Roth IRA for Hard-working Kids: Over $1M at age 65 tax-free!

Great idea: Act now to set your children on the path to have approximately $1.5M tax free at age 65. Savings from summer jobs starting at age 10 totaling just $17,100 by age 29 can set your children on a wonderful retirement plan. Harness the incredible power of compounding returns over 55 years! Do you have kids (grandkids, nieces, nephews) of any age that are working this summer earning income – or any time during the year? Do you wish for them a more secure future? Two words: Roth IRA. The most powerful retirement account available today. And we’ll help you get this going at no cost – as a public service. How do you turn $17,100 in contributions into $1.5M tax free? Click here to see what this looks like – graph and numbers both. Assumptions are listed in the next paragraph. Assume a child starts at age 10 and puts away $200/year, increasing regularly at the following ages/amounts: 12/$300, 15/$500, 17/$700, 23/$1000, 26/$2000 with the last contribution occurring at age 291. Further assuming an 11% annualized return2 – a reasonable return expectation for a small cap value fund. Click here to see recent returns of a Vanguard, DFA Small Cap Value Fund and related index – graph and numbers both. Note the higher DFA returns. This offer comes with EDUCATION. Your child will learn valuable lessons about hard work, long term commitment, saving, investing and compounding returns. I will be happy to meet with you and your child to explain how investing and compounding returns work. I will answer any and all questions. Note that it is...

Quarterly Summary & Model Performance

Q2 2016 is in the books. It was a reasonable quarter in the markets. Most asset classes were modestly up and a few were down. There’s no evidence of the market volatility in the last week of the quarter, down then up, after the surprise “Brexit” vote results. Highlights: International Stocks down. Emerging Markets marginally up. US large and small up. Bonds up. Real Estate (REITs) up. Quarterly Market Review Here. O’Reilly Wealth Advisors Portfolio Model Results...

How to have $200k to $760K more for retirement

Like most elements of personal financial planning, your 401(k) account requires ongoing attention and adjustments. Most 401(k) account owners from day one do not allocate their investments in an optimum allocation that will give them the best returns. Even those that do manage to allocate their 401(k) assets wisely; they don’t re-balance annually and/or are blindsided by minor and major changes in their 401(k) months or even years after the changes were implemented. In the utter busy-ness of our lives, it is easy to miss the announcements from HR on 401(k) plan changes. Finally, the most serious harm to our 401(k) growth is psychological – the so-called behavior gap which I have blogged about many times as it cannot be over-emphasized. I will address these issues one at a time and I also have graphs to illustrate how these problems can impact you financially in hypothetical scenarios. The first set of problems involve oversight and maintenance. Examples are: Failure to re-balance annually. Annually is an adequate frequency. However, if larger than normal swings have occurred since the last re-balance – then an extra re-balance is helpful since the re-balance accomplishes “selling high, buying low”. This gives an extra boost in returns over time. Failure to notice new funds being added and/or subtracted – and the subsequent re-design of your asset allocation. Asset allocation is a fancy term for the percent of assets you place in each fund. The plan may decide new allocations for you and even though they do a great job of attempting to inform you – in the chaos of life and flurry of information being flung at you – it...