Actively Monitoring Your Investments

The Importance of Actively Monitoring Your Investments

Only sustained vigilance on where your money is and how it’s doing will make investments worth your while

If foresight is the backbone of wealth planning, actively monitoring investments is its lifeblood. Investing is a dynamic arena where small market ripples can set off major changes across a portfolio. Sometimes those ripples are personal—and changes in the investor’s circumstances can require a realignment of their present and/or future interests.

Either way, a finger on your portfolio’s pulse is essential. Closely monitoring investments can generate further wealth or avert losses, and this is also about more than knowing the numbers. Investing well requires a certain perspective to avoid being too confident or worried about cyclical changes.

The proper monitoring mindset

Markets can be volatile and unpredictable, and regular monitoring fosters an invaluable quality in an investor: equanimity. Keeping watch on investments helps individuals see the ebb and flow of markets over time. Exposure to this fluctuation creates a more centered and resilient point of view in investors who appreciate that a loss need not be the end of the world—nor a quick gain a signal to get overconfident.

Monitoring multiple investments (particularly if they span asset classes) makes individuals an active part of their wealth strategy, instilling a greater awareness of how different classes interconnect and why notions of a weak or strong return vary between markets.

Inevitably, investors will look at the portfolio returns of others and conclude they are somehow better or worse off. Investment monitoring shifts that mindset to one centered around benchmarking. For example, gains and losses in small-cap stocks aren’t comparable to those of large-caps. Funds that invest in stocks and bonds cannot rightly be compared to those dealing purely in stocks or other vehicles.

Cross-category comparisons can be beneficial in some instances while monitoring your current investments, however. Perhaps there’s another asset class that interests you and you wish to follow its fortunes for a while, or you may wish to compare the portfolios of others who have similar investment goals to your own. In this instance, a key is to compare both the overall cyclical losses and gains as well as the volatility of these swings.

How the monitoring mindset pays off

Whether long or short term, data monitoring provides the means for investors to regularly assess their portfolio and interests and see how they’re aligned with their time-based strategies.

Long-term investors can benefit from peace of mind through receipt of monthly or quarterly investment reports. If you’re a short-term investor, checking in far more regularly on your portfolio is a sound idea. Indeed, if your investments are on the riskier side, it’s a necessity. Daily or weekly information may be necessary to keep things headed in the desired direction.

Some rebalancing may be necessary in order to realign with new goals or to stabilize the portfolio after a loss. Rebalancing is a strong way of managing your portfolio’s risk and maintaining smart relative percentages of your investments by selling or buying asset classes to restore your strategy’s equilibrium.

Seeing the fluidity of markets firsthand assists every type of investor in making more informed decisions instead of upending their strategy over short-term concerns. This also prevents unnecessary expenditures in transaction fees and taxes. It’s arguably always best to monitor over the long term than to go for short-term gains since troughs can often be temporary and not a good gauge of performance over time.

Monitoring also helps shield against data discrepancies and clarifies costs. Regular reports from your wealth advisor will provide, among other things, reviews of all activity during the quarter, projections for the near or farther future, and full and clear details on all fees and expenses. Projections reveal the potential of an investment—which may be positive or negative regardless of its current performance—in a wider market context. And getting this kind of valuable feedback requires partnering with an experienced advisor.

Lindberg & Ripple is here to keep you and your investments connected

Staying informed on how a portfolio is progressing helps forge a smarter, wiser, and wealthier investor. How closely and regularly assets are monitored can vary, but we don’t recommend going more than a year without a comprehensive review—and a potential rebalancing—of your interests. This review may be fairly complex if those interests are numerous.

In addition to providing monthly statements and quarterly reports, Lindberg & Ripple offers an online portal that presents on-demand information in a clear, easily-accessible format. In addition, we provide aggregate reporting so you have complete portfolio information, even if you have money spread over multiple custodians.

The Lindberg & Ripple team brings decades of experience and client-centric care to our investment advice and wealth management strategies. No matter your timeframe or investment style, our insight is provided purely for your advantage and to suit your specific goals. Reach us at the link below to learn more about or commitment to your financial future.

Lindberg & Ripple offers customized wealth management, investment, and insurance solutions to wealthy families and successful businesses. We help our clients craft a comprehensive wealth planning model to achieve their financial goals with minimum fuss and maximum savings. To learn more, connect with us.

This information is obtained from sources that are believed to be reliable but we make no guarantees as to its accuracy. This material is for educational purposes only. Educational material should not be construed as legal or tax advice and is not intended to replace the advice of a qualified attorney, tax advisor and plan provider. By accessing any links above, you will be connected to third party web sites. Please note that Lindberg & Ripple are not responsible for the information, content or product(s) found on third party web sites. Investments in securities involve risks, including the possible loss of principal. When redeemed, shares may be worth more or less than their original value. Diversification does not ensure a profit or protect against loss in a declining market. Securities and Investment Advisory Services Offered Through M Holdings Securities, Inc. A Registered Broker/Dealer and Investment Adviser, Member FINRA/SIPC. Lindberg & Ripple is independently owned and operated. #2921810.1

Retirement Planning by the Numbers

Retirement planning offers many options for peace of mind. Spotlighting the 401(k), 403(b), and 457(f) and how a plan manager can help.

401(k)s, 403(b)s, and 457(f)s are vital tools for retirement planners. Some plans are preferred because they’re tax-deferred and any contributions made are deducted from gross annual income, lessening income tax. All of them have advantages that spur savings and investment. We’ve summarized these three programs and provided reasons why having a plan manager who helps implement them is a good idea.

401(k)s

This is America’s most popular choice for retirement planning, with 55 million participants investing $5.7 trillion. The income-tax deduction it offers is among the simplest to understand—any amount contributed to a 401(k) in a year means taxable income is lowered by that amount for the current year.

A major draw of this model is the employer matching that sometimes accompanies it. Such employers will match employee contributions to a 401(k) to a certain percentage limit. The most generous employers can even elect to boost an employee’s plan regardless of the latter’s contributions. 401(k)s are a low-effort, high-flexibility option since contributions are directly deducted from the paycheck and participants can divide their contributions between various stocks and funds.

The maximum amount that employees can contribute is $19,500 for 2020. Catch-up contributions allow those 50 and older to contribute an extra $6,500 a year. When the employer is contributing, the 2020 shared limit is whichever is the lower of 100 percent of employee compensation or $57,000.

