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How to Combine an HSA with Other Retirement Accounts

A Health Savings Account (HSA) can be a valuable tool for managing healthcare costs and boosting retirement savings. It offers tax advantages that can complement other retirement accounts, like an IRA or a 401(k). Combining an HSA with these accounts can help you maximize your savings potential and reduce your overall tax burden. Here’s how to make the most of your HSA while planning for retirement.

What Is an HSA?

An HSA is a savings account for people with high-deductible health plans (HDHPs). Contributions to an HSA are tax-deductible, reducing your annual taxable income. Funds in the HSA can be used tax-free for qualified medical expenses, and unlike some other healthcare accounts, the money rolls over year after year.

HSAs also offer flexibility. You own the account, so the funds remain yours if you change jobs or retire. There’s no requirement to spend the money within a specific time frame. After you turn 65, you can withdraw money that can be used for non-medical expenses without facing a penalty.  (Those withdrawals will be taxed like ordinary income.)

How Does an HSA Work with Retirement Planning?

An HSA can be used alongside other retirement accounts, such as an IRA or a 401(k), to maximize savings. Here are a few strategies for combining them effectively.

Rolling Over IRA Funds into an HSA

The IRS authorizes you to do a one-time rollover from your IRA into your HSA. This increases your HSA’s balance without requiring additional out-of-pocket contributions. This is what is commonly referred to as a qualified HSA funding distribution. It’s important to note that the amount you roll over counts toward your HSA contribution limit for the year. In 2024, that limit is $4,150 for individuals and $8,300 for families.

To avoid penalties, you must stay enrolled in a high-deductible health plan (HDHP) for 12 months after making the rollover. If you lose eligibility before the 12-month period ends, you must pay income tax on the amount transferred, plus a 10% penalty. This process can be an excellent way to transfer funds from an IRA, especially if you anticipate high medical expenses in retirement and want to take advantage of tax-free withdrawals for qualified healthcare costs.

Maximizing Tax Benefits

An HSA is rare because it offers tax-free contributions, tax-free growth, and tax-free withdrawals for medical expenses. These benefits make it an effective complement to traditional retirement accounts like IRAs or 401(k)s, which are typically taxed when withdrawals are made. Contributing to an HSA and an IRA or 401(k) can lower your taxable income in the short term and save for healthcare and general retirement needs.

For example, if you have a 401(k) or IRA, the funds you withdraw in retirement are subject to taxes. However, withdrawals from your HSA for qualified medical expenses remain tax-free, even in retirement. This means you can cover healthcare costs without reducing your taxable retirement income.

Rolling Over 401(k) Funds

While you cannot directly roll over a 401(k) into an HSA, there is a workaround. You can roll over your 401(k) into a traditional IRA and then make the one-time IRA-to-HSA transfer. This can help you shift funds from a taxable account into a tax-advantaged HSA for future healthcare needs. (This will still count toward your annual HSA contribution limit.)

People may do this when they get closer to retirement and want to ensure they have enough saved for healthcare expenses, which can be a significant cost during retirement. Moving funds from a 401(k) or IRA into an HSA allows you to take advantage of the tax benefits that HSAs offer.

Other Important Considerations

Consider contribution limits and IRS rules when combining HSAs with other retirement accounts. For example, any IRA-to-HSA rollover counts toward your HSA contribution limit for that year, so it’s important to plan accordingly. You must also maintain eligibility for the HSA by staying enrolled in an HDHP for at least 12 months after the rollover to avoid penalties.

While HSAs offer many tax advantages, balancing your contributions between an HSA and other retirement accounts like an IRA or 401(k) is important. HSAs are best used for future healthcare costs, whereas IRAs and 401(k)s are more flexible for general retirement expenses. Having a mix of accounts can help you optimize your savings for healthcare and living expenses in retirement.

Let’s Build Your Wealth Together 

You can create a more comprehensive retirement strategy by combining an HSA with other retirement accounts. To explore the best options for your situation, schedule a consultation with Worth Advisors today.

