"Which type of account should I utilize if I can save an extra $100 a week? Should I add it to my 401k at work or in a savings/investment account?"
This is when it pays to have a team working on your side. We like to conference in your tax advisor
and “brainstorm” back and forth regarding what type of investment would be the
most beneficial for our common client from a tax standpoint.
it comes to retirement savings and investing, there are a variety of ways that
your savings and investments will be taxed.
Investments might be:
at capital gains rates (typically profits on investments held over one year)
at ordinary income rates (interest, bond income, REIT dividends, etc.)
we cannot always pick and choose how our investments will be taxed due to the IRS
and tax code changes, at Craig Wealth Advisors, we work as a
team with you and your tax advisor. Working together, we can hopefully balance
taxes now and later to meet your specific goals and needs.
In addition to having different types of
accounts (taxable, tax free, tax deferred, etc.) in your portfolio, it is equally
important to have the correct asset allocation.
There are a number of different asset allocation models to consider but
they all result in diversification across the different asset classes such as
growth, growth and income, international and aggressive growth. Debbie explains 2 different models in this
video. What model is for right for an
individual investor based on their goals and risk tolerance as well as the type
of accounts within their portfolio
This material is being provided for information purposes only and is not a complete
description, nor is it a recommendation.
Any opinions are those of Debbie Craig and not necessarily those of
Raymond James. The information has been
obtained from sources considered reliable, but Raymond James does not guarantee
that the foregoing material is accurate or complete. Raymond James does not provide tax advice.