Author Archives: David John Marotta

Someone asked me what disclosures I would require for financial advisors. I’ve written these principles in a yes-or-no format and reworded the questions. “Yes” is the best answer and “no” means you should seek more information or not consider that advisor at all. Although answering affirmatively to all 10 questions would be my first screen in selecting a financial advisor, it still does not guarantee the person has the competence necessary to offer comprehensive wealth management.

Setting a target asset allocation is the most critical part of investment management.

Many people believe a dollar saved on their taxes is not worth the same as a dollar of their salary or a dollar of gain in the stock market. They are correct. A dollar saved on your taxes is actually worth more.

David Marotta discusses the importance of teaching your children how to handle money, reasons parents sometimes find it difficult to talk about money, and why it is important to start your children’s financial education early.

Unfortunately, our society tends to pass feel-good legislation aimed at making people feel safer without actually making them safer.

Some first-time workers are not worth minimum wage. But without being hired, they can’t learn job-related skills.

A humorous Google search for Charlottesville financial planning.

Finding countries where you can plant your investments in fertile soil may be one of the most important asset allocation decisions you make for the next several years.

David Marotta and David Swanson discuss a minimum wage.

Surprisingly, studies show that onetime windfalls can actually impoverish you. They make you feel rich, which inevitably leads to overspending. But wealth is what you save, not what you spend.

To build real wealth, you need specific wealth management tools.Most families have less than half of the accounts they really need, and young newlyweds often only have a checking account.

Most Americans fail to plan adequately for retirement and consequently miss out on opportunities to enjoy the last third of life. The best and most rewarding financial planning is not just about the numbers but rather takes place in the context of personal goals.

The greatest engine to generate real wealth is saving and investing. And the best way to ensure that your default is saving and investing is to automate the process. Pay yourself first, and your savings will grow exponentially.

Couples who have worked together on a budget already agree on the big picture. Once they make the hard decisions about what will help further the family’s values, specific purchases in each category are much less critical.

David Marotta discusses what to do with your “extra” money.

Take ownership of your own financial security and increase the rate you are saving and investing by at least the 2% Social Security tax cut.

If you failed to convert anything last year, you missed an opportunity. If you converted much more than you probably wanted to, now you have to decide how much to keep.

All developed countries are not equally attractive places to invest. The United States has entered the ring of fire and expected to underperform in future years as a result.

One method to divide the U.S. stock market is by sector of the economy. Overemphasize those sectors left free to innovate and compete on the global market.

Life Planning is an important part of the wealth management process. It’s not enough to have money; you need to know what the money is for.

The law allows taxpayers age 70 1/2 or older to donate up to $100,000 from their IRA directly to a charity. The amount of the charitable contribution is excluded from taxable income.

Computing your net worth annually is like taking a sextant reading to chart your course toward financial security. Net worth gives you a snapshot of how much money would be left if you converted everything you owned into cash and paid off all your debts.

Financial resolutions usually don’t even last until the end of January. Making a permanent change in our behavior requires both time and a steely resolve. We can only develop financial character one action at a time. Here are seven practices to take you from pauper to prince or princess if you add one each year.

“It is not enough to seize power or to change wherein society power lies. With power must come an inner sense of connection to others.”

The two men see opportunities and the risk excites them. Even soliciting funds for the poor is an integral part of their entrepreneurial spirit.

Most investors are not aware of a critical division of professionals in the world of financial services. This distinction lies between fee-only fiduciaries who are free to act in your best interests and commission-based agents and brokers who are required to act in the best interest of the companies that employ them.

Having found that a longer holiday season translates into bigger profits, retailers like to extend every holiday season. The holiday season is now a four-month blast of marketing genius.

When the markets are volatile, the bonus on account of rebalancing is greater.

Students are graduating with larger debt loads than they were 10 years ago. Public four-year college borrowers graduate with an average of $19,800 in debt; their nonprofit private college counterparts graduate owing $26,100.

More than 200 charities have been designated Neighborhood Assistance Programs (NAPs).

David Marota discusses how liberals get basic economics wrong.

The authors of the Zogby study suggested their own explanation. “We think that, for many respondents, economic understanding takes a vacation when economic enlightenment conflicts with establishment political sensibilities.”

Going forward, tax management will be as significant as investment management in a comprehensive wealth management plan.

David Marotta discusses how to maximize retirement accounts.

Most plans have funds laden with fees. Some share this revenue with plan sponsors, enticing them to pick more expensive funds to subsidize the costs of the plan or even make a profit.

If you have a personal umbrella insurance policy, congratulations. If you don’t, you must not have a lot to lose. This important insurance can extend your liability coverage beyond your home and auto insurance by millions of dollars.

Politicians are giving us no incentive to take care of ourselves. They are ensuring that government will need to save us.

Hong Kong has an incredibly low tax rate. Individuals are taxed at the lower of a progressive tax maxing at 17% of adjusted gross income or a flat tax of 15% of gross.

David Marotta discusses converting your traditional IRA balance to Roth IRAs this year before tax rates go back up.

It is time to drive a Brink’s truck through the legal loophole of Roth conversions this year.

For many people 50 is a milestone that reminds us to stop and reevaluate. There is still time for a whole new life of significance.

Perhaps dire predictions are correct and we are headed to Armageddon. If you want liquid assets in such a catastrophic situation, try buying cases of Jack Daniels. It is cheaper, keeps just as well and will fetch more in trading value.

David Marotta discusses interest rates, the housing market, and how these factors work together for the patient buyer.

Only if you swear by the genius of Caesar, trust in his altruism and believe in his divinity is this bill a cause for celebration.

Everything in wealth management begins with savings. All wealth comes from producing more than you consume. Unfortunately, most Americans are better at consuming than producing.

David Marotta & George Marotta discuss financial reform, specifically the Dodd-Frank bill and its implications on the economy.

For the first time in the Heritage Foundation’s Index of Economic Freedom, the United States was moved from the list of “free” countries to the second tier of “mostly free” countries.

Everyone knows a family with financial debt. Stop the bleeding.

Government assistance has taken what might have been a simple recession and turned it into a more lingering malaise.

Many U.S. investors crowd their assets into a combination of large-cap U.S. stocks and U.S. bonds. This allocation represents only one and a half of the six asset classes described here.