Medicus Wealth Planning
Kevin enjoys helping clients from all stages in life with sound financial planning. Kevin has especially found a niche in advising small business owners who’d like to create or improve upon their existing company retirement plan.
Kevin got his start in the financial planning industry by going to work for one of the largest discount brokerage and mutual fund companies in the world, Fidelity Investments. While at Fidelity, Kevin held his Series 7 and 63 Licenses which allowed him to work as a trader, completing transactions in stocks, mutual funds, and options. After being promoted to a department that focused on helping clients with their company retirement plans, Kevin found what he had a passion for, helping small business owners and their employees successfully prepare for retirement.
Kevin left Fidelity to come work with David Luke as a partner in Medicus Wealth Planning. Having the opportunity to work with clients on a fee-only basis allows Kevin to give objective and sound financial planning advice that is never tainted by a hidden agenda.
Kevin graduated from Utah Valley University with a degree in Personal Financial Planning. Utah Valley University’s Financial Planning Program has been recognized on numerous occasions as a top 10 Financial Planning Program in the country.
Shortly after graduating with a degree in Personal Financial Planning, Kevin became a Certified Financial Planner™ (CFP®).
Kevin lives in Riverton, Utah with his wife Lauren, and their two children. Kevin spends much of his free time with his family outdoors, playing sports, and watching Jazz games. Kevin and Lauren enjoy living close to both of their families and spending time with them.
Personal Financial Planning, Utah Valley University
Assets Under Management:
Sell to open on a put option means that you sell a put option to the buyer which gives the buyer the right to sell you stock at the strike price. Since the stock price was below the strike price, you were obligated to buy the stock at the strike price. If you wanted to open up a new option position, that would give you the right to sell the stock at the same strike price you should have bought a put or "buy to open" on a put option. This would give you the right but not the obligation to sell your stock at a certain strike price.
You initiated a "buy to open" call option which gives you the option to buy the stock at a certain strike price. The holder of a call option hopes the price of the stock rises so they can buy that stock at the strike price.
You think you should have initiated a "sell to open" call option which would oblige you to sell your stock at a certain strike price if the holder exercises. This isn't the outcome you want because the holder will only exercise if the stock price rises and you would be selling it at a loss.
On your current contract, if the stock price is above the strike price, you can sell the option for a profit, you should initiate a "sell to close". If the stock price is below the strike price, then the option will expire worthless.
Read up on options before you deal with them, they can be complicated and confusing and you can really burn yourself. Practice as well before you actually start trading real money.
I would make no changes to your financial plan based on President Trump's proposals to change the tax code. The reason why is because just like all legislation in the past, it can take years and years to be passed if it is passed at all and with the kind of tax cuts he is proposing it can easily never get done or be reversed very quickly (if he doesn't win a second term and if he's able to even get tax reform done in his first term). More important than being proactive to new legislation is to continue to build good habits. Save as much as you can, invest in a diversified portfolio and diversify the accounts you save in (pre and post-tax).
The income limit on who can contribute to a Roth IRA is based on AGI, not total income, so first check to make sure your AGI is more than $194,000. If it is between $184,000 - $194,000, then you can contribute a pro-rata amount to the Roth IRA. If it is below $184,000, then you're good to make the full contribution.
If your AGI has been higher than the limit in previous years and you made contributions to your Roth IRA, you need to do what's called a Return of Excess Contribution. If done after the tax year, the contribution was made. Then, when you withdraw the funds, you'll be penalized and owe an additional 6% for each year the money was in the account. I would get this corrected ASAP, work with the company who provides the online Roth Account and a CPA.
Going forward, you can still contribute to a Roth IRA if you do what's called a "Backdoor Roth IRA contribution" by first contributing to a Traditional IRA and then immediately converting it to a Roth IRA. Since there is no AGI limit to who can contribute to a Traditional IRA and who can convert to a Roth IRA, this a completely legal transaction. Keep in mind, when you contribute your funds to the Traditional IRA, do not take it as a deduction, it will be a non-deductible contribution. When you convert the funds to a Roth IRA, it won't be taxable since the contribution to the Traditional IRA was non-deductible.
If this seems at all confusing for you, I'd work with a financial advisor to make sure it is done properly. Good luck!
The actual stock price of a company has nothing to do with how profitable or valuable the company is. In very simple terms, the value of a public company is determined by the stock price multiplied by the number of outstanding shares. So in theory, you could have a company that is trading at $1,000 per share and have 100 outstanding shares for a total market capitalization of $100,000. Compare this to a company that is trading for $10 per share and has 100,000 outstanding shares for a total market capitalization of $1,000,000.
Back in 2014, Apple was trading around $700 per share and did a stock split of 7-1. When this took place, shareholders shares were multiplied sevenfold, but the price of Apple was reduced sevenfold. So if you owned 100 shares of Apple at $700, your total investment was worth $70,000. When Apple split 7-1, you would have owned 700 shares at $100 per share for a total investment of $70,000.
In some cases, the price of a stock appreciates so much that it makes it hard for everyday investors to buy shares. The volume of trading is reduced and the stock is harder to buy or sell. This could increase spreads (the difference between the buy and sell price). By doing a stock split, the price is reduced and it allows for more investors to begin buying/selling the stock.
With $5,000, it would be hard to diversify your portfolio if you were only investing in individual stocks and bonds. The best thing to do would be to start with some ETFs. Most mutual funds have minimum investments of at least $1,000 - $2,500, but not ETFs. Find a broad range of low-cost ETFs that cover different asset classes (large cap, mid cap, small cap, international, emerging market, bonds) and start investing in those. As you begin building up capital to invest, you can replace an ETF that represents an asset class with a few stocks. For example, you could sell your large cap ETF and replace it with a few large cap individual stocks that you like.
For now, until you have more experience and more capital, I would go with some ETFs.