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Under traditional IRA plans, taxes are deducted when money is withdrawn from the account.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.

Traditional Annuity and Modern Investing

Registered financial representative Atul Makharia is the vice president of investments at Mantei & Associated in Lexington, South Carolina. In this role, Atul Makharia assists his clients with choosing financial products, such as annuities, that will help them build wealth.

In the past, an annuity was a guaranteed way for consumers to save for retirement and for other expenses. However, in recent years, many financial experts have argued that annuity is no longer a competitive product.

A major issue is that it does not really yield as much money for retirement as compared to other investments. Moreover, when factoring in inflation, the amount a person would receive is drastically reduced.

A Market Watch article written this year illustrates just how inflation affects modern annuity. In 2000, a 65-year-old consumer who paid in $100,000 into their fund would receive $700 a month. Today, that figure amounts to $469.

Experts state this reduction in the investment amount is influenced by market fluctuations. Another factor is that this money is typically invested in bonds, which are close to three percent whereas 30 years ago they were at 10 percent. Other issues relate to hidden costs in annuities. In fact, some companies have resorted to commission-free annuities to address this issue.

The annuity is still a great investment, but investors are going to have to be savvier. To minimize risks and maximize earnings, investors must diversify their portfolio, which involves placing money in aggressive as well as conservative investments. Another approach is to hold off on purchasing an annuity because interest rates do not influence the payout as much.

Headquartered in Anaheim, California, Centaurus Financial, Inc. is a national independent broker/dealer registered and licensed to offer securities, investment advisory services, and insurance products. Centaurus Financial is a member of both the Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC). Centaurus Financial is also registered as a broker/dealer and a Registered Investment Adviser with the Securities & Exchange Commission (SEC). For more information about Centaurus Financial, please visit www.centaurusfinancial.com

Impact of Coronavirus on Market Predictions for 2020

Vice President Atul Makharia works at Mantei & Associates, a branch of Centaurus Financial, Inc. As a registered representative, Atul Makharia assists his clients with making financial decisions regarding their portfolios.

The market this year opened with optimistic news of a strong economy on the brink of more growth. In January, many predicted growth in the usual sectors including technology, biotechnology, and housing. More importantly, analysts predicted there would be no recession, but the market would be in good shape, experiencing no more than a ten percent correction. Plus, interest rates would not change for the entire year.

Others predicted that, while the economy would be in good shape, it would in no way be able to repeat the gains of last year. In fact, many believed that investors would earn less this year.

However, as the world and the country enter into the latter part of March, the market continues to tumble, rarely making any rallies that would significantly move the economy out of recession territory and prevent this current movement from officially being labeled a stock market crash.

This month saw the worst sell-off, comparable to the one occurring 12 years ago. However, the difference between now and then is that today’s market volatility and drop is not due to poor investment strategies. Instead, at the core of this market collapse is the coronavirus.

In what is now a pandemic, the coronavirus is expected to influence a lot of what happens in the markets because of its impact. Rates have been cut but consumer confidence and monthly job reports can only provide a glimmer of what is to come in the next few months.

Headquartered in Anaheim, California, Centaurus Financial, Inc. is a national independent broker/dealer registered and licensed to offer securities, investment advisory services and insurance products. Centaurus Financial is a member of both the Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC). Centaurus Financial is also registered as a broker/dealer and a Registered Investment Adviser with the Securities & Exchange Commission (SEC). For more information about Centaurus Financial, please visit www.centaurusfinancial.com.

Interest Rates and How They’re Determined

Based in Lexington, South Carolina, Atul Makharia has twenty years of experience as a wealth adviser. As vice president of investments at Mantei & Associates, Atul Makharia advises clients through financial hurdles, such as fluctuating interest rates.

Interest is the percentage of the principal borrowed from a lender that is charged to the borrower. Banks set interest rates and apply them to the total unpaid amount of what was borrowed, whether through a loan or a credit card. Banks may charge a relatively high rate if there’s a higher risk that the amount may not be repaid on time.

Interest rates can be set as fixed rates or variable rates. Fixed rates will not change until the loan is paid off. Mortgages generally have fixed rates. Variable rates adjust over time.

Many factors influence interest rates. The first of these is the Federal Reserve, which is the country’s central bank. The “Fed,” as it's known, oversees the money supply and also attempts to control inflation, guides financial institutions, stabilizes the financial system, and serves as a bank. As part of these duties, it sets the fed funds rate, the interest rate that banks pay the Federal Reserve for the money they borrow. The fed funds rate thus dictates interest rates for other banks.

Demand for Treasury bills, notes, and bonds, which are investments set up by the U.S. Department of Treasury, can also drive interest rate changes. Higher demand for these instruments usually means that banks are willing to take more risk and agree to more loans. Finally, banks raise and lower interest rates based on business needs.

Headquartered in Anaheim, California, Centaurus Financial, Inc. is a national independent broker/dealer registered and licensed to offer securities, investment advisory services and insurance products. Centaurus Financial is a member of both the Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC). Centaurus Financial is also registered as a broker/dealer and a Registered Investment Adviser with the Securities & Exchange Commission (SEC). For more information about Centaurus Financial, please visit www.centaurusfinancial.com.