Category: Miscellaneous

What is a Roth IRA?

A Roth IRA is an individual retirement account that helps you save and investment for retirement. A Roth IRA is funded with after-tax dollars, which means that you have already paid taxes on the cash that you contribute. The good news is that the earnings from your Roth IRA investments grow tax free, even if you make a profit. You can use the cash that you contribute to your Roth IRA to invest in stocks, bonds, mutual funds, ETFs and other investments.

When you retire, you can withdraw these funds tax-free to help fund your retirement.This means that you will never owe any capital gains taxes on your Roth IRA investments, nor will you dividends be taxed. A Roth IRA makes sense if you think your tax rate in the year of your Roth IRA contribution is lower than the tax rate in the year of your tax withdrawal.

Where is the best place to open a Roth IRA?

The decision where to open a Roth IRA is an easy one. Plus, the process of how to open a Roth IRA is simple. You can open a Roth IRA retirement account online in minutes. To open a Roth IRA that you plan to manage yourself, you can choose from the best online brokers to set up a Roth IRA. If you want your Roth IRA investment to be managed by someone, you can choose from the best robo-advisors to provide an automated portfolio service that uses computer algorithms to invest in low-cost investments.

If you want to know how to open a Roth IRA, it is simple. Once you choose your Roth IRA brokerage, you will be asked to enter basic contact information, including your social security number.Then, you will fund your account through a wire transfer, check or bank transfer.

How is a Roth IRA different than a Traditional IRA?

There are several differences than a Traditional IRA.

There are two main types of IRAs: a Traditional IRA and a Roth IRA. The main difference between a Traditional IRA and Roth IRA are the tax benefits.

• Traditional IRA: A Traditional IRA is the most popular form of IRA. When people ask “what is an IRA account,” this is the IRA retirement account of which they think. With a Traditional IRA, you contribute money each year that is tax deductible in your year of contribution. A Traditional IRA investment can grow tax deferred, meaning you do not pay taxes when you sell your Traditional IRA investment for a profit. Rather, you pay taxes in retirement when you withdraw those funds. Therefore, a Traditional IRA makes most sense if you believe your tax rate is higher in the year you contribute to your Traditional IRA than it will be in retirement when you withdraw those funds.
• Roth IRA: With a Roth IRA, you contribute funds on an after-tax basis. This means that you do not receive a tax deduction in the year of your contribution. The benefit of a Roth IRA is that you do not pay any taxes when you withdraw your retirement funds, and you can enjoy the profits of your IRA investment tax-free. A Roth IRA makes sense if you have a lower tax rate now than you will in the future. Roth IRA retirement accounts are not available to everyone, and are limited by your annual income.

What are the advantages of a Roth IRA?

When it comes to understanding what is a Roth IRA, it is helpful to understand all the benefits of a Roth IRA. Here are some of the top benefits of a Roth IRA:

• Save For Retirement: Ability to save for retirement and supplement retirement income
• Tax Benefits: Ability to take advantage of tax benefits, including tax-free growth
• No Mandatory Withdrawals: Unlike a Traditional IRA, there are no mandatory withdrawals from a Roth IRA.
• Ability To Contribute Regardless of Age: Unlike a Traditional IRA, you can contribute to a Roth IRA at any age, even if you are retired.
• Ability to Withdraw Contributions: Since you already paid taxes on your contributions, you can withdraw them anytime with no penalty or tax implications.
• More Investment Options: With a Roth IRA, you have more flexibility than employer-sponsored investment options
• Estate Planning: You can pass your Roth IRA investment account to your heirs.
• Bankruptcy Protection: Your contributions to your Roth IRA are shielded from creditors.

You should aim to contribute the maximum amount permitted by law to your Roth IRA each year. As you come closer to our retirement, you may want to adjust your Roth IRA investment choices to reflect your personal and financial preferences, goals and risk profile.

How much can you contribute to a Roth IRA?

Unlike a Traditional IRA, not everyone can contribute to a Roth IRA, however. First, either you or spouse need to earn income to be able to contribute to a Roth IRA. Therefore, if your only earnings are from investments or dividends, you may not be able to contribute to a Roth IRA.

Second, there are income limitations based on your modified adjusted gross income that are set by the Internal Revenue Service, or IRS. These income thresholds – and the amount you can contribute to your Roth IRA – may change annually.

How do I withdraw money from my Roth IRA?

Roth IRAs are more flexible than Traditional IRAs when it comes to withdrawing money. The goods news is that you can withdraw from your Roth IRA any time, for any reason and with no penalty. However, if you withdraw any earnings before age 59 ½, you will be penalized, unless it is for a qualifying reason.

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How do you buy stocks online?

If you want to how to buy stock online, here are the steps that you should take:

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1. Choose the best stock broker where to buy stocks

When it comes to how to buy stocks line, the first question you might ask is where to buy stocks. You can buy and sell stocks through an online stock broker. You can buy stocks online directly through a brokerage account.