Disclaimer: Always consult a financial, tax, or legal professional familiar with your unique circumstances before making any financial decisions. This material is intended for educational purposes only. Nothing in this material constitutes a solicitation to sell or purchase any securities. Any rates of return are historical or hypothetical in nature and are not a guarantee of future returns, which may be lower or higher. Investments involve risk. Investment values will fluctuate with market conditions and security positions, which, when sold, may be worth less or more than their original cost.

How To Travel For Free

If you have ever read our blog or interacted with us, you will have heard us warn you against making short-term financial decisions. Think about when you or someone else has had a bad day and opted to buy something. It may not have been as extravagant as a car or luxury watch, but it’s priced low enough to make you think you can get away with it. You know it’s more than you can afford, but you talk yourself into it. 

This same line of thought often applies to traveling. The upside of this post is that we’re not telling you not to travel or to give yourself a break, but we will explain how you can take advantage of specific benefits, travel for free, and not overextend yourself. 

Here’s the Logic Behind Traveling for Free

Some people only use their debit card rather than a credit card because it ensures they only spend what they have in the bank. This is a disciplined approach, but there are other ways to apply it. When your favorite store determines a price for the product, they usually include the credit card’s surcharge fee. The amount you pay incorporates this fee regardless of whether you pay cash, debit, or credit card. Why not get something back for this added charge?

Before we tell you to use a credit card, it is paramount that you understand that you can only spend what you have in the bank. You must apply the same rigid discipline as you would if using cash. Otherwise, this tip will not work. Use your credit card and pay it off in full each month. Doing this allows you to take advantage of the credit card’s reward system without being negatively impacted. You can use several different cards that will enable you to travel based on the rewards they offer. Before providing examples, we must insert that we are not advocating for these cards. We are simply showing some of the possibilities. You should research other cards before committing to any of them. 

Chase Sapphire Preferred® Card

  • Who It’s For: People who want to travel can also benefit from a flexible reward system.
  • What You’ll Get: 5x points on any travel you book with Chase Travel. 2x points on other travel purchases.
  • Added Benefits: Points are worth 25% more when redeemed through Chase Travel. Plus, an annual anniversary bonus of 10% on total purchases.
  • Is There an Annual Fee? Yes, and it’s $95.
  • Basic Overview: This card is for people who want to use it for traveling and dining. It has a modest fee compared to other credit cards. 

Capital One Venture X Rewards Credit Card

  • Who It’s For: Travelers who want a simple card but can take advantage of premium benefits.
  • What You’ll Get: 2x miles on all purchases.
  • Added Benefits: $300 annual travel credit through Capital One Travel and unlimited access to Priority Pass lounges and Capital One lounges. You’ll receive a 75,000 miles sign-up bonus if you spend $4,000 in the first three months.
  • Is There an Annual Fee? Yes, and it’s $395.
  • Basic Overview: This card is for people who fly regularly. It has straightforward rewards and premium perks like lounge access. 

Remember, credit cards are not a free pass, and using them requires planning. You can use these cards to your advantage with careful planning and budgeting. You only pay the interest (which is enormous) if you don’t pay off the card each month. Plan, be disciplined, and use the rewards to see and do what you want to. If you need tailored financial advice, contact our office and schedule a meeting with us. We’re here to serve and help you. 

Disclaimer: Always consult a financial, tax, or legal professional familiar with your unique circumstances before making any financial decisions. This material is intended for educational purposes only. Nothing in this material constitutes a solicitation to sell or purchase any securities. Any rates of return are historical or hypothetical in nature and are not a guarantee of future returns, which may be lower or higher. Investments involve risk. Investment values will fluctuate with market conditions and security positions, which, when sold, may be worth less or more than their original cost.

