Category: Retirement
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What You Should Know About Private Equity in Your 401(k)
Private equity (PE) is no longer just for institutions and millionaires. A change in Department of Labor guidance (under the Trump administration) now allows 401(k) plans to offer indirect exposure to PE through diversified funds like target-date or balanced funds. You still can’t pick a private equity fund directly in your retirement account — but…
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Early Withdrawals from your tax-deferred account
If you’re under age 59½ and withdraw money from a traditional IRA, the distribution will generally be taxable, and it may also be subject to a 10% early withdrawal penalty. However, understanding how withholding works, and when exceptions apply, can help you avoid surprises. Income Taxes vs. Withholding It’s important to distinguish between: These are…
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What to Do When You’re Strapped for Cash: Smart Steps for Handling Emergencies
We can’t always be prepared for emergencies or unforeseen circumstances. The idea of finding cash can be stressful which often leads to costly mistakes if actions are taken without considering all your options. Below is a guide you should consider if you are strapped for cash: Cash Distribution Guide Emergency checking or savings accounts: If…
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What is an ESOP?
For many business owners, succession planning and employee motivation can feel like two separate challenges. An Employee Stock Ownership Plan (ESOP) combines both into a single liquidation strategy. Whether you’re a business owner exploring succession options or an employee learning about your benefits, this post provides a brief overview on: 1. What is an ESOP?…
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Self-Directed IRAs (SDIRAs) vs. Traditional IRAs
The difference between a self-directed IRAs and traditional IRAs is the optionality of investments you are permitted to own, such as real estate and privately held companies. Because you can invest in private investments, this adds to additional complexity which leads to most of the disadvantages noted in the table below. How to open a…