Van­guard starts in­vest­ment ad­vice se­ries

Daily Local News (West Chester, PA) - - BUSINESS -

Van­guard has launched Fi­nan­cial Plan­ning Per­spec­tives, a new se­ries of white pa­pers de­signed to distill com­plex fi­nan­cial plan­ning and wealth man­age­ment top­ics into ac­tion­able in­vest­ment strate­gies for in­vestors and fi­nan­cial ad­vi­sors. Bal­anc­ing the­ory and prac­tice, the se­ries pro­vides ob­jec­tive re­search-based in­for­ma­tion that helps in­di­vid­u­als make the op­ti­mal de­ci­sion when fac­ing an in­tri­cate fi­nan­cial sit­u­a­tion. The pa­pers ex­plore a va­ri­ety of re­tire­ment, es­tate plan­ning, and in­vest­ment top­ics, pro­vid­ing in­for­ma­tion that in­di­vid­ual in­vestors can use to in­form their in­vest­ing strat­egy or ad­vi­sors can em­ploy to ed­u­cate their clients.

Van­guard has posted the first two publi­ca­tions in the se­ries online:

• Tack­ling the tu­ition bill: Manag­ing higher ed­u­ca­tion ex­penses

Col­lege tu­ition is one of the most ex­pen­sive in­vest­ments most fam­i­lies will make and it comes with dis­tinct fi­nan­cial chal­lenges. The first pa­per in the se­ries goes be­yond the ba­sics of 529 plans, help­ing par­ents and stu­dents un­der­stand how fi­nanc­ing col­lege us­ing a va­ri­ety of sources and ac­counts can af­fect their broader fi­nan­cial sit­u­a­tion. The re­port also addresses how in­vest­ments and in­come are fac­tored in to fi­nan­cial aid el­i­gi­bil­ity, tac­tics for max­i­miz­ing tax in­cen­tives, and how these de­ci­sions can im­pact the abil­ity to meet other fi­nan­cial goals, par­tic­u­larly re­tire­ment.

• Roths be­yond re­tire­ment: Max­i­miz­ing wealth trans­fers

Many in­vestors hold sub­stan­tial tax-de­ferred re­tire­ment ac­counts, such as tra­di­tional IRAs and 401(k)s. Although dis­cus­sions around con­vert­ing these tax-de­ferred ac­counts to Roth ac­counts are typ­i­cally tar­geted at pre-re­tirees, con­ver­sions in re­tire­ment can serve as a valu­able wealth trans­fer tool in an in­vestor’s over­all es­tate plan. The sec­ond pa­per in the se­ries de­tails how re­tirees can take ad­van­tage of the tax treat­ment of Roth IRAs to avoid re­quired min­i­mum dis­tri­bu­tions and “pre­pay” in­come taxes for their ben­e­fi­cia­ries.

Two ad­di­tional pa­pers will be avail­able in the com­ing weeks that will fo­cus on the top­ics of cash im­ple­men­ta­tion and char­i­ta­ble giv­ing.

Fi­nan­cial Plan­ning Per­spec­tives can be found on Van­ and on Van­guard’s Press­room.

Van­guard is based in Tredyffrin.

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