Planning for Healthcare Costs in Retirement

For most Americans, healthcare will be one of the most significant expenses in retirement, following housing and transportation. Unlike previous generations, you won’t have retiree health benefits from employers or unions. Healthcare costs will be a significant part of your retirement budget. With people living longer and health care costs rising faster than general inflation, preparing for these expenses is crucial. As you near retirement, being aware of your healthcare needs and potential expenses can assist you in managing your budget more efficiently.

How Medicare Factors Into Your Plan 

One of the main steps in planning for healthcare costs in retirement is understanding what Medicare covers. Many people assume Medicare will cover all your healthcare costs in retirement, but it doesn’t. Medicare Part A covers hospital costs, but you must pay a deductible. Medicare Part B covers medical expenses and requires an annual premium. Parts A and B do not cover everything, so you may also need Part D for prescription drugs and a Medigap policy to cover additional costs.

Medicare Advantage plans are another option. These plans provide services covered under Parts A and B, often including Part D coverage. It is essential to compare different Medicare plans and consider what best fits your needs. Remember, you can switch Medicare plans as you age and your situation changes. While Medicare helps, it still covers about one-third of healthcare costs. This is why planning and considering all available options, including supplemental insurance policies and private health insurance plans, is essential. Additionally, understanding the enrollment periods for Medicare can prevent late penalties and ensure continuous coverage.

How Much Money Do I Need?

Saving for health care costs is another crucial part of planning. Fidelity’s Retiree Health Care Cost Estimate suggests that an individual turning 65 in 2023 might require around $157,500 in savings to cover health care costs during retirement. An average retired couple may need roughly $315,000. This amount can vary depending on health, location, and life expectancy.

If you are still employed, consider using a Health Savings Account (HSA) if available through your employer. An HSA lets you save money before taxes, and these funds can grow and be taken out tax-free for eligible medical expenses. A healthy 65-year-old couple retiring in 2023 may need to allocate nearly 70% of their Social Security benefits to cover medical expenses during their retirement. One-third of early retirees claim Social Security at age 62 to help pay for health care expenses until they are eligible for Medicare. Planning for unexpected medical expenses, such as long-term care or major surgeries, is also vital.

If you delay retirement and can manage health care costs until age 65, you may choose to wait to start Social Security benefits. Delaying Social Security benefits can increase the amount you receive each month, especially if you can wait until age 70. This strategy can provide a more substantial income stream in your later years. Being proactive and starting early will give you the best chance to meet these costs without compromising your lifestyle. Consistently evaluating and updating your financial plan can help you maintain progress toward your healthcare savings objectives.

Plan Alongside Worth Advisors 

Planning for health care costs in retirement ensures you have enough money to cover expenses as you age. Schedule a consultation with Worth Advisors, LLC, to secure your financial future in retirement. We’ll tailor our plans to your unique needs. Don’t wait until it’s too late; start planning for your healthcare costs today. Ensuring your financial security in retirement begins with a solid plan.

Disclaimer: Always consult a financial, tax, or legal professional familiar with your unique circumstances before making any financial decisions. This material is intended for educational purposes only. Nothing in this material constitutes a solicitation to sell or purchase any securities. Any rates of return are historical or hypothetical in nature and are not a guarantee of future returns, which may be lower or higher. Investments involve risk. Investment values will fluctuate with market conditions and security positions, which, when sold, may be worth less or more than their original cost.

Adjusting Your Financial Plan In Times Of Market Volatility

Fluctuations in the market, commonly called corrections, significantly impact investment decisions. Adopting a strategic approach enables you to realign their financial plans effectively during these times. Embracing market variability requires resilience and finding avenues for seizing emerging opportunities with astute strategies. Understanding the impact of these fluctuations on your investment choices and recognizing the role emotions play in financial decision-making is critical in navigating through these times.

