FAQ

Yes, as an independent Registered Investment Advisory firm, we are held to a fiduciary standard. This means that we’ve pledged to act in good faith and with our clients’ best interest at all times. If any potential conflicts of interest arise, rest assured that you’ll be notified.

Required Minimum Distributions (RMDs) begin the year you reach age 73 (as of December 31, 2022). Your first RMD can be withdrawn up until April of the following year, but annual withdrawals are required from then on. When you are of RMD age, you must withdraw the IRA funds but can also reinvest those proceeds into an after-tax account. Inherited IRAs are unique and have different rules.

Lots of variables enter into this equation. It’s different for everyone. From health insurance needs and social security, to current debt, goals, income needs, etc., we discuss these with you and develop a comprehensive plan.

Capital gains tax can be incurred by selling an appreciated asset (like real estate) or from mutual fund distributions. We help clients look at ways to minimize those tax consequences.

Many clients include charitable gifting within their estate planning. If interested, we help you create an efficient strategy for transferring your wealth by understanding goals and identifying the best ways to achieve them. We discuss various options, like naming beneficiaries in your Will versus naming them directly on your accounts (such as a Transfer on Death designation).

Charities may have a more favorable taxing situation while individuals may benefit more from a Transfer on Death account with a stepped-up basis. In both cases we work to make sure your wishes are fulfilled.

Every 401k plan has its own set of investment options. As part of each overall plan, we review your current 401k allocations and other investment options, confirming time horizon, risk level, and goals are addressed.

A Roth conversion is taking a portion of your pre-tax IRA and moving it to a Roth IRA where it will grow tax free and can later be withdrawn tax free. A Roth conversion may not be appropriate for everybody. We work with you to determine whether it’s a good fit for your situation.

529s are funded with contributions where they grow tax free, and can be withdrawn tax free, if used for qualified educational expenses. The funds are most commonly used for college but have recently been allowed for elementary and secondary school use.

If you do not use the 529 for one child, it can be transferred to another child or beneficiary. If the funds aren’t used for qualified educational expenses, taxes and penalties may apply.

Life insurance needs are different for everyone. We work up a financial needs analysis for your personal situation to help determine an appropriate amount of coverage.

Although income tax rules can change often, there are still ways to navigate their financial impact. We’d typically review your tax returns and investment statements to look for additional tax saving ideas.

Long term healthcare costs have continued to escalate dramatically in recent years. Having a strategy to reduce this financial burden is an important part of any financial plan. We work closely with you to make sure you have a full understanding of the risks and possible solutions.

“To Roth or Not to Roth” is a common question when saving for retirement. The answer comes down to your desire to save on taxes now versus later. Considering current income level, your projected tax rate in retirement, possible tax consequences for beneficiaries, and many other factors come into play. We help you find the best path forward.

A Traditional IRA allows you to make contributions and deduct it from taxable income that year. It grows tax-deferred and will only be taxable as you make withdrawals at retirement.

A Roth IRA doesn’t offer you a tax deduction now, but later earnings and withdrawals are tax free (if you adhere to the Roth IRA rules set by the IRS).

Market volatility is difficult for all investors. When the market is doing well, people feel comfortable. And, when the market is trending downward, people want to run for cover. The important thing for you is to stay at a risk level that is tolerable for you in good times and bad.

Our custom client risk profile questionnaire helps us identify that range and use it to construct a personalized portfolio that accurately fits your risk tolerance and goals. We revisit this throughout the year during review meetings to be sure it still fits for your current financial situation.

Economy, interest rates, budget, healthcare, and taxes are all things that need to be addressed. Having a plan as soon as possible and making tactical adjustments throughout your life is essential.

This is a common question. When interest rates are low, there are often options for competitive financing. Paying for a car up front takes away the opportunity to make interest of your own from that large amount of money. If you finance the car at a low rate, you may be able to make more money in your investments than what you’re paying in interest. Taking into consideration how long you plan to own it also impacts the decision.

We do not have account minimums. If you want to start investing or slowly build up investments through regular contributions, we have cost-effective solutions to get that established.

A good rule of thumb is to have enough savings for at least six months of expenses, ideally twelve. Going through the 2020 pandemic showed how quickly things can get turned around and the importance of being prepared for unexpected events.

Most of our compensation is from the asset management fees received through our fee-based accounts. Our fee schedule ranges based on the Household account value. Because we do not use third party managers, our fees are discounted comparatively to other firms with a similar business model. Fees are deducted directly from the managed accounts each quarter and are reflected on statements and performance reports.

If we sell life insurance or certain annuities, we may receive a commission from those companies, which is always disclosed in advance.

There is benefit to gifting while still living. In Pennsylvania, there are inheritance taxes for your beneficiaries that currently go up to 15%. Gifting during your lifetime can allow this money to transfer to your heirs without incurring inheritance tax. Gifting can also help the children or grandchildren when they are at a stage of life when they need it―mortgage, kids in college, etc. Before deciding to gift while living, it’s important to consider your future and the costs that may arise down the road, such as income or healthcare needs.

We want your fullest financial picture in order to give the best advice we can, so we do happily review anything finance related that you’re willing to share, even if it’s an investment we’re not managing. We’ve found that some clients have investments with contract features they need help understanding, or need us to explain how to get the most out of the product. Knowing everything about your financial setup is important in all aspects of our planning, especially when it comes to establishing income sources, tax planning, and wealth transfer.

Most people come to us with a particular topic in mind―sometimes existing account questions, or maybe they’re nearing retirement and want to know how to make the transition effectively. The most important thing to have your list of questions in hand.

Prospective clients typically bring anything they want us to look at, including all retirement plan statements, IRAs, annuities, life insurance policies, mutual funds, brokerage account statements, tax returns, lists of debt and interest rates. We never charge for our meetings, and are always happy to make time for a thorough analysis.

Our new clients come by referral. Most new clients come as a friend or relative of an existing one. We don’t do seminars or marketing programs. High-touch service and detailed, personal attention to you and all clients are our top priorities.