Aegis Capital Corp
Executive Managing Director
Thomas M. Dowling is an Executive Managing Director with Aegis Capital Corp and works both out of Hilton Head, SC and New York, NY. Prior to Aegis Capital, Thomas directed the East Coast expansion of a publicly-traded Investment Banking firm and was Vice President and Senior Advisor of a regional Investment Advisory organization. He was a member of each firm's Chairman's Council and President's Circle. Shortly thereafter, he founded Quadstar Capital Advisors, which provides Advisory Services to Ultra-High Net Worth clients.
Thomas has been featured in various publications and has been a guest speaker at various financial organizations such as the Evelyn Brust Financial Research and Education Foundation and the South Carolina Business Review. He has also been a volunteer for The Dale Carnegie Training Institute which helps people develop leadership, communication and public speaking skills. Additionally, he is the founder and chairman of The Resource Group which is a forum that allows business owners to collaborate in order to help each other gain insight and knowledge to better run their business.
Thomas’s goal is to help people answer two of the most fundamental, yet important, financial questions: "will I make it?" and "what can stop me from achieving it?". After working towards these goals for over 20+ years, he has found that most people have no idea what “it” is. His passion is to help people understand what their “it” is. He believes it is sad when someone is marching towards their goals and dreams and then gets blindsided by something they did not anticipate or overlooked.
Thomas received his BS in Business Administration with a minor in Finance from the State University of New York and completed the graduate-level Certified Investment Management Analyst program (CIMA®) held in conjunction with The Wharton School, University of Pennsylvania. Thomas is proud to hold both the Chartered Financial Analyst designation, as well as the CERTIFIED FINANCIAL PLANNER™ certification, which puts him in a group of fewer than 2,800 professionals in the United States who hold both certifications. Furthermore, he is a Chartered Retirement Plans Specialist.
Thomas is currently a member of the CFA Institute, New York Society of Security Analysts, CFA Society of South Carolina, Financial Planning Association, the National Institute of Certified College Planners as well as the Investment Management Consultants Association.
Thomas attributes his understanding of what is most important in life to his wife and two sons.
BS, Business Administration, State University of New York
Certified Investment Management Analyst Program, University of Pennsylvania, The Wharton School
Nothing contained in this publication is intended to constitute legal, tax, securities or investment advice, nor an opinion regarding the appropriateness of any investment, nor solicitation of any type. The general information contained in this publication should not be acted upon without obtaining specific legal, tax, and investment advice from a licensed professional.
Registered Representatives offer securities, insurance and advisory services offered through Aegis Capital Corp, member FINRA/SIPC. No investment strategy or program can guarantee a profit or protect against loss.
Some of the main differences are:
- A 401(k) plan is an employer-sponsored plan therefore you must work for the company in order to participate in the 401(k). In most cases anyone under the age of 70.5 who earns income can participate in an IRA.
- The 401(k) plan usually has better creditor protection than an IRA since it is an employer-sponsored investment plan.
- 401(k) plan contributions are usually made through payroll deductions. An IRA contributions usually are done by the individual writing the check and depositing in the IRA.
- A 401(k) Plan can offer loan privileges. An IRA does not have loan privileges.
- A 401(k) Plan can have an employer match provision. An IRA does not
- Contribution amounts are higher for a 401(k) ($18K for 2017). An IRA has a contribution amount of $5,500 (not including catch up)
- The catch up amount in a 401(k) is $6,000 in 2017. An IRA catch up is $1,000 in 2017.
- The investment options in a 401(k) are usually more limited than an IRA
These are categorized and calculated by the IRS as two different types of taxes.
The sale of the home is considered a passive loss and a conversion of your 401(k) into regular savings is considered active (ordinary) income.
Passive losses (capital losses) offset passive gains (capital gain) not ordinary (active) income.
The one exception to this rule is that you are allowed to utilize a $3,000 annual capital loss against ordinary income.
The remainder passive losses can be carry-forwarded to future years to offset any future capital gains.
In this case you are not comparing apples to apples.
Please refer to the IRS website here for information on capital gains and losses https://www.irs.gov/taxtopics/tc409.html
Additionally, if you are under 59 ½ you can trigger the early withdrawal penalty.
This can get tricky therefore I would suggest that you speak with registered tax preparer to get advice on your particular circumstance.
As one of the few advisors who has achieved both certifications, I can say there are many differences however the one similarity is the focus on educating the advisor.
The differences revolve around the content in the programs.
The Chartered Financial Analyst has three levels in which Level 1 is given 2 times per year and Level 2 and 3 are given 1 time a year.
The CFA content revolves around:
- Economics – both Macro and Micro
- Financial Reporting and Analysis
- Equity and Fixed Income Valuation and Pricing
- Alternative investments
- Corporate Finance
- Portfolio Management
- Ethical Standards
- Quantitative Analysis
- Derivatives valuation and pricing
- Behavioral Finance
The Certified Financial Planner program has 7 classes and focuses on:
- General Principles of Financial Planning
- Ethical Standards
- Insurance Planning
- Investment Planning
- Income Tax Planning
- Retirement Planning
- Estate Planning
- Behavioral Finance
- Writing a Financial Plan
I thought the CFA was much more difficult and extensive than the CFP and dug deep into the technical knowledge of the subjects. When you finish the program you have deep knowledge and understanding of the subjects covered.
One aspect of the CFP that I especially liked is it that it went over the actual process of writing a financial plan, with examples and cases, rather than simply just the technical aspects of a financial plan.
Making the assumption that your current income level allows for a Roth IRA contribution it is usually more beneficial for a 20-something to contribute to a Roth IRA.
Remember the difference between a Traditional IRA and a ROTH IRA.
Traditional IRA is pretax dollars contributed (you have not paid income taxes on those funds) all gains grow tax free but when you withdraw the funds the taxes are then paid as if it were income.
A ROTH IRA is after tax dollars contributed (income taxes were paid already) and then all gains are tax free and any withdrawals are tax free (assuming all proper withdrawal rules are followed).
So it is important to consider two things:
- What is my tax rate now?
- What will be my tax rate at retirement?
The assumption in this scenario is that your income level will be higher when you retire than it is now therefore, you paid less tax on the money.
No. Contribution limit for a 401(k) is much more generous than a Traditional IRA or Roth IRA.
The maximum you can contribute to all of your Traditional and Roth IRA’s is $5,500 plus an additional $1000 if you are 50 years or older.
The maximum you can contribute to a 401(k) in 2016 is $18,000 plus an additional catch up contribution for a total of $24,000.