Diversification & Long-Term Protection 

Expanding your investment portfolio is at the core of surviving marketing volatility. This strategic diversification encompasses allocating assets across various categories, including equities, bonds, and real estate. The underlying principle is risk mitigation. It is achieved by offsetting one asset class’s potential losses with stable or positive returns in another. For instance, a downturn in equities might be counterbalanced by the relative stability or gains in the bond market, thus moderating the impact on the portfolio as a whole. The essence of diversification lies in its capacity to protect against sudden financial downturns, ensuring a more consistent revenue stream. 

This tactic aligns with the understanding that not all investment types react similarly to market changes, offering a buffer during downturns. By spreading investments across various sectors and asset classes, you’re less exposed to a single economic event’s fallout. The practice of dollar-cost averaging plays into this strategy well. Looking into stable sectors that show resilience during downturns, like healthcare or utilities, can further solidify your portfolio against market volatility. Lastly, considering alternative investments outside the traditional stock and bond markets can provide additional security and potential growth layers.

Shift to a Long-Term Perspective

Equally paramount is adopting a long-term perspective. Short-term market movements are inherently erratic; however, a historical overview reveals an overarching growth trend over extended periods. Anchoring your financial objectives firmly and avoiding precipitating decisions swayed by fleeting market sentiments is crucial. In other words, don’t be tempted by shiny objects. You and your advisor will continuously evaluate and adjust your portfolio. Financial advisors are instrumental during such times, offering clarity and stability. 

They are a steady hand, guiding through market volatility and reminding investors of the importance of sticking to their financial roadmaps. These professionals encourage focusing on the bigger picture, beyond the immediate downturn, to help their clients realize their long-term financial goals. They also emphasize the value of patience and consistency in investment practices, which are key to overcoming the temptations of reactive trading. Advisors will always consider risk tolerance and life goals before making assessments and adjustments. This proactive stance enables capitalizing on market upswings and mitigating losses during downturns, effectively navigating through the cycles of market volatility.

Shape Your Financial Future 

Market fluctuations underscore the value of a robust financial plan that can adapt to shifting dynamics. Financial advisors deliver tailored advice that resonates with your unique financial circumstances and objectives, instilling confidence amidst market volatility. Contact us to set up a consultation. 

Disclaimer: Always consult a financial, tax, or legal professional familiar with your unique circumstances before making any financial decisions. This material is intended for educational purposes only. Nothing in this material constitutes a solicitation for the sale or purchase of any securities. Any rates of return are historical or hypothetical in nature and are not a guarantee of future returns, which may be lower or higher. Investments involve risk. Investment values will fluctuate with market conditions, and security positions, which, when sold, may be worth less or more than their original cost.

The Essential Guide to Tax Planning for C-Suite Executives

Tax planning is an indispensable element for C-suite executives who play pivotal roles in steering the directions of their respective companies. Leadership, strategy formulation, and team management demands often relegate tax planning to the background. However, efficient tax planning is crucial, as it helps minimize tax liability and optimize wealth. 

Understanding tax brackets is vital for C-suite executives. They impact wealth accumulation and preservation strategies. Efficiently utilizing tax deductions and credits becomes a significant factor in reducing taxable income and maximizing savings.

Moreover, giving due consideration to tax-advantaged retirement accounts not only assists in safeguarding one’s financial future but offers current tax relief. Capital gains tax planning, too, plays a crucial role, allowing executives to manage investment sales in a manner that can mitigate tax liabilities. Lastly, engaging with financial advisors is pivotal, ensuring executives navigate the intricate landscape of taxation with informed, strategic decisions that uphold and enhance their financial standing.

Taxes Are a Liability 

Leadership figures in the C-suite must thoroughly understand their respective tax brackets. This plays a pivotal role in making financially savvy decisions. Being in a higher tax bracket correlates with a more significant tax burden. Possessing in-depth insights into these brackets facilitates strategic choices, such as income deferral to a subsequent tax year, potentially minimizing tax obligations when a lower bracket is applicable.

