Q & A

We do our best work when we are a lifelong financial advisor to the client.

The IRS has very limited case law on what constitutes a substantially different fund. However, here is what we do in our own trading.

We recently received the following questions from a prospective client. Here are our answers.

This is why we say: We have no secret ingredient at Marotta Wealth Management.

Any of these ETFs or mutual funds seem like they could be a good one-fund pick for the long haul.

It is better to begin somewhere than not start at all.

“I’m 19 years old. How do I inherit a 401(k) from my aunt?”

Can I leave money directly to those 529 plans in my estate plan?

You are not obligated to vote just because you own shares.

Sadly, the IRS is very clear about this; contributions must be cash.

Fortunately, closing a specific account doesn’t reset your Roth clock.

Regardless of the usefulness of their questions or their website, I enjoy answering every set of advisor questions I find.

As part of the requirements, the SEC wrote passages which must be included verbatim in each relationship summary. Some of that required text are so-called conversation starter questions.

You always have until the tax filing deadline to make your IRA contributions regardless of when you file.

Nothing changes during a Bear Market when it comes to where you should save and invest.

I do not need to file Schedule H and imagine that most parent household employers also do not need to file this schedule.

The given numbers on a 1099-R are insufficient to be able to fill out your tax return correctly. Knowledge of what was actually done is required in order to file your taxes accurately.

The fact that you are worried enough to ask might mean that now is a good chance to take stock in your investment strategy.

Who will be responsible to pay for the taxes related to the distribution? Where do you report the taxable portion on your tax return?

A stability allocation has two purposes: to meet withdrawal needs and to move the portfolio more conservative (less risky) by dampening the volatility of stock returns.

For domestic tasks like babysitting there are often two options: independent contractor or household employee. Taking the time to educate yourself on the difference may be worth your while.

We adapt to the needs of our clients. However, absent other instruction, we do have a few intentions.

This person has an IRA balance, but is about to empty it with a reverse Rollover. So the question is one of timing: can they do the IRA Rollover before the nondeductible contribution so that their cream and coffee never mix?

We see ourselves as your primary care provider for finances and strive to become experts in every specialty that you need while accompanying you on any referral to another firm we need to make.

If you inherit a traditional IRA from a person who had a basis in the IRA because of nondeductible contributions, that basis remains with the IRA assets as they come into your ownership.

We have a large distribution of clients at all portfolio sizes and, surprisingly, have all life stages near equally represented.

The selection of what products we purchase or avoid for clients is based solely on what we believe gives our clients the best chance to meet their goals.

Luckily for the charitably-inclined individuals with nondeductible balances, QCDs are excluded from your Form 8606 taxable and nontaxable calculations.

There are several ways that I see my faith influence my work.

There are several ways that a Roth conversion benefits people regardless of their filing or marriage status.

Diversification among many different countries provides a more consistent return than investing entirely in the United States.

Every school sets a budget or allowance for room and board, referred to as the cost of attendance. Are you allowed to reimburse yourself for the entire amount of Room and Board even if you did not spend that much?

With these moderate interest rates, the only clearly wrong decision in my view is buying a car on loan because you cannot afford it outright.

Anything which is not contributing toward your financial independence should be considered part of your lifestyle spending.

If a portion of your charitable gift is nondeductible, then no portion of the gift can be counted as a Qualified Charitable Distribution. But there is one accepted loophole for QCDs.

It is easy for an inverted yield curve to spook investors.

Kudos to you for noticing the value of Roth conversions! We have three ways we can help.

We often get the question from plan participants, “What should I invest in?” Here are our recommendations in order.

Dimensional’s analysis found that top funds do not repeat.

Asset classes are best defined by looking at the correlation of their returns. These four 2015 articles take a close examination at the three appreciation asset classes.

“I will be turning 70 1/2 and wanted to start making contributions to charity from an IRA and taking the QCD at that time. Would this bill require me to wait two more tax years, until I am 72, to do this?”

Some performance is cause for concern. Other times, you need not worry. Here are 5 times you should not worry and 4 cases when you should.

“Has the focus on expense ratios caused the public to lose focus of more critical financial measures, such as performance?” Actually, expense ratios and 12b-1 fees should get even more attention than they are getting. Here’s why.

Among the most complicated and frustrating IRA rules are required minimum distributions (RMDs). This case is a classic example.

“I’m moving to a state which does not recognize Tenants by the Entirety. What do I need to do?”

When it comes to legal, if your attorney is allowed to make the edit, you are allowed to make the edit.

This person has no IRA balance, but is about to get one with an IRA Rollover. So the question is one of timing: can they do the IRA Rollover after the nondeductible contribution has already been converted so that their cream and coffee never mix?

The real return of the stock market going forward is often debated.

You are allowed to deduct “up to 20 percent of their combined qualified real estate investment trust (REIT) dividends,” and this deduction is unlimited. So it begs the question: Is there a way I can deduct my normal real estate income?

“Buy on the dips” is a good strategy only because of the first word.