Capital Management Group of New York
Founder / Managing Partner
Tom Mingone is the Founder and Managing Partner of Capital Management Group of New York, a financial services firm that has been serving high net worth investors and their families for nearly 25 years.
Tom started CMG because he wanted to help people live their life to the fullest extent. He implements a balanced approach to wealth management by integrating tax-advantaged investing, asset allocation, protection planning, charitable gifting, legacy and estate planning strategies, and more into clients’ financial plans.
Tom earned his Certificate in Retirement Planning from The Wharton School, University of Pennsylvania, and graduated Cum Laude from the University of Richmond with a Bachelor of Science degree in Finance. He earned the Chartered Financial Consultant (ChFC) as well as the AIF (Accredited Investment Fiduciary) designation from The Center for Fiduciary Studies. His other designations include Accredited Estate Planner (AEP), Certified Funds Specialist (CFS) and the Chartered Life Underwriter (CLU) designation.
Tom is looked to as a thought leader in the financial community and his comments have appeared in the Wall Street Journal, the New York Times, USA Today, Money Magazine and US News & World Report.
As an active member of his community, Tom has been recognized as one of Rockland’s “40 under 40” business leaders. He has established several scholarship funds including the Romolo Mingone memorial Scholarship Fund, the Rockland Conservatory of Music Fund and St. Gregory Barbarigo Church Scholarship Fund. In addition he is an avid supporter of the Make-a-Wish Foundation of Hudson Valley and is a member of the New York City and Rockland County estate planning councils.
A native of Rockland County, he lives in Stony Point, NY with his wife Christine and their two children Alexa and Christopher.
BS, University of Richmond, Cum Laude
The Wharton School, Certificate in Retirement Planning
Tom Mingone offers securities through AXA Advisors, LLC (NY, NY 212-314-4600), member FINRA/SIPC, offers investment advisory products and services through AXA Advisors, LLC, an investment advisor registered with the SEC, and offers annuity and insurance products through AXA Network, LLC. AXA Network conducts business in CA as AXA Network Insurance Agency of California, LLC, in UT as AXA Network Insurance Agency of Utah, LLC.
AXA Advisors, AXA Network, and their financial professionals do not offer tax or legal advice. Be sure to consult with your professional tax and legal advisors regarding your particular circumstances.
Capital Management Group of New York is not a registered investment advisor and is not owned or operated by AXA Advisors or AXA Network.
It’s important for investors to understand the key differences between closed-end funds (CEFs) and exchange-traded funds (ETFs) as each has its advantages and disadvantages. You should always consult with your financial and tax professionals before deciding whether investments are suitable for your current goals and risk tolerance. Below I have listed the major differences between the two types of investments.
Fees: The expense ratios of ETFs are generally lower versus CEFs. Most ETFs are copying the holdings in major indexes and the cost of managing them is less compared to actively managed portfolios. Also, indexed ETFs will only make trades to mirror any changes in the index it is tracking. Since there typically is less portfolio turnover, ETFs will often have lower internal trading costs versus their actively managed fund counterparts. The ETF cost savings can be significant, especially for long-term investors and should be a consideration when choosing which is right for you. Financial Institutions can also vary with the fees and expenses that they charge and information on specific fees, charges, and expenses is obtained in the fund prospectus.
Leverage: Many CEFs are leveraged (borrowing capital expecting profit to be more than interest owed), which magnifies the fluctuations of the NAV. If portfolio managers are correct about their selections, leverage is beneficial. At the opposite spectrum, poor investment decisions in a leveraged portfolio can be damaging. There are a handful of ETFs that use leverage at this time and investments, but these are relatively newer to the ETF world.
Style Drift: Active CEFs are more susceptible to style drift versus index ETFs. Style drift is common with actively managed portfolios as money managers will sometimes divert from their original investment strategy. On the other hand, ETFs are generally insulated from style drift because a portfolio manager’s freedom to hand pick securities outside the scope of an index is limited.
