When the world wakes up to dramatic geopolitical headlines, like today’s unprovoked invasion of Ukraine by Russia, investors can get spooked. That fear often results in a sell-off and retreat into “safe” investments, but the truth is major global or national events rarely change the trajectory of equity markets for a sustained period.
Owning a small business requires many sacrifices; saving for retirement shouldn’t be one of them. Fortunately, entrepreneurs have many options, including two popular choices which provide attractive tax benefits while offering different features and restrictions: the Simplified Employee Pension (SEP) IRA and the solo 401(k) plan.
Short-term volatility is an almost-certain fact of life in the capital markets, one investors and advisors must handle with a clear and rational approach. The instinct to move money out of a quickly-dropping market and "sit on the sidelines" during a correction can present a host of challenges, not the least of which is deciding when it is safe to get back in.
Special-purchase acquisition companies—or SPACs— are enjoying a moment of unprecedented popularity. Despite their reputation as this year’s “shiny new thing”, SPAC investments should still be approached with caution.
Recent economic indicators have some investors seeking the guaranteed protection against inflation offered by the Treasury Department’s Series I savings bonds. They may look attractive right now, but investors should be warned that the investment isn’t without risk.
No one likes to see losses within their portfolio, but it can happen to even the savviest investor. Tax-loss harvesting can turn those losses into potential tax savings, but it must be conducted by year-end.
The 2017 Tax Cuts and Jobs Act (TCJA) raised the standard deduction for taxpayers to $24,000 for couples ($12,000 for singles), reducing the marginal tax benefit of giving to charity by more than 30% and raising the after-tax cost of donating by about 7%. For charitably-minded taxpayers, the effect can be discouraging, but there is a work-around to these limitations for taxpayers who qualify.
Loaning money to family members is a common and often informal affair: parents front a mortgage down payment for an adult child, for example, with an expectation that it’s repaid over time (or not). Aside from the emotional risks of loaning money to a family member who may or may not be expected to repay the debt, the Internal Revenue Service could be a vested third party whose involvement could complicate the transaction.
Our firm crossed a big milestone today, one that many in our industry chase for decades. And while managing $1 billion in client assets is remarkable, it's only possible because of the trust our clients continue to place in us, to execute their financial plans with discipline and competency and...
Complex employment contracts, with untraditional benefits packages and a myriad of equity grants and options, are commonplace at the upper echelons of corporate leadership. It is crucial that these employees understand the facets of the contract, can manage the tax and cash flow implications that could be triggered by some elements of the package, and plan for wealth-building events and milestones accordingly.
At Cranbrook Wealth, our investment professionals are seasoned in reviewing corporate employment contracts and setting a wealth management strategy that aligns with your current lifestyle needs as well as family legacy goals. We typically encourage executives with employment contracts to carefully consider the following areas:
The magic of compounding means anyone who starts saving at a young age, say in his or her early 20s, and lives until old age, can built wealth by saving relatively little each year compared to someone who starts much later. If you’re a young person who has established an emergency fund, owes little-to-no debt, and can easily afford your monthly living expenses, you may be ready to begin a lifelong investing journey!
Here are the first three accounts we typically point young investors to as they gain experience and accumulate assets and income...
Sending a child off to college is rarely easy, but for parents who have spent 18 years actively involved in caring for their child, the autonomy college students need can make the transition even harder to manage. While this new independence aids in the development of the young adult, rare medical circumstances could arise and leave the student unable to handle his or her own affairs. In advance of their departure, parents should prepare for the unlikely event that their college student may need their hands-on care once again with these three legal documents.