Sound Asset Management Inc.
Russell Wayne is a Certified Financial Planner and President and Chief Investment Officer of Sound Asset Management, Inc., an independent financial advisor based in Weston, Connecticut primarily serving clients in the greater New York tristate region and throughout New England.
Russell began his career with Arnold Bernhard & Co., Inc., the parent company of Value Line, Inc. Positions he held while associated with Value Line included Managing Editor, The Value Line Investment Survey; Portfolio Adviser, The Value Line Mutual Funds; Executive Editor, The Value Line OTC Special Situations Service; Business Manager, Value Line, Inc.; Portfolio Manager, Value Line Asset Management; and Director of Investment Software, Value Line Software.
From 1991 to 1995, Russell was Vice-President and Chief Investment Officer with Heine Management Group. He was also Vice-President and Secretary of the LMH Fund, Ltd. Clients for whom he has managed portfolios include Xerox, Texas Utilities, National Maritime Union, and United Cerebral Palsy Association.
Russell has been a featured guest on television, including CNN and the Bloomberg Network. He has been quoted in leading business print periodicals and well-known websites, including The Wall Street Journal, Barron's, BusinessWeek, The Wall Street Transcript, The New York Times, Investment News, MSNBC, Yahoo! Finance, NASDAQ, and Facebook.
Russell earned his B.A. and M.B.A. at Hofstra University. He earned his Certificate in Financial Planning from Florida State University and has pursued postgraduate studies at New York University School of Law. He is listed in Who's Who In The East, Who's Who In Finance and Industry, Who's Who In America, and Who's Who in the World. Russell has contributed to a number of published works. His own published works include Markets, Myths, and Memories (2010) and Live Well and Sleep Well With Your Investments Now and When You Retire (2016).
Russell is a proud member of the National Association of Personal Financial Advisors.
M.B.A. (Finance and Investments). B.A., N.Y.U. Law, Hofstra University
Certified Financial Planner, Florida State University
Assets Under Management:
When a mutual fund declares an income or capital gains distribution, the fund price drops by a similar amount, but you aren't losing money as a result. You will receive the distribution in cash, which you may reinvest in additional shares of the fund.
The distribution may or may not benefit you. If the fund has been successful and the net asset value is growing, that would be a good sign. But the distribution may be reflective of gains built up over time that are just now being realized. That could be cause for concern.
It would be more useful for you to focus on changes in the fund's net asset value and how those changes compare to the fund's benchmark. If, for example, the fund invests in a broad range of US stocks, the benchmark might be the Standard & Poor's 500 Index. If the NAV returns were better than those of the S&P, that would be good. And vice-versa.
Relative performance is more important than periodic distributions.
Your interest in planning for the future is commendable. You should certainly continue to save and invest since what you do today will play an important role in where you will be in years ahead. At any time in your investing efforts, it's essential to diversify your commitments. With many decades between now and your retirement, you would be best served by holding a combination of broad-based U.S. and interernational equity funds. Although equities are susceptible to wide price fluctuation, they also provide the most substantial returns. Over periods of 20 years or longer, it has always been the asset class of choice. With that said, however, there will come a time when you will want to dial down the risk exposure. When you're in your 40s, that's when you should add fixed-income holdings. As time passes, fixed-income holdings will become an increasing percentage of your portfolio.
With TD Ameritrade, you have many different investment opportunities. Cryptocurrencies, though, must be considered speculations, not investments. If you feel strongly about holding some, I suggest you limit the funds you commit to what you are prepared to lose.
Bottom line: Continue to invest and continue to save, but do it wisely as part of a diversified plan.
Most annuities are not good investments, whether for monthly income or otherwise. Why? Because the ongoing expenses, often in the 1.00% to 1.50% range and higher, eat away at the returns that are generated along the way. With a fixed annuity, there are guaranteed monthly payments that usually continue as long as you live. But the trade-off is that you must transfer funds to the insurance company and shoulder the risk that you will not live long enough to make the arrangement worthwhile. In the case of variable annuities, however, the funds remain yours. Later on, you may choose to annuitize them or withdraw them as a lump sum.
Typically, annuities are bought by folks who have exhausted others ways of deferring taxes. Taxes are due when funds are withdrawn. The downside is that withdrawals are taxed at ordinary income rates. In the absence of a need to defer taxes, you would be better served by buying several widely diversified equity and fixed-income funds and setting up a systematic withdrawal plan to meet your monthly needs.
As folks continue to accumulate funds for their retirement nest eggs, those funds grow, so the larger funds will be those held by people just prior to retirement. There have been a number of surveys to get a good handle on this and a reasonable estimate of pre-retirement savings would be about $175,000. That's not a reassuring number. A drawdown of 5% a year, which is at the upper limit of prudence, combined with social security distributions for a married couple, might yield annual income of $40,000-45,000 or so. Depending on the cost of living in the local area, that may or may not be sufficient to make ends meet.
The main benefit to an employer from a 401(k) matching plan is the increased likelihood of retaining employees. It's a matter of giving more to the employees in hope of raising the probability that they will remain with the company. The alternative is reduced benefits and increased employee turnover. Since the matching contribution is not required, the employer has flexibility to cut back if circumstances so require. In addition, these contributions are tax-deductible for the employer.