Meyer Captial Group
Lead Financial Planner and Portfolio Manager
Patricia is in the business of helping people and representing what’s in their best financial interest. She is an objective fee-only financial planner and asset manager that has spent over twenty-five years working in the finance, including twelve years as the President of her own financial services company. Now working for an independent RIA (Registered Investment Advisor), she is an unbiased professional who takes on fiduciary responsibility with all of her client interactions. She specializes with those in life changing situations who don’t have the time, interest or personal experience to manage their own circumstances. She guides clients’ through a holistic planning process that creates a personal net wealth statement and navigates major life events, such as the loss of a loved one through death or divorce, paying down debt, planning for college or planning for a wedding and retirement.
Since most financial advisors are just a deviation of a salesperson in a nice suit that has a process of selling you high priced insurance and investment products, it’s important to recognize that Patricia, nor Meyer Capital Group, sells any investment or insurance based products. She only get paid by you, not various outside third-parties. As a result, the guidance she provides is not compromised by conflicts of interest that ordinary plague most relationships.
Patricia has been a NAPFA ( National Association of Personal Financial Advisors ) member for ten years. She holds a Masters of Business Administration from Drexel University, and a Bachelor of Business Administration from Temple University. She received her Certified Financial Planner™ certification in 1996 from the Certified Financial Planner Board of Standards, Inc. and she holds her FINRA Series 7 and 63 licenses. Patricia also earned the Accredited Investment Fiduciary® designation from Fiduciary360. Fi360 promotes a culture of fiduciary responsibility and improves the decision making processes of investment fiduciaries.
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MBA, Drexel University
BBA, Temple University
Assets Under Management:
Past performance may not be indicative of future results. Different types of investments involve varying degrees of risk. Therefore, it should not be assumed that future performance of any specific investment or investment strategy (including the investments and/or investment strategies recommended and/or undertaken by Meyer Capital Group) will be profitable. Please remember that it remains your responsibility to advise Meyer Capital Group, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services. A copy of our current written disclosure statement discussing our advisory services and fees continues to remain available for your review upon request. Please Note: Rankings and/or recognition by unaffiliated rating services and/or publications should not be construed by a client or prospective client as a guarantee that he/she will experience a certain level of results if Meyer Capital Group is engaged, or continues to be engaged, to provide investment advisory services, nor should it be construed as a current or past endorsement of Meyer Capital Group by any of its clients. Rankings published by magazines, and others, generally base their selections exclusively on information prepared and/or submitted by the recognized adviser.
Donald L. Kingett and Thomas C. Meyer - Financial Planning
Yes. You might have tax consequences if the product is held in a taxable account, even if you did not sell any of your shares. It’s up to you to report mutual fund transactions on your tax return, as well as pay the appropriate taxes whether the distributions were paid out in cash or reinvested to buy additional shares.
When a mutual fund company passes earnings and other payouts to shareholders, it’s known as a distribution. Distributions from mutual funds occur for several different reasons and are subject to differing tax rates. The major distribution for most funds comes at the end of each year, when net amounts are calculated—capital gains and other earnings minus the expenses of the funds. You should note that these distributions apply to all shareholders for the entire year equally, so if you buy an active fund in December on the day before the distributions are made you are still subject to the same tax ramifications as the person who owned it on Jan 1st.
Even if you didn't sell any shares of your fund last year, the portfolio management team of the fund sold underlying investment positions within the fund and created a capital gain that must be distributed (assuming they don't have losses on their books to offset gains). This is one area to watch when buying "actively" managed fund products in a taxable account.
With that said, you have a few options to consider going forward. One would be to analyze your portfolio regularly and conduct tax-loss harvesting at least once a year so you'll have losses to offset any gains that might be distributed. Another strategy would be to focus on quality low turnover active fund managers. They tend to be a little less expensive to own, are more buy & hold so they don't trade very often in the account and as a result will have lower or no annual distributions. Finally, you can gradually move your taxable accounts to a cheap passive index or ETF product(s) that will not experience the distributions at all.
Morningstar.com will provide you with "turnover rates" and "After-tax" return rates. After-tax returns refers to what you keep from your investment’s returns after paying Uncle Sam. After-tax returns are important because some funds have high before-tax returns but low after-tax returns.
FINRA ( The Financial Industry Regulatory Authority) has a great fund tool that you can find at http://www.finra.org/investors. The Fund Analyzer offers information and analysis on over 18,000 mutual funds, Exchange Traded Funds (ETFs) and Exchange Traded Notes (ETNs). This tool estimates the value of the funds and impact of fees and expenses on your investment and also allows you the ability to look up applicable fees and available discounts for funds.
On a final note, depending on your taxable income level and final tax bracket, you might not be subject to the capital gains tax on your distribution. Check with your accountant for details.
Best of Luck!
You can find the answer by going to the MetLife Investor Relations page where you will see the dividend payout history, stock information, etc. The chart below is an excerpt with the data you would use to calculate the income over the last nine years. Based on your 26 shares over nine years, it appears that you earned ~ $208.00 of income.
With respect to what to do next with the shares, the site will allow you to compare the performance versus the broad S&P 500 stock market index, any of their main competitors or any other name that you might like to compare.