Taxes aren’t paid on 401(k)s until withdrawal, which can be deferred until April 1 of the year (or sometimes, the following year) participants turn age 70 and a half. It’s then mandatory to withdraw a certain annual amount under the Required Minimum Distribution Rule (RMD).

Two caveats with 401(k)s: failure to follow the RMD rule sees the amount not withdrawn taxed at 50 percent, and those considered Highly Compensated Employees may find that certain plan restrictions apply, if they’re even eligible.

403(b)s

These plans are available to some employees of public colleges, non-profits, and hospital organizations. 403(b)s share the same annual and catch-up contribution amounts as 401(k)s as well as the employer matching aspect, should the employer elect to offer it.

One difference is generally known as the 15-Year Service Rule. In these cases, some employers offer their staff the chance to contribute an extra $3,000 annually to their 403(b) if they haven’t reached the maximum contribution in previous years and if they’ve been with that same employer for 15 years. This rule comes with a lifetime limit but it’s a simple number to remember: $15,000.

The 2020 limit on annual additions is typically the lesser of $57,000 or 100% of includible compensation for the employee’s most recent year of service. The IRS provides a list of other contributing numbers and factors for investing in 403(b)s in any of the following three ways: an annuity contract provided through an insurance company, a custodial account invested in mutual funds, or a retirement income account set up for church employees.

457(f)s

These are deferred-compensation plans provided by either a local or state government or a tax-exempt organization. 457(f)s have the drawback of being taxable income from the moment of vesting—the giving or earning of the right to a present or future benefit, payment, or asset. They are also subject to a substantial risk of forfeiture, meaning that unless the recipient meets certain performance or time-served criteria, they could lose their plan.

It’s crucial for employees of the entities listed above to understand that taxes are due on their plan. If they don’t, late filing fees and interests will only compound the expense. 457(f)s are designed to supplement the retirement income of eligible executives or other highly compensated employees. Recipients usually find themselves in a lower tax bracket when the plan cashes out since this sum is paid upon retirement.

Deferral amounts aren’t limited but the plan comes with employer-set requirements—such as retirement age—which recipients must meet in order to receive the benefits. Again, both employer and executive may contribute to 457(f)s and administration costs are typically low. Contributions are made with pre-tax dollars and earnings can compound tax-deferred.

How  retirement plan advisors can help

The intricacies of retirement planning often require an experienced third party to help recipients make important financial decisions. Retirement plan advisors—also known as co-fiduciaries—are bound both by the law and a duty of trust to act solely in the best financial interests of both their clients and their beneficiaries.

Retirement plan advisors do so by combining their financial expertise, personal insights, and prudence to ensure all requirements of the retirement benefits are met and to diversify the plan’s investments. This duty is limited in the sense that it can only guarantee the best possible organization and execution of a plan. The results of investments are always subject to multiple factors beyond a fiduciary’s control.

If you’re looking for further advice on retirement planning, we’d be happy to assist you. Lindberg & Ripple has been putting the best interests of our clients first for over 40 years. We’re proud to serve those interests by combining our passion for retirement planning with the varied insights of a dedicated team.

Reach us at the link below to learn more about the right retirement strategy for you.

Lindberg & Ripple offers customized wealth management, investment, and insurance solutions to wealthy families and successful businesses. We help our clients craft a comprehensive wealth planning model to achieve their financial goals with minimum fuss and maximum savings. To learn more, connect with us.

This information is obtained from sources that are believed to be reliable but we make no guarantees as to its accuracy. This material is for educational purposes only. Educational material should not be construed as legal or tax advice and is not intended to replace the advice of a qualified attorney, tax advisor and plan provider. By accessing any links above, you will be connected to third party web sites. Please note that Lindberg & Ripple are not responsible for the information, content or product(s) found on third party web sites. Investments in securities involve risks, including the possible loss of principal. When redeemed, shares may be worth more or less than their original value. Diversification does not ensure a profit or protect against loss in a declining market. Securities and Investment Advisory Services Offered Through M Holdings Securities, Inc. A Registered Broker/Dealer and Investment Adviser, Member FINRA/SIPC. Lindberg & Ripple is independently owned and operated. # 2931631.1

The Generation-Skipping Tax Exemption and Maximizing Wealth Preservation

The ability to provide a financial gift to future generations is one of the most satisfying benefits of wealth. It pays to know how to make that gesture while minimizing taxes

It’s important to understand the GST tax (Generation-Skipping Transfer tax) in the context of the Tax Cuts and Jobs Act (TCJA). Since it’s passing, the TCJA has led to significant changes in several tax areas, with the GST faring better than most. The GST happens when grandparents pass money or property straight to their grandkids, not leaving it to the parents of those grandchildren first.

There is a generation-skipping tax exemption that was roughly doubled with the recent tax law, however, and it’s similar in principle to the exemption for estate taxes and gift taxes—so much so, that it shared the same cap of $11.18 million as of 2018.

We say “shared” because that number increases along with inflation. Any individual wishing to pass wealth or property along by skipping a generation (and provided this takes place after December 31, 2018, and before January 1, 2026) can now give $11.58M without incurring gift or GST tax, as of 1/1/2020. Married couples wishing to do the same simply double that figure.

It’s also important to note that while many do choose to pass wealth along to a generationally removed family member such as their grandchild or great-grandchild, any non-spousal family member or even a non-related person can receive the wealth, as long as they are 37.5 years younger than the party providing it. In either case, the individual receiving the money is commonly referred to as a “skip person.”

Since GST taxes are inclusive along with any federal estate or gift taxes that may apply, knowing ways to minimize or remove this tax means more wealth for your beneficiaries.

The current rate of GST taxation

The GST tax rate moved upwards from 35 percent to 40 percent in 2013 and has stayed at 40 percent since. That’s certainly a significant amount, but it’s positively offset by the larger figures that can be passed tax-exempt to future generations.

If there’s no move from Congress to extend the current provisions of TCJA, those exemption limits of over $11 million for individuals and more than $22 million for married couples will drop to pre-2014 levels (adjusted for inflation) on January 1, 2026—which will effectively halve them in each case.

This means that families with sufficient wealth that can afford to make significant gifts can only plan to ensure their chosen recipients benefit from a larger, tax-free amount within the coming six-year window.

What can be done to minimize the GST?

An Annual Exclusion to the GST tax is also offered by the Internal Revenue Code. This figure was $15,000 for 2019 and will remain the same for 2020; again, this can become $30,000 if a married couple is the transferors. This sum will completely avoid the GST tax and lifetime exemptions.

