Financial Insights

What is a QCD:

The Individual Retirement Account, or IRA, is a retirement savings account that allows individuals to save and invest money for retirement on a tax-deferred basis. There are two primary types of IRAs: Traditional and Roth. In a traditional IRA, you generally get a tax deduction for your yearly contributions on your tax return, but the proceeds are taxed as ordinary income when they are withdrawn. In a Roth IRA, you cannot take a tax deduction for your yearly contribution, but the contributions and investment growth are generally 100% tax-free when used in retirement. For more information regarding Traditional vs. Roth IRAs that include contribution limits and exceptions, please see our comprehensive IRA guide outlining the difference between the two account types.

What is an IRA?

While no investor would like to see down markets, they are unfortunately an unavoidable part of the ­­market cycle. In periods of prolonged down markets, it is easy to focus on your declining portfolio balance rather than seeking opportunities in other areas of your encompassing financial plan. A weak market like we have experienced year-to-date can create opportunit­­ies for several tax strategies such as tax-loss harvesting and Roth conversions. We want to discuss how individuals like you can reap the most benefit from completing ‘discounted’ Roth conversions.

Rhame & Gorrell Wealth Management (RGWM) and its advisors have been providing sound financial advice to The Woodlands and Greater Houston community for over 25 years. After decades of wide-ranging experience with various large firms throughout the investment management industry, Jeff Rhame and Michael Gorrell made the decision to become an independent fiduciary registered with the Securities and Exchange Commission (SEC) as a fee-only financial planning and investment advisory firm in 2016.

The estate planning process can feel overwhelming and forever ongoing - especially if you’re taking it on alone. As you try to address every possible question or pain point your heirs may encounter, here are a few questions of your own to consider.

The tax season is officially here. If you haven't already, now is the time to get prepared. Whether you meet with a tax professional or prepare your taxes yourself, proper planning helps the processes go more smoothly and may reduce the risk of costly errors. Check out the tax tips below and prepare to tackle this tax season with confidence.

Preparing a strategy that is both advantageous and tax-efficient might feel daunting at first. Thankfully, there are some things you can do now to keep from overpaying this tax season.