An exchange traded fund (ETF) is a type of fund that pools together individual stocks, bonds, and other securities. ETFs allow investors to diversify their investments much more cost-effectively than trading individual stocks and bonds. Investors can also trade ETFs anytime during the day, so they’re ideal for investors who want short-term gains. What an…
About the Author
Dock David Treece
Dock's professional background is deeply rooted in the securities and investment advisory industry. As a former registered investment advisory rep and former registered securities rep, Dock assisted clients with critical personal financial planning and decision-making. As an experienced columnist, he has provided engaging and actionable commentary on financial markets and economic developments. While serving on the Finra Small Firm Advisory Board, he assisted industry regulators in understanding the state of the industry and regulatory initiatives.
Mutual Funds: What They Are & How to Invest
A mutual fund is a professionally managed investment fund that holds a diversified basket of stocks and bonds. Using mutual funds, investors get more diversification, which lowers investors’ risks of losing money. Mutual funds are also more cost-efficient than buying individual stocks and bonds, making them ideal for investors who don’t have millions to invest….
Irrevocable Life Insurance Trust (ILIT) & Succession Planning
An irrevocable life insurance trust (ILIT) is a trust that serves as the owner and beneficiary of a life insurance policy. A life insurance trust helps wealthy individuals to protect assets and avoid estate taxes, and is a succession planning tool for small business owners who want to transfer a business to heirs or partners….
Retirement Calculator
How to Read Your Retirement Calculator Results You can use this retirement savings calculator to glean a number of key insights including: When you’ll run out of money: People typically retire between the ages 65 and 70; using the retirement calculator above you can predict when you can comfortably retire by adjusting contribution amounts, contribution…
Individual & Solo 401k Rules, Contribution Limits & Deadlines
A Solo 401(k) is a qualified retirement plan allowing business owners and their spouses to shelter up to $56,000-$61,000 of income from taxes each year. Solo 401(k)s are like any other 401(k) except they are lower cost and are an option for business owners with no full-time employees. Spark 401k is an experienced 401(k) provider…
Roth IRA: Rules, Contribution Limits & Deadlines
A Roth individual retirement account (IRA) is an individual retirement account that allows investors to contribute up to $6,000 per year for retirement. Unlike traditional IRAs, Roth IRAs allow post-tax contributions that then grow tax-free and are withdrawn tax-free during retirement. Roth IRAs are ideal for tax-conscious investors who want to lessen their income tax…
6 Best Small Business Retirement Plans 2018
Retirement plans help business owners save for retirement and attract the most talented employees. There are 6 main types of small business retirement plans that allow pre-tax contributions each year by employers and/or employees. Each type differs widely, ranging from $6,000 – $56,000+ in annual contributions, with some requiring employer contributions or match. When you’re…
Safe Harbor 401(k) Plan: What it is, Contributions, & Matching Rules
A Safe Harbor 401(k) is a retirement plan allowing employers and high-earners to shelter income that would be considered “discriminatory” against employees in a standard retirement plan. Employers and high-earning employees can shelter $56,000-$62,000 per year from income tax without falling out of compliance by providing matching contributions to employees. Spark 401k can help small…
Self-Directed IRA: Rules, Services, & Checkbook Control
A self-directed IRA is a tax-deferred retirement account that allows you to directly manage your investments and buy alternative assets that aren’t available in traditional IRAs. An account with a self-directed IRA service costs more to set up and maintain but allows you to invest in things like real estate, private companies, and precious metals….
SEP IRA vs. Solo 401(k): Costs, Contributions, Rules & Which is Best
A SEP IRA vs. Solo 401(k) is a terrific option for business owners with few or no full-time employees because employers must fund all employee contributions, proportional to their own. Conversely, Solo 401(k)s are only an option for self-employed individuals with no full-time employees, although they have the same contribution limits, costs and deadlines as…
SEP IRA Rules, Contribution Limits, & Deadlines
A SEP IRA is an employer-sponsored retirement plan allowing business owners with 0 – 5 employees defer large amounts of income. A SEP lets employers and the self-employed contribute $56,000 or 25% of their taxable income each year – $50,000 more than Traditional IRAs. To use SEPs, employers must make proportional contributions to all full-time…
SIMPLE IRA Rules, Providers, Contribution Limits & Deadlines
SIMPLE IRAs are employer-sponsored retirement plans allowing participants to save up to $26,000 pre-tax in deferrals and matching. Using a SIMPLE IRA, employers must match employee deferrals on a dollar-for-dollar basis between 1% – 3%. To use a SIMPLE IRA, employers must implement their plan before October 1 of the year it becomes effective. Alternatively,…
