INSIGHTS

The tax-free growth that Roth Individual Retirement Accounts (IRAs) offer have long made them a desirable planning tool, but paying taxes on the initial contribution or conversion can be cost prohibitive, which is why many people prioritize tax-deferred savings for retirement. However, three significant pieces of legislation present unique tax planning considerations in 2020 that take advantage of the many benefits of a Roth IRA.

The COVID-19 pandemic has affected numerous aspects of our daily lives. We are isolated from friends and family, forced to change long-awaited plans and unsure of what the economic future holds. Things that felt important six weeks ago may suddenly feel unimportant or even be forgotten entirely, but it is critical to maintain a long-term perspective when it comes to investing and planning, even in the face of short-term disruption. During these stressful and uncharted times, it is important to stay focused on preserving both your physical and mental well-being, along with your financial well-being.

The outbreak of COVID-19 has led to a global health pandemic that is having an enormous impact across the world, and our hearts go out to everyone who has been impacted.  At DHGWA, our passion is to enrich our clients' lives by providing financial clarity and peace of mind. While it’s impossible to know what the outcomes of this global health crisis will be, and how long it will last, we are committed to providing insights on global market activity, and what that means for you. We take our responsibility as your advisor very seriously and are here to help you navigate through this storm.  The latest brief from DHGWA Insights looks at the recent market volatility and reminds investors to stay focused on their long-term goals.

When a market reaction is as violent as the current one, it is always due to fear. More specifically, fear of the unknown. Having no idea what will occur tomorrow, much less the next several weeks, months or years in the future, allows human emotions and psyches to run rampant and envision the absolute worst possible situation.

There is a purpose to having money and growing your wealth, but what money can’t do is create purpose in and of itself.

Dollie Halford | CFP®, CDFA®

C. Skotty Wannamaker

Handling personal finances can be complicated at times; however, managing finances while also facing divorce can be even more complex. Divorce can bring an unwanted combination of emotional disruption and significant financial changes. Whether you face divorce currently or in the future, the following considerations and examples may help you reach your best financial situation as you work alongside your team of trusted advisors.

The traditional path to saving and investing has been to focus on the future (retirement), and rely solely on numbers and return on investment (ROI). However, this approach often can be misleading because it doesn’t consider your individual circumstances. “Beating the market” is often an artificial objective because it is not likely to have a substantive impact on your unique situation. Consider this: what does beating the market by one percent less (or more) mean to how you live your life? Do market returns have an impact on how you live your life?

On December 20th, 2019 the Setting Every Community Up for Retirement Enhancement (SECURE) Act – was signed into law, representing the most extensive changes to retirement legislation in over a decade. One of the primary objectives of the SECURE Act is to help Americans save for retirement – and many of the new rules and provisions reflect that including: * Required Minimum Distributions (RMDs) will now start at age 72 (instead of 70½) * IRA contributions can be made after age 70½ as long as there is earned income * Part-time employees may now be eligible to participate in their company-sponsored retirement plan

As the year draws to a close, now is a good time to both reflect and to plan for the future. Much like the prior year, the 2019 calendar year has continued to be a year of significant change and uncertainty. The Internal Revenue Service (IRS) and the U.S. Treasury have continued to issue interpretative guidance on the Tax Cuts and Jobs Act (TCJA) and other legislative changes at a rapid pace. In some instances, guidance issued is entirely new and not yet finalized. In other instances, the new guidance replaces prior guidance issued in the form of proposed regulations and notices. The result is a myriad of effective dates and choices for taxpayers to navigate.Dixon Hughes Goodman (our parent company) has put together the attached letter which highlights a few tax planning areas for you to consider before year end. This letter does not address the nuances and variations in existing guidance that must be carefully evaluated before implementing any provision highlighted herein. We anticipa...

College admissions has always been an important topic for American families. More recently it has been front page news as individuals have sought to game the system through connections, false narratives, or bribery.  While not as sensational as this spring’s scandal, we hope to provide interesting, concise, and timely insight into the college financial aid process.