Silber Bennett Financial
Rebecca Dawson is an experienced, independent financial advisor offering personalized wealth and investment management guidance to a select group of individuals, families, and businesses in Southern California and around the country. Her mission is to be a trusted advisor to her clients by partnering with them to identify what is most important in their financial lives while providing tailored solutions to help achieve their goals.
Since 1985, Rebecca has served as a financial advisor. She has developed highly refined methods for evaluating client's needs and formulating successful investment strategies. She and her staff provide an exceptional level of service to her clients, who are typically worth well in excess of $1 million and include some of the most prominent people in the United States.
Before joining Silber Bennett, Rebecca managed her own independent brokerage office since 1999. Prior to that she held similar positions with PaineWebber, Merrill Lynch, and Alex.Brown & Sons.
Her clientele have included corporate presidents, and officers, charitable foundations, pension funds, business owners, and wealthy retirees. Her affiliation with Silber Bennett Financial provides her clients with full service wealth strategies.
BA, Liberal Arts, University of Texas at Austin
SECURITIES AND ADVISORY SERVICES OFFERED THROUGH SILBER BENNETT FINANCIAL, INC.
DOI: CA 0H72697 | MEMBER: FINRA / SIPC
Trump's tax plan is still in the works but could potentially allow for even lower tax rates. This would also allow for conversions from your traditional IRA to a Roth IRA since you are taxed on the funds upon conversion. It would depend on your view of where you believe taxes are headed since we are taxed on all distributions taken out of traditional IRAs and 401ks. If you look historically where tax rates have ranged we are currently at some of the lowest tax rates in history even before or if the new administration's tax plan is implemented. Higher taxes mean less money for your retirement years. Moving your tax deferred funds from accounts that are taxed to accounts that are not taxed is one solution, or at least a portion of those funds.By paying taxes today you can take advantage of historically low rates. And if you are young enough you may have plenty of deductions that could potentially help offset the taxes.Until more details are known, it is difficult to know exactly how some taxpayers will fare. The White House will need to work with Congress on the final plan, which could look very different if lawmakers push back against some of the proposed changes.
An Individual Retirement Account (IRA) is a tax deferred account available for anyone of any age as long as you have earned income. Once you open your accout you may invest the funds in your IRA in, but not limited to stocks, bonds, mutual funds and/or even CDs. An IRA is an account set up at a financial institution that allows an individual to save for retirement with tax-free growth or on a tax-deferred basis. A traditional IRA is tax deferred which you make contributions with money you may be able to deduct on your tax return, and any earnings can potentially grow tax-deferred until you withdraw them in retirement.
A Certificate of Deposit (CD) is a type of fixed interest rate deposit over a specified period of time. When that term ends, you can withdraw your money or roll it into another CD. Withdrawing before maturity can result in a penalty. It is low risk and low return. CDs are among the safest investment a persona can make. The interest rate is determined ahead of time, and you’re guaranteed to get back what you put in, plus interest once the CD matures. What’s more, if the bank fails or goes under, your deposit is most probably insured by the FDIC for up to $250,000.
The difference being that an IRA is a type of account in which you may leave in cash or invest in differing securities or CDs. Whereas a CD is a time deposit at a financial institution which may be bought in either a qualified (IRA) account or a non qualified (cash) account.
All of the terms refer to differing types of IRAs (Individual Retirement Accounts):
The term SEP-IRA is short for Simplified Employee Pension IRA. The two main kinds of IRAs are the traditional IRA and the Roth IRA. With the traditional IRA, you contribute pre-tax money that reduces your taxable income and as a result, your tax bill for the year. When you withdraw the money in retirement, it is taxed as ordinary income to you, therefore, your tax obligation was deferred. With the Roth IRA, you contribute post-tax money. Those sums do not offer any up-front tax break. Although, you do get a tax break when you withdraw from the account in retirement because you get to take all the money out of the account tax-free.
The SEP-IRA rules are similar to those of the traditional IRA, with a few variables. While traditional and Roth IRAs are accounts most of us set up on our own, SEP-IRAs are tied to our jobs. A SEP is set up by an employer as well as a self-employed person and permits the employer (not the employee unless you are self-employed) to make contributions to the SEP-IRA accounts of eligible employees. The employer gets a tax deduction for contributions made, and the employee is not taxed on those contributions, though their eventual withdrawals will be taxed at their income tax rate. A self-employed person is both employer and employee so he or she funds their own account.
A savings account is a deposit account held at a retail bank that pays interest, but usually cannot be used directly as money in a checking account with check writing privileges. Savings accounts let customers set aside a portion of their liquid assets while earning a monetary return versus other types of accounts such as a checking account or money market account.
Whereas a Roth IRA is a type of IRA (Individual Retirement Account) in which you pay taxes on money going into your account and then all future withdrawals are tax-free. There are annual contribution limits each year dependent on personal variables. IRA contributions are the lesser of your taxable income and the published limit amounts dependent on age, filing status, and income each year. This total may be split up between any number of traditional and Roth IRAs. You may contribute to a Roth IRA at any age as long as you have income.
Your Roth IRA can be invested in, but not limited to stocks, bonds, mutual funds, unit investment trusts, ETFs, and/or real estate limited partnerships. As with all IRAs, the IRS mandates specific eligibility and filing status requirements. A Roth IRA's main advantages are its tax structure and the additional flexibility that this tax structure provides.
The purpose of having a diversified portfolio is not necessary to increase the total return, but to reduce the volatility and potential downside. Initially, you should clarify your level of risk based on your investment goals, time horizon, and risk tolerance.
In order to build a diversified portfolio, you should look for assets: stocks, bonds, cash, and/or alternative investments. Assets that are non-correlated and whose returns have not historically moved in the same direction. Also, to be diversified within each asset class.
Not only do you need to be diversified within stock sectors, but also by small, mid, or large cap stocks. Caps, sectors, and geography. The standard rule of thumb is not to be exposed to any more than 5% of any one stock. This can better be achieved through a managed portfolio for asset allocation. Then there is the diversification within growth, value, or income style of investing.
When and if you decide to invest in bonds, consider laddering or varying maturities, credit qualities, and durations, which measure sensitivity to interest-rate changes. There are many differing fixed income funds that would be an attractive diversification for your stock exposure.
For the cash exposure, it is advisable to keep at least six months worth of living expenses in cash in the event of any unforeseen financial setback. Obviously, this would be outside of your retirement account, but also an important component to a diversified portfolio.