The GST tax also does not apply if a grandparent chooses to pay the entirety of a grandchild’s tuition fees directly to the educational institution; the same applies to medical expenses which must be paid directly to the facility in order to avoid GST.

An important note on the educational front is that only the tuition expenses are exempt for GST purposes. The cost of residence, supplies, and materials are a separate issue. Alternatively, any grandparent or grandparents contributing to their grandchild’s 529 college plan can give more than the $15,000 or $30,000 annual exclusion and avoid the GST tax. They may do so providing their total gifts do not exceed the lifetime exemption limit of the year in question.

How trusts factor into the GST

The annual GST tax exclusion may also apply if the gift is made in trust. Under these circumstances, the trust must benefit only the skip person and only if it is set up so that any assets benefitting that person are included in the estate.

Typically, generation-skipping gifts are made to Dynasty Trusts that allow for the trust to function in perpetuity, with trust assets permanently removed from estate taxation. It is important to note that Dynasty Trusts must be set up in states whose laws allow them.

Connecticut, for example, made changes to its laws that became effective in 2020 which allow Dynasty Trusts for the first time (although they are limited in scope to 800 years), whereas some states allow Dynasty Trusts to remain in perpetuity. (Those domiciled in Connecticut should also be aware that the state has its own gift tax, with exemption levels that are currently less than the Federal exemptions, and they should seek the advice of Trust & Estate counsel and their financial advisor before making a large gift).

If properly structured, all trust assets can be exempt from the GST tax, meaning that the initial sum and all future growth of those assets can escape taxation. Taking great care when establishing a trust should involve working with experienced professionals who will take the unique combination of your wealth, family situation, and personal wishes into account.

 

Lindberg & Ripple offer customized wealth management, investment, and insurance solutions to wealthy families and successful businesses. We help our clients craft a comprehensive wealth planning model to achieve their financial goals with minimum fuss and maximum savings. To learn more, connect with us at our Connecticut or Florida offices or complete our contact form.

This information is obtained from sources that are believed to be reliable but we make no guarantees as to its accuracy. This material is for educational purposes only. Educational material should not be construed as legal or tax advice and is not intended to replace the advice of a qualified attorney, tax advisor and plan provider. By accessing any links above, you will be connected to third party web sites. Please note that Lindberg & Ripple are not responsible for the information, content or product(s) found on third party web sites. Investments in securities involve risks, including the possible loss of principal. When redeemed, shares may be worth more or less than their original value. Securities and Investment Advisory Services Offered Through M Holdings Securities, Inc. A Registered Broker/Dealer and Investment Adviser, Member FINRA/SIPC. Lindberg & Ripple is independently owned and operated. # 2931624.1

Estate Planning Opportunities with the TCJA: Gift Tax Exemptions

Taking advantage of historically high gift tax limits before they disappear

The Tax Cuts and Jobs Act (TCJA) of 2017 bestowed a huge gift on wealthy families: People with large estates have an unprecedented – but temporary – opportunity to transfer a substantial amount of wealth to their loved ones without incurring transfer taxes.

Prior to the TCJA in 2017, only the first $5.49 million of transferred assets were protected from the 40 percent federal estate and gift tax ($10.98 million for married couples). But the TCJA more than doubled the amount an individual can shield to $11.4 million in 2019 ($22.8 million for married couples) – and the historically high exemption limit will continue to rise with inflation until it sunsets at the end of 2025 and reverts to 2017 levels (adjusted for inflation, of course).

The generation-skipping transfer tax (GST) exemption – the amount people can give to grandchildren or more remote generations without incurring tax – also increased to $11.4 million ($22.8 million for married couples).

Initially, there was concern that people who made major gifts under the current tax code would have to pay the piper with major tax penalties if they live beyond 2025. But the IRS recently confirmed that there will be no “clawback” on these lifetime gifts, granting wealthy individuals an opportunity to pass on millions of dollars tax-free—without fear of being hit by a 40 percent gift, estate, or GST tax later.

A quick gift-tax primer

The IRS operates a unified gift and estate tax system – meaning all the gifts you make throughout your lifetime count toward the overall exemption amount. But the IRS also permits you to give a certain amount each year without chipping away at the current $11.4 million limit.

In 2019, the annual exclusion amount is $15,000; that means you can make $15,000 gifts to as many different people as you want without any gift tax consequences. If you and your spouse split a gift, you could give the same person a total of $30,000 a year.

Transfers that exceed the gift amount must be reported to the IRS and are technically taxable, but you won’t actually owe any gift tax until you’ve exhausted your lifetime exemption. The person making the gift—or the estate—is liable for tax incurred.

There are also a few specific situations where you can give unlimited amounts without triggering the gift tax:

  • Unlimited gifts can generally be made to spouses, with no gift or estate tax due
  • Gifts to charity
  • Gifts made for tuition and qualified educational expenses, as long as payments are made directly to the college or educational institution instead of the student. This is an excellent opportunity to make transfers that benefit your children, grandchildren, or even great-grandchildren without incurring a transfer tax.
  • Gifts to cover medical expenses for someone else, as long as you pay the hospital or medical professional directly instead of the patient

Higher exemption a “use it or lose it” opportunity

The estate planning benefits of the TCJA are a “use it or lose it” opportunity – offering the potential for tremendous tax breaks to people with large estates who are proactive about transferring a meaningful amount of wealth to their family before the expanded privileges expire. These gifts can be made in several ways, including direct gifts, forgiving loans, funding trusts, or funding tax-advantaged education accounts.

There are some income tax consequences to consider before making generous gifts. For instance, when you give away an appreciated asset, the recipient assumes your tax basis in the asset and incurs capital gains tax if he or she sells it. When appreciated assets are inherited, however, the recipient’s basis is “stepped up” to the asset’s fair market value on the date of death, erasing the built-in capital gain and potentially avoiding significant federal and state income taxes on a sale.

The clock is ticking on the TCJA’s historically high exemption amounts, and families with substantial estates should carefully consider the impact of post-2025 estate and gift tax liabilities on their estate planning. Although your estate will enjoy the benefits of the higher limits if you die while they’re still available, making gifts that meet the exemption amount now can help you avoid a heavy tax hit if you live past when it’s slashed by more than half to 2017 levels.

A skilled advisor can help you to review your current estate planning strategy.

