Providing superior investment advice and management since 1995

Investment Brokerage Account
 
Investment brokerage accounts can be structured in a wide variety ways but there are two main differences: taxable and tax-deferred. In a taxable account, you pay taxes on any capital gains and income generated by your investments and sales. In a tax-deferred account, gains and income aren’t taxed until a later date, often when you take distributions. Tax-deferred accounts such as IRAs and 529 plans were created for a purpose such as retirement or college, so you should become familiar with the rules and penalties for non-qualified withdrawals. For example, if you withdraw money from an IRA before age 59 ½, you will be subject to a 10% penalty in addition to that sum being included in your gross income for tax purposes.

Investment IRA

Individual Retirement Accounts, better known by the initial IRAs, are designed to help investors save tax deferred for retirement. There are three main types of IRAs: Traditional, Roth and Rollover. With a traditional IRA, you get tax-deferred growth and pay taxes when you make withdrawals. With a Roth IRA, you make after-tax contributions and can make withdrawals tax free. A rollover lets investors roll over their money to an IRA from an employer-sponsored plan without penalty. We can help you decide which one is right for you given your financial situation. The IRS publishes rules for IRA contributions and withdrawals here https://www.irs.gov/retirement-plans/individual-retirement-arrangements-iras.

Investment Trust Account

When a trust is created, the trustee can open a brokerage account and manage the investments much like an investor does with a traditional brokerage account. The trustee can delegate management of the account to a registered investment adviser, following any guidelines established by the trust documents drafted by an estate-planning attorney. Fidelity, our custodial partner, has a good primer on trusts here https://www.fidelity.com/life-events/estate-planning/trusts.

Investment 401K

Your employer may have established a 401K account as an employee benefit. As an employee, you can reduce your adjusted gross income by making contributions to a 401K and selecting investments. Once inside the account, the money grows tax-deferred. Some employers match your contributions up to a certain percentage, giving your savings an extra boost. For example, if you contribute an extra $100 a month and your employer matches 50%, you’ll have an additional $27,000 after 10 years assuming 8% annual returns and in the 28% tax bracket (Source: https://www.kiplinger.com/tool/retirement/T001-S001-the-power-of-boosting-401-k-contributions-how-addi/index.php).

At Antonetti Capital, we subscribe to guiding principles, two of which include: we stay away from overly complicated investments and we avoid investing your money in anything that sounds too good to be true.

Rest assured that we will consider what we believe are the most suitable investments to help you accomplish your goals, all with a clear understanding of how they fit together to help you achieve financial peace of mind.

Lawmakers have favored saving for college with plans that shield donors and beneficiaries from taxes if the funds are ultimately used for education. You have lots of choices: For example, all 50 states sponsor a 529 plan, which is a tax-advantaged account named after Section 529 of the Internal Revenue Service code designed to help you save education costs. You are not restricted to investing in a 529 plan from your state, so it pays to find one that is right for you. We can help you sort through all the different options, whether you’re a new parent or a grandparent eager to help a child pay for college. What’s more, investing for college can be integrated into a broader financial investment plan so you can view your entire financial picture at a glance.

Do you know your financial performance at the end of each quarter or year? If you’re like most people, the answer is difficult because your investments may be in accounts with different brokerages or even different kinds of accounts within the same brokerage. We have investment tools that will consolidate this information so that you can track your performance and view all your investments on a single page with calculations of total return and annual percentage return net of fees. Then, compare your returns with a benchmark, such as the broad Standard & Poor’s 500-stock index of the biggest U.S. companies. You can look up the index’s performance here https://us.spindices.com/indices/equity/sp-500 over one, three, five and 10 years.