Posted on Leave a comment

What is a Health Savings Account- HSAs

What is a Health Savings Account?

A type of savings account that lets you set aside money on a pre-tax basis to pay for qualified medical expenses. By using untaxed dollars in an HSA to pay for deductibles, copayments, coinsurance, and some other expenses, you may be able to lower your out-of-pocket health care costs. There is a 20% penalty if you withdraw the money for anything else other than medical expenses. You can also have the money invested while it sits in the account. However, only 9% of workers use this option. A health savings account (HSA) is designed to help people with high-deductible insurance plans pay their out-of-pocket medical costs, but it can be surprisingly effective as a retirement savings tool, too.

KEY TAKEAWAYS

Health savings accounts (HSAs) are available only to those who choose high-deductible health insurance plans (HDHPs). For some, a high-deductible plan works best because the monthly premiums are relatively low. The HSA can be used to cover costs that are not covered by the HDHP. The money paid into an HSA is tax-free. If you save some or all of your HSA money each year, you can pile up a significant and tax-exempt addition to your retirement savings.

The HSA account has triple tax advantages:

  • The money is not taxed before you pay it in.
  • The interest and earnings on the money is not taxed
  • Withdrawals are not taxed if used for allowable medical expenses.
  • It makes maxing out your HSA an ideal retirement savings strategy

Using one to save for retirement medical expenses is a great strategy rather than using a retirement account such as a 401k or an Individual Retirement account. Your contributions to an HSA can be made via payroll deductions, or from your own funds if you’re self-employed. They are tax-deductible, even if you don’t itemize your taxes. The money paid into an HSA is considered “pre-tax,” meaning that it reduces your federal and state income tax liability—and they’re not subject to FICA taxes, either.

Your account balance grows tax-free, and any interest, dividends, or capital gains you earn are non-taxable. Great advantages if you’re heading towards retirement as well.

If you would like to know more or set up an HSA call us at 1-866-745-2295.

Posted by Rick

    Posted on Leave a comment

    Catch-Up Retirement Strategy No. 3

    Save extra cash and start a savings goal.

    Putting any extra money you receive toward retirement is one of the retirement savings tips to keep front and center. What can you consider extra money? Think: tax refunds, inheritances, salary increases, and bonuses, for example. If you do receive a windfall, move it directly to a savings or retirement account. This will allow it to start earning interest immediately, and it may help you avoid the temptation to dip into the funds for another purpose.

    Target a savings plan outside of your comfort zone. Having a specific goal in mind can motivate you to take the necessary steps to get there. It can also help you hold yourself accountable. The more specific the goal (how much you want to have in retirement savings, and by what age, for example), the more focused your efforts will be.

    Many banks and credit institutions offer in-account tools that allow you to set savings goals. Here are 7 banks and 7 credit unions that offer outstanding savings rates and account tools that can help you get started.

    BanksSavings RateCredit UnionsSavings Rate
    Citizens Bank4.50%Pentagon Federal Credit Union3.00%
    SoFI4.50%Alliant Credit Union3.10%
    Barclays4.35%Boeing Employees Credit Union6.17%
    CIT Bank5.05%Randolph Brooks Federal Credit Union0.25% – 4.05%, depending on the type of savings products you choose.
    Upgrade5.07%Delta Community Credit Union0.25% – 4.05%, depending on the type of savings products you choose.
    Ally Bank4.25%Navy Federal Credit Union0.25% – 4.05%, depending on the type of savings products you choose.
    Discover4.30%Suncoast Credit Union0.25% – 4.05%, depending on the type of savings products you choose.
    Saving accounts with great rates

    ***Bank and Credit Union rates are subject to change. This chart is not an endorsement of any of the banks or credit unions that are listed. Rates are posted for informational purposes only.

    To learn more on how and where to start a high-yield savings account, call us at 1-866-745-2295 or click here to request a callback.

