Silber Bennett Financial
Rebecca Dawson is an experienced, independent financial advisor offering personalized wealth and investment management guidance to a select group of individuals, families, and businesses in Southern California and around the country. Her mission is to be a trusted advisor to her clients by partnering with them to identify what is most important in their financial lives while providing tailored solutions to help achieve their goals.
For over 20 years, Rebecca has served as a financial advisor. She has developed highly refined methods for evaluating client's needs and formulating successful investment strategies. She and her staff provide an exceptional level of service to her clients, who are typically worth well in excess of $1 million and include some of the most prominent people in the United States.
Before joining Silber Bennett, Rebecca managed her own independent brokerage office since 1999. Prior to that she held similar positions with PaineWebber, Merrill Lynch, and Alex.Brown & Sons.
Her clientele have included corporate presidents, and officers, charitable foundations, pension funds, business owners, and wealthy retirees. Her affiliation with Silber Bennett Financial provides her clients with full service wealth strategies.
BA, Liberal Arts, University of Texas at Austin
SECURITIES AND ADVISORY SERVICES OFFERED THROUGH SILBER BENNETT FINANCIAL, INC.
DOI: CA 0H72697 | MEMBER: FINRA / SIPC
Why Choose Rebecca Dawson
Rebecca Dawson on To The Point
All mutual funds are liquid, although they may have different redemption schedules which would require a fee be charged in the case of liquidity needs.
At the end of each trading day, all mutual fund orders are executed at the fund's net asset value. Vanguard or any other mutual fund will be just as liquid as a stock. The only difference being that a stock is sold at different prices over the course of a trading day whereas a mutual fund is sold at the end of the day at the fund's net asset value.
There are different redemption fees according to which share class of the fund you buy and this will determine whether you pay an up-front, back-end, contingent deferred sales load or no-load. (The expense ratio usually differs with which share class you buy as well.)
If you are using Vanguard there is no need to invest in a particular share class. No-load funds are not technically a "share class."
- Class A mutual fund shares generally have front-end sales charges (also known as a "load"). A shares are best for investors who plan to invest larger dollar amounts and will buy shares infrequently. If the purchase amount is high enough, you may qualify for "breakpoint discounts." Be sure to inquire about these discounts on the load if you plan to purchase additional shares of the fund (or mutual funds within the same fund family).
- Class B shares are a share class of mutual funds that do not carry front-end sales charges, but instead charge a contingent deferred sales charge (CDSC) or "back-end load." Class B shares also tend to have higher 12b-1 fees than other mutual fund share classes. Class B shares can eventually exchange into Class A shares after seven or eight years. They may be best for investors who do not have enough to invest to qualify for a break level on the A share, but intend to hold the B shares for several years or more.
- Class C Share mutual funds charge a "level load" annually, which is usually 1.00%, and this expense never goes away, making C share mutual funds the most expensive for investors who are investing for long periods of time. There may also be 12b-1 fees.
- Class D mutual funds are often similar to no-load funds in that they are a mutual fund share class that was created as an alternative to the traditional and more common A share, B share and C share funds that are either front-load, back-load or level-load, respectively.
- Load-waived funds are mutual fund share class alternatives to loaded funds, such as A share class funds. As the name suggests, the mutual fund load is waived (not charged).
Additionally, mutual funds are required to maintain liquidity and the capacity to accommodate withdrawals. Funds typically have to keep a portion of their portfolio as cash. The funds are keeping cash balances of usually around 8% of the fund.
Whether you want to take profits on your equities or lighten up your exposure to equities, in a rising interest rate environment you may want to consider shorter duration bonds. This reduces your sensitivity to movements and U.S. interest rates. You can take on more credit risk so you add some yield cushion to your portfolio. If you are investing in high yield bonds, you are already shortening duration versus investment grade corporate bonds, and you are increasing the yield cushion. You can also look for less correlated asset classes that also provide yield. This may include equity income type strategies or emerging market debt type strategies.
There are a number of different ETF solutions for investors to target rising interest rates. One might be on the credit side on the high yield space or a high yield bond ETF. On the opposite side of the spectrum is an interesting credit opportunity with short duration is an investment grade floating rate note.
If you think interest rates are headed up, you can protect yourself by investing in debt securities whose interest payments adjust regularly. Floating-rate funds invest in bank loans made to low-quality companies. The rates on these loans usually reset every 30 to 90 days at a few percentage points above a benchmark of short-term rates. Until the financial crisis struck, bank-loan funds had done a superior job of delivering above-average yields with minimal movements in their share prices. In 2008, the average bank-loan fund surrendered 30%, although the sector has rebounded strongly, gaining 42% on average in 2009 and 9% last year.