Additionally, executives stand to gain substantially by identifying and taking advantage of appropriate tax deductions and credits. This encompasses deductions on business-associated expenses—like traveling, dining, entertainment, and home office expenditures—and applying credits for earned income and child tax. Proactively managing these deductions and credits allows executives to lower their taxable income, securing notable tax savings.

Strategic Planning and Consultation

Beyond understanding, strategic planning around tax-advantaged retirement accounts and capital gains taxes is pivotal. Contributing to tax-advantaged retirement accounts like 401(k)s and IRAs can reduce current taxable income. They also allow contributions to grow— tax-deferred—until retirement. Planning for capital gains tax is also essential when selling assets like stocks, bonds, or real estate.

Engagement with qualified tax advisors is equally crucial. Advisors can provide valuable insights into structuring executive compensations efficiently, estate planning to ensure assets are transferred according to one’s wishes while minimizing tax liabilities, and guiding charitable giving in a fulfilling and tax-efficient manner.

For C-suite executives, diligent tax planning is not just a necessity but an integral part of intelligent wealth management and preservation. It is the foundation upon which sustainable financial growth and stability are built. It allows executives to navigate the multifaceted world of taxes efficiently and effectively.

Worth Advisors, LLC

Worth Advisors, LLC, located in Charlotte, North Carolina, provides individualized financial planning services, focusing on each client’s unique needs and goals. We offer various services, including tax planning, investment management, retirement planning, and estate planning. Our approach is client-centric, contacting clients yearly to ensure optimal service delivery and helping clients and the community create sustainable wealth for generations.

If you are a C-suite executive looking for individualized, high-touch financial and tax planning advice to optimize your wealth, consider scheduling a consultation with Worth Advisors, LLC today. Discover how tailored financial planning can help you accumulate wealth and preserve the future.

Disclaimer: Always consult a financial, tax, or legal professional familiar with your unique circumstances before making any financial decisions. This material is intended for educational purposes only. Nothing in this material constitutes a solicitation for the sale or purchase of any securities. Any rates of return are historical or hypothetical in nature and are not a guarantee of future returns, which may be lower or higher. Investments involve risk. Investment values will fluctuate with market conditions, and security positions, which, when sold, may be worth less or more than their original cost.

Creating Sustainable Wealth: Strategies for Generational Prosperity

The world of finance and wealth management is vast and intricate. Yet, at its core lies a universal truth: genuine prosperity is about being prepared for the future, embracing long-term planning, and leaving behind a legacy. This art of crafting enduring wealth extends beyond fleeting means—it encapsulates values, education, foresight, and an innate understanding of the ever-changing financial landscape. Although we accept that wealth management can be overwhelming, remember that this is why firms like ours exist. Worth Advisors remains committed to supporting and guiding you with your financial goals. 

Foundations of Enduring Wealth

Understanding what we mean when using terms such as sustainable wealth requires you to look beyond the amount of money you have in the bank. Wealth isn’t just about the numbers; it’s about the strategic orchestration of those numbers over time. This strategy isn’t isolated to the accumulation phase but extends across growth, management, preservation, and the eventual, often overlooked, transition to the next generation. 

That isn’t to say that savings are not essential but one component of the equation. The power of compound interest can work toward your benefit, especially if you are wise enough to begin putting money aside early and turning even the most modest savings into substantial sums if given adequate time. Yet, while saving remains foundational, the landscape of investments is equally vital. Diversifying one’s investment portfolio is not merely a best practice; it’s a shield against the unpredictabilities of financial markets. It’s about not putting all one’s eggs in a singular basket but ensuring that resources are spread across various avenues like stocks, bonds, real estate, and emerging sectors.

The Nuances of Generational Wealth Creation

One such nuance is the discipline of spending prudently. In an age of consumerism, the ability to discern needs from wants can set the stage for accumulating more substantial savings. Every dollar saved is a dollar available for investment. Although we help our clients with investing, it is equally important to have an established budget. Some say they don’t have enough money to have a financial advisor. The irony is that these people need one, and we are privileged to serve them. Budgeting, or having a cash flow plan, is essential. It may be the first step toward amassing financial wealth. 

