It takes all kinds. Really, literally. A versatile team is made from a variety of strengths. Here’s a little glimpse at some of the players we like to see in a balanced portfolio.
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We can do it all… but not all at once. How do we prioritize the financial goals on the path ahead? Watch for this and more, in this week’s video.
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“Who knows what is good and what is bad?” What an ancient parable has to teach us about getting a “luck-proof” approach to investing: a message from Caitie this week.
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Caitie Leibman, CEO
The best-known wisdom of Wayne Gretsky is probably the hockey player’s line about missing 100% of the shots you don’t take. Sure, sure. But let’s say we’re already off the bench, we’re flying around.
Then how do we change our odds?
Gretsky had this to say about his scoring records: “I skate to where the puck is going, not where it’s been.”
“Luck” might sound like a flimsy or woo-woo idea. But what Gretsky is getting at is opportunity, putting himself in position just in case things line up. He makes himself ready to be lucky.
Janice Kaplan writes about Gretsky and other famous examples in her book How Luck Happens. Consider Mother Teresa’s efforts as a fundraiser for her charities. It might surprise people to find out that Mother Teresa often flew first class, given her work among the poor.
But where would Mother Teresa be likely to find her biggest potential donors? The first class cabin on an international flight isn’t a bad place to start. By putting herself in a position where the right opportunities became more likely, she was ready to be lucky.
Have there been times in your life when it felt like you found yourself in just the right place at the right time? (Or, maybe, the wrong place at the wrong time?) There will always be some elements of chance or serendipity in life—and goodness knows none of us has a crystal ball.
Even still, we believe we can make it more likely for the best things to happen in life. We don’t have to be right every time. We just have to be ready.
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Back in the snowbird chapter of Mark’s life, he learned that looking for shells was always more fruitful when the weather had been rough. The markets get stormy sometimes. What might come out of the churn? Some perspective for any weather, in this message from Mark.
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“Getting in on the ground floor” may sound enticing. We like to be first, best, and on top of things. But just remember that the view is always better from higher up.
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Hope, optimism, belief, notion… In our line of work, it doesn’t matter how you say it. We’re banking on the idea that, overall, we’ll see more up than down.
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“To be, or not to be: that is the question.”
In his famous line, Shakespeare’s Hamlet was talking about life and, well, its end. The play has many timeless themes, but we never want to mistake drama for wisdom. (Hamlet was a desperate man pushed to the edge, remember!)
Perhaps we could focus on how things happen between now and then. The idea of longevity can have a lot of layers. Consider these three:
While we don’t get to dictate how life unfolds, our attitudes and habits can influence all of these things. Our access to health information and data is increasing every day. Many of us already know the decisions that will help us prevent heart disease, and diabetes, and cancer, and Alzheimer’s. That’s power.
For my part, I’m having a good time on this earth. I try to pay attention to ways I might stretch out my healthspan: I am a health hobbyist, you could say. Health is not a formal part of our business, however.
Instead, in our professional capacity, we work with you on your wealthspan—striving to grow your bucket and to connect your money to your life, in order to invest wisely and spend well.
It all goes together: the healthier we are, the longer we might live. The longer we live, the greater the opportunity to compound our wealth—and decide how to deploy it fruitfully.
We can’t know exactly what’s in store for each of us. But here in the present, we can make it more likely for the best things to happen. For many of us, that means living independently, where and how we want, for a long time: our wealthspan.
It’s a grand adventure we’re on, isn’t it?
Clients, if you would like to talk about this or anything else, please email us or call.
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There’s a lot of relationship advice out there, but here’s the thing… You are in charge of your relationship—with yourself. Nurture, treat, and care for yourself like you would any beloved. This may be the best investment you’ll ever make.
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One of these is not about tomato-based condiments.
In the world of IRAs—Individual Retirement Accounts—we consider the beginning of January through tax filing day “catch-up season.” Whether Roth or traditional, if we are eligible to make contributions, then we can catch up on our 2024 contributions even though 2024 is over.
Those just learning about the power of Roth IRAs can use this season to make two years’ worth of contributions at once. The limit on contributions is $7,000 for 2024 plus $7,000 for 2025. Another note to know: for people who turn 50 by year-end, there is an extra $1,000 per year that can go in—a “catch-up” contribution.
Consider even just the standard contribution limits. Imagine if you had $14,000 in a regular account (in which you pay tax on earnings) and were eligible to contribute to a Roth IRA for 2024 and 2025. If you won’t be spending that money in the next few years, the question comes down to whether you would like to never pay tax on earnings on that money, ever again, for the rest of your life.
If that value were to double over the years and double again, as sometimes happens with long-term investments, there might be $56,000 available later with zero tax. And if you didn’t spend it, your beneficiaries would receive it, free of income tax.
No guarantees, of course: the markets go up and down.
The way Roth IRAs work, after five years your contributions can be withdrawn without tax. At the later of five years or age 59½, the earnings may be withdrawn without tax. There is a maximum earnings limit on Roth contribution eligibility; we’d be happy to visit with you about your eligibility. Simply email us or call if you have an interest in learning more.
There is a whole world of other lifetime tax reduction strategies related to Roth conversions; we’ll talk about those another time.
For now, happy catch-up season, one and all!
Traditional IRA account owners have considerations to make before performing a Roth IRA conversion. These primarily include income tax consequences on the converted amount in the year of conversion, withdrawal limitations from a Roth IRA, and income limitations for future contributions to a Roth IRA.
A Roth IRA offers tax deferral on any earnings in the account. Qualified withdrawals of earnings from the account are tax-free. Withdrawals of earnings prior to age 59½ or prior to the account being opened for 5 years, whichever is later, may result in a 10% IRS penalty tax. Limitations and restrictions may apply.
Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss.
This information is not intended to be a substitute for specific individualized tax or legal advice. Neither LPL Financial, nor its registered representatives, offer tax or legal advice. We recommend you discuss your specific situation with a qualified tax or legal advisor.
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