Goldstein On Gelt

A question that I’m asked frequently these days is “how do I handle my American investments from overseas if my current American brokerage firm wants to close my account?” It’s common for me to get inquiries from people who received letters about their accounts being closed/frozen. Happily, I can help them. While many American firms are dismissing clients with foreign addresses, we welcome the strengthening of international relationships. We custody our clients’ accounts at Pershing, LLC. Member NYSE/SIPC, a subsidiary of the Bank of NY Mellon Corp. That means that all the assets are held in America, the statements are all in English, and all the accounts are compliant with IRS regulations. Beware of moving assets to Israel! Not only will tax-deferred accounts like IRAs lose their U.S. tax-deferred status, but U.S. PFIC regulations can make it very costly to invest in Israeli funds. Bottom line: there are two easy steps to handle your American investments from overseas: Listen to this week’

Climbing prices are bad for consumers and investors. What is the best way to stop inflation from eating away at the real value of your investments? While most consumers view higher prices and inflation as a bad thing, the stock market frequently rises during periods of high inflation. This means your stock prices and dividends may increase. How to stop inflation from eroding your purchasing power? When prices rise, the Consumer Price Index (CPI) also rises. It may be prudent to buy TIPS (Treasury Inflation-Protected Securities) because they are pegged to the CPI. REITS (real estate investment trusts) are a popular choice because rising prices also spill over to property values. Increases in rent are directly paid out to REIT owners in terms of higher dividends. Listen to the episode to learn which investments are better avoided during times of high inflation (hint, CDs and annuities may fit into this category). If you’re not already receiving updates on new episodes, sign up now, and as a sp

Managing retirement funds doesn’t need to be confusing or overwhelming. Rolling over a 401K into an IRA (individual retirement account) frequently makes it easier for the client. I am often asked for tips on what investments should be inside of an IRA account. Here’s what I tell folks: Depending on your situation, you can have stocks, bonds, ETFS, mutual funds in the account High-dividend positions may be tax advantageous Tax-deferred growth is a positive… unless your stock drops in value and you lose the opportunity for a write-off Don’t forget to make sure you take your required minimum distributions as required to avoid penalty payments. For other tips on how to invest and manage your IRA accounts, listen now! If you’re not already receiving updates on new episodes, sign up now, and as a special bonus, receive Doug’s free ebook The Retirement Planning Book.

If you are a non-resident alien of the U.S. (meaning you do not live there and you do not have citizenship) and own investments or assets in America, your American assets may be subject to inheritance tax. With the help of smart tax advisors, many people have found some great solutions. Ron Zalben, The Goldstein on Gelt Show’s tax tip expert, discusses how a non-resident alien can choose investments to side-step this costly tax. Ron, a partner with Aboulafa Avital Shrensky & Company, specializes in American and Israeli tax planning and compliance. Find out when an offshore mutual fund comes in pretty handy for a non-resident alien. American citizens though, you should stay far away from such funds! Non-resident aliens should consult with a tax professional before making a financial decision regarding a “U.S. situs” investment. What happens when a non-U.S. citizen dies with U.S. assets? The Goldstein on Gelt Show listener “Matt” asked Doug what was going to happen to his Israeli wife’s American assets when

What does financial success look like? There isn’t a formula for financial success, but there are steps you can take to achieve financial stability. The step are your “financial plan” – and everyone’s financial plan looks different. Doug explains how a financial advisor should guide you towards success through a deep understanding of your financial position. Dealing with American financial advisors when you live abroad Why would a U.S. financial advisor limit his interactions with a client who lives abroad? A Goldstein on Gelt Show listener, “Bill,” was told by his financial advisor that he can only take unsolicited orders (so much for giving advice!) and that he cannot purchase any mutual funds. What is an unsolicited order? And why can’t his financial advisor purchase mutual funds? Listen to find out more about these issues and possible solutions. Begin your path towards financial success by downloading the resource Three Steps to Financial Success. Download free resource: Three Steps to Financial Success I

Monte Carlo simulations take a huge amount of data and possible variables and let you know the chance of a specific outcome. Financial planners use Monte Carlo simulations to look at all sources of cash flow, income from investments, possible market scenarios and predict whether you’ll “make it” in retirement. Watch a short video about Monte Carlo simulations. While Monte Carlo simulations are a starting point to financial planning, Doug’s interview with Dr. Harry Markowitz titled Can Modern Portfolio Theory Make You a Better Investor? highlights all the options. Can you predict what your financial future will look like? Creating a financial plan Before you begin your financial plan, make sure to download the free resource What Checklist Do I Need for a Financial Plan? The list outlines all the questions a financial advisor asks. Start thinking critically about your finances. Download What Checklist Do I Need for a Financial Plan? Download free resource: What Checklist Do I Need for a Financial Plan? If you’r