The Settlement Date is an industry term describing the date on which a bond or an equity/stock settles. The actual day on which transfer of cash or assets is completed and is usually a few days after the trade was done. Investors must complete or "settle" their security transactions within three business days. This settlement cycle is known as "T+3," shorthand for "trade date plus three days."
T+3 means that when you buy a security (bond), your payment must be received by your brokerage firm no later than three business days after the trade is executed. Whereas when you sell a security(bond), you must deliver to your brokerage firm your securities certificate no later than three business days after the sale (only if the bond is not held in your account). Proceeds will be available in your brokerage account on the settlement day as well.
The three-day settlement date applies to most security transactions, including stocks, bonds, municipal securities, mutual funds traded through a brokerage firm. Government securities and stock options settle on the next business day following the trade.
For many years, markets operated on a "T+5" settlement cycle. In 1995, the U.S. Securities and Exchange Commission reduced the settlement cycle from five business days to three business days, "T+3", which in turn lessened the amount of money that needs to be collected at any one time and strengthened our financial markets for times of stress. On September 5, 2017 the T+3 goes to T+2 shortening the settlement by one day.
Yes, you may do a Roth conversion with your entire traditional IRA or even do a partial conversion. And no, you need not sell any postions in order to facilitate the conversion. Actually, taking advantage of any price depreciation is a good strategy since you will be paying taxes at your current tax rate then once it is in the Roth IRA it may continue to grow tax free.
You may also undo your conversion. The IRS also allows you to re-characterize your Roth IRA back to a traditional IRA, which may be valuable if your investment value declines further down after you have done the conversion or if your financial situation changes and you do not want to pay your tax bill that year, as you can recoup the taxes paid for the conversion. If you do need to undo your conversion it has to be the entire account, therefore opening more than Roth IRA to convert or doing a conversion could be options if this is a concern.
Another benefit to converting to a Roth is the avoidance of having to take the required minimum distributions after the age of 70.5 each year. Your heirs will also receive Roth funds tax-free versus at their top tax bracket.
Due to the Tax Increase Prevention and Reconciliation Act of 2005, all holders of IRAs (SEP, SIMPLE and traditional) can convert to a Roth IRA regardless of their income. Previously, in order to be able to convert from an IRA to a Roth IRA your income needed to be under $100,000. Many IRA holders may not be aware of this strategy and as a result may be missing out on an opportunity to eliminate future taxes on their retirement plans, thereby compounding their total return.
Through a Roth conversion, you simply elect to be taxed at current individual tax rates for the total amount that you convert to a Roth IRA. You may do a full or a partial conversion. Once it is converted, any withdrawals from the Roth account after five years and achieving the age of 59.5 will be tax-free. Additionally, IRA investments in private holdings that are anticipating a step up in valuation could afford a significant tax advantage.
Converting from a traditional IRA to a Roth could be a useful tool. By paying taxes today you can take advantage of historically low rates. Also, if you are young enough you may still have plenty of deductions that could potentially help offset the taxes. Additionally, our new White House administration’s tax plan could potentially make it an even more attractive time.
Read more: Tax Savings with a Roth IRA and Real Estate | Investopedia http://www.investopedia.com/advisor-network/articles/tax-savings-roth-ira-and-real-estate/#ixzz4iPjn5030
Once you buy a stock, ETF, mutual fund or any liquid security that trades on the stock market that increases in value after you have bought it will have what is called paper profit. A paper profit means you have unrealized capital gain in your stock or investment. It is the current market price of your stock compared to what you paid for it. Your gain will only be realized once you sell your stock.
Conversely, if your stock has gone down in value after you have bought it then you have a paper loss. Which is an unrealized capital loss in your stock or investment. It is the difference between what you paid for it and where it is currently trading. You will only realize your loss once you sell your stock while it is down in price from what was paid.
If you have not sold your stock position then you do not have a capital gain or loss for tax purposes, although there is a gain or loss in value.
Once you sell your stock or investment in your brokerage account then there a three days until the funds have settled in your account. At that time you will have access to the funds to reinvest or perhaps have a check or wire sent out to you.
The Securities and Exchange Commission (SEC) requires trades to be settled within a three-business day time period, also known as T+3. When you buy stocks, the brokerage firm must receive your payment no later than three business days after the trade is executed. Conversely, when you sell a stock, the shares must be delivered to your brokerage within three days after the sale. In other words, if you make a purchase trade on Monday, the shares would actually have to arrive in your account, and your money would have to arrive in the seller's account, on Thursday.
In addition to stocks, the T+3 rule also covers bonds, municipal securities, mutual funds (if traded through a broker), and some other securities transactions.
The fact that it takes three days for trades to settle can affect your ability to sell a stock, buy another stock, and then sell that stock in a period of less than three days. In other words, it may create a problem if you attempt a selling transaction on a stock you own, but whose purchase has not settled yet.