Lindberg & Ripple is an independent investment and insurance advisory firm providing sophisticated Wealth Management, experienced Investment Consulting, and innovative Insurance Solutions for wealthy families, successful executives, and business executives. Contact us to learn how we can help your family or business achieve your financial objectives while minimizing hassle, expense, and taxes.

This information is obtained from sources that are believed to be reliable but we make no guarantees as to its accuracy. This material is for educational purposes only. Educational material should not be construed as legal or tax advice and is not intended to replace the advice of a qualified attorney, tax advisor and plan provider. By accessing any links above, you will be connected to third party web sites. Please note that Lindberg & Ripple are not responsible for the information, content or product(s) found on third party web sites. Investments in securities involve risks, including the possible loss of principal. When redeemed, shares may be worth more or less than their original value. Diversification does not ensure a profit or protect against loss in a declining market. Securities and Investment Advisory Services Offered Through M Holdings Securities, Inc. A Registered Broker/Dealer and Investment Adviser, Member FINRA/SIPC. Lindberg & Ripple is independently owned and operated. #2931603.1

Various Investment Options Defer Tax and Generate More Potential Income

“Time is money” is a neat summation of tax-deferred investment accounts. Discover how to generate these savings and why the longer investors wait, the better.

Taxes are typically inevitable. However, there are ways to delay the inevitable and accumulate more significant wealth in the process. Tax-deferred investments take several forms which allow investors to delay the receipt of profits—and taxes—from investment options or designated accounts.

Since tax will only be applied when an individual cashes in their investment or withdraws from their account (usually), those funds that go untouched may accrue gains while avoiding the IRS. Many of the options to create a tax-deferred account carry a withdrawal penalty, so it’s in the best interests of investors to hold off for as long as possible before tapping into that wealth.

It’s more costly to withdraw from a tax-deferred account before the age of 59.5 since that withdrawal is viewed as ordinary taxable income. The IRS penalty is currently 10 percent of the distribution, which can only be avoided under specific exceptions.

In addition, many high-net-worth individuals may find themselves in a lower tax bracket in the future, making the latter a more cost-efficient time to withdraw from a tax-deferred account.

 

The available options to generate tax-deferred savings

An IRS-qualified tax-deferred savings plan such as a 401(k)/403(b)/457 or an IRA are the most common examples of these accounts. These options offer a further saving beyond their tax-deferred status since contributions to both 4-0 types and IRAs are deducted pre-tax from gross annual income (with the exception of Roth IRAs), which lessens income tax.

IRAs: Deciding which type suits you best

Individual retirement accounts come in four forms: traditional (standard), SIMPLE, Roth, and SEP.

The traditional option can be used by any individual and allows a certain tax-deductible amount (currently $6,000 or $7,000 if you’re 50 or older) to be saved and invested every year.

In contrast, the Savings Incentive Match Plan for Employees (SIMPLE) type is employer-sponsored. It can be implemented as a retirement benefit by employers with less than 100 employees. Other key differences are the contribution maximum and the terms of these contributions: “Employers can choose to make a mandatory 2% retirement account contribution to all employees or an optional matching contribution of up to 3%. Employees can contribute a maximum of $12,500 annually in 2018; the maximum is increased periodically to account for inflation.”

Contributions to Roth IRAs aren’t pre-tax like they are with other versions, but qualified distributions (those made after the required age) are tax-free and have two rules attached. The distribution must occur no less than 5 years after the account was created and the account holder must be 59.5 years old or older. If the age requirement is not met, the account holder must:

  • Have a disability or
  • be using the funds for a qualified purchase orin
  • the distribution is going to the Roth holder’s beneficiary following their death.

Again, any distribution that doesn’t fit these rules will involve paying a 10 percent penalty and the level of tax relevant to the owner’s bracket. Contributing to a Roth IRA is not possible if your income is too high, but traditional IRAs can be converted to a Roth. While taxes must be paid on the wealth converted, there will be zero income tax come retirement.

SEP (Simplified Employee Pension) IRAs allow business owners to institute tax-deferred retirement plans for both themselves and their employees—and the employer must contribute an equal proportion of the employees’ pay to the proportion they contribute for themselves. They are otherwise similar to traditional IRAs, except the contributions can be roughly 10 times as much per year.

Once this plan is established, each employee has ownership and control of their own SEP-IRA which can be maintained alongside another retirement plan with the proper administration.

Alternative tax-deferred options

Life insurers offer fixed or variable rate tax-deferred annuities as other options. These allow investors to place funds into a long-term account which will pay out in regular installments after retirement. These accumulation accounts generally go the fixed-rate route with a minimum guaranteed interest rate that can remain in place for up to 10 years regardless of market performance.

This method is subject to the same age and penalty limitations (59.5 years and 10 percent) for early withdrawal as non-insurance options, with withdrawals usually limited to once per year. There may also be a limit placed on annual contribution amounts if the account holder is older than 50.

U.S. Series EE and I Savings Bonds can also enjoy tax-deferred interest in whole or in part, providing funds are used for educational purposes (with other qualifying criteria). These bonds also go one better than tax-deferral by being tax-exempt at the local and state level. Taxes on the interest income can be deferred after issue for up to 20 years with Series EE bonds and up to 30 years for I bonds, or until the bonds are redeemed by selling them back to the government.

Using non-qualified options for tax deferral

Non-qualified plans are more exclusive tax-deferred arrangements made between an employer and an employee. These options are usually available to key employees as a means to boost retirement income or entice them to either join or remain with an employer. “Non-qualified” refers to their lack of regulation by the Employee Retirement Income Security Act (ERISA) as opposed to the 401(k)s and 403 (b)s which ERISA does oversee.

Contributions to these plans come from either the employer (as with a salary-continuation plan) or the employee (in the case of a deferred compensation plan). Contributions to non-qualified accounts derive from post-tax income, which means while the gains can be tax-deferred, contributions unfortunately won’t reduce taxable income. Both salary-continuation and deferred compensation options can be held alongside a standard 401(k).

As with the other options above, a deferred compensation plan has a 10 percent penalty on distributions made prior to 59.5 years of age. If left untouched, the employer will invest the sum set aside for access in retirement. Such plans must be well-monitored since they can decrease as well as increase in value before they’re accessed.

Tax-deferred options do have one unavoidable risk—and that’s the possibility of the owner’s tax bracket being equal to or higher than their current one when they retire. Retirement doesn’t always mean a reduction in income. But the opportunity to keep more funds invested and generating returns or interest results in the money growing far more than it otherwise would. And any employer matches in certain plans vastly sweeten this return.

