Fortify Financial

If you are a proactive professional or retiree with questions about your plan or portfolio, contact us at the link in our bio.

Not intended as advertisement in jurisdictions in which we are not registered. See important disclosures page on our website.

The lower the correlation the better. If you don’t, read below.

Diversification means combining investments to reduce overall risk with holdings that have low positive or negative correlation. In other words, putting asset classes or investments together that react differently to various factors in order to moderate the impact of risks inherent to individual holdings.

Visit www.fortify.financial to learn more, for important disclosure information, and to request a consultation with our team.

It’s true! HSAs are triple tax advantaged account types ✅ ✅ ✅

Contribution limits for 2025 are $4300 (individual) and $8550 (family).

Did you know a Health Savings Account (HSA) gives you triple tax benefits? An HSA is a special savings account for medical expenses, paired with a high-deductible health plan. It’s a smart way to save on taxes and set aside money for health costs now and in the future!

Review your portfolio for these 4 criteria:

1️⃣ Asset Allocation - Does the overall risk / return profile of your investments match your time horizon and intended purpose for the account? What is the ratio of equities to fixed income - or stocks to bonds - in your portfolio?

2️⃣ Diversification - Do you own a mix of asset classes within your allocation or are you heavy in one industry or sector? If so, is the overweight intentional and in line with your intended purpose for the account?

3️⃣ Investment Cost - Do you know the expense ratio of the ETFs or mutual funds you own? Do you get commission-free trades on stocks and bonds?

4️⃣ Drift - At what frequency do you rebalance your account to your intended allocation? Are the investments you have chosen consistently performing in line with their stated objective?

If you aren’t sure, request a consultation on our website at www.fortify.financial and we can help you review your portfolio.

*Posted for informational purposes and not intended as individual investment advice.*

Do you know the main advantages and purpose for each type?

Bank checking - liquidity and transacting

High yield savings - liquidity and yield, generally also principal protection (FDIC coverage if you use a bank program and do not exceed coverage limits)… an alternative to this account type is a money market fund but these are generally not FDIC insured

Non-qualified brokerage - after-tax investing with no contribution maximums or income limits on contributing (regardless of other retirement accounts… example: if you max out your 401k, you can still invest in this type of account)

Traditional IRA - tax deferred investing… especially important for anyone that doesn’t already participate in a 401k, 403b, 401a, SIMPLE, SEP, etc. No income limits to contribute, but there are income limits for deductible contributions, limits on the amount you can contribute, and when you can withdraw without a penalty.

Roth IRA - after tax investing with NO TAX on investment earnings and growth. 🎉 Like traditional IRAs, there are limits on contribution amounts and when you can withdraw without a penalty. There are also INCOME limits on who is eligible to contribute, but a conversion is an option if you exceed these amounts (phaseouts start at $146,000 for single filers and $230,000 for MFJ).

For more info on limitations, go to:
https://www.irs.gov/newsroom/401k-limit-increases-to-23000-for-2024-ira-limit-rises-to-7000

This content is for informational purposes and should not be taken as individual investment advice, nor should it be construed as an advertisement in states in which we are not registered. Please see important disclosure information at www.fortify.financial

Learn more at www.fortify.financial

Which book would you add to the list? 📚

*This content is for educational purposes and should not be construed as individual investment advice*

How will you spend it?

It’s easy to spend more than you plan during the holidays. Who has done it? We have all done it! 🙋🏼‍♀️ But when you are trying to decide on one more stocking stuffer, remember that time freedom is greater than stuff.