There are several factors to consider when you want to compare the best stock brokers:

• Trading Commission
• Investment Platform
• Investment Products
• Robo-Advisors
• Mobile Trading
• Customer Service
• Account Security
• Other Fees

Separately, you may want to consider how much you plan to invest and the frequency you plan to trade. Most stock brokerage accounts have no account minimum so it is easy to open an account and get started.

2. Open a brokerage account to buy stocks online

Once you choose the best stock broker for you, it is time to open a brokerage account so you know how to buy stock. When you buy stocks online, you need to fund your account with an initial deposit.

3. Choose the stock you want to purchase

Now that you have opened and funded your brokerage account, you can learn where to buy stocks, and how to buy and sell stocks. It’s time to choose which stock you would like to buy. The art of how to purchase stock can start with you own research. You can review the company’s website to learn more about the company and its products.

You can read the company’s annual report to understand its financial performance and operations. You can review independent research and analysis on the company, and read commentary on the company.

If you want to go beyond the stock market for beginners, you can even get access to transcripts of the company’s quarterly earnings conference call. You can also review the company’s quarterly and annual filings with the Securities & Exchange Commission (SEC). Of course, you can review the company’s news as well.

Each stock is represented by a shorthand symbol typically consisting of one to four letters. For example, Disney is represented by DIS and General Electric is represented by GE. When you buy stocks online, you enter the symbol itself, rather than the company name. The reason you enter the symbol is that it is simpler to enter and prevents any spelling errors.

4. Choose how many shares of stock to purchase

Once your select the company you would like to purchase, you next need to decide how many shares to purchase. Each stock has a certain price per share. This price is the cost you will pay, plus a commission, to purchase one share of that stock. For example, let’s say you have $1,000 in your brokerage account. If the price of Company ABC is $10, the maximum stock you can buy would be 100 shares, which is equal to $10 multiplied by 100 shares.

The decision to purchase stock in terms of a small or large quantity is your personal preference. If you are a beginner investor and the stock market is unfamiliar, consider purchasing a small amount of shares. You can increase your purchases and buy stocks online increasingly as you become more familiar.’

5. Choose your type of order

When you buy stocks online, you also need to indicate when you want to purchase stock. You reflect the time element of the buy order or sell order in one of the following primary ways:

• Market Order
• Limit Order
• Stop Loss Order
• Stop-Limit Order

Market Order

A market order means to buy or sell the stock at the best available price. When you place a market order, the purchase or sale occurs almost immediately so long as there is a willing buyer or seller on the other side of the transaction.

Limit Order

A limit order means to buy or sell a stock only at a certain price (or better than that price).

Stop Loss Order

A stop order, or stop loss order, occurs once a stock has reached a pre-determined price known as the “stop price.” Once this happens, a market order is executed, and the shares are executed at that price.

Stop-Limit Order

Once the stop price is reached, the trade is not a market order. Rather, the trade become a limit order, and can be executed up to that limit price.

What is the best way how to buy stocks for beginners?

Compare the best stock brokers on Mentor to choose the best stock brokers for beginners. You can start slow, and deposit an amount in your brokerage account that makes you feel comfortable. You can choose one of the best robo-advisors to manage your money for you, if you prefer. The top robo-advisors provide an automated portfolio management service using computer algorithms and charge a flat annual fee expressed as a percentage of your total portfolio amount. Lastly, you can also choose your own stocks, mutual funds or ETFs to buy and sell.

Many of the top stock brokers and brokerage firms provide tutorials on how to buy stocks for beginners and how to learn more about the stock market for beginners.

What does it mean to buy and sell stocks?

If you want to understand the stock market for beginners, then you need to understand how to buy stocks for beginners. When you purchase stock – whether you buy stocks online or over the phone – you are buying ownership in a company. As an investor, you can purchase one or more shares of stock that represent your ownership of that company. These stocks trade on a stock exchange where investors can buy and sell stock in publicly traded companies. Each stock has a price, which can fluctuate up or down based on several factors.

There are two primary ways to make money when you purchase stock. The first is when the value of the stock increases. If you can sell a stock for a price that is higher than what you paid for that stock, you keep the profit. For example, if you buy 1,000 shares of stock for $10, your cost would be $10,000 to buy that stock. If the price increases to $15 per share, and you sell the stock, then your profit is equal to $5 multiplied by 1,000 shares, which equals $5,000.

The second way to make money with stocks is through dividends. Dividends represent a portion of a company’s earnings that are distributed to shareholders on a quarterly or monthly basis. As a shareholder, you can receive a certain amount of dividends for every share you own.

When you sell a stock, you are relinquishing your ownership in the company and selling your shares to another buyer. The price of a stock can increase or decrease, which determine whether you make a profit.

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What is a brokerage account?

A brokerage account is an account in which you buy and sell stocks, bonds, mutual funds, ETFs, currencies, futures, options contracts and other investments.

You can use a brokerage account as your primary taxable investment account, where your investments will be subject to short-term capital gains tax and long-term capital gains tax. You can also open a brokerage account for a Traditional IRA or Roth IRA, and participate in special tax-deferred or tax-free benefits, respectively.

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How do you open a brokerage account?

