Are you wondering how we do what we do? Pearson Capital, Inc.’s financial advisor is more than happy to teach you all about the process of investing with our financial investment company. Take a moment to look below to get an idea of what our team is ready to do to help you improve the way you invest.
How Do We Do It?
- We open a personal account of any kind for you at TD Ameritrade, which is one of the largest institutions in the world. Your personal check(s) for opening the account(s), or when adding funds, are always made out to TD Ameritrade and never to us. These funds are immediately deposited into your TD Ameritrade, interest bearing, Money Market Fund while your Personal Wealth Account is built.
- Our financial investment company does not have any kind of binding contract with you as many companies do. We don’t have any consultation, advertising, entrance, or exit fees because we simply do not need them. If our clients, at any time, are not satisfied with our performance, why should we penalize them for leaving? Our objective is to do the very best for them. If anyone, for whatever reason, should decide to cancel their agreement, they could have their account closed or transferred within five business days. No penalties, no strings attached, and no explanation needed.
- A “Management Agreement” is created that outlines your personal goals and objectives and describes your risk tolerance to give us the important personal information we need to make the right investment decisions for you. The “Limited Power of Attorney” enables us to trade within your account, but does not give us access to your assets.
- Every holding within each account’s portfolio will be viewed on a regular basis by our senior research team. Our analysts have many years of experience in the investment and stock research industry. Proper allocation and diversification of stocks is a key to our success. Every single stock portfolio is customized to fit the client’s needs.
- Our financial investment company does not receive a commission, or in any way make a profit, on buying or selling your stocks. Excessive and unnecessary trading only reduces the value of the account and is considered “churning.” We are performance driven and strive to meet our standards for excellence as we continue our partnership with you.
- Every purchase or sale of a commodity has a trading fee. The current per trade fee, payable to TD Ameritrade, is $9.95. Be aware of the fact that some companies are charging more than $50.00 per trade. Our 1% management fee, paid quarterly, will be deducted automatically (at .25%) from your account unless otherwise instructed. Accounts under $25,000 are billed at 2% annually.
- We encourage anyone to call our financial advisor with any investment related questions you may have. We do not use an automated telephone service, which means you have the opportunity to speak with an investment advisor when you need one.
- When your account(s) are open, you will have the opportunity to access all of your account data online. You will also receive the Pearson Investment Letter at no charge. It has been published since 1982; current subscription price is $99.00 per year.
- Any information you have provided to us is strictly confidential. This information will in no way lead to unsolicited, unwanted phone calls. We also do not sell your name or address to a third party.
- We are successful because we do things differently. Does this sound too good to be true? Let us manage a portion of your assets for a reasonable period of time, then compare the results with your other investments. We are sure you’ll see for yourself the benefits of working with us.
Frequently Asked Questions
Which type of IRA should I choose?
A ROTH IRA always beats a Traditional IRA because it allows you to escape taxes entirely on the earnings of your after-tax contributions. A Roth is the better route if your tax bracket will stay the same or rise after you retire. Because the decision between a Roth and a Traditional IRA boils down to taxes now versus taxes later, one big factor in choosing between the two is how your tax bracket will change over time.
What if I’m over the age of 70.5 and want to keep contributing?
A Roth IRA is your only option. With a Traditional IRA, once you reach age 70.5 you have to start taking money out of your account and stop contributing. A Roth IRA allows you to keep saving as long as you have earned income without making withdrawals.
Can I convert an existing IRA to a Roth?
Converting from a Traditional IRA to a Roth IRA lets you make tax-free withdrawals later on, but gives you a big tax bill today. You must remember that you will owe income tax on all contributions to a Traditional IRA that you have made and all its investment earnings. Before you make the decision to convert, ask yourself these questions:
- Will I fall into a lower tax bracket when I retire? Remember to include pensions, projected investment earnings, and taxable Social Security benefits.
- Will I need money within five years of conversion?
- Will I need to tap the IRA to pay the taxes incurred from a conversion?
- Will I be forced to sell investments and incur substantial capital gains taxes?
- Will the extra income tax liability incurred by a conversion end up pushing me into a higher tax bracket or cause me to forfeit any significant tax deductions, credits, or exemptions? If you answered yes to any of these questions, do not convert to a Roth IRA. However, if you answered no to all of these questions, converting to a Roth IRA makes sense.
Can I convert 401(k) and profit-sharing plans?
You can roll your 401(k) into a Traditional IRA when you leave your job and then flip that into a Roth IRA. The drawback is that you will owe taxes on the total amount rolled into the Roth.
Can I have a Traditional IRA and a Roth IRA?
Yes, you can own a traditional IRA and a Roth IRA at the same time. However, the maximum contribution rule still applies based on your age, currently $5,500 for those under 50 and $6,500 over 50. You may split your annual contribution between the two IRAs. There are many advantages to either type of IRA when saving for your retirement. The most important thing to remember though: the longer you leave it alone, the more you will end up with when it is time to start withdrawing.
Contact our financial investment company with any questions you might have about how we help you maximize your investments. Our team is proud to assist clients and prospective clients who are located throughout the communities of Tampa and Hillsborough County, Florida, as well as the surrounding areas and nationwide.