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:
Great question. Generally, if you have lived in the home as your primary residence for at least 2 out of the last 5 years, when you sell the home you are entitled to a $500,000 exemption on the capital gain (if you file married filing jointly), and so in most cases all or the majority of the sale of the home is tax-free. However, if the trust that the house is held in is a non-grantor trust or an irrevocable trust that has a separate tax id number and files it's own tax return then the exemption doesn't apply.
So, the taxation on the sale of your home will depend on a few factors:
1) Do you qualify for the home exemption
2) What is the capital gain (sale price of the home - cost basis)
Once you sell the home and pay off your in-laws mortgage your ability to get a new mortgage to buy another home will depend on your debt-to-income ratio and a few other factors lenders look at.
An IRA is an account type and a CD is a type of investment. You could actually hold a CD inside of an IRA. A CD is a fixed income investment where you use capital to buy the CD and the CD pays you interest over a specified amount of time and then returns your principal to you. If you hold a CD within an IRA, none of the income you receive will be taxable in the year you receive it. However, once you take a withdrawal from the IRA, all your contributions and growth through interest, dividends, and capital gains will be taxed at ordinary income rates.
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.
Great question. The stock market, as measured by the S&P 500 Index, has had an average annual return of 10.31% from 1970 - 2016. The real estate market has had an average annual return of 11.42%. That is measured by the publicly traded REITS (the NAREIT Equity REIT Index from 1970-1977 and the DJ Wilshire REIT from 1978-2016). To put this into dollar terms, if you would have invested $10,000 in the S&P 500 in 1970, by the end of 2016, your investment would have grown to $1,005,588. If you would have invested $10,000 into the DJ Wilshire REIT index, your investment would have grown to $1,609,932. The Real Estate market is a little bit more volatile than the stock market, but not by much. The standard deviation for the S&P 500 is 17.12% which means there is a 95% chance that your return in any given year will fall between -23.93% and 44.55%. The standard deviation of the Real Estate market is 18.92% which means there is a 95% chance that your return in any given year will fall between -26.42% and 49.26%. The worst 1 year return for the stock market was in 2008, it dropped 37%. The worst 1 year return for the Real Estate market was also in 2008, it dropped 46.49%.
The spot price is simply the price the commodity could be bought for today, while the futures price is the agreed on price that the commodity will be bought for in the future.