In traditional financial planning, the time between the beginning of the calendar year and tax day is usually a busy one as it relates to transaction volume. As clients get their W-2s and 1099s from their various sources of income, a decision needs to be made about 2019 IRA contributions (which can be made until April 15th), taking a piece of your year-end bonus or extra savings for 2020, and even sometimes pulling money out to satisfy Uncle Sam.
With cash coming in and out, our toughest decision for clients is whether or not to put the money to work immediately, or wait for a better entry into the equity markets. Each year we go through a litany of pros and cons about whether to dollar cost average throughout the year, or invest a lump-sum immediately and ignore the short-term gyrations.
As you know, here at Second Level Capital, there is an evidence-based reason we do everything (not just, “the market seems kinda high right now, let’s wait”). The good news is that three of my favorite writers have weighed in on the subject over the last few weeks.
If you’re interested, take a gander at the links below to get some different perspectives other than me saying the same boring stuff over and over.
Also, most 1099s are available for taxable accounts (non-IRAs). They can be found through Schwab’s website, or we are happy to email them to you if you wish. Also, if you’re getting to a point where doing your taxes yourself is becoming a hassle, or if you’re unhappy with your current CPA, we are happy to put you in touch with several options, all of whom we trust implicitly.
– Adam
Nice blog post gentlemen. Appreciate the information