Asked & Answered: Pension Termination
11/18/2014 Brian from Bethesda, MD: My company Pension is being terminated and I need to make a decision about how to receive my benefit. Should I choose to take the lump sum or the annuity? Friedenthal Financial: Brian, That’s a great question, and one that we hear frequently. You may [read more]
Asked & Answered: Debt Ceiling Crisis
10/9/2013 Michelle from Minneapolis: What is the Debt Ceiling and what is the big deal about reaching it? Friedenthal Financial: Michelle, Certainly a popular question these days! The debt ceiling is simply the maximum amount that the US can borrow at one time (currently $16.7 Trillion). In each fiscal year, [read more]
Asked & Answered: Zero Inflation?
9/18/2013 Douglas from Detroit, MI: Why does the Federal Reserve target 2% inflation? Why not target zero inflation? Friedenthal Financial: Douglas, That’s a great question, without a purely objective and scientific answer. However, the most elegant explanation of which we are aware is as follows. Historical evidence suggests that [read more]
Asked & Answered: Fiscal Cliff
November 20, 2012 Nelson from Newton, MA: What exactly is the so called “Fiscal Cliff” and what are the impacts if we go over it? Friedenthal Financial: The Fiscal Cliff is really a combination of tax increases and budget cuts all set to become effective simultaneously on Jan 1, 2013, if no other [read more]
Asked & Answered: American Airlines B-Fund
Thomas from Ticonderoga, NY: I am a 54 year old pilot still flying for American Airlines. One consequence of our bankruptcy is that our B-Fund (Defined Contribution Pension) is being frozen as of November 1. Subsequently we will have three options, as the plan will no longer be maintained. 1) Take a lump sum [read more]
Asked & Answered: Tax Impacts of ObamaCare
July 12, 2012 Marjorie from Manalapan, NJ: How will my taxes be affected by the Affordable Care Act (“Obamacare”)? Friedenthal Financial: Great question…..and we’ll preface by saying that this bill was far too long for us to read verbatim! That said, here are a few highlights that we’ve gleaned from our [read more]
Asked & Answered: ETFs vs Mutual Funds
June 7, 2012 Stacy from Sedona, AZ: What is the difference between an ETF and a Mutual Fund? Friedenthal Financial: There are a number of similarities, as well as some pronounced differences. We’ll highlight both below, as well as differences to ETNs (Exchange Traded Notes). The primary similarity, which makes all [read more]
Asked & Answered: Handling an Inherited IRA
March, 29 2012 Bradley from Biloxi, MS: I recently inherited an IRA, but I’m under 70 ½. Do I still need to take distributions? Friedenthal Financial: It’s a good question that contains some potential tax consequences. We remind you that we are not accountants and don’t provide tax advice. It is [read more]
Asked & Answered: Should I roll my 401k into an IRA?
March 1, 2012 Wesley from Williamsburg, VA: I’m 61 years old, but still planning on working another 5 years. Should I roll my current 401k into an IRA or leave it where it is? Friedenthal Financial: It’s a very good question. As usual, the answer depends on a few factors, which [read more]
Asked & Answered: Target Date Funds
1/26/2012 Neil from Narberth, PA: Should I just put my 401k in a Target Date Fund? Friedenthal Financial: Great question! The two primary factors to consider are risk level and cost. While the concept of a Target Date Fund (based on your anticipated retirement date) is appealing, it presumes that everyone [read more]