We will assist you with knowledge and education, which are also part of the overall picture. The ability to understand financial terminologies, market trends, and investment opportunities can empower individuals to make informed decisions. Worth Advisors, LLC recognizes this and emphasizes the importance of not just guiding but educating our clients. 

Lastly, shift your perspective. You don’t need to time the market to accumulate wealth. We have published blogs that speak directly against this strategy. Accept that this is a long-term venture. The world of finance can often be turbulent, with market fluctuations and economic downturns. Yet, a long-term vision and resilience can weather these storms, ensuring consistent growth over time.

Leaving a Legacy: Beyond Immediate Gains

This is wider reaching than monetary returns; it is a broader vision encompassing positive environmental and societal impacts. As individuals traverse their financial journey, they must recognize their wealth’s power—not just for personal gains but in crafting a better, more sustainable world for future generations. Many people simply want their children to have a better life than them, and that is a worthy goal. It’s why creating enough wealth to pass down isn’t rooted in greed or selfishness. 

And as this journey evolves, the emphasis shifts from wealth creation to wealth transition. Ensuring that the next generation is equipped with the assets and the wisdom to manage those assets becomes paramount.

Embarking on the Journey with Worth Advisors, LLC

With Worth Advisors, LLC, our clients aren’t accessing a single service; they are entering into a partnership. Worth Advisors, LLC is here to serve you and help you achieve your financial goals—whether it is taking a step toward investing, asking for assistance with your taxes, or establishing a budget. Let us be your greatest ally. Schedule a consultation, and together, let’s craft a narrative of wealth, wisdom, and legacy.

Disclaimer: Always consult a financial, tax, or legal professional familiar with your unique circumstances before making any financial decisions. This material is intended for educational purposes only. Nothing in this material constitutes a solicitation for the sale or purchase of any securities. Any rates of return are historical or hypothetical in nature and are not a guarantee of future returns, which may be lower or higher. Investments involve risk. Investment values will fluctuate with market conditions and security positions, when sold, may be worth less or more than their original cost.

A Virtual Lunch & Learn Event – Nov 2023




Join us for a virtual lunch & learn focusing on Financial Peace, Self Care, and Mental Wellness. Featuring estate planning attorney Hailey E. Hawkins, JD; family law attorney Joy M. Chappell, JD; and licensed mental health therapist Sonyia Richardson, Ph.D., MSW, LCSW. Our panel discussion will be facilitated by successful entrepreneur and leader of Women’s Inter-cultural Exchange, Rhonda Caldwell.

CLICK HERE TO REGISTER

How Ten Percent Is Greater Than Twelve

Those who have chosen to work with Worth Advisors, LLC understand the answer to the title’s questions. To better understand what we are talking about, consider the following choice: You meet with a team of financial advisors who guarantee that if you invest with them, they will get you a 12% return. Before you commit to anything, you hear about another team, say Worth Advisors, LLC, who have earned their past clients a 10% return on their investment. What decision are you inclined to make?

Even though we used ourselves as people who will generate a smaller return, most people will read the previous hypothetical question and answer that the only obvious answer is to go with the more considerable return. If you arrive at the same conclusion, you are not alone. People are inclined to go with the 12% because they assume it is the best way to accumulate wealth. However, they aren’t seeing the whole picture. 

Let Us Explain

Investing is merely one component of the overall whole. Even if another firm can generate a more significant return, it may not be able to increase your wealth in the way that Worth Advisors, LLC can. Look at it another way: Would you rather get a 12% return on your investment or save $400,000? When you look at it that way, the answer is more apparent. And it is also the mindset that our financial advisors have adopted. 

