What Is The Roth IRA 5-Year Rule?

July 2019

Established in 1997, the Roth individual retirement account has long been a favored option for retirement savings due to its promise of tax-free withdrawals in retirement.  To make the most of this type of account, it's essential to pay close attention to the rules.  Archie Ponce, Optima's Executive Vice-President, is quoted in this article.

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Protect Your Home While You're Away

May 2019

Whether you’re traveling for a two-day business conference or a two-week vacation, you’re going to want to be sure your home is secure and safe from vandalism and break-ins while you are gone. Take the time to make sure your home and its contents remain safe while you're on vacation. Here are some important security do’s and don’ts that may be worth considering

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What Is A SEP IRA?

April 2019

excerpt from an article published in US News in which Archie Ponce, Optima's Executive Vice-President, was quoted

A SEP IRA is designed to help self-employed individuals and small business owners and their employees save for retirement. “SEP IRAs provide the self-employed business owner the ability to contribute a potentially larger amount than a traditional or Roth IRA,” says Archie Ponce, a certified financial planner and executive vice president of Optima Asset Management in Dallas. For 2019, the maximum amount an employer can contribute is set at $56,000 or 25 percent of compensation. That's significantly more than the $6,000 to $7,000 limit for traditional and Roth IRA contributions.

SEP IRAs can provide significant tax savings to small business owners. “The tax benefits to the employer are tax-deduction and tax-deferral benefits for the self-employed individual personally,” Ponce says. Employers can also take tax deductions on a business level for contributions made on behalf of employees.

Before offering a SEP IRA to workers, you’ll want to check if they meet certain criteria. To be eligible for the account, employees must be at least 21 years old and have earned at least $600 in compensation during the current year. They also will need to have performed services for the company during three of the previous five calendar years. “Employers can be less restrictive on the eligibility but may not set requirements to be more restrictive,” Ponce says. So, if your employees meet the criteria, you’ll need to have an account for them. If they aren’t eligible and you still choose to include them in the plan, you may do so.

The article in it's entirety can be found here

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Half of a Whole: When You Lose a Spouse

April 2019

Whether it’s sudden and unexpected or after an already lengthy ordeal, there’s nothing that can prepare you for losing your spouse. Grief and mourning affect each of us uniquely, but all widows and widowers share a painful dilemma: On the one hand, the world seems to demand rapid response to a barrage of critical questions – financial and otherwise. On the other hand, it’s usually a terrible time to be making big decisions, especially if they really can wait.

Here are some helpful handholds to hang onto if you have been recently widowed (or you know someone who has), plus preemptive steps to take if you’re reading this in happier times.

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Applying Science to Investing

March 2019

An introduction to Dimensional for investors, this video underscores how science has transformed every aspect of our lives, including investing.

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Dimensional On Controlling What You Can Control

March 2019

Dave Butler, Head of Global Financial Advisor Services at Dimensional, recounts a personal story of how he came to view markets and investing early in his career.

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The Basics of Investing: How predictable are market returns (Part 3)

February 2019

The Basics of Investing: How predictable are market returns - (Part 3 of the 3-part series)

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Pursuing A Better Investment Experience

February 2019

Key Principles to Improving Your Odds of Investment Success

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The Basics of Investing: What are the different types of risk (Part 2)

January 2019

The Basics of Investing: What are the different types of risk (Part 2 of the 3-part series)

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The Vital Role of Rebalancing

January 2019

If there is a universal investment ideal, it is this: Every investor wants to buy low and sell high. What if we told you there is a disciplined process for doing just that, and staying on track toward your personal goals while you’re at it? Guess what? There is. It’s called rebalancing.

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