Unfortunately, the timing of the Great Recession coincided with your inheritance so over the period that you have owned the shares they have not experienced any capital appreciation aka growth. Their peers, as well as the board markets, have all outperformed them.
They are paying you a nice dividend of ~ 3.25%, but you might want to consider another investment vehicle if you still have a timeframe that can withstand general stock market risk and volatility.
|The declaration and payment of dividends is subject to the discretion of our board of directors, and will depend on our financial condition, results of operations, cash requirements, future prospects, regulatory restrictions on the payment of dividends and our other insurance subsidiaries and other factors deemed relevant by the board. There is no requirement or assurance that we will declare and pay any dividends.|
Congratulations for thinking about saving and retirement at such a young age! At your age just a small monthly saving amount will result in you becoming a millionaire. Check out some simple calculators here: http://scottalanturner.com/tools/investing-calculator/. Check out Scott's podcast while you are there.
A Roth or Traditional IRA would not apply since you have no current earned income. If you did, I would recommend that you consider the Roth ($5,500 contribution limit for 2016). There is a five-year rule for making withdrawals from Roth's, but once that is met you can still access your principal invested tax-free before 59 1/2 years old. Some special rules do apply so check with a tax adviser. And one other thing to keep in mind. If your earned income is less than your eligible contribution amount, your maximum contribution amount equals your income. In other words, if you only earn $1,000 then you can only contribute $1,000, not $5,500, to a Roth.
By the process of elimination, you would be left with opening a brokerage account and buying a well-diversified tax-efficient and cheap broad market ETF (Exchange Traded Fund). Check out Schwab US Broad Market (trading symbol: SCHB). It trades everyday and you could buy or sell it for FREE at Schwab whenever you wish. It's a brainless and painless one-stop shop to help you get started.
Best of Luck!
First, congratulations on saving $12,000 a year!
Second, I would recommend that you roll the two old plans into your new plan (or into a Rollover IRA account at Vanguard, TD Ameritrade or Charles Schwab). You should be able to accomplish this even before the one year blackout period expires and you're eligible to make new contributions into the new plan.
Third, make sure you have a fully funded emergency account. Consider six months to a year of your household expenses.
Fourth, if you are married, you can still make contributions of $11,000 ($5,500 each for 2016) into a Traditional or Roth IRA. Since you mentioned that you are near the Roth income phaseout ($117k for single or $184k for married filing jointly), you can consider a "backdoor" Roth after funding a Traditional IRA. There are no income restrictions on making this conversion. You'll just need to pay the tax. Read more here and run sample calculations based on your age, income, etc. Make sure you consult your tax adviser before making any final decisions.
Finally, just save any excess in a broad based tax-efficient index or ETF portfolio in a taxable brokerage account. Just because the account has a different tax liability doesn't mean that it can't be working toward the same goal of retirement. Plus, it's always nice to have various investment accounts/tax options when planning for & in retirement.
Best of Luck!
In order to answer this question properly, you need to consider at least two different types of risk: 1. Default Risk 2. Interest Rate Risk
Default Risk: This is the risk of the company/country not being able to return your investment. The US Treasuries are considered one of the "safest" investments in the world since the US government owns a printing press. They can always print more money to pay you back at maturity. The "safest" is also defined by specific ratings. The Trading Economics credit rating (TE Rating) scores the credit worthiness of a country between 100 (riskless) and 0 (likely to default). The US is currently a 97 out of 100. This 97 is derived by reviewing data from the three major ranking agency scores. In this case, Standard and Poors rates the US a AA+, Moody's rates it a AAA and Fitch rates it a AAA. You can go to Treasury Direct to learn more as well as buy directly from the US Treasury. Regarding banks and credit unions, you can check their ratings by going to http://www.bankrate.com/rates/safe-sound/bank-ratings-search.aspx.
Interest Rate Risk: This is the risk of losing principal and the volatility or movement of that principal when interest rates go up or down. (Keep in mind that interest rates are still very very low based on historic averages. The 10 year is trading ~ 1.7%) This sensitivity to rates is directly correlated with three things, the quality of the bond, the bond's time to maturity and the interest rate of the bond. The easiest way to view this is from the eyes of a child. Think of a seesaw when you were a kid. If you and your friend stood in the center there would be no movement, but if your friend went all the way out to the left side the right side went up and vice-versa. So if you buy a quality bond with a shorter term there would be less risk. The longer you go out in maturity, the higher the interest rate risk.
CD's and MM are both covered by FDIC insurance at your bank so there's really not any risk to principal. The problem is that the national 1 year CD average is ~ 1.25% and most money markets are paying are paying less than .50%. Check out Bankrate.com for your local and national rates.
We would generally recommend your local bank money market in this case. It provides four advantages: ease of access, daily liquidity, 100% preservation of capital and 100% insured.
Having a comfortable and safe cash reserve in case of an emergency, or in this case your own long-term care needs, is always a great idea. Long-term care needs are usually progressive as we age and typically start as less expensive home care, but depending on where you live in the US the cost of care can easily range from $80-$125,000 for a year.
Best of Luck!
PS - The gift to the boys is very generous. I'm sure that they will greatly appreciate it. I’m also glad to see that you are thinking about taking care of yourself first.