A robo advisor is a computer program that manages client investments automatically based on a preselected strategy. Robo advisors make investment decisions based on algorithms rather than input from humans, who can react emotionally or make mistakes. Robo advisors are also typically much less expensive than traditional financial advisors, making them ideal for cost-efficient, automated…
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.
6 Best Robo Advisors 2018
A financial robo advisor is a service provider that manages portfolios using strategies that trade and rebalance investments automatically. Robo advisors are best for passive investors who want cost-efficient ways to invest in a wide range of investments. We examined more than a dozen of the most popular robo advisors to identify the best robo…
Roth 401(k): Rules, Contribution Limits, & Deadlines
A Roth 401(k) is an account available in some 401(k) plans that allow participants to make some of their contributions to after-tax accounts. A Roth 401(k) differs from a traditional 401(k) because traditional 401(k) contributions are tax-deductible, Roth 401(k)s contributions are taxed but withdrawals during retirement are tax-free. If you’re interest in setting up a…
15 Best Money Market Accounts & Rates 2018
A money market account is an interest-bearing account available through banks and mutual fund companies. With money market deposit accounts through a bank, savers can find Federal Deposit Insurance Corporation (FDIC)-insured accounts with no minimum deposits and rates up to 2.01 percent annual percentage yield. We’ve reviewed the best money market accounts and compiled the…
8 Best Self-Directed IRA Custodians & Companies 2018
A self-directed IRA custodian or facilitator gives you the freedom to direct your own investments in stocks and bonds as well as alternative assets like real estate, private equity, and precious metals. We evaluated dozens of self-directed IRA companies on investment options, fees, and customer service and narrowed the list down to the best eight…
Roth vs Traditional 401(k): Which Account Is Best for You?
The basic difference between a Roth vs Traditional 401(k) is tax treatment for contributions and withdrawals. Roth 401(k)s are appropriate for investors who want tax-free withdrawals in exchange for paying taxes on contributions. Traditional 401(k)s are preferable for investors seeking upfront benefits from tax-deductible contributions and who pay taxes on withdrawals instead. Roth 401(k) vs…
Top Heavy 401(k) Plan: Rules, Minimum Contributions & Consequences
Top heavy 401(k) plan testing is an annual test required for all 401(k) plan sponsors. The test breaks down plan assets and limits key employees to owning 60 percent or less of all plan assets. Top heavy 401(k) plans that fail testing must be fixed so that all employees benefit from the plan. Top heavy…
Rollover for Business Startups (ROBS): The Ultimate Guide
A rollover for business startups (ROBS) is a way to invest funds from your retirement account — like a 401(k) or individual retirement account (IRA) — into your business without paying early withdrawal penalties or taxes. A ROBS isn’t a business loan or a 401(k) loan, so there’s no debt to repay or interest payments…
15 Best Small Business Credit Cards 2018
The best small business credit cards offer high reward payouts, specific rewards categories, and low introductory and ongoing interest rates. Based on these criteria, we’ve compiled a list of the top 15 small business credit cards for 2018 and ranked them based on costs, application process, and rewards for various business needs and types of…
The 10 Best Small Business Checking Accounts 2018
Every small business needs a business checking account for handling money and processing financial transactions. While many small business checking accounts are similar, some providers have lower fee structures or introductory offers that are better than others. We looked at a range of options and compared them to identify the 10 best small business checking…
Traditional IRA: Rules, Contribution Limits & Deadlines
An individual retirement account (traditional IRA) is a tax-deferred investment account that allows account holders to contribute up to $5,500 per year pretax as a way to save for retirement. Account holders can invest to grow their IRA without paying any taxes on contributions or gains until money is withdrawn from the account during retirement. A…
ACP Test vs. ADP Test: What to Know About 401(k) Nondiscrimination Testing
The actual deferral percentage (ADP) test and actual contribution percentage (ACP) test are both required to be administered every year to ensure traditional 401(k) plans are in compliance. While ADP considers only employee deferrals, ACP also includes employer contributions. However, plan sponsors must conduct both tests regardless of whether or not they match. If you’re…