Once you have selected an online stock broker, the process of how to open a brokerage account is simple. You can open a brokerage account with an online stock broker in just a few minutes online.

You will need several pieces of information to open a brokerage account, which may include:

• Name, address, date of birth and contact information
• Social Security Number
• Driver’s license or other government identification
• Employer Name and occupation
• Annual income and net worth

You can open a brokerage account with no minimum deposit in many cases, but typically fund the brokerage account thereafter. You can typically fund an account with a bank wire, ACH deposit or by check. Once you have funded your brokerage account, you are ready to start investing.

How do you choose the best brokerage account?

When it comes to choosing the best online stock broker, there are several factors to consider. The best online brokerage account for you depends on what you value most – whether it’s the trading platform, mobile trading or customer service.

Here are some of the essential factors to consider when selecting the right stock brokerage account and online stock broker for you:

Trading Commission: Choose an online stock broker and brokerage account with reasonable trading commissions. Most online stock brokers and brokerage accounts will charge a flat commission for each trade, whether you buy or sell, regardless of the share count.

Investment Products: When it comes to the best online stock broker, you should look for flexibility in investment products. While your focus may be stocks, your online stock broker also may offer ETFs, mutual funds, options contracts and other investment products. You can use Mentor’s brokerage account comparison to find the right stock brokerage account for you.

Mobile Trading: If you are looking for the best brokerage account for mobile trading, make sure to find the best online stock broker who offers this flexibility. The good news is that the online stock broker and brokerage account you choose likely has mobile trading, since most major platforms do. Mobile trading is most useful for active traders with a brokerage account who prefer to trade stocks while away from a computer.

Customer Service: When finding the right online stock broker, customer service may or may not be an important criteria for you. Some investors prefer an online stock broker to have 24/7 customer service, while others are comfortable to chat online with their online stock broker. The good news is that most of the best online stock brokers and brokerage accounts offer comprehensive customer service, with many open for extended hours.

Investment Platform: When choosing the best online stock broker and stock brokerage for you, find the online stock broker with the right investment platform. The investment platform, tools, research and analytics are important factors when selecting an online stock broker and brokerage account. The best online stock broker for you should have the right desktop or web-based trading platform that makes you feel most comfortable.

Regulatory: The best online stock brokers in the U.S. are regulated by the Securities and Exchange Commission (SEC) and U.S. law. Your online broker and stock brokerage account also will be a member of the Financial Industry Regulatory Authority (FINRA). You can always verify your online stock broker with FINRA’s free stock broker check tool.

Other Fees: Stock brokers make money from commissions and fees. Therefore, your online stock broker may have other fees such as inactivity fees and potentially IRA fees.

Account Security: The best brokerage accounts have secure platforms and the highest standards for online security. Secure websites (noted with the “https”) are commonplace when you choose the best online brokerage. Some online stock brokers even offer two-factor authentication for an extra level of security.

Which brokerage account is right for you?

• Regular Brokerage Account: If you want to invest in the stock market, a regular brokerage account with an online stock broker is a smart choice for you. In this brokerage account, you can manage your own stock portfolio. Here are our best online stock brokers.
• IRA Brokerage Account: If your goal is to save for retirement, you can also open an IRA brokerage accounts. There are two types of IRA brokerage accounts: a Traditional IRA and a Roth IRA. A Traditional IRA is a retirement account where you make contributions with pre-tax dollars, and pay income taxes when you withdraw from your Traditional IRA. A Roth IRA is a retirement account where you make contributions with after-tax dollars, and do not pay any income taxes when you withdraw earnings from your Roth IRA. The good news is that you can have both a regular brokerage account and one or more IRA brokerage accounts with your online stock broker. Here are our best Traditional IRA brokerage accounts and our best Roth IRA brokerage accounts.
• Robo-Advisors: If you would like a brokerage account and online stock broker where someone else manages your investment portfolio, then a robo-advisor can be an attractive option. A robo-advisor is an online portfolio management service that automates the allocation of your investments through a computer algorithm, rather than a human money manager. Here are our best robo-advisors.

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A CD is a certificate of deposit that you keep at a bank. When people ask “how do CDs work,” the elements of a certificate of deposit are quite simple. You deposit funds with a bank for a set number of months or years, during which time you cannot access to the withdraw the funds without paying a penalty.In exchange for leaving your funds with the bank, the banks pay you an interest rate.

The best certificate of deposit will pay a higher interest rate the longer the term of your certificate of deposit. Most CDs have fixed interest rates, rather than variable interest rates, so you will always know the yield you will earn with a certificate of deposit.

Most CDs are FDIC-insured by the Federal Deposit Insurance Corporation for up to $250,000.

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When do you need a certificate of deposit?

A certificate of deposit makes sense if you want to earn a high-interest yield that is higher than a high yield savings account. However, you have to be ok not accessing any of the funds for the entire duration of your certificate of deposit. Otherwise, you will pay a penalty, which defeats the purpose of a certificate of deposit, which is to earn interest.