    Posted on Leave a comment

    Catch-up Retirement Strategy No. 2

    Younger man enjoying retirement

    Fully Fund your 401(k)

    An employee in this age category who is offered a 401(k) at work should consider funding it to the maximum amount. To provide you with a sense of how powerful maxing out a 401(k) can be, consider the following:
    An individual who is 40 years old and who contributes $17,500 annually to a401(k) could accumulate more than $1.3 million in savings by age 65. This assumes an 8% return and no employer contributions. Note the annual contribution limit for 401(k)s is $20,500 per year for 2022 and$22,500 for 2023. That’s a powerful savings tool, and it’s evidence that workers nearing retirement should seriously consider funding their 401(k)s as soon and as much as possible.

    The total allowed catch-up contribution for those 50 and older is $ 6,500 per year for 2022, for a total of $27,000. The catch-up contribution increases to $7,500 for 2023, for a total of $30,000. “Factoring in no growth at all, if you can sock away $24,000 a year from age 50 to age 60 (11 years), that’s $250,827 more saved for even the earliest unpenalized retiree. An extra $250,000-plus saved prior to retiring can make or break an income-producing portfolio lasting throughout retirement,” says Martin A. Federici, Jr., AAMS®, MF Advisers, Inc., Dallas, Pennsylvania.

    In addition, to earning the highest return on investment in your 401(k), check or view your 401(k) account periodically for performance. Oftentimes, workers have a tendency to set it and forget it. Unfortunately, that is a recipe for losing out on thousands in lost profits and gains.

    If you would like more information on catch-up retirement strategies or on what funds to choose to fully fund your current 401(k), call us for a free, private no cost-obligation consultation or call and ask for Rick at 1-866-745-2295.

    Posted on Leave a comment

    Catch-up Retirement Strategies


    52 percent of American workers do not have enough saved in retirement or they are behind on their retirement savings goal, according to a bank rate survey.

    If you’re like the people surveyed, the question on your mind might be, “How do I catch up on my retirement savings?” No matter how close you are to retirement or how little you have saved up, it’s never too late to consider new tactics to get your nest egg growing. Social Security and Medicare may not be enough to cover your retirement expenses, so the best answers to the question “How to catch up on retirement savings?” will include smart retirement savings strategies and financial tactics. Here is a great tip that can help you save more

    Avoid early withdrawals
    One of the most important retirement tips is to avoid taking early withdrawal money out of your retirement plan. While an early withdrawal may not seem like a big deal at the moment, especially if you have another need for those funds, it can actually have a significant long-term impact on your retirement savings. You could face early withdrawal penalties or fees, for example, which will reduce your current savings and your total savings in the future.

    If you do have to make an early withdrawal, please consult with your tax advisor first to see how they can help you reduce or minimize your tax penalties for the upcoming tax year. There may also be exceptions to the rules to help you avoid the early withdrawal penalties. If you would like more information on retirement catch-up strategies call us at 1-866-745-2295 for a free, no-cost confidential consultation and ask for Rick.

    Posted on Leave a comment

    Crypto Picks, Buys and Sells

    Virtual man in Decentraland

    There are over 24 categories of Crypto Assets and within those categories, there are 45 Sectors. It is very difficult to determine which crypto asset is the best one to buy. In addition, the industry itself has numerous current and previous unresolved risks that make investing in the industry uncertain and extremely risky. However, crypto-assets can still be a great place to invest in. With a little patience and guidance, investors can find and invest in some of the top crypto assets in the industry. We will post some of our best ideas in coins and tokens for serious and mildly curious investors going forward. Check out the page weekly for our highlight coins and tokens for the week.