Lindberg & Ripple offers customized wealth management, investment, and insurance solutions to wealthy families and successful businesses. We help our clients craft a comprehensive wealth planning model to achieve their financial goals with minimum fuss and maximum savings. To learn more, connect with us.

This information is obtained from sources that are believed to be reliable but we make no guarantees as to its accuracy. This material is for educational purposes only. Educational material should not be construed as legal or tax advice and is not intended to replace the advice of a qualified attorney, tax advisor and plan provider. By accessing any links above, you will be connected to third party web sites. Please note that Lindberg & Ripple are not responsible for the information, content or product(s) found on third party web sites. Investments in securities involve risks, including the possible loss of principal. When redeemed, shares may be worth more or less than their original value. Diversification does not ensure a profit or protect against loss in a declining market. Securities and Investment Advisory Services Offered Through M Holdings Securities, Inc. A Registered Broker/Dealer and Investment Adviser, Member FINRA/SIPC. Lindberg & Ripple is independently owned and operated. # 2915338.1

Explaining Retirement Income Drawdowns

A well-considered drawdown strategy is one of retirement planning’s key requirements. Here are some of the considerations of well-laid plans

Wealthy individuals have an enviable dilemma. Their higher financial status frees them from the common concern over whether they have enough funds to sustain them in retirement. And while being wealthy is certainly better than the alternative, it comes with unique retirement responsibilities and strategies.

The focus of wealthy retirees is (or at least, should be) how to sensibly decumulate their assets. Decumulation is more commonly known as “drawing down” and refers to how much can be withdrawn from a retirement fund while safely maintaining the desired regular monthly income after taxes.

Drawing down wisely depends on an awareness of three things: tax efficiency, what the retiree knows they’ll need, and what they expect to want.

Drawing down for health

File this one firmly under the “needs” category: Americans are living longer than ever, with those reaching 65 years old expected to live well beyond 85. For less-wealthy Americans, that’s around 20 years that their retirement savings must last. For the more affluent, retirement may come well before 65, meaning more years must be safely covered.

How much can you expect to drawdown for a healthy retirement? The average retiree spends around $4,300 annually out of pocket for healthcare, not including long-term care. Taking a 30-year retirement as an example, that’s $129,000 one can reasonably expect to be drawn down to cover medical expenses.

A sizeable sum, and one which may soar when long-term care is considered. The Association for Long-Term Care Planning states that 70 percent of those 65 and over will require some form of long-term care. Nursing care in a private room, for example, can cost over $100,000 a year.

Living longer and living well aren’t always the same thing. Drawing down to enjoy the freedom of retirement must always combine with a strategic eye on likely having a longer lifespan.

Drawdowns and tax efficiency

Tax-efficient strategies rely on positioning investments and savings into accounts which will allow for the most tax-friendly drawdowns in the future.

For example, funds in a 401K are income-tax-free until they’re drawn upon later. Many wealthy individuals find themselves in a lower tax bracket upon retirement, so waiting until then to begin drawing down makes the most tax sense. However, do remember that 401Ks are subject to Required Minimum Distributions (RMDs) that make drawdowns mandatory after age 70 and a half.

Roth IRAs are another strong option since this is post-tax money which can grow tax-free and is also not taxed upon withdrawal. Roth’s have added advantages since they’re not subject to RMDs (until after the death of the owner) and can be inherited. Thus, an efficient approach to drawdowns with a mind on taxes might look as follows:

A basic drawdown strategy and other financial options

Decumulation should begin on assets that are already tax-affected, then move onto those that are tax-deferred, like 401Ks. This allows tax-free wealth to grow untouched, effectively replacing money in one area as it’s being spent in another and slowing the decumulation process. Eventually, the tax-deferred money can be drawn from last—when it has multiplied as much as possible.

Don’t forget about Social Security to avoid drawing down your assets. It’s a common misconception that the wealthy don’t use it, but it can be wise to take social security sooner rather than later since it provides another income stream to draw on.

A Qualified Lifetime Annuity Contract (QLAC) may be another option of interest. These are purchased through funds from a qualified plan, allowing for a guaranteed income and delaying RMDs until a maximum of age 85. The 2019 IRS limit on how much wealth can be transferred to a QLAC is $130,000.

Maximizing retirement drawdowns by optimizing current expenses

How much is drawn down for personal pursuits or new professional endeavors will differ between individuals. It becomes a relatively simple process to calculate “wants” drawdowns in retirement after necessary expenses like taxes and healthcare are considered.

Our plans and hobbies now are a good indicator of where we’ll be and what we’ll enjoy doing in the future. A prudent question is: are your lifestyle expenses optimized today? A good look at how you spend currently will reveal if you can achieve these things more cost-effectively.

Creating a budget for how you live now nurtures frugality and spotlights expenses which are either excessive or likely to be recurring. Once these are noted, a “future budget” can begin to take shape and allow for a more informed “wants” drawdown projection in retirement.

Draw on the experience of the Lindberg & Ripple team

Every good wealth strategy hinges on respecting the unique needs of the individual and the uncertainties of the future. We’ve built our services on that kind of market expertise and long-term insight, so don’t hesitate to contact us. Our team provides impartial advice on drawing down and other strategies to help you craft the retirement you imagine.

Lindberg & Ripple offers customized wealth management, investment, and insurance solutions to wealthy families and successful businesses. We help our clients craft a comprehensive wealth planning model to achieve their financial goals with minimum fuss and maximum savings. To learn more, connect with us.

This information is obtained from sources that are believed to be reliable but we make no guarantees as to its accuracy. This material is for educational purposes only. Educational material should not be construed as legal or tax advice and is not intended to replace the advice of a qualified attorney, tax advisor and plan provider. By accessing any links above, you will be connected to third party web sites. Please note that Lindberg & Ripple are not responsible for the information, content or product(s) found on third party web sites. Investments in securities involve risks, including the possible loss of principal. When redeemed, shares may be worth more or less than their original value. Diversification does not ensure a profit or protect against loss in a declining market. Securities and Investment Advisory Services Offered Through M Holdings Securities, Inc. A Registered Broker/Dealer and Investment Adviser, Member FINRA/SIPC. Lindberg & Ripple is independently owned and operated. # 2915277.1

The Benefits of Portfolio Diversification

Increased chance of returns and reduced risk are just two reasons for a varied portfolio

How much is too much? It’s a good question when looking at the best ways to make diverse investments work. Of course, investors stocking up on “too much” of one lucrative option could be in for serious losses if that asset class hits a rough patch. But diversification without accepting its potential downside can also detrimental. Reaping the benefits of a balanced portfolio requires investors to understand both their own nature and that of the market.

