Over the past few weeks, the media has attributed November’s financial markets volatility to an “overvalued stock market”. In other words, the current price of company stocks exceeds their intrinsic value when measured using metrics such as Price-to-Earnings ratio and investor sentiment. Layered on top of this discussion is the forewarning of an “AI bubble” given that so much of the market cap-weighted S&P 500 is concentrated in seven companies.

It was late into the evening on December 31, 2019. Fireworks lit up the sky in Honolulu as revelers partied into the new year. I had celebrated with my family earlier in the evening, but now I sat in my apartment with an Excel spreadsheet open on my laptop. I know it sounds very nerdy. But this was something important.

Roth IRAs can be a tax-efficient way to save for retirement, but they also come with one major drawback for many high-income earners: the ability to contribute to a Roth IRA is phased out once you exceed a certain level of income.

Much of the work we do as financial advisors deals with numbers, charts, and projections about the future. Diving into data is necessary to help our clients make good financial decisions. In my view, however, the numbers are secondary to our greater purpose as advisors, which is to understand our client’s wishes and instill in them confidence that our recommendations and guidance will get them where they want to go.

After a lifetime of working, a person approaching retirement will start feeling anxious about the next phase of their life. This is natural – retirement can bring big changes in lifestyle, financial circumstances, and perspective. As financial planners, we often hear from people less than one year from retirement. Their questions vary in topic, but the root of their concern is “getting it right” in retirement.

As the end of the year approaches, your tax situation becomes clearer. Most people are quick to remember that IRA distributions you’ve taken this year and any work earnings are taxable as ordinary income. What’s often missed is the impact of capital gains and losses on your tax bill, which can result in much higher taxes due or missed opportunities to save.