Brokerage Account Tax planning Updated for 2020

What You Need to Know About Capital Gains Tax

What is a capital gains tax? When you sell an asset like a stock or a home, your gain could be taxable. The tax rate will depend on several factors, such as your holding period, type of asset, and your taxable income for the year. Depending on your income, it's…

Kristin McKennaJune 29, 2020

Brokerage Account Cash Management Debt Management Financial Planning Infographics Investing Updated for 2020

What To Do With Excess Cash: 7 Ways to Use Extra Savings

What should you do with excess cash? If you are holding too much cash, consider how to use the extra money to your benefit. If you have extra cash in the bank, you may be wondering if you should invest the money or pay down debt. Assuming you already have…

Kristin McKennaMay 27, 2020

Asset Management Brokerage Account Diversification Investing Tax planning Updated for 2020

Tax-loss Harvesting After a Downturn in the Stock Market

Tax-loss harvesting is the process of selling an investment at a loss to offset other gains or carry the loss forward to future years. It's the ultimate silver lining: using the recent losses in your investment account to your advantage. During widespread selloffs like in March 2020, most equity positions…

Kristin McKennaMarch 30, 2020

Asset Management Brokerage Account Building Wealth Cash Management Current events Diversification Early Retirement Investing Investing During a Crisis Managing Risk Retirement Planning

Should You Keep Investing Through a Recession?

There's a lot we know about the current state of the stock market, but we can only make an educated guess as to where the economy goes from here. Both are sobering to think about. As of the writing of this article, we have descended into the fastest bear market…

Kristin McKennaMarch 22, 2020

Brokerage Account Inheritance Tax planning

What is a Step-up in Basis? Calculating Cost Basis of Inherited Stock or Other Assets

A step-up in basis is a tax advantage for individuals who inherit stocks or other assets, like a home. A step-up in basis could apply to stocks owned individually, jointly, or in certain types of trusts, like a revocable trust. Sometimes called a loophole, the step-up cost basis rules are…

Kristin McKennaFebruary 24, 2020

401(k) Plans 403(b) Plans 529 Plans Brokerage Account Business owners College planning Current events Employee benefits Financial Planning Inheritance Retirement Planning Roth IRA Secure Act SEP IRA Traditional IRA Updated for 2020

The Secure Act Means Major Changes to the Retirement System

The Secure Act was signed into law on December 20th, 2019, solidifying the most significant changes to the retirement system in over a decade. Though clarification on some of the finer points of the legislation will be needed from the IRS, there is plenty we already know about the Secure…

Kristin McKennaDecember 21, 2019

Asset Management Brokerage Account Investing Rebalancing Tax planning Updated for 2020

Is Tax-Loss Harvesting a Good Idea?

Tax-loss harvesting is the process of selling an investment that has lost value in your portfolio to 'realize' the loss for tax purposes. Investors can use this loss to offset taxable capital gains and potentially even reduce ordinary income by up to $3,000 in the current year. The remainder (if…

Kristin McKennaOctober 22, 2019

401(k) Plans Brokerage Account Cash Management Early Retirement Infographics Investing Roth IRA Secure Act Traditional IRA Updated for 2020

I Maxed Out My 401(k), Now What?

Ways to Invest After Maxing Out a 401(k) If you maxed out your 401(k), you may be wondering where to save next. There are 3 types of accounts you could invest in after maxing out your 401(k): A brokerage account Traditional IRA Roth IRA (subject to income limits) Here are…

Kristin McKennaOctober 8, 2019

Brokerage Account Employee benefits Financial Planning Secure Act Updated for 2020

Beware of the Deferred Compensation Plan

If a deferred compensation plan a good idea? A nonqualified deferred compensation plan (NQDC) or supplemental executive retirement plan (SERP) allows executives to defer income until a later date, therefore avoiding paying income tax until the money is paid out. While the cash is in "deferral mode," you can select…

Kristin McKennaMay 20, 2018

Brokerage Account Infographics Tax planning Updated for 2020

How Your Brokerage Account is Taxed

Infographic: How is a brokerage account taxed? Brokerage accounts (also called non-qualified accounts) are taxed differently than qualified retirement plans like a 401(k) or a 403(b). If you aren't sure what to do with extra savings each month or have already maxed out your 401(k) and want another way to…

Kristin McKennaMarch 30, 2016