Therefore, you can think of a certificate of deposit as a way to earn a guaranteed return on your funds. While you cannot access your funds, the bank will use your funds to make loans or make other investments during the duration of your CD term. Therefore, the bank is essentially borrowing funds from you, and using your funds temporarily while paying you a borrowing cost represented by the interest rate.

The Best CDs are a low risk option with a low reward to help reach your savings goals.

How are the best CDs different than the best savings accounts?

When people ask “what is a CD account,” they also like to understand the difference between a certificate of deposit and savings accounts.

Here are the primary differences:

Certificate of Deposit: If you want to know how CDs work, a certificate of deposit is a savings tool and financial product that pays you a yield for leaving your money deposited with a bank. The bank will pay you a higher yield than a savings account in exchange for you not having access to your funds for the CD term. If you compare a savings account and CD, you will find that you cannot withdraw funds from a CD without paying a penalty. Therefore, if you are looking for liquidity and want access to your savings, then a savings account makes more sense. If you don’t need the funds and want to earn a higher, fixed return, then a CD may make more sense. Both a savings account and CD typically earn less than investing in the stock market based on historical average returns, although the stock market comes with more relative risk.

Online Savings Account: An online savings account offers a highyield,typically has no monthly fee and provides access to funds when you need them. The best savings accounts can offer higher annual percentage yield (APY) because the bank saves costs by not having additional or any physical branches to support online saving accounts. The primary difference between a savings account and a certificate of deposit is that the funds from a CD cannot be accessed during the term of the CD. A savings account is a great option if you are comfortable with mobile and online banking, and need access to your funds on a regular basis.

How do you find the best CD accounts?

You can find the best certificate of deposit here on Mentor. Mentor not only helps you understand what is a CD and a certificate of deposit definition, but also includes our list of the best certificate of deposit for you.

Then you can open a certificate of deposit directly through Mentor with one of our partners. It’s easy to apply for a certificate of deposit. All you will need to provide is basic information such as you name, Social Security Number, driver’s license and other contact information.

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What is a 401k rollover?

A 401k rollover means that you take your 401k retirement plan with you when you leave your employer, and transfer your 401k balance to a new or existing retirement account. Under the 401k rollover rules, you can transfer your 401k balance to a Traditional IRA, for example, or roll over the 401k to a new employer. Therefore, you have several 401k rollover options.

The best option is do a 401k rollover to an IRA because you will have more investment options with an IRA. The 401k rollover rules allow you to leave your 401k with your old employer, but you would not be able to contribute any more funds to the old 401k plan. Therefore, with a 401k rollover to an IRA, you have more control and flexibility compared with leaving your old 401k with your former employer.

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How do you rollover a 401k?

If you want to know how to roll over a 401k, the process is simple.There are three primary 401k rollover options:

1. 401k Rollover ToTraditional IRA
2. 401k Rollover To Roth IRA
3. 401k Rollover To New Employer

401k Rollover to Traditional IRA

With this 401k rollover to IRA option, you convert your old 401k to a Traditional IRA. Under the 401k rollover rules, you can keep you investments tax-deferred and have much more flexibility and investment options than you likely have in your employer-sponsored 401k plan. The goods news is that a Traditional IRA may also have lower fees than after your 401k rollover compared with your old 401k.

401k Rollover to Roth IRA

With a rollover 401k to Roth IRA, you convert your old 401k to a Roth IRA. In this 401k rollover, you will have to pay taxes on the 401k rollover to IRA because Roth IRAs are funded with after-tax dollars. Since your old 401k was funded with pre-tax dollars, you have to do a Roth IRA conversion, which means you pay income taxes upfront and convert your old 401k to a Roth IRA. The process is simple and a popular strategy, and your earnings will grow tax free thereafter.

401K Rollover to New Employer

This process moves your old 401k from your previous employer to your new employer. Contact your new 401k administrator with your new employer to initiate the transfer process.

When investors ask “how do you rollover a 401k,” they also ask which of the 401k rollover options most people prefer. While it is based on your personal preference, the 401k rollover options that many investors prefer are the 401k Rollover to IRA or Rollover 401k to Roth IRA.

Why should you rollover a 401k?

There are several reasons to do a 401k rollover:

1. Lower Fees
2. More Investment Choices
3. Robo-Advisor Options

Lower Fees

401k plans tend to have high administrative fees and may use higher cost mutual funds. These higher fees in your 401k means you earn lower investment returns. When you do a 401k rollover to an IRA, there are often lower (or no) costs for an IRA.

More Investment Choices

With your employer’s 401k plan, you likely were limited to several investment options. With a 401k rollover to IRA, you have much more flexibility to control your investments and select the investment choices that meet your specific investment goals. With a Traditional IRA or Roth IRA, you can invest in stocks, bonds, mutual funds, ETFs and other investment options. In comparison, a 401k plan typically does not permit you to purchase individual stocks. With a 401k rollover to Roth IRA or Traditional IRA, you also may get access to lower cost mutual funds and ETFs, which means you can potentially earn higher net returns.

