know an IRA account is better than a brokerage account over the long-term (10+ years), but how much better? I ran the numbers and here is the result: The same investments in an IRA or 401(k) account will result in
Making Side Income? Maximize Contributions with the Solo 401(K)
The Solo 401(K) is ideal for people who have self-employment income and would like to contribute more than 20% of their income. Unlike the SEP IRA, the Solo 401(k) allows “employee-side” contributions ($19,500) in addition to “employer-side contributions,” which are limited to 20% of net income. The overall limit is the same ($58,000), but if net income is less than $303,000, the Solo 401(K) will result in higher contributions and deductions.
Client Update 2020
Dear clients, I hope this update finds you and your family healthy and eager for the coming new year. Below is a list of notable planning items and reminders for the 2020 tax year.