Congress Raises the Required Minimum Distribution Age for Retirement Accounts
Financial Advisor for You
by Michael Wroblewski, CFP®
1y ago
Congress recently raised the age that you have to take distributions from your tax-deferred retirement accounts, such a 401k or Individual Retirement Account (IRA). These changes also allow for more tax-deferred growth and possible Roth conversions before the required distributions begin. What is a Required Minimum Distribution? Under the Secure Act (Setting Every Community Up for Retirement Enhancement Act), persons born between 1951 and 1959 must begin to take distribution from their retirement accounts at age 73 rather than the current age of 72. For persons born in 1960 or later, the RMD a ..read more
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No-Fee Mutual Fund Investing is a Reality
Financial Advisor for You
by Michael Wroblewski, CFP®
1y ago
Fidelity Investments recently launched four no-fee mutual funds to gain a competitive advantage against rivals Vanguard and Schwab. This move along with lowering existing index fund fees and eliminating minimum investment amounts go a long way to making investing easier and more affordable for investors. This blog explains how you can take advantage of these developments to increase your investment returns. Background Retail investing used to cost a lot of money that was hidden to mutual fund investors. A mutual fund is a just a compilation of various company stocks or bonds (or both) that is ..read more
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How to Find an Advisor with a Fiduciary Duty
Financial Advisor for You
by Michael Wroblewski, CFP®
1y ago
The Department of Labor recently abandoned its fiduciary duty rule for retirement advisers. The Department was responding to a recent Court of Appeals decision overturning the rule completely. So what does this mean for you and your investments if you are working with (or plan to work with) an advisor? Make sure you know the following three things to protect yourself and to maximize your investment performance. Know the duty your advisor owes you and scope of that duty. Understand your advisor’s compensation model. Ask how the performance of a portfolio of low-cost index funds compares to the ..read more
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No-fee Mutual Funds Improve Investment Returns
Financial Advisor for You
by Michael Wroblewski, CFP®
1y ago
Photo by Got Credit Over two years ago Fidelity Investments began offering several index or passive, no-fee mutual funds. The two main funds track indices of the entire domestic stock market and all of the international stock markets. No-fee funds have the potential to increase your investment returns. Management and administration fees otherwise reduce the fund’s return. At the time, it was revolutionary because you could invest in the US and international stock markets for free. Interestingly, Fidelity continued to offer index funds that tracked the domestic and international stock market ..read more
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Tips to Consider Whether to Refinance Your Mortgage
Financial Advisor for You
by Michael Wroblewski, CFP®
1y ago
Recent headlines proclaim that mortgage interest rates are at their lowest levels in 50 years. And you are wondering whether you should refinance your mortgage. It all depends on your current mortgage interest rate, your monthly payment, and the remaining amount of time on your current loan. It could be a great time to lower your payment, shorten your loan term, or move to a fixed rate loan from a variable rate loan. Before you start, make sure you understand your current loan (30-year fixed, 5/1 ARM, etc.), the interest rate, the payment, and the remaining term. Also, check your credit score ..read more
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Three Steps Federal Retirees Can Use to Decide Whether to Enroll in Medicare Part B
Financial Advisor for You
by Michael Wroblewski, CFP®
1y ago
Many retiring federal employee with a Federal Employee Health Benefit plan (FEHB) plan are unsure whether they should enroll in Medicare Part B once they leave federal service. Medicare Part B provides insurance for physician and outpatient services. Your FEHB plan has covered these services in the past and will continue to be so even after becoming Medicare eligible. Medicare Part B has a monthly premium of $144.60/month premium (2020 rate). But if your adjusted gross income is greater than $87,000 (single) or $174,000 (joint), you may be required to pay a surcharge that increases the mont ..read more
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CARES Act Suspends Most Student Loan Payments
Financial Advisor for You
by Michael Wroblewski, CFP®
1y ago
The recently enacted CARES Act provides relief for Federal student loan borrowers. It is good news for those enrolled in an income-driven repayment plan or in the Public Service Loan Forgiveness Program. The Act suspends most Federal student loan payments and interest accrual between March 13 and September 30, 2020. Principal balances are also frozen during this six-month period. Student loan borrowers don’t have to do anything. Loan servicers should have implemented the changes by April 10, 2020. You don’t have to make a payment until October 2020. You can use those payments for other pressin ..read more
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A March to Remember
Financial Advisor for You
by Michael Wroblewski, CFP®
1y ago
Most investors would like to forget March 2020. Times of uncertainty and market stress, however, have reinforced three investing fundamentals.  Remembering these fundamentals will help keep your investment goals on track. 1. Vast uncertainty causes dramatic and quick stock price movements. For the 12 months prior to March 2020, the US stock market, as measured by the Vanguard Total Stock Market Index Fund (VTSAX), had only a handful of days in which prices fluctuated more than one percent. This period was relatively calm. March 2020 was the opposite. There were only three days in which t ..read more
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Place a Free Security Freeze on Your Credit Reports
Financial Advisor for You
by Michael Wroblewski, CFP®
1y ago
You can now put a security freeze on your credit reports for free at the three main credit bureaus. It is a rather painless exercise.  I recently did it and it took about 20 minutes with one hiccup (described below). Although it’s yet another thing you have to do, please don’t suffer from “optimism bias,” which means you don’t think identify theft will happen to you. Even if you have poor credit or little wealth, you can still be an attractive target for identity thieves and other fraudsters.  And having to correct or clean up from your stolen identity can be such a hassle. And while ..read more
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Wells Fargo: Time to Switch?
Financial Advisor for You
by Michael Wroblewski, CFP®
1y ago
Photo by JeepersMedia You may be asking whether it is time to switch your asset accounts from Wells Fargo to another bank. For nearly two years federal and state authorities have been investigating the bank’s business practices and have uncovered disturbing trends. The first investigation uncovered the secret creation of millions of bank and credit card accounts without their customers knowing it. Other practices include fraudulent charges imposed on auto and mortgage loan customers as well as on its wealth-management clients. And most recently Well Fargo is refunding millions of dolla ..read more
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