A Brief Look at Different Types of Retirement Plans

Financial professional Atul Makharia possesses more than 20 years of experience. He serves as the senior vice president of investments at Mantei & Associates in Lexington, South Carolina. Atul Makharia has developed expertise in annuity strategies, value investing, and 401(k) investing.

Different types of 401(k) retirement plans are available, each with different tax rules. The plans include Roth IRA, traditional IRA, solo 401(k), and SIMPLE IRA.

Roth IRA plans have grown increasingly popular in the United States, mainly because of the tax deduction rules. Employees who contribute to a Roth IRA account have their taxes deducted from their income before they make contributions. As such, no taxes will need to be paid from the sum when account holders retire.

Under traditional IRA plans, taxes are deducted when money is withdrawn from the account. Solo 401(k) plans have the same tax deduction rules as the traditional IRA except that the plan is for small business owners who have no employees. The SIMPLE IRA is also similar to the traditional IRA except the plan is for small business owners with 100 or fewer employees.

Securities and advisory services are offered through Centaurus Financial, Inc., member FINRA and SIPC, a Registered Investment Advisor. Centaurus Financial, Inc., and Cola Wealth Advisors are not affiliated companies. Please visit Cola's website for more information: https://www.colawealthadvisors.com/. 

How to Decide If You Need an Investment Manager

A registered representative at Centaurus Financial, Inc., Atul Makharia is a Series 7 and Series 63 certified finance professional who has been working as a broker for over two decades. As a senior wealth advisor with Cola Wealth Advisors, Atul Makharia offers wealth and investment management services to his clients.

People who invest without a comprehensive strategy in mind can end up with a series of disconnected investment accounts. To avoid this and to maximize the value of one’s investments, an investment manager can be a valuable resource to help one execute a cohesive plan. It is the investment manager’s responsibility to keep track of their client’s investment performance and to re-balance client assets if something is not working.

An investment manager is also a valuable asset to have when dealing with complicated financial issues, such as inheritance or retirement planning. It might also be worth having a consultation with an investment manager in preparation for a major life event, such as marriage, where a financial advisor can help their client reorganize financial assets and how those assets will be allocated in the event of unforeseen or untimely circumstances.

Securities and advisory services offered through Centaurus Financial, Inc. Member FINRA and SIPC, a Registered Investment Advisor. Centaurus Financial, Inc. and Cola Wealth Advisors are not affiliated companies. Please visit Cola’s website for more information: https://www.colawealthadvisors.com/.

How Much Financial Help Do You Need

Atul Makharia is a finance industry professional with over two decades of experience helping clients with comprehensive financial strategy. A registered representative with Centaurus Financial, Atul Makharia provides individualized financial planning strategies to his clients.

When selecting a financial planner, one of the key aspects to consider is how much financial advice you will need. After all, you don’t want to pay for services you don’t need, nor do you want to be left with unanswered questions.

If you need advice related to a specific transaction such as purchasing or selling property or investing in a business, you can consider an hourly consultation. You should be able to get a price estimate upfront by discussing the nature of the advice you need.

On the other hand, if you need a comprehensive financial plan that takes your entire financial landscape into consideration, you’ll need more in-depth service. Find a financial consultant who is willing to work with you in coming up with a flat fee that encompasses your entire plan.

If you need an asset manager, it is best to strike a deal that involves a percentage of managed assets. Try to find someone who will be a good fit as a long-time financial partner.

Securities and advisory services offered through Centaurus Financial, Inc. Member FINRA and SIPC, a Registered Investment Advisor. Centaurus Financial, Inc. and Cola Wealth Advisors are not affiliated companies. Please visit Cola’s website for more information: https://www.colawealthadvisors.com/.

Why the Federal Reserve’s Interest Rates Matter

A registered representative for Centaurus Financial, Atul Makharia works in the firm’s branch in Lexington, South Carolina, as senior vice president of investments. In this capacity, Atul Makharia creates tactical and individualized portfolios for clients that incorporate everything from stocks and 401(k) investments to changes in Federal Reserve interest rates.

The Federal Reserve is tasked with maintaining financial and economic stability in the United States. To maintain this balance, it raises or lowers interest rates according to inflation data, employment, and other economic indicators. This rate-setting is overseen by the Fed’s Federal Open Market Committee (FOMC), a group of officials who meet eight times during the year to discuss interest rates.

When the economy has slowed, the Fed will usually lower interest rates. By doing so, it encourages more people to borrow money for home improvement or automobiles, entices them to get a mortgage, and encourages businesses to borrow funds for expansion or hiring processes. Such changes promote economic growth and encourage people to spend more of their money. Lowering interest rates can also reduce monthly interest and payments for credit cards, thus ensuring consumers have more money in their budgets to spend.

Conversely, the Fed increases interest rates when it appears the economy is growing too quickly. As a result of this increase, consumers and businesses are more cautious about borrowing money, and will often hold off on making major financial decisions. This does not mean that higher interest rates are always bad, though. In fact, they can be very beneficial to people’s savings, since certificates of deposit (CDs), savings accounts, and money market accounts may gain more interest when the Fed raises its rates.