Apprise Wealth Management LLC
Phil founded Apprise Wealth Management. He started his financial services career in 1987 working as a tax professional for Deloitte & Touche. For the past 20 years, he has worked extensively in the areas of personal finance and investment management. Phil is both a CFA charterholder and a CPA. In addition, he has served as a featured media spokesperson and has written weekly commentary on market-related topics. His investment approach favors the long term, as well as assessing the value and fundamentals of the assets in which he invests.
He launched his own Registered Investment Advisor (RIA) business so he could provide financial planning, personal finance, and investment management services and education to those looking for assistance. He believes it is a privilege to help others plan for their financial future.
Phil grew up in Livingston, New Jersey and graduated from Rutgers University with a BS degree in Accounting. He also attended Duke University for three years where he was a Psychology major.
He and his wife, Diana, live in Maryland and are proud parents of four children. Phil enjoys following his favorite sports teams, reading, and spending time with his family at home, on the fields, and when traveling. Phil continues to coach many of the youth sports teams that his children play for.
BS, Accounting, Rutgers University/Rutgers College
Assets Under Management:
There isn’t a penalty associated with selling your home no matter what you do with any gains. However, you could owe taxes on the sale.
As long as you lived in the home for at least two of the past five years, you can exclude (or avoid) gains of up to $250,000 from capital gains taxes. This amount increases to $500,000 if married and filing a joint return.
When calculating your gain on the sale of your home, don’t forget to include items such as closing costs (buying and selling), sales commissions, and any capital improvements when determining your gain on sale. If you are unsure about how to determine your total basis in your home, it would be best to consult with a tax professional or a financial planner who has a good understanding of the applicable tax rules.
I hope this helps.
In short, your tax basis represents what you paid to acquire all the shares you purchased, including commissions. When you reinvest your dividends, that amount is added to your basis.
Share splits don’t really impact your basis, but they can still be confusing. Your basis per share is all that really changes when a stock splits. Let’s try an example:
Original purchase 15 shares @ $20 each + $10 commission. Total cost $310
Dividend reinvestment amount $7.50 for 0.5 shares.
Dividend reinvestment amount $7.50 for 0.5 shares
Dividend reinvestment amount $7.50 for .45 shares
Dividend reinvestment amount $8.00 for .45 shares
Total invested $340.50 for 16.9 shares = $20.15 per share
Stock splits 2:1. You now have 33.8 shares. Your cost basis is still $340.50, or $10.07 per share.
I hope this helps.
Your contribution will not be taxable.
In 2018, you can contribute up to $18,500 to your 401(k). If you are age 50 or over, you are allowed to contribute up to an additional $6,000 (a catch-up contribution), or a total of $24,500. These amounts are adjusted for inflation each year.
Keep in mind that these limits ($18,500/$24,500) only refer to elective deferrals. They do not include other contribution sources like employer matching contributions, nonelective deferrals, or allocations of forfeitures. Including all sources, the 2018 contribution limit for these plans is increasing by $1,000 to $55,000. If applicable, after you add in the catch-up contribution, the total possible overall maximum 2018 contribution is $61,000.
The company match itself only refers to a benefit the company is providing to you. The amount you can contribute to a retirement account on a tax deferred basis is not impacted by your company match unless your total contributions as detailed above exceed the maximum overall contribution amounts of $55,000/$61,000. The size of your company's match sounds quite generous. If you are able to add another 10% above that you will end up contributing 25% of your salary to your retirement account this year. That is quite impressive.
I hope this helps.
You're going to get lots of answers to your question and lots of offers to help. Whatever you do, be careful. You said you have limited knowledge. You don't want to end up working with someone that will take advantage of you. If you have a friend or loved one, who is knowledgeable about finance, I would recommend you include him or her in the process when you look for someone to work with.
First and foremost, I recommend that you restrict your search to fiduciary advisors. Even better, look for someone that will sign a fiduciary oath showing they will work in your best interest. One of the best examples of a fiduciary oath can be found here. Alternatively, Jason Zweig who writes on personal finance issues regularly for the Wall Street Journal recommends you ask 19 questions when meeting with a financial advisor.
It can be worthwhile to work with more than one advisor, but even if you do, it makes sense for one to know what your total assets are. That way, you make sure everything is taken into account when your assets are allocated to different investments.
As for your inheritance itself, the first thing to do is pay off your debt. Based on the amount, I'm assuming you're paying a relatively high rate of interest on it. There is no reason for you to do that.
If managed wisely, you have enough money to live comfortably for the rest of your life. There's no reason you can't take some time off to travel and see the world. It's what you want to do. You have been given a golden opportunity to do so. But, budget how much you want to spend, and stick to it. The last thing you want to have happen is that you find you have a lot less left than you planned, and the life-changing inheritance means a lot less than you think.
You may also want to honor your loved one. If they had a favorite cause, you could do something to support it. If they died of a terrible disease, you could do something to help fight that disease and, hopefully, keep others from suffering the same fate.
You also have been granted the freedom to do what you truly want with your life. If that means getting more education, then go ahead and get it. If it means taking a job that provides a little less income, but allows you to do what you enjoy, that's okay, too.
You can also allocate funds to purchase a home you want to live in. Whether you purchase it for cash or take a mortgage is something you will have to decide when looking at the overall opportunity set. If you are not ready for home ownership, there is nothing wrong with renting. As a young, single woman, you might not want all of the responsibilities that come with home ownership. Renting can be a fine option until you are ready to own your home.
How much you can spend on travel, honoring your loved one or on your home should be part of your financial plan. A fiduciary advisor will help you put together such a plan that has the potential to let you lead the type of lifestyle you want, and if managed properly in a well-balanced portfolio that delivers the type of returns that have been achieved historically, it can last your lifetime. It could even leave you in a position to leave an inheritance to someone in your situation many years in the future.
As with those who suddenly have a big windfall after winning the lottery, be careful, too. Many people may come to you asking for assistance, for a share of your money. Be careful and make sure that you are not taken advantage of.
I hope you find this helpful.
This is not an easy question to answer. You are also not alone in worrying about your portfolio in a time of increased marketing volatility.
There are different ways you can look at this question.
First, if you were to assume no increase in your annual expenses and minimal gains from your cash investments, you can say this money will last 25-30 years, which is likely to be within your life expectancy.
However, your expenses will increase over time, even without any health-related or other issues coming up. The growth in your expenses is likely to exceed any interest earned on your cash.
Fidelity estimates the average couple will spend $275,000 in retirement (begins at 65; living to 86-88). How does this estimate compare to what you are currently spending? How is your overall health? What is your family health history?
Are you asking about switching to cash as a temporary move, a form of market timing? If so, be careful. Market timing is very rarely a successful strategy. It is very hard. You have to time when to get out of the market. You have to time when to get back in. You are increasing the number of decisions you have to make. The more decisions you make, the more likely it is you will make some wrong ones.
If the market were to fall 30% or more this year, that would certainly be rough. You’re no longer adding new money to the market, and you have no idea how long it will take to recover from your losses.
It is important to have a process and a plan. My recommendation would be to interview several fee-only financial planners. Find one you feel comfortable with. Make sure they can put a plan in place that includes a well-diversified portfolio that will be regularly rebalanced. You want to have a process in place for your portfolio that you are comfortable with and can stick to.
These steps can help take emotions out of the process, which can benefit your returns.
I hope this helps.