    Our pick of the week is Decentraland- MANA. Decentraland is an NFT (non-fungible token) currently trading at a market spot price of $0.993831 as of the date this article was written. What is Decentraland? “Decentraland is a decentralized VR (virtual reality) world that is powered by the Ethereum blockchain. In this virtual world, you can purchase land, build it, monetize, and immerse into the applications and content that are built by other users. What distinguishes Decentraland from other VR projects is its decentralized nature. Land and in-game currency are powered by the Ethereum blockchain which gives users complete ownership and promotes transparency.” (Source: Coingecko.com)

    Decentraland is a virtual property and real estate blockchain platform and was one of the first movers in the virtual reality space that popularize the NFT movement. The stock has performed well over the last 24 months but like most crypto assets is down 75% – 83% to date. It’s ranked #40 as far as market capitalization with the industry suggesting that this virtual property and real estate blockchain platform is very liquid and highly capitalized.

    Industry analyst thinks it’s a buy at these prices and suggest accumulation in small amounts then using a dollar-cost averaging accumulation strategy. If you would like to know more about Decentaland such as price, trends, and industry direction post a comment below or email us for additional information.

    Purchase a twelve-month recurring subscription for Decentraland- MANA today!

    Posted on Leave a comment

    Broadcom- AVGO is a Buy

    Broadcom has been a stellar performer over the last 7 years and it is expected that the company will continue to grow at a healthy clip over the next 5 years as it moves to more software rather than a pure chip company. The company’s stock price is currently trading in a range of $528 – $575 per share,

    Management has executed deftly during the pandemic and continues to make very good decisions that continue to add value to the company. The recent acquisition of VM Ware, a cloud virtualization company strengthens the company’s ecosystem of products and services and looks to deliver and add to free cash flow in the future. We believe that this stock can be purchased as a stand-alone investment or in a portfolio of balanced technology stocks.

    According to our calculations, a $1000 investment made in February 2012 would be worth $16,653.93, or a 1,565.39% gain, as of February 17, 2022. Investors should keep in mind that this return excludes dividends but includes price appreciation. Source: Zacks’s Equity Research

    If you believe that technology companies like Amazon, Microsft, and Google are great places to invest over the long term, check our web daily for our technology picks, and technology portfolios, and help in choosing the right technology companies to invest in. We offer a great way to invest for investors that may not have the experience of deciding where and how to invest. We offer a great AI platform for new investors and customized services for more experienced investors that are willing to take more risks. Call or email us at 1-866-801-3359 with your inquiries or questions.

    Posted on Leave a comment

    Dropbox- The Box is Half Full

    Dropbox Inc., DBX reported earnings on Friday, February 20, 2020, not to be confused with BOX which reports earnings on February 26th, 2020, with revenues and stronger cash flows,   We started covering Dropbox Inc., in the 3rd quarter of 2019 because it’s in a space that we believe will see very good growth over the next five years. The stock is still slightly undervalued based on its intrinsic value by about ten percent with a fair value stock price of $24.71.

     The 4th quarter numbers were pretty good putting the company on track for stronger growth going forward. The company reported revenues of $443.5M but expected $446.00M a 0.60 percent increase. The company grew earnings to .16 per share versus expected earnings of .14 per share, up 13.19%. Based on my understanding of how the company was growing revenues and the context of the earnings call, this quarter was significant because of the quality of the earnings growth.

    The company is looking at Non-GAAP and GAAP forward guidance of 18% – 19% and 13% -14% respectively.  We believe the company’s earnings growth is sustainable based on the expectation of higher gross and operating margins and is not sacrificing growth by de-focusing on average user growth generated through subscription revenues.

    I think the company has a firmer grasp on its business plan, and we should see stronger, sustainable growth in the future. Is the stock a buy? We think so. However, be mindful. This stock is not a Wall Street darling like Facebook, Amazon, Netflix or Google so don’t expect huge volatility in the stock price or huge stock swings. It’s a slow burner. We own stock in Dropbox.

    Disclosure: I am/we are long Dropbox. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it . I have no business relationship with any company whose stock is mentioned in this article.

    Additional disclosure: The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities. Before buying or selling any stock you should do your own research and reach your own conclusion or consult a financial advisor. Investing includes risks, including loss of principal.