Are you up to date with your FBAR (Reports of Foreign Bank and Financial Accounts)? If not, a cross-border financial advisor might be able to help you get things straightened out. Eli Noff is a U.S. based cross-border CPA and tax attorney who helps American citizens living abroad be U.S. tax compliant. Specifically, Eli outlines how FBAR reports are a determining factor in tax compliance. He explains who uses the information on the report, and how it is used. Eli highlights the penalties that non-compliance brings. Don’t despair if you haven’t kept up to date with your reporting requirements. Listen to the show to learn more about what you can do. Read this before you file your U.S. taxes How do you prepare for filing your taxes with the U.S. government? What numbers and forms do you need? Download the checklist Tax and Investment Reminders for Americans Living in Israel for the steps you need to take in order to complete your FBAR reports and other tax filing requirements. Remember to always consult a tax pr

How can you prepare and encourage your children to develop their own financial identity? Parents don’t necessarily have a financial obligation to their grown-up children, but situations can arise where they may want to help their children. There’s a fine line between helping and enabling financially bad behavior. How do you define that line? Listen to the show for the answer, or download the free resource 8 Steps to Raising Financially Independent Children. Download free resource: 8 Steps to Raising Financially Independent Children For other ideas on how to raise financially independent children listen to Doug’s discussion on What’s the Best Way to Give Your Children Financial Assistance? with Jeff Condon about generational giving. If you’re not already receiving updates on new episodes, sign up now, and as a special bonus, receive Doug’s free ebook The Retirement Planning Book.

What is the difference between term and whole life insurance? Term life insurance is pure insurance; you pay the insurance company a premium, and if you die within the predetermined period, then they’ll pay your heirs/estate a lump sum of money.  Whole life insurance has a cash component – part of your premium goes into a savings account which you can access if you ever are short of cash.  The rest of your premium goes to buy the life insurance itself. Since the entire premium doesn’t go to the insurance component, whole life policies tend to be more expensive than term policies. Is buying life insurance just throwing money out of the window? While it is true that you personally won’t benefit from life insurance, your loved ones will receive money when you die, which should replace your lost income.  Additionally, you can use the savings component of a whole life policy as an additional part of your financial plan – withdrawing funds that grew tax free. (Note, income tax is paid on investment

How can you financially prepare for a divorce? Lili Vasileff, founder of the financial firm Divorce and Money Matters, helps people prepare for their financial future after a divorce. Doug and Lili discuss the common conflicts couples have regarding money before divorce is even mentioned. Lili shares advice that makes financial communication easier and takes some of the dread out of financial planning. Lili offers a financial process someone should follow if they are getting a divorce from their spouse. Before you call your lawyer you should gather certain information. Listen to this week’s episode to learn what you should do with your money before divorce. First comes love, then comes marriage Doug has created a free downloadable resource to make financial discussions in a marriage easier. Download Money and Marriage for a list of 8 things every couple should know so they can have meaningful financial conversations. Download free resource: Money and Marriage Learn more about Lili Vasileff by reading her book

Exchange Traded Funds (ETFs) provide a different way to trade stock. But it’s not simply another way. ETFs open themselves to multiple strategies. First of all, Doug discusses the fact that ETF tend to mirror a benchmark. But why not aim to outperform the benchmark? Then, the discussion extends to discuss some tax saving strategies you could implement using ETFs. (Remember, I never give specific tax advise, but just discuss investment strategies) And how about inverse ETFs? Why should someone buy one? If you believe the market will go south, wouldn’t you just sell your stocks?

Mutual funds are frequently used by investors as a way to diversify their portfolio, and thereby minimize investment risk. One of the popular types of mutual funds is index funds. How are they traded, and who arranges the list of stocks in the index? What is the difference between active funds and passive funds? Is one more aggressive than the other? Should you “feed your fund?” And, if you want to invest for the long term, are value or growth mutual funds better? Listen to get the answers to everything you wanted to know about mutual funds – and more – in today’s episode.

Investors are continually bombarded with rules of thumb as to the best asset allocation. However, determining an asset allocation is not a simple formula. Tom Jacobs, money manager for Huckleberry Capital Management, doesn’t believe in the old-fashioned asset allocation rules. He underlines unrealistic expectations of investment strategies and explores some of the industry rules that have created those expectations. Tom shares his own philosophy about money and encourages listeners to take a look at their own financial situation, rather than try to conform to a one-size-fits-all investment model. Should bonds be considered a “safe” investment?’ Doug takes a look at investments that are considered “safe” in his one-page resource The Risks of "Safe" Investments. He sheds light on some of the downsides of these investments including bonds and fixed income investments. Download Free resource: The Risks of "Safe" Investments Tom Jacobs can be reached through Huckleberry Capital Management's website or by email. If

A global savings glut occurs when investors drive down interest rates. Is this trend coming to an end, meaning interest rates will climb? Do higher interest rates bring inflation? Today’s guest, Will Denyer, an economist at the financial research company Gavekal, explains how the global savings glut impacts inflation… and your pocketbook. What would you do if the market was flat? Generally, the markets are volatile, and smart investors try to mitigate risk by diversifying their assets. Asset allocation strategies try to protect your assets, no matter how the market turns. Have you ever asked yourself how your portfolio would do if the market was flat? Doug created a one-page resource to help you. Tricks to Making and Maintaining a Smart Asset Allocation designed to help investors better manage their asset allocation. Doug also helps a listener learn more about their 401k account. For more information about Separately Managed Accounts click here. Download free resource: Tricks to Making and Maintaining a Smart

