Meridian Financial Advisors, LLC
Georgia and Rich Bruggeman founded Meridian Financial Advisors, LLC in 1990 to provide truly fee-only advice and guidance without any conflicts of interest that accompany commission sales. Meridian Financial Advisors, LLC is a comprehensive financial planning and investment management firm. They have been providing financial planning services to individuals, families and small businesses since 1990 in a fiduciary capacity. While they advise their clients on insurance needs, taxes, retirement planning, estate planning, education funding and Long Term Care they specialize in portfolio management and securities analysis.
Georgia and her team give one on one attention to each of their clients and develop plans that consider their clients' specific time horizon, risk tolerance and stated goals. They take a comprehensive approach to their clients' finances because a decision in one area will affect the rest of the plan. As a financial planner, Georgia is often compared with the quarterback who not only is an integral part of the game but who depends on everyone else on the team working together.
In addition to holding the CFP® designation, Georgia is a registered investment advisor and earned her MBA in Finance from Babson College and has passed Levels I and II of the CFA program. Georgia is a member of the Financial Planning Association, CFA Institute and the National Association of Personal Financial Advisors (NAPFA).
Georgia and Rich live in Sherborn with their 2 sons, and also spend time in Cape Cod near their alternate N. Eastham office.
MBA, Babson College
BS, Business Administration, Skidmore College
Assets Under Management:
You want to buy S&P 500 put options. Depending on the amount of money you have you could buy several put options with different srike prices and expiration dates. If you purchased a put with a strike price of 240 then every point below 240 that the s&P 500 drops you would earn money. If the market does not turn down and you do not exercise your options then you will lose the amount of money you paid for the put options only.
Many large brokerage firms suggest a permanent allocation to junk bonds of 5% or more. These funds pay more because they are more risky and have to borrow at much higher rates than lower risk firms. There is a another type of junk fund called Bank Loans. These are very different than junk bonds. Bank Loans have a floating interest rate that adjsuts with the level of interest rates. Usually rates are set as Libor plus some spread.
Bank Loans get paid first in case of distress before everybody and they are backed by company assets. Junk Bonds are not backed by assets and if a company goes under you need to wait for a workout ot happen and usually you will get some equity and debt when the company emerges from bankruptcy. This is generally not an issue with a fund holding hundreds of bonds.
The one thing to know about high yield or junk bonds is that they move based on how the underlying stock is doing not how the bond market is doing. Junk bonds trade more like stocks than bonds. This makes sense given that the ability of the company to pay their expensive debt is directly tied to how well the underlying business is doing.
When the economy turns down junk bonds will get hammered; this is the opportunity. One way to determine how expensive or cheap junk bonds are would be to compare their yield to a risk free yield on the 10 year treasury. Thsi is called a yield spread. During recessions the spread gets very wide. As the economy improves the spread gets smaller becasue teh risk of defualt is declining. At some point investors begin to forget about the risk in junk bonds and simply "chase" after their higher yields. This is apparent when the spread gets very small. Investors are ot being compensated for the risk they are taking.
In 1999 the spread was 5% meaning junk bonds were paying 5% more than the 10 year treasury. One year later in 2000 that spread widened to 10%. On June 18 2007 the spread had declined to 2.52%. During the credit crisis it widened to over 20% on Dec 22 2008. In Feb 2016 when the market was selling off the spread again rose to 7.98%. The average spread over a long period of time is about 6%. Today the spread is 3.61%.
So it is fine to have an allocation to high yield bonds but be prepared for the next downturn when prices will decline and add more to bring your allocation back up to your target percentage.
If you have already rolled the stock over to an IRA you have lost your opportunity to utilize the NUA. This is why it is so important to talk with a professional before rolling over your 401k if you hold company stock.
You must transfer the stock directly from the 401k and pay ordianry taxes on the cost basis of the stock. After 12 months you can sell and pay long term capital gains taxes on the proceeds.
It depends on how much money you have. It is advisable to have 6 months living expenses in a savings account for Emergencies. You also need to be saving for retirement. When you have competing financial goals it is better to put funds toward your most pressing goal first. I cannot know what this is without any more informatin. While paying off the mortgage is a great goal you dont want to end up with a home but no cash. You need to balance the illiquidity of the home with your desire to pay off the mortgage. Illiquidity refers to the fact that your home cannot be converted to cash easily or quickly. Also it does not generate any income unless you rent it out.
Funds withdrawn from your IRA are taxed at ordinary income tax rates. To determine your tax bracket, you would add 85% of your Social Security income to the $14,000 withdrawal. Subtract the standard deduction of $6,350 and your Personal Exemption of $4,050. If you are single and your taxable income is less than $37,950, you will be in the 15% bracket and your estimated tax due would be 15% multiplied by your taxable income. Answering this question is a bit difficult not knowing your entire situation, which would include additional deductions on your tax return. But the math above should give you a good approximation.