    Posted on Leave a comment

    Arista Networks- Waiting for the Other Shoe to Drop

    By Rick Walter
    02/14/20
    4:00 PM

    Cloud storage and solution companies are the next up and coming hot area for investment. Companies like Amazon and Microsoft are competing mightily for this business and winning. However, there are other smaller or mid-size players in the field that could also be huge winners in this growing, lucrative market.

    I started following Arista Networks in the 3rd quarter of last year. Since that time the stock has fluctuated from a high of $249.49 on Sept 12, 2019, to a low of $185.30 on November 1, 2019. The stock since then has ground back up to the $240 range on February 12, 2020, only to fall back to the $218 price levels after earning announcements on February 13, 2020.

    The numbers weren’t bad but they weren’t that good either. I listened in on the company’s webcast yesterday and I was not impressed with the presentation. The overall guidance for the upcoming first and second quarters for this year was very confusing. I couldn’t tell if the company was forecasting breakeven for the upcoming quarters, a slight loss, or a huge loss. Based on the previous 3rd quarter webcast last year, company officials reiterated that one of their major customers- (a cloud titan) who’s responsible for a good portion of their revenues, had not made a commitment or firm decision to continue to use their products and services going forward. Company officials said that they had to adjust to this uncertainty going forward. Fair enough.

    However, in the fourth quarter, nothing was mentioned of this pending doom to the company’s revenue base and bottom-line. Instead, the company focused on collective doom stemming from the cloud industry itself. Huh! Analyst after analyst threw a multitude of questions that would or could shed light on the growth issues but were unable to pierce the cryptic responses from company officials.

    This company initially fit our criteria for innovative product and services, consistent earnings per share growth and stable management with the ability to identify the risks in the markets and make prudent decisions to adjust to those risks. However, this company fails miserably in the management section. Just listen in on their earnings webcast and you will get an idea of what I am talking about. Is the stock a buy? We are uncertain, because no one could get a straight answer during the earnings call. Namely, “why is the company experiencing slower growth than most companies in one of the hottest growth markets today?”

    We are holding off purchasing any more shares in this company until we can get better and clearer guidance. If management can’t give you a clear answer, then why should we or any other investor invest in the company?

    We own shares of stock in Arista Networks.

    Posted on Leave a comment

    Cyberark’s Stock Price Collapses

    By Rick Walter
    Updated: 02/13/2020

    Cyberark Software Ltd., CYBR stock cratered today after their earnings announcement. I listened in on the company’s webcast on Thursday and the presentation was pretty solid. There was nothing in the webcast that was materially incorrect or shockingly bad. The company reported solid numbers in revenues, gross margins, r & d, sales and marketing, and general and administrative expenses, yet the stock sunk like a stone in a sea of positive earnings announcements.
    The company reported earnings per share of .97 per share versus expected fourth-quarter earnings per share of .81 per share, a 20% increase. Revenues came in at $129.66 million versus expected revenues of $126.67 million, 2.36%. Year over Year (Y/Y) revenues were up 27.72% with net income also up 88.39%.

    From a valuation metric, the stock was fairly valued as of Wednesday’s price of $138.60. Today’s collapse puts the stock in undervalued territory by at least 10% based on current valuation computations.

    We believe based on the line of questioning by analysts on the earnings webcast, that there may be some confusion on whether the company grew earnings per share and revenues by actually adding new customers or manipulated their numbers by reformulating or remixing the pricing of their existing product and product solutions to generate higher revenue fees thereby increasing fourth-quarter earnings per share and revenues.

    Is the stock still a buy? We think so based on year over year numbers and because the stock fits our criteria for investment based on their innovative cyber-security products, consistent earnings per share growth and excellent risk management stewardship. However, proceed cautiously.

    Posted on Leave a comment

    The Rise of Pinterest

    Rick Walter
    Updated: 02/10/2020

    Pinterest Logo

    Finding and investing in companies with a proven and stable track record of growth is very difficult especially with startups. We select companies based on three criteria: innovation, earnings per share growth, and risk management. We believe that the best companies are leaders in these areas. How companies manage these areas over time determines how much or how large your investment can grow.