Robo-Advisor Options

One of the popular 401k rollover options is to roll over your 401k to a Traditional IRA or Roth IRA with a robo-advisor. Robo-advisors are great options for investors who don’t want to manage their investment portfolio. For a lower annual cost, a robo-advisor will automate the management of your portfolio using computer algorithms based on your risk and return preferences.

Where is the best place to rollover a 401k?

When it comes to the best place to rollover a 401k, you have several options. We already addresses that you have 401k rollover options to an IRA or to a new employer. To roll over  a 401k to a new employer, you can contact your 401k plan administrator. Let’s focus on a 401k rollover to IRA, whether it is a Traditional IRA or Roth IRA.

A rollover 401k to Roth IRA or a 401k rollover to a Traditional IRA is a simple process. You can open an IRA retirement account online in minutes. If you want to manage your investments through a self-directed IRA, you can choose the best online broker to set up a Traditional IRA or Roth IRA. If you want your IRA to be managed by someone, you can choose from the best robo-advisors to provide an automated portfolio service that uses computer algorithms to invest in low-cost investments.

You will be asked to enter basic contact information and then fund your account with the balance from your old 401k. Your new online broker or robo-advisor can help facilitate the transfer and 401k rollover.

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General Questions

What is an IRA?

An IRA is an individual retirement account that helps you save and investment for retirement.

Retirement accounts such as an IRA enable you to fund your account with cash and receive tax benefits over time. You can use the cash in your IRA investment account to invest in stocks, bonds, mutual funds, ETFs and other investments. When you retire, you can withdraw these funds to help fund your retirement.

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How do you choose the right IRA?

There are two main types of IRAs: a Traditional IRA and a Roth IRA. The main difference between a Traditional IRA and Roth IRA are the tax benefits.

• Traditional IRA: A Traditional IRA is the most popular form of IRA. When people ask “what is an IRA account,” this is the IRA retirement account of which they think. With a Traditional IRA, you contribute money each year that is tax deductible in your year of contribution. If you control your IRA investment with a self-directed IRA, you can then invest those funds.Your IRA investment can grow tax deferred, meaning you do not pay taxes when you sell your IRA investment for a profit. Rather, you pay taxes in retirement when you withdraw those funds. Therefore, a Traditional IRA makes most sense if you believe your tax rate is higher in the year you contribute to your Traditional IRA than it will be in retirement when you withdraw those funds.
• Roth IRA: With a Roth IRA, you contribute funds on an after-tax basis. This means that you do not receive a tax deduction in the year of your contribution. You can invest those funds through a self-directed IRA like you would with a Traditional IRA. The benefit of a Roth IRA is that you do not pay any taxes when you withdraw your retirement funds, and you can enjoy the profits of your IRA investment tax-free. A Roth IRA makes sense if you have a lower tax rate now than you will in the future. Roth IRA retirement accounts are not available to everyone, and are limited by your annual income.

What are the benefits of an IRA?

There are many benefits of an IRA

• Save For Retirement: Ability to save for retirement and supplement retirement income
• Tax Benefits: Ability to take advantage of tax benefits, including tax-deferred or tax-free growth
• More Investment Options: More flexibility than employer-sponsored investment options
• No Income Limitations: There are no income limits to enroll in a Traditional IRA
• Multiple Retirement Accounts: You can open a Traditional IRA account even if you have another retirement plan. However, you may not be able to take advantage of tax deductions.
• Estate Planning: You can pass your IRA investment account to your heirs
• Bankruptcy Protection: Your contributions to your Traditional IRA are shielded from creditors.

You should aim to contribute the maximum amount permitted by law to your IRA each year. As you come closer to our retirement, you may want to adjust your IRA investment choices to reflect your personal and financial preferences, goals and risk profile.

How do you open an IRA?

Opening retirement accounts is a simple process. You can open an IRA retirement account online in minutes. If you want to manage your investments through a self-directed IRA, you can choose the best online broker to set up an IRA retirement account.

If you want your IRA investment to be managed by someone, you can choose the best robo-advisors to provide an automated portfolio service that uses computer algorithms to invest in low-cost investments.

You will be asked to enter basic contact information and then fund your account through a wire transfer, check or bank transfer. You can also roll-over your 401(k) from a previous employer.

How much can you contribute to an IRA?

With a Traditional IRA, you can contribute $5,500 per year. If you are 50 or older, you can contribute $6,500 per year.

How do you withdraw from an IRA?

You should not withdraw from your IRA before you retire, or you could face a penalty. At 70 ½ years old, you must take mandator withdrawals from your IRA.

Beginning at age 59 ½, you can withdraw funds from your IRA investment account to pay for certain expenses.

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If you’re a fan of Shark Tank, then you may remember Jamie Siminoff.

In September 2013, he pitched his company, then called DoorBot, in hopes of raising $700,000 for his revolutionary video doorbell.

However, the sharks were not biting and Siminoff walked away without an investment. Kevin O’Leary even delivered his signature “You’re dead to me” line.

Their loss.