Does receiving stock dividends eliminate or mitigate the risk of investing in stocks? Why would an investor choose stocks without dividends? Ben Reynolds, founder of Sure Dividend, provides guidelines for investors who are looking for stocks which pay high-quality dividends. He explains what a dividend is and how investors can use dividends to their advantage. However, dividends also have disadvantages. Ben acknowledges these disadvantages and outlines why companies may stop paying dividends. Listen to learn the pros and cons of receiving stock dividends. How much can you withdraw from your portfolio? Doug answers one of the most common questions he hears as a financial advisor: How Much Money Can I Safely Withdraw from My Portfolio?? Download the one-page resource here, and learn about the question you shouldn’t ask when planning your financial future. Download free resource: How Much Money Can You Safely Withdraw from Your Portfolio? Learn more about Ben Reynolds at Sure Dividend, download his pointers to

There is a right way to spend money. How do you know if you’re spending your money the right way? Jonathan Clements, founder of Humble Dollar and author How to Think About Money, says money can buy happiness. He explains why it may seem as if you don’t have enough money and what you can do about it. Jonathan also believes in the idea of “Buckets of Happiness,” and explains how people should invest and spend their money. Investing doesn’t have to be hard Doug has four steps to make investing easier. The Easy Way to Invest Around the World is a free resource designed for every investor around the globe. If you need a little encouragement to keep cash on hand, read Why Cash May be More Important Than Stocks. Download free resource: The Easy Way to Invest Around the World To follow Jonathan Clements visit his website Humble Dollar and follow him on Twitter. You can also buy How to Think About Money. If you’re not already receiving updates on new episodes, sign up now, and as a special bonus, receive Doug’s free e

  Is there a common character trait that successful entrepreneurs share? John Lee Dumas, host of the Entrepreneur on Fire podcast, returns to the Goldstein on Gelt Show to talk about what it takes to start a successful business. John’s insight after speaking with thousands of entrepreneurs can help you with the decision to start your own business or continue working for someone else’s company. Is there a correlation between the skills involved in entrepreneurship and the skills a successful investor has? Spoiler alert: Curiosity may be the key to success on multiple fronts. Curious? Listen now! Get John Lee Dumas’, new book, The Common Path to Uncommon Success,  and follow him on Twitter @johnleedumas

Why is there a stereotype that women aren’t as good as money as men? Today’s episode blasts the misconceptions and myths tied to the world of investing. Anyone, even you, can become a powerhouse investor. Just follow these 5 life-changing rules… Alice Finn, CEO of Powerhouse Assets and author of Smart Women Love Money: 5 Simple, Life-Changing Rules of Investing, shares her passion for helping women see their potential in the world of finance. She talks about why women tend to shy away from financial planning and talks about approaching your finances with her five life-changing rules. Stop and think before you spend that inheritance Doug has prepared a free resource called How Quickly You Should Invest the Money You Inherit? He talks about getting an inheritance and the general questions an investor should ask before they invest their inheritance. And, on the other side of the coin, Doug outlines the way investors should prepare an inheritance for their loved ones. To learn more about deciding when to pass on

What does it take to become a millionaire? What financial choices do you have to make to get on the millionaire track? Joe Saul Sehy, host of the award-winning podcast Stacking Benjamins, frequently works with millionaires and has learned some of their some secrets to success along the way. Joe breaks down common misconceptions about millionaires and shares insights as to how they earn their wealth. What differentiates a millionaire from every other investor? What financial systems can put you on the millionaire track? A good reason to buy bonds It’s easy to say real money is made in the stock market. But educated investors know there are opportunities in the bond market. Doug compiled a list called Why Wealthy People Buy Bonds that outlines why investors add bonds to their portfolios. Download this free resource to learn why buying bonds may help your portfolio. To learn more about bonds in general, check out this free video. Download free resource: Why Wealthy People Buy Bonds Follow Joe Saul-Sehy on the St

Running a business presents challenges, not least of which is cash flow. Cash flow is a problem for many people, but businesses have their own issues. How can business owners make the most of their cash flow? Barbara Weltman, attorney and business writer, explains what cash flow is and how to change the way you use it. She outlines some tools and strategies that make cash flow management simpler. Barbara knows a lot about taxes and the nature of businesses. Tune in to learn more about cash flow management. Retirement can be overwhelming Doug comforts investors who may find retirement planning overwhelming. He created a downloadable resource called Maintaining Your Income When You Retire. He shares some investment choices that can generate cash flow for investors so retirement is not such a drastic change. If you would like to learn more about increasing your retirement income, check out this video. Free resource: Maintaining Your Income When You Retire Learn more about Barbara Weltman by reading her books J.