Diversification educates investors about risk

The amount of tolerable risk in a portfolio is ultimately down to the individual. One investor’s limit will be too low for another. The degree of diversification a person is open to helps them better assess how much they’re willing to lose in a downturn.

Broad diversification sidesteps the risks of having only a handful of investment types, but it also adds more potential risk for every new addition and the risk of losing out on better returns for currently well-performing holdings. The investor with 30 options needn’t be overly concerned about one having a rough patch but must accept a wider (if shallower) pool of risk.

It’s a widely held belief that the best portfolios bring investors as close to their long-term financial goals as possible while respecting individual risk tolerance. This is the core of Markowitz’s Modern Portfolio Theory—a Nobel Prize-winning work.

Diversification does allow for both aggressive and conservative investment

Certain investments may become more (or less) attractive as investors learn more about diversification. Fixed annuities and certain stock indices are generally seen as more conservative portfolio choices, while options like certain real estate vehicles or venture capital are considered aggressive due to higher associated risk.

Diversification gives investors an opportunity to weigh the pros and cons of conservative versus aggressive options. Those inclined toward lower-risk investments may find themselves open to stepping out of comfort zones, provided their portfolio is diverse enough to absorb any potential loss from riskier additions.

The more aggressive investor benefits in the same way by being better able to continue making riskier decisions, provided they have some of the more traditionally secure portfolio options in place to buffer negative outcomes.

Diversifying preserves as well as produces capital

A broader portfolio is often an especially sound idea for investors approaching, or enjoying, retirement. It helps them to better preserve their capital and provides a level of security that can’t be guaranteed when pursuing higher rates of returns.

Highly diversified portfolios are rarely stratospheric in terms of performance. Rather, their overall performance is an amalgamation of many markets and vehicles, leading them to rarely over or underperform. This can be a great virtue, depending on your inclination. While diversified returns may not often make the headlines, a diverse portfolio can provide a level of consistency that is more than reward enough for many investors.

Diversifying across unrelated classes can significantly increase investment safety

Combining unrelated asset classes is another cornerstone of Modern Portfolio Theory and can be of great benefit. Asset classes that are separate and distinct from one another are collectively immune to the individual dangers of each option. In some cases, non-correlated choices may even eliminate unsystematic risk altogether.

This, of course, does not remove systematic risk, which is inherent in any asset class. However, a non- correlated portfolio can provide a valuable overall balance to investor returns. Investors seeking to take this route must diligently research investments to determine to what degree their individual choices may share potential highs and lows.

Correlation is not always immediately evident. It may take some digging to discover how the fortunes of one asset class may affect another, making working with experienced wealth advisors a smart option.

More options mean greater market immunity and personal freedom

Long-term investment is like captaining a ship to its destination. Sometimes, course corrections will be necessary and so will proceeding, retreating, or holding your ground. Diversity allows for better rebalancing of portfolios and adjustment of investment goals to compensate for market shifts and goal reorientation.

Risk tolerance will not only vary from person to person but can also vary over time within individuals. Markets are forever in flux and the personal goals of investors can be equally organic. What was too much risk yesterday may be quite acceptable tomorrow, and vice versa. Keeping a diverse portfolio allows for flexibility in adjusting targets.

It must also be clearly understood that despite its benefits, diversification is of course no guarantee of a positive return. Indeed, no mix of asset classes or investment model can provide that assurance for any investor. In theory and historical practice, however, diversifying a portfolio sets it in the best possible position to accrue more stable and consistent returns over the long-term.

Lindberg & Ripple offer diverse opinions for your individual goals

Exploring the potential for returns and security through diversification is necessary for investors and best done alongside a seasoned investment advisor. The Lindberg & Ripple team brings its own rich diversity and insight to wealth planning, blending our individual specializations into a coordinated approach to help our clients achieve their goals.

Lindberg & Ripple offer customized wealth management, investment and insurance solutions to wealthy families and successful businesses. We help our clients craft a comprehensive wealth planning model to achieve their financial goals with minimum fuss and maximum savings. To learn more connect with us at our Connecticut or Florida offices or complete our contact form.

This information is obtained from sources that are believed to be reliable but we make no guarantees as to its accuracy. This material is for educational purposes only. Educational material should not be construed as legal or tax advice and is not intended to replace the advice of a qualified attorney, tax advisor and plan provider. By accessing any links above, you will be connected to third party web sites. Please note that Lindberg & Ripple are not responsible for the information, content or product(s) found on third party web sites. Investments in securities involve risks, including the possible loss of principal. When redeemed, shares may be worth more or less than their original value. Diversification does not ensure a profit or protect against loss in a declining market. Securities and Investment Advisory Services Offered Through M Holdings Securities, Inc. A Registered Broker/Dealer and Investment Adviser, Member FINRA/SIPC. Lindberg & Ripple is independently owned and operated. # 2915306.1
free-equity-trades

Are Free Equity Trades the Bargain They Seem to Be?

Several online brokers have announced zero-cost trading. What customers aren’t being told is the brokers are now cashing in on offering very low percentages on uninvested cash.

There are a few golden rules in investment, with “If something looks too good to be true, it probably is” being one of them. The recent decisions by many of the biggest e-brokers to do away with commissions on online stock trades appears to be granting a longtime wish of every investor. This “free lunch” phenomenon has customers assuming they’re getting a golden deal from their brokers.

What people are losing sight of is that every business (especially brokers) is in the game to make money. And the maxim that if something’s free, you’re the product is proving true for investors.

Sweep accounts are a caveat to free equity trading

Brokerage sweep accounts are effectively rest stops for the interest and dividends accrued from an individual or a business’s holdings before they’re directed elsewhere. Rather than money simply sitting there, brokers give investors the option to sweep those funds into one or more secondary locations with the aim of generating further interest.

Most but not all sweeps are FDIC insured which offers some degree of protection for investors—but where their wealth is swept isn’t always in their best interests—in fact, it tends to be very low interest.

Many of these brokers are sweeping resting client cash not into positions which could pay respectable interest or dividends, but rather into their own bank. Meanwhile, their customers only receive interest rates that could range from between about 0.10 and 0.60 percent on the money.