Today, Siminoff’s company – now known as Ring – has raised $209 million from some of the world’s top investors, including Kleiner Perkins, First Round, Richard Branson, Goldman Sachs, DFJ Growth, Qualcomm Ventures, American Family Insurance, Amazon Alexa Fund and Shea Ventures, among others. This includes the $109 million Ring raised last month in its Series D round, which was led by DFJ Growth, Goldman Sachs and Qualcomm Ventures.

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What is Ring?

Ring makes, among other products, a wireless, video doorbell that connects to your smartphone so that you can remotely see and speak real-time to the person at the door through your mobile device – even if you are not actually home.

Ring’s mission is to reduce crime in communities and empower consumers by creating a “ring” of security around homes and neighborhoods. Since burglars tend to ring the door bell before breaking into a home, Ring serves as a home security device that you can access from anywhere in the world.

Siminoff, Ring’s founder and CEO, spoke with Mentor Money and Forbes about Ring, Shark Tank, Richard Branson, technology, reducing crime and more:

Zack Friedman (ZF): Do you consider yourself an entrepreneur or an inventor?

Jamie Siminoff (JS): I don’t consider myself an entrepreneur. I thought I was an entrepreneur after college, but as I have matured in business, I realized that I am and always have been an inventor. Conceiving new products that solve problems and bringing them to market is my passion.

ZF: Why did you start Ring?

JS: I was working out of my garage at the time and could not hear the doorbell ring anytime someone came by. I looked online for a Wi-Fi doorbell and could not find one available anywhere. So I built it.

ZF: How did you start Ring?

JS: I started Ring in an attempt to solve a problem I was having. It started as a small company in my garage. We successfully crowdfunded our first product, got some great customer feedback and  went on Shark Tank. Then, we went back to redesign and rebuild a better, more sophisticated device.

ZF: Tell us about your Shark Tank experience. What was it like being in the tank and meeting the sharks?

JS: It was amazing. I was always a fan of the show so when I went out there and really did it, it felt surreal. A lot of people don’t realize how cutthroat it actually is. You have one hour to pitch your idea, and no do-overs. None of the sharks are briefed ahead of time; it’s your job to sell the idea. A lot of time went into preparing for it, which is where I think why a lot of people fail in getting an offer – they just don’t prepare enough.

ZF: How did it feel to walk away without a deal?

JS: We were broke at the time. Literally, we had zero dollars in the bank, so it felt awful to walk away without a deal. I think I actually cried on the way home. I was so sure I was going to get a deal. I just remember going back to my garage (that we were running the company out of at the time) and having to tell the team that we did not get a deal and still had no money. That was a tough moment.

ZF: How did you first raise capital? What do you think your investors saw in you and Ring’s potential?

JS: Our first investors really invested in me and my passion behind the product/idea and its potential to help people. I do not think that they believed in the product so much in itself, but they believed I would figure out a way to make something work. Let’s just say we were both lucky I did!

ZF: How did Richard Branson become an investor?

JS: A Ring customer was on his island having dinner with Richard.  Our customer was showing Richard the app while also telling the delivery person where to put the package. He did that from Richard’s island, 3,000+ miles from his house. Richard loved it and thought it would be a great holiday gift for his friends and family. It was when Richard and I started talking that he learned about our mission of reducing crime in neighborhoods and really became interested in investing.

ZF: How is Ring changing the landscape as a disruptor?

JS: We are creating a “neighborhood watch for the digital age,” a proactive solution homeowners can use to protect their homes and families.

ZF: Help us understand the technology behind Ring.

JS: All of our products are built with the idea of “Always Home,” which is our customer promise. Whether you are in the back bedroom or halfway around the world, our products make you feel like you are right there in the home. More importantly, the visitor interacting with you through the product also feels that you are in the home.

ZF: You started with a video doorbell and now you have expanded into other products. Tell us more.

JS: Everything we create supports our mission of reducing neighborhood crime. In order to achieve that mission, we make products around three rings of security:

1. The first ring is the most important, the ring of security around your front door. Most home burglaries start with a knock on the door or a ring of the doorbell. When you want to deliver on the promise of “Always Home,” the Ring of Security around your front door is really critical.  We currently have three products for this Ring: the Ring Video Doorbell Classic, Ring Video Doorbell Pro and Ring Video Doorbell Elite.

2.  The second ring is the Ring of Security around your home. A burglar typically checks for occupancy by ringing the doorbell or knocking on the front door, but then breaks in through a side window or a back door where no one can see them. For this Ring of Security, we have our Stick Up Cam and Floodlight Cam.

3. The Ring of Security around your neighborhood is the third ring. This is where we leverage our large and ever-growing network of neighbors (internally, we call our customers our neighbors) and tie it together to make the actual neighborhood safer.  We have a feature in our app for sharing Ring recorded videos and comments now, we are integrated with next door and we are investing a lot around this area.

ZF: What’s the most important lesson you have learned as an entrepreneur and CEO?

JS: To empower everyone. It is amazing how many people grow and achieve success when you take off the management handcuffs.

ZF: What’s the hardest thing about being an entrepreneur?

