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isn't it time you received a little
Inside Information?
A free e-zine from CTL Financial, LLC
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Greetings!
We want to thank everyone for all the positive feedback on Inside information. We want to encourage everyone to take the quick polls on the right side of the page, so we know what was most useful to our readers and can continue to improve Inside Information. Everybody loves to receive a little Inside information and that's what you'll receive from the Inside Information e-zine periodically from CTL Financial, LLC. Of course our Inside Information is LEGAL but it will be just as valuable as the other kind, we just won't land you behind bars! The Inside Information newsletter will give you valuable insights on current happenings in the tax, investment, insurance and estate planning worlds. Our mission at CTL Financial, LLC is to help Individuals, families and small businesses achieve their financial goals in a tax efficient way, please let us know if we can help you! |
You should know this if you are planning a Roth IRA conversion.
Mulitple IRA's, spouse also considering a conversion? |
Planning for the taxes due when you convert a Traditional IRA to a Roth IRA is critical in order to take full advantage of this great opportunity. If you have multiple IRA's not ALL your traditional IRA's have to be converted to a Roth IRA. You can convert one of your IRA's and not convert others, depending on the amount of tax you can afford to pay. However if you do convert more than one IRA you must choose the same tax treatment for all conversions. This means if you choose to pay the tax in tax year 2010 you must pay the tax on all conversions in 2010. If you choose to spread the tax bill over tax years 2011 and 2012 you must spread the tax bill on all conversions over 2011 and 2012. However, if you are married you and your spouse can choose to have different tax treatments of conversions. So you can choose to spread the tax bill over the 2011 and 2012 on your conversions and your spouse can choose to pay the tax in 2010 on their conversions, or vice versa. Understanding the proper tax treatment of Roth IRA conversions is very important; please contact us to discuss your personal situation to make sure you plan correctly for the tax consequences of your decision to take advantage of the Roth IRA conversion opportunity.
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Why you should love market volatility! A low cost basis means potential for higher portfolio returns. |
Market volatility is tough to take when sticking to an investment strategy, but it is perfect for a consistent longer term systematic investment plan, know as dollar cost averaging. The most obvious beneficiary of dollar cost averaging is your company 401k plan. We consult with clients to help them understand their risk tolerance and time horizon to choose investment options and an amount to invest within their 401k. With an investment strategy in place you should love an opportunity to buy when the market takes a down turn. Everyone wants to buy low and sell high and dollar cost averaging will help you have a lower cost per share by buying more shares when the price is low and less shares when the price is high. No one can predict the daily market movements, no matter what your neighbor tells you, so dollar cost averaging is great to help avoid market timing mistakes that may hurt your overall portfolio return. Dollar cost averaging is also good to use with IRA's, 529 plans or any investment account with a longer term time horizon. Please let us know if we can help you set up a dollar cost averaging investment strategy that will help you meet your financial goals!
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The biggest risk to your standard of living in retirement
Protecting against the loss of purchasing power |
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The biggest risk to your retirement savings is the risk of losing purchasing power. Think about the cost of a stamp 10 years ago and the cost of a stamp now, that's purchasing power risk! This is why keeping money under the mattress is not a good retirement savings plan. Your retirement savings must keep pace with rises in the cost of living. Historically, investing in well run quality companies has been the best way to maintain your retirement savings purchasing power. Diversifying your holdings of well run quality companies across various industries will reduce your exposure to a specific industry risk. New regulations against one industry can have adverse effects on that industry's companies, that is a specific risk, by owning quality companies in other industry's you lessen the risk that bad news in one industry can derail your retirement savings. Many people with 401k matches in company stock end up with a retirement portfolio that is not properly diversified. One accounting scandal or one corrupt CEO can wipe out your retirement dreams, Enron, WorldCom and most recently Lehman Brothers illustrate the need to limit exposure to one company. A simple review of your retirement savings may spot any potential hazard from over exposure to a particular industry or company, and help you strive toward the retirement you dream about. Take a look at some other risks we can help you protect against when constructing your investment portfolio to reach your retirement goals.
In the next issue of Inside Information: 'Do you think owning many different mutual funds from different companies ensures diversification?....Think Again!'
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Securities & Investment Advisory Services offered through H. Beck Inc Member FINRA, SIPC 11140 Rockville Pike 4th Floor Rockville, MD 20852 301-468-0100. H.Beck and CTL Financial, LLC are not affiliated.
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| Contact CTL Financial, LLC |
| I truly appreciate all the positive feedback from the Inside Information readers. Please let me know if you have questions about anything in this or previous issues of Inside Information and
what topics you would like covered in future issues.
Please let me know at 443-274-6089
or
I'd love to hear from you!
Chris Locher, CFP
Owner of CTL Financial | |
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| Save 10% |
If you are a new tax client of CTL Financial, LLC print this coupon and bring with you to CTL Financial, LLC and receive 10% off your 2009 tax return. Cannot be combined with other offers.
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| Save 10% Already a tax client of CTL Financial, LLC?
Refer a friend and receive 10% off your 2009 tax return, if you've already filed we'll take 10% off your 2010 tax return! |
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