Category: Wise Investing

As we cruise through the final quarter of 2021 and look forward to the holidays, we find that the IRS has given investors an early gift with their recent announcement of higher retirement plan contribution limits beginning next year. For tax year 2022, annual employee contribution limits for 401(k) plans, 403(b) plans, most 457 plans and Thrift Savings plans will rise to $20,500 which is an increase of $1,000 from current contribution limits. “Catch-up” contributions, for those age 50 and up, will remain unchanged at $6,500, putting the maximum standard employee contribution at $27,000.

For smaller businesses that offer their…

In the past few years, there has been a surge of online platforms and mobile apps that make investing in the stock market more accessible to average investors, and, in many cases, younger people. In fact, my 13-year-old son recently told me he wanted to start buying stocks. While beginning to invest at an early age can be great for the long-term, one of the potential downsides is knowing where to start and how to navigate the overwhelming amount of information available online. For novice investors, it can be challenging to sift through what is a reputable education source…

When you think about where your money is located, what is the first thing that comes to mind? A bank checking account? An online savings account? An investment account? A workplace 401(k)? The motorcycle collection slowly growing in your garage?

Many people don’t realize their money is so spread out. When asked where they keep their money, automatic answers tend to be a bank checking and savings account, plus a workplace retirement account. But as you dive deeper into the conversation, many people come to realize that they are tied to more financial institutions than they initially thought — it’s…

This past year, market volatility prompted many investors to think about how much risk they’re willing to tolerate. An investor’s risk tolerance is how comfortable they are with potentially losing money in hopes of higher gains, depending on market performance. Whether or not last year has inspired a more aggressive or more conservative approach, investors should work with their advisor to align their risk tolerance with a comprehensive and personalized financial plan.

How is risk tolerance determined? The first step we utilize at Girard to establish risk tolerance is to have each client complete a questionnaire, so we can get a…

Part of any complete estate plan is the naming of a number of important positions. Whether that be a Guardian to raise your minor children, an Agent to act as your Power of Attorney when you cannot act for yourself, an Executor to administer your estate, or a Trustee who is charged with managing any trusts that you create as part of your overall plan; these are important decisions to make.

Some of these roles can be filled by a trusted individual (family member, friend, attorney, etc.), but the role of an Executor and Trustee may be best filled by…

Many people headed towards retirement are faced with endless “Should I?” questions: Should I move to a warmer climate or stay closer to family? Should I take Social Security now or delay it a few years? Should I pick up a part-time job or take up a few hobbies to stay active?

One of the most common and important questions we hear at Girard — and see debated throughout the industry — is, “Should I pay off debt before entering retirement?” While there are many schools of thought on this, we’re here to share our insight and provide best-practice tips…

Should you consider converting traditional IRAs to Roth accounts? With individual tax rates at a low by historical standards and a pending reversion in 2026 to the higher rates that preceded the current tax law, it could be an opportune time. Roth IRAs can potentially produce significant income tax savings over years, or even decades, and can represent a valuable investing, tax planning, retirement income planning, and estate planning strategy. In this article, we will explore the Roth IRA and a strategy known as the backdoor Roth IRA that allows individuals with high incomes to utilize a Roth IRA.

The Appeal…