JS: Initially, it was just trying to get the company going, and all of the stress that goes along with that. Now, as it’s getting bigger, it is the responsibility I have to the team to continue to drive the business in the right direction. I sometimes think to myself, “If I make a big mistake at this point, I will lose my investors, $209 million, and 1,000 people on my team will be out of jobs.” That does weigh on me.

ZF: Which other entrepreneurs or CEOs do you admire?

JS: James Dyson. He is the magical blend of brand and product.

ZF: What’s the biggest mistake you’ve made and what did you learn?

JS: Trusting any of our product development to third parties. With our first product, before we introduced the Ring Video doorbell, we trusted a few outside shops to work on things like our Wi-Fi antennas. Those were always the areas where we had the most trouble. We now do all of that in-house and control our products end to end.

ZF: What can we expect from Ring in the future?

JS: Safer neighborhoods at a global scale powered by Ring and made possible by our awesome neighbors (customers)

ZF: What message can you offer to the young entrepreneur who wants to follow in your footsteps?

JS: I have seen many different routes to success. My only “advice” – and this is more of an observation – is that if you follow your passion, even if you fail, you at least did something that you found interesting. You will spend a lot of time doing your business away from family and other things, and numbers show that more than likely you will fail.

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On the eve of International Women’s Day, State Street Global Advisors, the asset management business of State Street Corporation, called on over 3,500 companies with an aggregate market capitalization of $30 trillion, to increase the number of women on their corporate boards.

In conjunction with this call to action, State Street placed a bronze statue of a determined young girl staring down the sculpture, Charging Bull – a long-standing symbol of Wall Street – in Bowling Green Park in Lower Manhattan.

“One of the most iconic images on Wall Street is the charging bull,” Lori Heinel, State Street’s deputy global chief investment officer, told Business Insider. “So the idea of having a female sort of stand against the bull or stand up to the bull just struck us as a very clever but also creative and engaging way to make that statement. Even though it’s a little girl, her stance is one of determination, forwardness, and being willing to challenge and take on the status quo.”

According to State Street, although there has been progress regarding the inclusion of women on corporate boards, one of four Russell 3000 companies has no women on its board of directors, and women comprise less than 15% of the boards of directors of nearly 60% of Russell 3000 companies.

“We believe good corporate governance is a function of strong, effective and independent board leadership,” said Ron O’Hanley, president and chief executive officer of State Street Global Advisors, in a statement. “A key contributor to effective independent board leadership is diversity of thought, which requires directors with different skills, backgrounds and expertise. Today, we are calling on companies to take concrete steps to increase gender diversity on their boards and have issued clear guidance to help them begin to take action.”

According to an MSCI study cited by State Street, companies with strong female leadership generated a return on equity of 10.1% per year versus 7.4% for those without a critical mass of women at the top, which is a 36.4% increase of average return on equity.

“Most large-cap company boards in [Australia, the U.K. and the U.S.] have at least one female director but have yet to fully embrace gender equality in their ranks,” said Rakhi Kumar, head of corporate governance at State Street Global Advisors. “We believe boards have an important role to play in increasing gender diversity and believe our guidance can help directors take action now.”

State Street Global Advisors, which manages nearly $2.5 trillion in assets, partnered with New York City officials to install the Kristen Visbal-designed sculpture, which is expected to remain at least for one month in Bowling Green Park. Charging Bull was designed in December 1989 by Italian-born artist Arturo Di Modica.

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Investing is one of the best strategies to build and preserve wealth and save for retirement. Here are 7 financial moves that you can make right now.

These money moves are easy investments that you can make to improve your financial life, save you money and lower your tax bill:

1. Defer your income

If you have a choice between receiving income this year or next year, you should opt for next year to defer the income taxes associated with that income. Why? Income tax is due in the year in which it is incurred. Therefore, if you receive income after January 1, then it will be taxed as next year’s income and you can defer the tax liability.

If you are self-employed or a consultant, you have more control over when you bill customers and therefore can defer income more easily than if you are an hourly or salaried employee. However, you may be able to defer your bonus to next year if your company offers this option.

This strategy only makes sense if you expect to be in the same or lower tax bracket in 2019. If you expect to be in a higher tax bracket next year, then you may be better off receiving the income this year and paying income tax in the lower tax bracket.

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2. Sell Portfolio Losers

Tax loss harvesting, or selling stock that has declined in value to realize a tax loss, is an optimal strategy at year end. Why? Tax loss harvesting enables you to offset all investment losses against your investment gains, thereby lowering your tax bill.

For example, let’s say you recently sold 100 shares of Company ABC stock and made a $1,000 profit. If you owned the stock for more than one year, you would pay long-term capital gains tax on your profit. However, there is a way to offset your stock gain and not pay capital gains tax.

Let’s say that you bought 100 shares of Company XYZ for $100 per share for a total cost of $10,000. Unfortunately, the share price of Company ABC declined and its current share price is $90. On paper, you lost $1,000 ($10,000 – $9,000). If you sell all your shares of Company ABC today, you can recognize that $1,000 loss on your income taxes. Your gain on Company ABC and loss on Company XYZ offset each other, and there is no capital gains tax liability.