    Pinterest Inc. PINS came to mind this week as a company that may do well over the long-term. The company reported better than expected earnings of .12 per share versus .08 per share, up 44% and higher revenues of $399.90 million versus expected $368.93 million, up 8.39%. This is impressive because the company just went public last year on April 18, 2019. In less than one year the company has evolved from test case into a real company that is growing market share and making money.
    The stock is undervalued based on valuation metrics which suggests a fair value price of $35 per share. The stock closed at on $25.20 Friday February 9, 2020. The difference between the where the stock closed, and its fair value is approximately 24.5%. We believe that the company can easily close that gap because on the growth side the company provides users and marketers with an array of easy to use tools that facilitates taking ideas and concepts from just that to reality quickly and easily.

    Although, Pinterest is not the only company that’s doing this; however they are at the forefront of providing the technology for users that’s growing revenues for the company. Secondly, the company is seeing surprisingly strong growth in the international market and management seems to have an intelligent grasp of the market and responds accordingly to the risks and uncertainty as the company grows. We think the company fits all three of our investment criteria and is a company to keep on your watch-list for future growth. Pinterest’s stock is just one of the stocks that we own in our portfolio.

    Posted on Leave a comment

    Broadcom continues to deliver!

    By Rick Walter

    Updated: 01/24/2020

    Can Broadcom Inc. (symbol: AVGO) continue to deliver the goods? On December 18th, 2019, the company announced that they were looking to sell one of its wireless-chip units. The move would accelerate the company’s shift away from its roots as a semiconductor maker. According to some company officials, the unit could be worth up to $10 billion. I personally thought that the move generated a confusing long-term growth outlook for the company, because wireless chips have always been the backbone of the company’s core businesses. Selling-off one of the units that generate core revenues for the business, I believe, caught many investors and analysts by surprise. The company’s stock sank from a high of $320 a share to roughly $301 shortly thereafter. However, since we are not privy to the company’s long-term business strategy, certain business moves may at first glance seem odd and confusing to investors looking in. On January 23, 2020, the company recently announced a multi-year supply agreement with Apple Inc. AAPL to provide wireless components for Apple products into 2023, a deal that could generate billions of dollars- $15 billion in revenues. The announcement sent the stock roaring to $329 a share on Thursday January 23, 2020.

    Our success as traders and advisors depends on companies like Broadcom. We look for companies that lead by innovation and consistently grow shareholder’s value. Suffice to say, that even though recent business moves by the company may have had investors like us scratching our heads, we still believe that Broadcom Inc. AVGO, still fits the bill of a company that can continue to grow earnings and deliver consistent returns to shareholders over the next five years which bodes well for higher trading profits and better returns on our client portfolios.

    Posted on

    We Care About Your Future.

    Happy Successful Family

    We understand the struggles of growing families. Sometimes its hard to save. But with our expertise you can secure you and your family’s future. Talk to the advisors that understands and cares. We are financial and tax experts with over 25 years of experience.

    Start with a Traditional IRA, Roth , Sep/IRA or 401k Plan or Rollover your 401k to get started in one simple, easy secure transaction.

    • No account minimums
    • Flexible savings and budget plans
    • Low costs and risk portfolios
    • Advisor assistance- 24/7
    • Excellent customer service
    • Consistent returns on your money

    Call for a consultation that does not cost you a dime but saves you thousands in lost fees and returns, or submit a our secure form for a timely call back.

    1-866-801-3359

    Posted on Leave a comment

    Searching for Value

    Confused

    Buying undervalued stocks in the markets can be a very good long-term investment strategy for many investors. However, the process can be very difficult sometimes and near impossible for the average investor. Meaning an investor that does not invest on a daily or weekly basis but who may own a 401k, IRA, Roth at their jobs, or another account at a brokerage firm that they use to periodically invest in other investments are the most disadvantaged.

