Equity markets posted positive returns around the globe in the first quarter of 2019. Looking at broad market indices, US equities outperformed non-US developed and emerging markets. Small caps outperformed large caps in the US and non-US developed markets, but underperformed in emerging markets. Value stocks generally underperformed growth stocks in all regions. Our report reviews the data.
Making the Most of Equity Compensation, the Qualified Small Business Stock Exclusion and Economic Opportunity Zones
This month the Parkside blog comes in the form of a podcast. In this recent episode of Founders and Friends, Scott Orn of Kruze Consulting interviews Parkside’s Audrey Grubman and Christina Kramlich on relevant financial topics for startup employees, founders, and investors. As many of our clients know, Audrey has worked with startup employees since establishing the firm in the mid-90s. The podcast reviews various forms of equity compensation and discusses the reasons to understand the details of one’s compensation very early on and make a plan. There are also some common pitfalls that founders and startup execs should keepRead More
Reviewing Tax Returns: 7 Opportunities for Tax Reduction
When we sit down with new clients to review their recent federal and state tax returns, we often find opportunities for tax reduction.
Are you withholding for taxes at the proper level in 2018?
Are you withholding for taxes at the proper level in 2018? The Tax Cuts and Jobs Act (TCJA) made significant changes to the tax rules and double checking may avoid possible penalties.
Opportunity Development Zones
Part of the new tax law designates 8,000 low-income areas throughout the U.S. as Opportunity Development Zones. What our clients need to know about the tax benefits and potential social impact opportunity.
A Terrific Way to Increase Retirement Savings
Many employer plans now contain both a regular 401(k) plan and a Roth 401(k) option. The regular 401(k) allows an employee to defer up to $18,000 of compensation in 2017 ($24,000 for folks age 50 or older) before taxes. The benefit of regular contributions is that you reduce your taxes at the time of contribution, allow the earnings in the plan to compound over time, and defer taxes until you withdraw funds during retirement, when you will possibly be taxed at a lower rate. Contributions to a Roth 401(k) are made after-tax, i.e., contributions do not reduce your taxable income/taxesRead More
The 7 Benefits of Donor-Advised Funds
A donor-advised fund (DAF) is like a mini-foundation that anyone can set up without the expense or a lot of paperwork. For our clients, it can be a great way to donate to charity without hassle, but it comes with other perks. First, how a donor-advised fund works: Through a custodian such as Fidelity or Schwab, you set up your DAF and deposit money or appreciated assets into it. You then direct the fund to distribute cash to any qualified non-profit organization, such as the Sierra Club or Doctors Without Borders. Why donor-advised funds are great, in my opinion: YouRead More
Questions to Ask a Potential Financial Advisor
When you’re in the market for a financial advisor, you want to find one that’s going to be a perfect fit for the long run. Your relationship with your financial advisor is key to your financial health, success, and peace of mind. At Parkside Advisors, we are keenly aware that a good client-advisor relationship is crucial for long-term success. We invite you to interview us before you commit to our services. And even if we do not turn out to be the right fit, we are happy to provide some guidelines for choosing a financial advisor. Here are a fewRead More
Active Versus Passive Investment Management—Our Philosophy
There’s an experiment I love to use to explain why Parkside Advisors practices passive management as an investment philosophy. When a group of people is shown a large jar of jellybeans and asked to guess how many jellybeans are in the jar, it’s rare that anyone nails the exact number. Some people will guess wildly high, some wildly low. Yet, if you aggregate all of the guesses and average them out, you will usually arrive at a pretty accurate number. A crowd of guessers is consistently more accurate than individuals. The same is true for investment strategy. While the commonRead More
Are Robo-advisors as Worthy as Real CFP® Professionals?
Recently I read an article in the Wall Street Journal about the rise in use of telemedicine companies. These “direct-to-consumer” online medical services provide inexpensive diagnoses that allow consumers to avoid high co-pays or deductibles. Patients instead call an “online doctor” and describe their symptoms. The doctor then makes a diagnosis and, in some cases, prescribes medication. According to the WSJ, the American Telemedicine Association expects more than a million calls to these types of services in 2016 alone. But without access to patients’ medical histories and in-person examinations, many telemedicine companies are issuing incorrect diagnoses. In a JAMA DermatologyRead More