Fund Transparency: Because fund components are often pegged to an index, the transparency of most ETF holdings is excellent. Investors can easily identify the underlying stocks, bonds, or commodities of a fund by consulting the index provider or fund sponsor. CEFs have less transparency because their portfolios are actively managed, but holdings can be uncovered by viewing quarterly or semiannually fund disclosures.
Net Asset Value (NAV): ETFs generally trade close to their net asset value (NAV). It’s rare to see ETFs trading at a large premium or discount to their NAV, but it can happen. Historically, institutions have seen this as an arbitrage opportunity and this process keeps ETF share prices closely tied to the NAV of the underlying index. On the other hand, CEFs are more likely to trade at a premium or discount to their NAV. The premium is usually a result of greater demand (more buyers than sellers) for a fund’s shares, whereas a discount would imply less demand (more sellers than buyers).
Taxes and Portfolio Turnover: Every year, both ETFs and CEFs are required to distribute dividends and capital gains to shareholders. This is usually done at the end of each year and these distributions can be caused by index rebalancing, diversification rules, or other factors. Also, anytime you sell your fund this could generate tax consequences. Please check with your tax professional for more details.
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There are multiple considerations associated with opening a Roth IRA.
The main advantage of a Roth IRA over a traditional is that any qualified distributions come out tax free after the normal retirement age of 59 ½.
The first consideration is that of liquidity. Any distributions taken prior to normal retirement age of 59 ½ are considered nonqualified distributions and earnings (from tax deferred accumulation and any growth) become subject to a 10% penalty tax. The Roth IRA also has a five year waiting period, meaning if you are already 59 ½ and decide to open a Roth IRA, at least five years must pass between January 1st of the year you make your first contribution for a withdrawal to be considered “qualified” and nontaxable. It is good idea to have 3-6 months living expenses in cash to cover any emergencies to help dampen liquidity considerations that may force you to take from your Roth IRA prematurely.
The next consideration I’ll touch on is investment risk. Remember, a Roth IRA is a vehicle with favorable tax treatment. Investment risk comes from the allocation of equities, fixed income, international, and alternative asset class exposure chosen through buying stocks, bonds, CDs, mutual funds, etc. Investing too safely and leaving it in cash/CDs runs the consideration of eroding your buying power when inflation is greater than your investment return. You can also invest too risky and have less money available at retirement than you contributed.
Earned income is another consideration. The IRS sets income limits that reduce or “phase out” the amount of money one is allowed to contribute. In 2016, filing a single tax return, phase out starts if your Modified Adjusted Gross Income (MAGI) exceeds $117,000 and you are unable to contribute to a Roth if your MAGI exceeds $132,000.
Lastly, would be your current tax bracket compared to anticipated tax bracket at retirement. Roth IRAs are funded with after tax dollars. In some situations, it may make more sense to open a traditional IRA in order to take the tax deductions up front and be taxed on the distributions at retirement.
There are many vehicles to save for retirement, I would urge you to seek advice from a financial advisor working in conjunction with your CPA to determine the best approach given your individual situation.
Thomas Mingone, AXA Advisors and AXA Network do not offer tax or legal advice.
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Debt ratios are an indication of how well a person manages how much they borrow. It really isn’t inherently good or bad, although it does come at a cost- usually in the form of interest. There are even different types of debt. “Quality debt” is usually low in cost and is structured to be paid off before the economic life of purchase is diminished. An example of quality debt is to finance a car over the course of 3 years while it’s expected benefit period is closer to 3-10 years. Some other loans that are seen as quality are mortgages and student loans as the underlying assets of education, housing, and transportation create long living economic benefits.
Credit card debt is usually considered the worst kind of debt because of its high costs. Many people will use credit cards to purchase consumable goods, also to find themselves still paying off the debt long after the item’s period of consumption.
When a person consistently repays debt, that increases your credit rating. The borrower gains confidence in handling debt and the lender gains confidence and willingness to extend credit to the borrower.
When examining debt ratios, the most commonly used formula is the consumer debt ratio. This is your non-housing monthly debt service to monthly gross income. Add up all your debt (excluding mortgage or rent payments and divide by your monthly gross income) and a healthy debt ratio would be less than 20%.
