Investment Management | Financial Planning

Did you make the top 3 financial moves for year-end?

With many retirement accounts taking hard hits due to COVID-19, it is vital to make sound investment moves to turn your accounts in the right direction. DBS Investment Advisers, LLC (DBSIA) has provided the top three financial moves you should make before the end of 2020. The MDA endorses DBSIA to provide wealth management and retirement planning services for MDA members because it specializes in working with dentists.

1. Fully fund your retirement plan.
Retirement plans have annual maximums for deferrals. Deferrals are the contributions made from your paycheck into an employer’s plan.
• The 2020 deferral limit for SIMPLE IRAs is $13,500 if under age 50, and $16,500 if over age 50.
• The 2020 deferral limit for 401(k)s is $19,500 if under age 50, and $26,000 if over age 50.
Consult your Sept. 30, 2020, SIMPLE IRA or 401(k) account statements to calculate how much you have contributed to your plan this year. If you’re on track to hit the maximum, you’re in good shape! If not, consider increasing your contribution amount to come as close as you can to hitting the maximum for the year. This will result in maximum tax efficiency.

2. Rebalance your portfolio. Most investors will have a target asset allocation—the percentage of their portfolio invested in a given type of investment. Movements in capital markets often shift the percentage of the portfolio that is invested in each area. Think of it this way: the type of investment that is performing the best will increase in value and become a larger percentage of the overall portfolio. When this happens, it is important that an investor considers rebalancing their portfolio; selling some of the overperforming investments at a profit and using the proceeds to buy some of the underperforming investments. Investors should rebalance at least annually.

3. Consider adding a cash balance or profit sharing plan. Adding a cash balance or profit sharing plan allows for higher levels of tax-deductible funding for key employees than a 401(k) alone. In addition, you have up until the corporate tax return is due to establish and retroactively fund a cash balance or profit sharing plan for the 2020 tax year.
To maximize your portfolio, contact Ted Schumann, II of DBSIA at  ted.schumann@dbsia.net or 800-327-2377 to learn more.

 

One goal of every MDA member is to build and preserve personal wealth.

Attaining this goal should start on the first day of your professional career and continue throughout your years of active practice and into retirement. Most people need a bit of guidance along the way. The MDA endorses DBS Investment Advisers (DBSIA) to provide wealth management and retirement planning services for our members because it specializes in working with dentists. They serve dentists at every stage in their professional lifecycle to help them attain their financial goals. DBSIA was formed in 2000 as an arm of Dental Business Services (DBS), from Bay City, Michigan. They know your challenges and have the ability to provide the financial advice necessary to put and keep you on the path to financial success. DBSIA has two certified financial planners to assist you: Ted C. Schumann and Ted Schumann II.

As a result of this endorsement, DBSIA provides MDA members with a fee discount on dollars under advisement. As your portfolio grows, your fee discount also grows.

DBSIA offers assistance with:

  • Individual portfolio management
  • personal individual retirement account (IRA)
  • Roth IRAs
  • Simplified Employee Pension (SEP) IRA,
  • Savings Incentive Match Plan for Employees (SIMPLE) IRAs,
  • cash balance plans
  • 401(k) plans

Take advantage of this exceptional, new benefit of your MDA membership and call DBSIA at 800-327-2377 or email Ted Schumann II at ted.schumann@dbsia.net.

 

4 financial moves to make before the end of this year

Here are four financial moves DBS Investment Advisers suggests you can take to best position yourself for a successful new year and beyond: Make sure you are on track to fully fund retirement accounts. Pay deferrals into 401(k) and SIMPLE-IRA plans need to be deposited by Dec. 31.

1. Make sure you are contributing as much as possible this year to capture the largest possible tax deduction. If you turned 50 this year, take advantage of year-end catch-up contributions.

2. Review the suitability of your retirement plan. Make sure the retirement plan used in your practice is still suitable for your needs. This is a great time to explore alternatives and implement a different plan to be effective early in the year.

3. Take advantage of tax-loss harvesting in taxable investment accounts. If you have a taxable portfolio, consider reviewing your positions to determine losses that could offset taxable gains. Take this opportunity to rebalance to a target allocation.

4. Review your debt reduction strategy. If you have or will finish paying off loans this year, review how that extra cash will be used, either to pay more on other outstanding debt, or increase savings or investments.

DBS Investment Advisers, LLC, is endorsed by the MDA for investment management and financial planning. Call DBSIA at 800-327-2377 or email ted.schumann@dbsia.net.


Disclosure

Participation in the DBS Investment Adviser program is solely the decision of the Michigan Dental Association Member. Neither the Michigan Dental Association nor MDA Insurance & Financial Group provide investment advice, and they are not responsible for any investment decision or performance All investments have potential for profit or loss.  Past performance does not guarantee future success.

The MDA receives royalties when members use the product or services described above.