Net worth is your most important metric. The person who jumped at the 12% over the 10% return doesn’t realize there are several ways to increase your net worth significantly. There are ways to save money in every facet of your life, extending well beyond investing. It equates to how you have financed your home and how much you can save in taxes, estate planning, and accountability. We look at all these elements, which are unique to the client, and find ways they can increase their net worth. Though it may not sound as fancy or lucrative as investing (which we will assist you with), you can save money simply by choosing the right credit card type. If you and your family decide to enhance your life by traveling, finding an appropriate credit card with travel rewards could save you tens of thousands of dollars a year. 

Look at the Larger Picture

Most people will elaborate on the safety of diversifying your portfolio, but you also must consider expanding how you build overall wealth. Our advisors look at the entirety of your life and the goals you have set and work with you in myriad ways. 

  • Budgeting & saving
  • Investing over the long term rather than “timing the market.”
  • Increasing your income 
  • Reducing debt 
  • Owning real estate as part of a reliable investment strategy
  • Finding ways to maximize your retirement contributions
  • Helping you shape and build the business you want to begin

Increase Your Net Worth
Getting the most out of your investments is only one of the ways we assist our clients. Getting a 12% return on your investment may be eradicated if you pay more taxes than you should. This is why you should speak with Sherise Jones, a CPA who assists clients with minimizing their tax burden—which is likely your largest liability. We aim to empower you to make better, wiser, and more effective financial decisions. By working with us, find new and innovative ways to increase your net worth. Contact our office today and set up a consultation.

The Logic Behind Exchange Traded Funds (ETF)

One of our core beliefs is that everyone should have access to a financial advisor who meets them where they are. Anyone who has visited our website and viewed our two investment approaches will see how there is an appropriate strategy for them, regardless of their current assets and liabilities. These two approaches encapsulate our range of services because the first one—the Core Satellite Portfolio—has a minimum investment of $500,000. This is a significant amount of money, but that is no reason to be deterred from investing. The Model ETF Portfolio shows how different strategies can be applied to meet people’s current financial position. Those living primarily on a fixed income and with relatively low equity can still benefit from a low-risk, low-reward investment model. On the opposite side, there are higher-risk, higher-return strategies. 

Three factors play into where you land on this spectrum:

  • Tactical asset allocation
  • Strategic asset allocation
  • Dynamic asset allocation

These terms can be applied to households and discussed in a business context. Tactical assets are used primarily for day-to-day activities. Strategic assets are used for long-term planning. Dynamic assets can be used on demand for sudden needs or opportunities. For most people, tactical assets could be groceries, strategic assets can be your physical home, and your dynamic assets can be used to add an addition to your home as your family grows. Depending on the home or business, these terms will be applied differently, but that is the general concept. 

How ETFs Factor In

Though our two investment approaches differ, ETFs are common to both. These are a type of investment that is traded on stock exchanges. They are similar to individual stocks and mutual funds but also have key differences. Like a mutual fund, they track a specific index such as the S&P 500 or NASDAQ. However, it is extremely important to highlight that an ETF can be traded like an individual stock on an exchange, which is something you cannot do with a mutual fund. 

That is also why people may pursue an EFT over a mutual fund. Because EFTs can be traded, this gives them an additional layer of flexibility and is considered more of a liquid investment option when compared to a traditional mutual fund. Additionally, having lower expense ratios than mutual funds makes them a desirable investment option for various people with varying assets and liabilities. 

Choose to Work Alongside a Financial AdvisorSome people may choose a mutual fund because it is relatively hands-off. You can put money into a basic mutual fund, which can be an excellent vehicle for long-term growth. However, due to how they are traded in real-time, you can work with an investor who can take advantage of opportunities and adjust their portfolios as required. Still, they are relatively easy to use, have low costs, and are liquid assets. If you have additional questions about our investment strategies or ETFs, contact Worth Advisors, LLC, to discuss the right path for you.

2023 Women’s Final Four

Clients & Friends Appreciation Event

2023 Women's Final Four - Clients & Friends Appreciation Event