I’m sure you’ve seen Tesla all over the news lately, today we’ll think about what we can learn from its parabolic trajectory. We’ll also cover additional questions about the SECURE Act and I make a correction about something I said about the SECURE Act as it pertains to minor beneficiaries. Then we’ll cap off the episode with a listener question about what to look for when hiring a CPA. Join me on this episode of Retirement Starts Today to discover what you should do when a stock goes parabolic.Join me on this episode of Retirement Starts Today to discover what you should do when a stock goes parabolic. Click To Tweet
Outline of This Episode
- [1:22] What to do when a stock goes parabolic
- [8:07] Do you need to take an RMD if you own an annuity?
- [11:00] A correction surrounding the SECURE Act and grandchildren
- [13:20] How to hire a tax planner
Tesla has had a heck of a run lately
You may have heard the news about Tesla and how the stock has been on a meteoric rise lately. In November 2019 it was valued at $350 a share, this week the shares topped out at an all-time high of $960. So in only 3 months, the value of Tesla stocks has tripled. According to Google Trends, the peak interest in the stock was just last week. I’d like to take this example and make a lesson of it. Let’s learn what should you do when a stock goes parabolic like Tesla.Let’s learn what should you do when a stock goes parabolic like Tesla. Click To Tweet
What to do when a stock goes parabolic
Rather than making this a lesson about owning individual equities, I’d rather give you a practical plan that you can implement with your own portfolio. The first thing you should do is consider your exit strategy. When you buy a stock you need to consider at what price you might want to sell it. Knowing your high end and your low end can really give you some perspective. We all become irrational and lose our common sense when our money begins to double or triple. Learn how to harvest your gains and limit your portfolio risk by listening to an example of why and how you should sell those parabolic stocks.
Do you need to take an RMD if you own an annuity?
An annuity can look and feel like an IRA and can be easily confused with one. So, how do you know if you need to take an RMD? You do need to pay careful attention to ensure that you don’t get penalized. The good news is that your statements can offer clues. Listen in to discover how to know if you’ll need to take an RMD on your annuity.Listen in to hear questions to ask a CPA to find out if they would be the right fit for you. Click To Tweet
How to hire a tax planner
Hiring the right tax planning professional is an important part of your total First off, let’s clarify what a CPA does and how that differs from the work of a CFP. A CPA wants to ensure that your yearly tax bill is as close to zero as they can get it. A CFP (me!) looks at money over a lifetime. The perfect combination is when you can get these two professionals on the same page. Listen in to hear questions to ask a CPA to find out if they would be the right fit for you.
Resources & People Mentioned
- Think Advisor article on RMD Alert
Connect with Benjamin Brandt
- Get the Retire-Ready Toolkit:https://retirementstartstodayradio.com/
- Follow Ben on Twitter:https://twitter.com/retiremeasap
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