Hello! One of my investing commandments is "Thou shalt diversify". For the stock portion of your investment portfolio this means buying large company stocks and small company stocks from all over the world. Read on to learn more about the "punch" that small company stocks can give your portfolio. Best, Michelle Morris, CFP®, EA BRIO Financial Planning I recently reviewed a prospect's investment portfolio. She had a lot of different mutual funds in several different accounts. A mutual fund is a convenient way to buy a "basket" of many stocks or bonds. Because she had a lot of funds in a lot of accounts she thought she was well …
Dear Young Person: I want to talk about your biggest asset.
Hello! In financial planning we do a lot of "asset inventories". A tally of everything of value the client owns. Cash, real estate, stocks, bonds, 401k plans, IRA's, life insurance policies, cars, etc. A young person may have very little of these types of assets and in fact may have more liabilities (debts) than assets. But young people have one very important asset that those of us of a certain age are rapidly losing -- Read on to learn more! Best, Michelle Morris, CFP®, EA BRIO Financial Planning Recently I was talking to a young woman in her mid-twenties about her assets. In this context I was referring to "financial assets"* which are things of monetary …
What is a stock? What is a bond?
Hello! Recently a client told me her husband liked me, but did not like to come meet with me because he didn't understand what I was talking about. Ouch. I've resolved not to assume people know what I'm talking about. Today, I define a few common investment terms. Read on to learn more! Best, Michelle Morris, CFP®, EA BRIO Financial Planning When my son had braces, I dutifully drove him 127 times to the orthodontist's office. At the end of almost every visit, the orthodontic assistant would summon me and tell me what they did. There were wire changes, which had different colors or was …
Supporting your adult child or elderly parent? You could save on taxes!
Hello! Has your adult child boomeranged back to the nest and having trouble finding work? Are you helping out your parents or other people financially? You may be able to claim them as dependents on your tax return and/or deduct the medical expenses you pay for them. Read on to learn more. Best, Michelle Morris, CFP®, EA BRIO Financial Planning Recently I helped two clients amend prior year taxes to claim two adult children as dependents in one case and an elderly father in another case. The combined savings was thousands. These scenarios are increasingly common and many people aren't aware of the dependent rules or that claiming someone other …
12 Things to Know About ROTH IRAs
Hello! Roth IRAs are one type of account that can help you reach your financial goals. However, there can be pitfalls if you don't know all the rules. Read on to learn more. Best, Michelle Morris, CFP®, EA BRIO Financial Planning ROTH IRAs are 20 years old next year! They are named after Senator William Roth of Delaware, their chief legislative sponsor. A ROTH IRA is an investment vehicle focused on retirement savings. It is funded with after-tax dollars. This means you do not get an up-front tax deduction. You can contribute $5,500/year to a ROTH IRA; $6,500 if you are 50 or older. (One of the benefits of …
