Daunted by the prospects of sorting it out, some investors look to the place they know best—their home market. There can be good reasons, such as tax benefits, for prioritizing an investment close to home, but too much home bias could mean underweighting or missing out on part of the investment universe.
Credit Scores are deceivingly important. Here’s why: Let’s say you go out to buy your dream home and get a $500,000 mortgage only to find out the late payments you had in training made your credit score fall to below 700 points. The difference between the best rate and the rate the banks will now offer you might be 0.50%. For most mortgages that’s a difference of around $150 per month or $54,000 over a 30-year period of time. Ouch!
As we all get into the tax season, the differences in the federal income tax brackets comes to mind. The new tax reforms have lowered most individual tax brackets from 2017, so we have made a few simple charts to help you compare the differences.
By now you’ve probably seen nerve-racking headlines in the news about the stock market. Not to worry, we wanted to give you a short update to let you know what’s going on and how it might impact your portfolio.
For our Residents and Fellows who are finally finishing their training, a big change in their finances can be purchasing their first home. A question we get a lot is “Should I rent or buy a new home?” For most doctors, we suggest renting the first 1-2 years on the job.
Our doctors frequently ask whether they should invest in their Roth 401k/403bs or use the pre-tax option instead. There are a number of factors that savvy doctors should consider when deciding whether or not to Roth at work.
In today’s gig economy all of those things are possible, and doctors are in a great position to take advantage of these opportunities. However, most doctors are unaware of the power of the gig economy. Never has there been a time like this with so many ways for doctors to make extra income.
Despite all of the noise in the media, the markets have only experienced small overall negative returns this year. As of today, most of our long-term, diversified portfolios are only down about -1.0% since the beginning of the year. This is common for short-term market reports. We expect to continue to see choppy markets throughout the rest of the year.
When I first started financial planning, we all had one basic assumption - push taxes into the future. The general thought was our clients would be in a much lower tax bracket for taking distributions from their retirement plans. About 13 years ago, I had an "aha moment". What if that assumption was false?