    The reasons that it may be difficult to find under-valued stocks, especially in today’s markets, is because of the continuing conflicting messages that investors are seeing, hearing and experiencing daily that affect asset values. We hear on a daily basis that the economy is doing extremely well, it’s one of the strongest in a decade, and we are at full employment. But last month, actual Gross Domestic Product (GDP) numbers came in at 2.1% last quarter. This number does not suggest that the economy is growing faster or stronger than usual. It likely suggests that the economy is growing at a normal or average pace. If the economy is strong, why did the Feds need to lower interest rates. Remember, the Fed lowers fed funds rates to stimulate the economy by making it cheaper for companies to borrow money which in turn affect asset values. Rates on credit cards and home equity lines of credit track the fed funds rate closely and provide more spending power for Americans. On the July 31, 2019, the Fed cut interest rates by .25 basis points. So what is it? Is the economy strong and growing or is the economy about to crash or slow down?

    Finally, although some markets and industries, as tracked by very popular indexes, are doing very well. There are thousands of companies that are not. Because of how investment risks has been spread-out and diversified in most mutual funds and exchange-traded funds, the fear of losing all of your investment is not as acute to investors as it has been in the past. Meaning, there are so many poor performing investments mixed in with a few well performing stocks that many investors have no idea whether the investment that they own is undervalued, overvalued or fairly valued especially if you own shares in mutual or exchange-traded funds.

    Its very challenging to find undervalued or fairly valued investments in the markets. Investors still have to do their research homework to make sure that they have an investment that will perform based on what the marketers and distributors of the investment say that it will do. Although, finding great value is a very complicated and difficult tasks, if done right can have very rewarding results for the long-term investor.

    Posted on Leave a comment

    Wrapping up the 2019 Tax Season

    It’s been a tough 2019 tax season. The recent changes in federal tax laws made this tax season more difficult than usual. One of the biggest challenges has been determining what a business or individual could take as a deduction or ordinary and necessary tax expense. For example, interest paid on home equity loans may or may not be deductible under the new tax laws of 2017. In some states, this valuable deduction is no longer a tax benefit for many taxpayers.

    “The Tax Cuts and Jobs Act of 2017, enacted Dec. 22, suspends from 2018 until 2026 the deduction for interest paid on home equity loans and lines of credit, unless they are used to buy, build or substantially improve the taxpayer’s home that secures the loan” (IRS.gov n.p.).

    Although the intent of the law is clear, application could cause some confusion by homeowners that have refinanced their home mortgage many times over before passage of the new tax law. For complete guidance on how to calculate the correct interest rate for home mortgages, try IRS Publication 936, Mortgage Interest Deduction or submit our secure contact form with your specific tax question today.

    Source: IRS.Gov

    Posted on Leave a comment

    Volatile Week Ahead!

    1/28/2019

    It looks like it is going to be a volatile week. There’s lots on the table to consider. Today marks the start of the IRS e-filing season and what may turn out to be a very tough month for the IRS. We are seeing many reports suggesting that parts of the agency may still be understaffed. Taxpayers may be seeing longer delays in the processing of their refunds or possible lower or higher refunds amounts stemming from the finalizing of the new tax law changes in 2018.

    On other fronts, the U.S. government is officially open for at least 3 weeks. The hope is that lawmakers will hammer out a deal that includes meaningful border security without a wall and if possible, an immigration compromise.

    Also, there is a new report out that the Fed’s unwinding of their $4 trillion-dollar bond portfolio is causing increased volatility in the stock market. We expect to see more reports exploring this possibility in the coming weeks.

    Finally, several big tech companies will be reporting earnings this week. Apple, Inc. (AAPL), and AMD (AMD) on Tuesday. PayPal (PYPL) on Wednesday and Amazon.com (AMZN) on Thursday.

    Good luck and happy trading this week!