Investors are catching on to things

These low interest rate accounts are all too common, but they are drawing some blowback. A class-action lawsuit has been brought against Merrill Edge alleging deceptive practices and breach of Securities and Exchange Commission standards that led to investors seeing returns as low as 0.05 percent. The lead plaintiff claims that her funds being moved into a sweep account without proper notification and authorization cost her over $20,000.

Merrill Edge has also been accused of deliberately making the small print difficult for investors to have a hope of understanding it, much less granting permission for transfers to a sweep account. And upon closer inspection, it becomes clear that many organizations can offer incentives like zero-cost trading because they’re doing very well off of their customers’ money in other ways

This is arguably an affront to fiduciary duty, and the kind of conduct that underscores the benefit of having a customer-centric investment advisor on your side.

Pay now or pay later

The lure of zero-cost—and even very low-cost—trading loses its luster considering these facts. If your broker is offering either of these options, we strongly advise scrutinizing their terms of agreement to discover exactly what their default sweep option is.

It’s true that while this calls into question some broker practices, these losses are also due to a certain mindset among many investors. Sweep accounts tend to be viewed as something other than a potential investment when they can, if responsibly managed, become another wealth-generating asset. Brokers can rake in the money when investors aren’t paying attention or are undervaluing the potential of sweeps.

This is why these businesses publish their practices for all to see, though the terms are buried in a sea of information. If you find your broker’s fine print a headache, you’re not alone.

The Lindberg & Ripple team specialize in clarifying investment options for our clients so they can make future financial decisions with complete understanding. Our advice is always in your best interests. Reach us at the link below for an informed discussion on wealth management.

Lindberg & Ripple offer customized wealth management, investment and insurance solutions to wealthy families and successful businesses. We help our clients craft a comprehensive wealth planning model to achieve their financial goals with minimum fuss and maximum savings. To learn more, connect with us.

The information is obtained from sources that are believed to be reliable, but we make no guarantees as to its accuracy. This material is for educational purposes only. Educational material should not be construed as legal or tax advice and is not intended to replace the advice of a qualified attorney, tax advisor and plan provider. Investments in securities involve risks, including the possible loss of principal. When redeemed, shares may be worth more or less than their original value. Securities and Investment Advisory Services Offered Through M Holdings Securities, Inc. A Registered Broker/Dealer and Investment Adviser, Member FINRA/SIPC. Lindberg & Ripple is independently owned and operated. # 2836151.1

Learn Tax and Other Advantages of Charitable Giving

For many wealthy individuals, giving to charity is gift enough in itself. They may not be aware that their goodwill can also contribute toward retirement

Direct giving or donations through IRAs, charitable trusts, or other models can be an excellent way to enjoy tax deductions and the contentment of helping others through a qualifying organization of your choice. Here are a few methods of doing it:

A direct charitable gift is the simplest mechanism

Donors can choose to directly give money or property to organizations, and certain gifts to qualified organizations are of course deductible from the donor’s taxes. The IRS regards gifts to the following organizations as eligible for a tax deduction:

  • “A state or United States possession (or political subdivision thereof), or the United States or the District of Columbia, if made exclusively for public purposes;”
  • “A community chest, corporation, trust, fund, or foundation, organized or created in the United States or its possessions, or under the laws of the United States, any state, the District of Columbia or any possession of the United States, and organized and operated exclusively for charitable, religious, educational, scientific, or literary purposes, or for the prevention of cruelty to children or animals;”
  • “A church, synagogue, or other religious organization;”
  • “A war veterans’ organization or its post, auxiliary, trust, or foundation organized in the United States or its possessions;”
  • “A nonprofit volunteer fire company;”
  • “A civil defense organization created under federal, state, or local law (this includes unreimbursed expenses of civil defense volunteers that are directly connected with and solely attributable to their volunteer services);”
  • “A domestic fraternal society, operating under the lodge system, but only if the contribution is to be used exclusively for charitable purposes;”
  • “A nonprofit cemetery company if the funds are irrevocably dedicated to the perpetual care of the cemetery as a whole and not a particular lot or mausoleum crypt.”

If deductions are itemized, an individual taxpayer “may deduct up to 50 percent of [their] adjusted gross income, but 20 percent and 30 percent limitations apply in some cases. Tax Exempt Organization Search uses deductibility status codes to identify these limitations.”

IRAs and charitable giving

The required minimum distributions (RMD) from an IRA plan must by law be taken out when reaching age 70.5 or upon retirement. Failure to do so could mean paying a 50 percent excise tax. Tax can be doubly avoided by not only taking the RMD but by donating it to charity. This way, no taxes will be owed on the RMD, leading to more savings.

Alternatively, the charity itself may be named the beneficiary of the IRA. This will allow them to receive the gift tax-free while also qualifying the donor for charitable deduction.

Beyond direct charitable gifts and IRAs, however, there are several more-complex strategies for tax advantaged charitable giving:

Charitable remainder annuity trusts (CRATs)

Establishing a CRAT sees a donor select their charity/charities of choice to be the ultimate beneficiary of the trust. The donor then places assets into that trust which are irrevocable. This “locked in” approach may deter some, but it also means that no taxes will be owed on any gains. The amount of income received from a CRAT is fixed and guaranteed regardless of market performance

During the donor’s lifetime, the CRAT pays a fixed sum annually to a beneficiary other than the charity. This may be the donor themselves or another designated party/parties. The annuity is a percentage of the overall value of the CRAT—no less than 5 percent and no more than 50 percent of the trust’s initial fair net market value.

The timespan is flexible. CRATs may last until death or for a set number of years. Donors choosing the latter only have one option under IRS rules: it must be 20 years. If the former is chosen, when the donor or their designated beneficiary/beneficiaries pass away, any funds remaining in the CRAT go to the charity. The sum remaining in the trust at time of charitable transfer must be no less than 10 percent of the initial amount.

The CRAT itself is tax-exempt, but the annuity paid likely won’t be. The exact tax outcome here varies. Charitable contributions make donors eligible for an income tax charitable deduction which can mean tens of thousands of dollars toward retirement planning. A trust can also minimize or even reduce estate tax while the transfer of appreciated assets typically won’t incur any immediate capital gains tax.

Charitable remainder unitrusts (CRUTs)

A CRUT operates in a very similar manner to a CRAT, with the exception that the annuity is more fluid. It still cannot be less than 5 percent or more than 50 percent but this time, the annuity is calculated every year based on the current fair market value of the assets, requiring the trustee to annually determine what the payout will be based on this.

