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How to Increase Employee Participation in Your Company’s Retirement Plan

For Employers by Jason Gerber CFP®

All employers want to increase participation in their retirement plans, right?

We may all want it, but do our actions drive an increase in participation? Maybe not…

First thing that any plan sponsor has to do, before they can increase participation, is to define what “increase participation” is for their plan. Maybe, “increase participation” means that you want the people that are already contributing to contribute more. Or maybe, you want more of your employees contributing to the plan. Either way make sure to define what it means to increase participation for you and your plan.

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Alternative Minimum Tax (AMT)

Financial Insights, For Individuals by Jason Gerber CFP®

Alternative Minimum Tax (AMT)

According to Investopedia.com the “alternative minimum tax (AMT) recalculates income tax after adding certain tax preference items back into the adjusted gross income. AMT uses a separate set of rules to calculate taxable income after allowed deductions. Preferential deductions are added back into the taxpayer’s income to calculate one’s alternative minimum taxable income (AMTI), then the AMT exemption is subtracted to determine the final taxable figure.” Sounds simple enough, right?

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Ways to Fix Social Security

Financial Insights, For Individuals by Jason Gerber CFP®

Ways to Fix Social Security

I recently got a social security statement. At first I thought that it was one of those direct mail scam programs. I sat there and thought what if I were to calculate my already earned credits as a present value. What would 13.76% of my cumulative income look like in a IRA or 401k plan, instead of a forecasted amount of fixed income at some future date? I didn’t actually do the exercise knowing the result would make me sick to my stomach. My father just turned 68 this last year. He handed me his social security print out and asked me to explain again why I have encouraged him not to take social security yet. My explanation was that we need to shore up the benefits for him and my mother. We expect for them to both have a longer life expectancy then generally assumed. Again, I shutter to think what his savings would be if we were to calculate it throughout his working life. What amount has been contributed to social security on his behalf and what amount of wealth would that be for him and my mom? Not to be selfish, but what difference in an inheritance could that be to me and my siblings? I am also curious as to what effect that could have had positively if deployed into the capital markets.

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Growth versus Value Investing: Which is better?

Financial Insights, For Individuals by Jason Gerber CFP®

Growth versus Value Investing: Which is better?

Ken French and Eugene Fama provided ground breaking research in the world of modern portfolio management that has been the bedrock for how the industry develops and manages a portfolio. What I find unique about Fama and French is that the goal for their initial study and those continued by other academics was simple, to “explain market returns”. Their initial study was what propelled them to the forefront of the discussion of value versus growth debate. That debate continues to this day.

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Risks of Not Having an Estate Plan – Risk Management

For Individuals by Jason Gerber CFP®

Risks of Not Having an Estate Plan – Risk Management

When engaging with a new financial planning client, it is important to evaluate thoroughly their financial circumstances. Primarily to be familiarized with their goals, behavior and attitudes as well as various dynamics that exist for them and their situation. Future recommendations will help navigate to the best options for them to make decisions based on those unique fact patterns. A key component of this is assessing and demonstrating any current or potential future risks that should be anticipated. Most people, when confronted with risk, probably consider financial, health, legal liability as the major risks to consider. But as we age and accumulate wealth things become more complex.

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Risks of Not Having an Estate Plan – Risk Management

For Individuals by Jason Gerber CFP®

Risks of Not Having an Estate Plan – Risk Management

When engaging with a new financial planning client, it is important to evaluate thoroughly their financial circumstances. Primarily to be familiarized with their goals, behavior and attitudes as well as various dynamics that exist for them and their situation. Future recommendations will help navigate to the best options for them to make decisions based on those unique fact patterns. A key component of this is assessing and demonstrating any current or potential future risks that should be anticipated. Most people, when confronted with risk, probably consider financial, health, legal liability as the major risks to consider. But as we age and accumulate wealth things become more complex.

(more…)