Jonathan Alexander, CFP

04/21/2022

In the spirit of Financial Literacy Month and with taxes on everyone’s mind in April, let’s talk about tax planning. Specifically, asset location. Too often we get hung up on how assets are allocated amongst different asset classes, but how much attention are you committing to where those assets are located?

There are essentially 3 ways investable assets can be classified for tax purposes.

• Tax Me Always – These types of accounts utilize money that you have already paid tax on but choose to reinvest in an account that requires you to pay additional tax on the gains. Examples include non-retirement investment accounts, CD’s, savings accounts earning interest, taxable bonds etc.
• Tax Me Later – These types of accounts are tax deferred retirement accounts with money you have not yet paid taxes on. Examples include 401k, IRA, 403b etc.
• Tax Me Never Again – These accounts use money you have already paid tax on and then you do not have to pay tax on any of the gains in the future. Examples include Roth IRA, Roth 401k, certain municipal bonds, certain types of life insurance, 529 plans etc.

Most people I come across have the vast majority of their assets within the Tax Me Always and Tax Me Later categories. Yet, when I ask them how they would ideally like their assets spread out, most prefer the majority to be in the Tax Me Never Again category.

The critical importance of the Tax Me Never Again category is to provide a source for tax-free dollars if needed in the future to help navigate and ultimately lower your tax liability. Without tax free dollars, you subject yourself to unknown future tax rates and limited flexibility to navigate tax brackets.

Like most financial planning topics, the longer the time horizon the greater the impact. Unfortunately for some people that wait too long and have not paid attention to where their assets are located, very little can be done. If you haven’t yet considered where your assets are located, start now! If you need help mapping and categorizing your assets, please let me know.

Jonathan Alexander CFP®, 610-660-4607, [email protected]

05/06/2020

Rather than just focusing on the market, here are some other financial items to review that can have a very impactful result for your finances.

Paying attention to these critical areas should enable you to feel more in control

04/16/2020

High quality financial advice is critical during times like this. Where are you getting your advice?

After a pandemic rattles the economy, professional advice can be crucial for investors.

03/31/2020

Life insurance companies don’t like unknowns and COVID-19 falls into the unknown category. Some companies have already changed processes and pricing and there is a likelihood others will too. If getting life insurance is on your todo list, now is the time to apply.

Life insurance companies may decide to charge higher rates or even temporarily suspend sales due to uncertainties surrounding the spread of COVID-19.

03/18/2020

I know many people are concerned about their finances right now and I want to provide some pro bono consultations. If you or someone you know is concerned or in need of some advice, please contact me at [email protected] for a no charge, no obligation 30 minute consultation. I plan to hold 10 meetings and will schedule them with the first 10 people to reach out.

03/13/2020

During these unprecedented times, here are some items to consider in light of the impact the coronavirus pandemic may have had on your finances.

02/28/2020

This has been a concerning week if you are invested in the . However, if your goals remain long term, before you move your investments to cash, keep the "10 best days" concept in mind.

Advocates of buy-and-hold stock investing make a strong case as to why it can be disastrous for a novice investor to try to time the stock market. It's

01/09/2020

What are your 2020 financial goals?

Want to save more, get out of debt or just get better about money? Use these expert tips for a financially healthier new year.

11/26/2019

Planning to do holiday shopping online? Please be aware of these common scams and utilize these tips to avoid them! One of my favorites, as many of my clients have heard me tell them before - avoid using that debit card!

Three out of four Americans are going to be shopping online this holiday season. But before you check out on your favorite retailer's website or open an emailed coupon link, check out these 10 ways to protect yourself from cyber criminals attempting to gain your information.

11/06/2019

The end of the year is rapidly approaching! Have you reviewed your finances to make sure you aren't missing out on any year end financial planning opportunities?

Put yourself in the best position possible by making the most of the time we have left in 2019. Here are 10 ways to save on taxes, grow your nest egg and help others.

10/15/2019

Open enrollment for your employee benefits is right around the corner. Some of the options you have may be confusing, but don't underestimate the importance of the choices you make! Reach out to a professional if you are not sure what to choose.

Your benefits can be a significant part of your total compensation, and open enrollment can be your only chance to take full advantage of many of them.