Charitable lead trusts (CLTs) and Charitable Lead Annuity Trusts (CLATs)

CLTs are something of a reversal of the CRAT/CRUT model. Charities receive income throughout the CLT’s existence while the non-charitable beneficiaries receive what’s left over when the trust term ends. CLATs pay a fixed amount to charity but are created for the ultimate benefit of the non-charitable beneficiary, who receives the remainder of the trust at term’s end as well as any asset appreciation over time.

Donor-Advised Funds (DAFs)

DAFs offer several tax benefits while benefitting charities. Tax deductions are immediate when contributing to a DAF. They’re not subject to estate tax, there’s no capital gains tax on gifts of appreciated assets, and any investments will appreciate tax-free. Income tax deductions can be significant—up to 60 percent of adjusted gross income for a cash donation and up to 30 percent for real estate or appreciated assets such as securities which have been held for more than a year.

DAFs are offered by third-parties and are closely regulated by the IRS to avoid any abuse. Legitimate organizations will professionally manage a donor’s charitable assets at a cost far below that charged by some private foundations, creating another opportunity to save. Additionally, the name of these funds comes from the donor being able to advise the charity on how best to use their donation.

These are only a selection of ways that charitable giving can save on taxes and contribute to retirement planning. For more information on planning your financial future, get in touch with us at the details below.

Lindberg & Ripple offer customized wealth management, investment and insurance solutions to wealthy families and successful businesses. We help our clients craft a comprehensive wealth planning model to achieve their financial goals with minimum fuss and maximum savings. To learn more connect with us at our Connecticut or Florida offices or complete our contact form.

This information is obtained from sources that are believed to be reliable but we make no guarantees as to its accuracy. This material is for educational purposes only. Educational material should not be construed as legal or tax advice and is not intended to replace the advice of a qualified attorney, tax advisor and plan provider. By accessing any links above, you will be connected to third party web sites. Please note that Lindberg & Ripple are not responsible for the information, content or product(s) found on third party web sites. Investments in securities involve risks, including the possible loss of principal. When redeemed, shares may be worth more or less than their original value. Diversification does not ensure a profit or protect against loss in a declining market. Securities and Investment Advisory Services Offered Through M Holdings Securities, Inc. A Registered Broker/Dealer and Investment Adviser, Member FINRA/SIPC. Lindberg & Ripple is independently owned and operated. #2804791.1

The Double-Edged Sword of Portfolio Concentration

Along with the potential for high return comes high risk

Diversification is a generally accepted principle of sound investing—a portfolio spread out over a variety of market segments and asset classes allows for more predictable returns and less risk. Concentration, on the other hand, takes a decidedly different approach.

It suggests that focusing your portfolio in a handful of industries that historically outperform the market as a whole will maximize returns and allow you to reach your financial goals more quickly. It is sometimes also more manageable than the wider array of components that typically make up a more diversified portfolio (though vehicles like index funds enable much easier diversification and investing).

But it can also pose significant risk. If your portfolio relies heavily on one particular kind of investment and it suddenly goes south, your losses will be far greater than if you had diversified across a wider array of options.

How and why concentration takes center stage

There are several potential reasons why you may have a concentrated portfolio:

  • It’s an intentional investment strategy. You’re confident that you can ride the wave of concentration all the way to its crest and come safely out the other side.
  • Your assets have performed well. Perhaps one type of investment has been on a tear in a bull market, therefore tilting the value of your portfolio in its direction.
  • Your investments are illiquid. Some types of investment vehicles, such as non-traded Real Estate Investment Trusts (REITS), are tough to sell quickly during a downturn. Likewise, other investments, like annuities—will invoke a surrender charge if you try to sell them too early.
  • You own a lot of company stock. It can be tempting to pour a retirement nest egg into an employer’s stock.
  • Your assets are correlated. You may have too many investments in the tech sector, or too many bonds in a particular geographic area.

Given all this, you might think it would be an easy decision to sell a concentrated position, but one factor often stands in the way—taxes. As your investments have grown in value, so too has the tax burden on them. The rate at which this happens depends on how much the value has grown, where you live, what you earn annually, and how long you’ve had the investments. Some will owe nothing in taxes, some as much as 30 percent.

What you can do about it

If you find yourself in this position, no need to push the panic button. There are a number of ways to remedy the situation and keep your portfolio on an even keel in the future.

  • Diversify your portfolio across asset class (stocks, bonds, real estate), your stocks across industries (a healthy balance of retail, biotech, electronics, etc.), and your bonds across type (Treasury, corporate, and municipal). Exchange-traded funds (ETFs), mutual funds, and life-cycle funds can be useful tools to this end. Other strategies can include completion funds, equity collars, exchange fund pooling, and variable prepaid forward contracts.
  • Adjust periodically. Be sure to check in with your fund manager (or yourself, if you manage on your own) regularly to go over your investments and make sure you’re still on track to meet your goals. Your employer may also have resources to help rebalance.
  • Do your homework. Every ETF and mutual fund has a prospectus, which can very quickly show where overlap may occur. Some funds are very finely targeted, and others may hold positions in similar companies.
  • Learn about liquidity. As mentioned above, some types of investments may be more difficult to sell than others on short notice. Be sure to check the offering documents and, when in doubt, consult a financial advisor.

We can help

Concentration risk can be tricky to spot—particularly if your portfolio has a complex array of investments—and having a trusted group of professionals in your corner can provide valuable peace of mind.

Lindberg & Ripple is an independent insurance advisory and investment firm that provides experienced investment consulting, sophisticated wealth management, and innovative insurance solutions for successful families and executives. We’d love to help your family or business achieve their financial objectives, and minimize expense, taxes, and general unease. Contact us today for a free consultation.

The information is obtained from sources that are believed to be reliable but we make no guarantees as to its accuracy. This material is for educational purposes only. Educational material should not be construed as legal or tax advice and is not intended to replace the advice of a qualified attorney, tax advisor and plan provider. By accessing any links above, you will be connected to third party web sites. Please note that Lindberg & Ripple are not responsible for the information, content or product(s) found on third party web sites. Investments in securities involve risks, including the possible loss of principal. When redeemed, shares may be worth more or less than their original value. Diversification does not ensure a profit or protect against loss in a declining market. Securities and Investment Advisory Services Offered Through M Holdings Securities, Inc. A Registered Broker/Dealer and Investment Adviser, Member FINRA/SIPC. Lindberg & Ripple is independently owned and operated. #2804812.1