There are two main limitations on the above example. First, the “wash sale” rule prohibits you from selling your Company XYZ shares, harvesting the tax loss and then repurchasing Company XYZ stock (or a stock substantially identical to Company XYZ) within 30 days.

Therefore, if you sold Company XYZ at $90 per share and then decide you want to purchase more shares of Company XYZ at $85, for example, you would need to wait 30 days from the date of sale if you want to claim the tax loss. Second, after offsetting your investment losses, if you are single or a married couple, you can use $3,000 of capital losses each year to offset ordinary income (and $1,500 if married filing separately).

For example, if you have $9,000 of capital losses and no capital gains in the current tax year, you can use $3,000 to offset ordinary income this year, and $3,000 in each of the next two years to offset ordinary income in those years.

3. Never buy a mutual fund in December

If you’re looking to buy a mutual fund now, wait until the new year. Each December, many mutual funds pay out dividends and capital gains that have accrued during the year. It may be tempting to buy the mutual fund right before the mutual fund makes such a distribution. However, while you would receive the distribution for each share you own, you must pay tax on the distribution. This is called “buying the dividend” and is a poor investment strategy.

For example, let’s assume Company ABC declared a $1 per share dividend and will pay investors on December 20. On December 15, in anticipation of receiving this dividend, you decide to buy 100 shares of Company ABC at $10 per share. Therefore, you are entitled to $100 in distributions (100 shares multiplied by $1 dividend per share).

Typically, all else equal, the price of the underlying stock will fall by the amount of the dividend. In this example, Company ABC should trade at $9 per share ($10 – $1). That means you not only have a lower share price, but also a tax liability.

The smarter move is to wait until after the dividend is paid to purchase the mutual fund. You can contact the mutual fund company and ask them when the next dividend distribution will be made so you don’t buy the dividend (and the tax liability).

4. Max out your 401(k) contributions

Due to the power of compounding, tax-deferred retirement accounts are an optimal strategy to grow your wealth. If your company matches a portion of your 401(k) contributions, then even better.

Make sure that you contribute the maximum amount each year to your 401(k). In 2019, you can contribute $18,000 (or $24,000 if you are over 50). At a minimum, try to contribute as much as you can to qualify for an employer match.

5. Convert to a Roth IRA

A Roth IRA is a retirement account that allows you to contribute after-tax earnings now and keep all the appreciation tax-free. That means when you retire and start permitted withdrawals from your Roth IRA, the funds will not be taxed.

For example, if you put $10,000 of after-tax earnings into a Roth IRA at age 30, you would have $106,766 at age 75 (assuming a 7% annual return and no further contributions). If you are a millennial, a Roth IRA makes good financial sense because you are relatively early in your career and can generally expect your income and tax bracket to increase over time.

If you have a Traditional IRA, you may want to consider converting to a Roth IRA. If you choose to convert to a Roth IRA, you will owe taxes on the current balance of your Traditional IRA. One major factor that may drive your decision is your expected tax rate in retirement.

If you expect your tax rate to increase in retirement, then it may be better to pay taxes now on the existing balance in your Traditional IRA and convert to a Roth IRA. If you expect your tax rate to decrease in retirement, then keeping your Traditional IRA may be the better decision. Another advantageous time to convert is a tax year in which you have low income because you will be in a lower tax bracket.

With tax rates likely to fall next year, waiting until the start of 2019 might be the optimal time for a Roth IRA conversion. Why?

Once you convert to a Roth IRA, you have until the last date, including extensions, for filing your prior-year tax return, which is typically on or about October 15, to change your mind and undo (or “recharacterize”) your Roth IRA conversion. Therefore, during this period, you can monitor the stock performance of your converted holdings and decide to recharacterize your Roth IRA to a Traditional IRA if the value of your stock portfolio declines.

6. Make charitable contributions

In addition to making a positive difference, you can deduct the amount of your charitable contribution on your income taxes. While cash is the traditional currency for charitable giving, you can also donate stock that has appreciated in value.

Rather than sell the stock and donate the after-tax proceeds, you can gift the stock to the public charity of your choice and take a tax deduction on the full fair market value of the stock (if you owned the stock for at least one year). You can deduct up to 30% of your adjusted gross income. Plus, when you donate appreciated stock, you will not owe any capital gains taxes.

7. Use your flex spending

Flexible spending accounts are pre-tax accounts offered by many employers. If you have health insurance through your employer, you can use your flexible spending account to pay medical and dental co-payments, deductibles, medicine and other health care costs. You can contribute up to $2,550 per year per employer. If you are married, your spouse can also contribute $2,550.

A dependent care flexible spending account allows you to use pretax dollars to pay for eligible expenses related to care for your child or other dependents up to $5,000 per year for individuals or married couples filing jointly (or $2,500 if you are married filing separately).

The good news is that you do not pay taxes on any contributions to your flexible spending account.

Make sure to use all your flexible spending benefits because the remaining funds in your account are forfeited when the plan year ends. If December 31 marks the end of your plan year, then now is not too late to visit a doctor, refill a prescription or buy a pair of new glasses.

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