IFC Advisory » Financial Advisory Questions

Roth IRA Conversions

Anthony Diaz — Wed, 17 Feb 2010 20:04:08 +0000

Traditional and Roth IRA contributions must be made by April 15th and the maximum contribution is $5,000 for 2009. If you are over age 50, an additional catch-up contribution of $1,000 can be contributed (income limitations apply to Roth IRA’s).

Starting in 2010, investors who own traditional IRAs will be able to do a Roth IRA conversion regardless of their income level or tax filing status. Additionally, investors who convert in 2010 have the option to delay their tax payment for a year and spread their payment over the 2011 and 2012 tax years. Please consult with your tax professional to determine if a conversion makes sense for you.

In 2010, there is a home buyers tax credit available. One is the $8,000 “first time” home buyer credit and the other is the $6,500 “move-up/repeat” home buyer credit. April 30, 2010 is deadline for these tax credits. Please consult with your tax professional for details and to determine if you would qualify.

IFC Advisory’s Vice President, Anthony Diaz, Discusses Shortcomings of ETFs in the DailyFinance

Anthony Diaz — Wed, 30 Dec 2009 17:40:56 +0000

Earlier this month, the DailyFinance quoted our vice president and financial expert, Anthony Diaz, CFA. In the article ETFs: Is Today’s Wall Street Trend Destined to Disappoint, high-powered financial advisors discussed how Wall Street’s greed might make exchange-traded funds (ETFs) the next good investment vehicle to go bad. Diaz sheds light on the shortcomings of ETFs and how they can measurably underperform their respective indexes. However, Diaz does not see ETFs as the next Wall Street disaster or embarrassment. Rather he states, “As more and more investors become aware of ETF shortcomings, their popularity will wane. This may result in ETFs being modified to address these shortcomings.”

To access the entire article, visit our press and news page. Click on www.ifcadvisory.com/team.html for more information on our financial advisor, Anthony Diaz.

Index Funds Outperform Actively Managed Funds—Why You Want a Healthy Balance of the Two!

Anthony Diaz — Mon, 16 Nov 2009 19:00:50 +0000

It has been established that most actively managed mutual funds lag behind their indexes over time. Although most low-cost index funds, on a risk-adjusted basis, will outperform actively managed funds, this is where the help of a financial advisor comes into play.

Investment advisors provide value to their clients by identifying mutual funds that are doing well on an absolute basis relative to their index or on a risk-adjusted basis. These advisors have the tools and the dialogue with mutual fund managers. They get to know the decision makers in charge of the mutual fund, the analysts, their expenses and how they do business. Once you have the specialty nailed down, you’re better positioned than the average investor.

One of the most popularly sited benefits of an index fund is their low expense ratio. However, one of the downsides is that they are joined at the hip to an index fund, which can raise your transaction cost. Our financial advisory team recommends a healthy balance of index and actively managed funds. Putting clients into some index funds and some actively managed funds allows them to get the best of both worlds. For someone putting all their “eggs” into exclusively managed funds, we would advise against that.

Want more information? Access the article where Anthony Diaz, CFA and vice president of investments, provides insight on index funds and actively managed funds. Also, feel free to contact our financial advisory team, we’re here to help!

Why Choose a Financial Advisory Team?

Anthony Diaz — Sun, 16 Aug 2009 19:24:03 +0000

Our financial advisory clients are individuals and families who understand the value of a long-term relationship with a trusted financial advisors.

We answer a lot of questions to help our clients make the right decisions and one question that comes up a lot is:

“What is the benefit of hiring a financial planning team versus an individual investor?”

Based on our combined five decades of expertise, we have noticed a pattern that some individual investors have historically underperformed the markets, with emotional factors and natural biases leading them to poor market timing decisions.

The value of a financial advisory team is that there is a breadth and depth of expertise that helps customize advisory to your distinct needs.

We will continue to share answers to commonly asked questions. Feel free to contact us if we can answer any questions for you.