No, you can either convert IRA to Roth but unless you are actively working and making an income you will not be able to make current year contribution to your Roth.
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That is a great question. Almost, if not, all investments will have both pros and cons associated with them.
A mutual fund by definition is a company that pools money from many investors that can invest in many vehicles, including stocks, bonds, short term debt, and alternative investments. Investors buy shares in a mutual funds and each share represents the investor’s part ownership in the fund, any appreciation or depreciation and the income it generates.
I have highlighted some of the major advantages and disadvantages below.
Diversification: “Don’t put all your eggs in one basket” - A single mutual fund can hold a wide range of securities from different issuing companies. ”Focus” funds are on the lower end of the spectrum and can hold little as twenty investments that the manager has high conviction in. On the other hand, there are mutual funds that hold thousands upon thousands of different investments. Generally a mutual fund will often have somewhere between 75-125 holdings. This diversification may considerably reduce the risk of a serious monetary loss due a particular company or industry having “bad” or negative returns.
Affordability: Many mutual funds set a relatively low dollar amount for initial investment and subsequent purchases. For example, many fund families allow you to begin buying units or shares with a small dollar amount (example being $500) for the initial purchase. Some mutual funds also permit you to buy more units on a regular basis with even smaller installments (example being $50 per month) allowing small dollar amounts to invest in many companies/issues. This allows an individual to own all of the underlying investments of the fund that may not have been affordable to purchase each holding individually.
Professional Management: Many investors do not have the time or expertise to manage their personal investments every day, to efficiently reinvest interest or dividend income, or to filter through the thousands of securities available in the financial markets. Mutual funds are managed by professionals who are experienced in investing money and who have the education, skills, and resources to research diverse investment opportunities. Not only with they do the security selection, but many will also monitor performance, and make adjustments with the changing economic and market cycles.
Liquidity: Units or shares in a mutual fund can be bought and sold any business day (that the market is open), providing investors with easy access to their money for the current Net Asset Value (NAV) minus any redemption fees, usually within three business days of the transaction.
Flexibility: Many mutual fund companies manage several different funds (e.g., money market, fixed-income, growth, balanced, sector, index, international, global, alternative, allocation, target date and hedging strategies) and allow you to switch between these funds at little or no charge. This enables you to change your portfolio balance as and when your personal needs, financial goals or market conditions change.
When you invest in a mutual fund you place your money in the hands of a professional manager. The return on your investment depends heavily on that manager’s skill and judgment and the way they decide to invest your money. Not every manager has the same resources, depth of research/analyst teams, or experience backing their decisions. There are also multiple investment philosophies that are widely accepted in the financial industry and it’s up to the manager to decide which one they think is best.
Research has shown that few portfolio managers are able to consistently out-perform the market over long periods of time (according to a 2016 study done by Kent Smetters, professor of business economics at Wharton). It’s a good idea to look at the fund manager’s track record for 1, 3, 5, 10 year and/or since the mutual fund’s inception. It is also important to try and uncover the “why” behind that fund’s performance and decide if the performance is both sustainable & replicable through different market cycles. This can be found near the front of the prospectus, right after the narrative, description, investment objective, goals, strategies, and risks. There will be a bar chart showing the fund’s annual total returns for each of the last ten years or since its inception. Fees for fund management services and various administrative and sales costs can reduce the return on your investment. These are charged, in almost all cases, whether the mutual fund has a positive or negative return on investment.
Redeeming your mutual fund investment in the short-term could significantly impact your overall rate of return due to sales commissions and redemption fees that may be applicable.
A variety of share classes available can make it harder to interpret which would be the best investment for one person’s situation to the next.
In summary, choosing the right mutual fund to fit into your portfolio can be very complex. Every mutual fund is different and you should consult the each mutual fund’s prospectus for the exact terms of the offering. I would also urge you to seek input from your financial and tax professional to make sure the final decision is suitable and tailored for your individual financial goals.
Please consider the investment objectives, charges, risks, and expenses carefully before purchasing a variable annuity. For a prospectus containing this and other information, please contact a financial professional. Read it carefully before you invest or send money.
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