You may have heard a common investment expression “It’s not what you make that counts. It’s what you keep.” Minimizing taxes from investment activities is important because it’s one of the few aspects of investing that an investor can gain significant control over. Paying attention to the tax consequences of investing can substantially increase long-term wealth and increase spendable income. This article will address various investment strategies and products for minimizing taxes.
A qualified retirement plan can provide many benefits for an employer and its employees. In order for the plan to run smoothly so that its usefulness can be maximized, the employer should be aware of the ongoing responsibilities related to the administration of the plan.
Once procedures have been established, the plan can function to its potential and remain within the qualification guidelines of the Internal Revenue Code ("IRC") and the fiduciary requirements of the Employee Retirement Income Security Act ("ERISA"). This newsletter will examine the basic responsibilities of the plan sponsor of a qualified plan.
Many academics consider the active-vs.-passive debate settled. Yet, despite the strong evidence supporting a passive approach, many investors still assume that skillful active management can increase returns, net of costs. In this three-part series, Brad Steiman offers fresh insight on the debate and provides content that advisors may find useful in their communication efforts. Part 1 features questions relating to the theoretical aspects of market efficiency and active manager performance. In subsequent columns, he will explore the implementation of active and passive strategies, and feature additional questions and comments submitted by readers.