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Wiser Wealth Management Blog

Personal Finance

Mega Backdoor Roth explained

Many individuals may have heard of a back-door Roth IRA contribution, but most are probably not aware of what a Mega Backdoor Roth is. A Roth IRA and a Roth election within a 401k are two separate things. The Roth IRA contribution limit in 2020 is $6,000 (and $7,000 if you’re over 50). A Roth 401k is subject to the annual 401k limits, currently $19,500 for 2020 ($26,000 if you’re over 50). Backdoor Roth (Personal IRA) The annual income limit to contribute to a Roth

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Personal Finance

How does your 401k balance compare?

Do you often wonder if you have more saved for retirement than your friends or neighbors? While it is really more important to know that you are on the right retirement path based on your own needs, everyone also wants to know where they are compared to their peers. At Wiser, we help you determine how much you should be saving so you will be secure in retirement, but let’s look at the latest results of national data on 401k plan balances. First, the good

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Fiduciary

Financial Advisor Fees

I thought I would share the research I prepared to speak at the Inside ETF’s conference this week on financial advisor fees and compensation. To clients, the industry of financial advice has been and probably will always be confusing, especially when every firm seems to look the same. Is there really a difference between a financial advisor working at a bank, a brokerage firm or an independent practice? The answer is yes, but the details get cloudy to the consumer. Personal Capital conducted a trust

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Fiduciary

What is a donor advised fund?

You may believe that in order to have your own family charitable fund you need to have a last name like Gates or Rockefeller. This is not the case at all. In the United States, over $390 billion is given each year for religious, education, human services, health, arts and other causes that donors are passionate about. Most of these donations are given directly by individuals, but with higher standard deductions, a stronger US economy and families looking to leave a legacy, a new process

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Wiser News

Market Commentary Q4 2019

Market Commentary Our market commentary begins with a review of how we entered 2019 with news headlines claiming that the year would be a horrible recession with TV pundits predicting doom and gloom. It only seems fitting that the market would then gain 31% on the year. Specifically, the S&P 500 was up 31%, other asset classes such as foreign, small cap US and real estate were up over 20% on the year. 2019 was a good case for why you should never try to

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Personal Finance

SECURE Act – What you need to know

The Setting Every Community Up for Retirement Enhancement (SECURE) Act was attached to the 2020 budget bill and signed into law on December 20th by President Trump. The Act, championed by Ohio Senator Rob Portman, passed both houses with bipartisan support. The SECURE Act has changed many rules related to retirement. Required Minimum Distributions (RMDs) Will Start at Age 72, not 70.5 In the year that you turn age 72, not 70.5, you will need to withdrawal funds annually from your IRA. If you turned

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Wiser News

Charles Schwab – TD Ameritrade purchase

On Thursday, November 21st, news broke that Charles Schwab is purchasing TD Ameritrade, the custodian we use here at Wiser Wealth. This purchase is not a complete surprise as there has been speculation that a consolidation within the industry would happen as all major firms now have $0 transaction fees. There are three major custodians that we believe any reputable fee-only advisory firm would hold client’s assets with: TD Ameritrade, Charles Schwab and Fidelity. Wiser Wealth chose TD Ameritrade over two decades ago (back when it was

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rebalance portfolio
Wiser News

Q4 Intra-Quarter Portfolio Rebalance

On Friday November 15, 2019, our BlackRock model guidance prompted us to do a Q4 intra-quarter portfolio rebalance. Thus, you may have received trade notifications associated with this firm-wide rebalance. Below are notes from the “BlackRock to Advisor” Podcast that review the reasons for the portfolio rebalance. Additional trade rationale research notes are also included. “When the facts change, I change my mind. What do you do, sir?” The portfolios are re-positioning outside of their regular rebalance frequency for the first time in over 3

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Debt & Credit

How does your car payment compare?

Taking out a car loan is the way most Americans can afford to purchase a car.  The current average loan size of a new car loan is $32,187 and the average for a used car is $20,137.  Average amounts for all auto loans have risen steadily over the last ten years to a record breaking $23,438 in December of 2018.  This equates to the average monthly payment for a new car in Q1 2019 of $554.  This is more than half the average US mortgage

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Robert Swarthout
Wiser News

Robert Swarthout joins Advisory Board

We are excited to announce the addition of Robert Swarthout to our Advisory Board.  The Wiser Wealth Advisory Board currently has four members who provide guidance to Casey Smith and the Wiser Wealth Management team with long-term business planning and strategy. Robert Swarthout is a 2004 graduate of Berry College where he holds a B.S. in Computer Science with a business minor. Upon graduation, he co-founded PaperBackSwap.com and was involved in that business until early 2008. In 2009 he co-founded ShootProof.com, a SaaS platform that

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