Who Ritholtz Wealth Management serves and what brings them in

Business owners with wealth tied to the company

Business owners often need to separate the value of the company from the money that must fund retirement. A strong year can create cash for investing or a Roth conversion, while a weak year may call for restraint. The calendar does not care that the business had a complicated quarter.

Ritholtz Wealth Management looks at the accounts outside the business alongside retirement savings, expected sale proceeds if relevant, and the taxes created by selling investments. Before proposing a fund sale, we calculate the potential federal and state tax effect. Forecasts make a poor substitute for that arithmetic.

• Cash-flow pressure: Decide how much household spending must come from the business.
• Concentrated wealth: Set a plan for reducing exposure when one company dominates net worth.
• Account choices: Review retirement accounts and taxable investments together.

What do physicians and dentists usually need reviewed?

Physicians and dentists often arrive with high earnings, several account types, and little patience for a sales pitch dressed up as planning. The useful work is deciding how much to save, where each investment belongs for tax purposes, and when a Roth conversion is worth the current tax cost.

Ritholtz Wealth Management can discuss retirement income planning, tax-efficient investing, Roth conversion strategy, and Social Security claiming as parts of the same spending plan. A conversion is not automatically smart because a blog said taxes might rise. Yes, it can mean paying tax earlier, so the available cash and future withdrawal plan matter.

• Retirement plan paperwork: Check employee deferrals, employer contributions, and account beneficiaries.
• Taxable account: Review cost basis before selling appreciated holdings.
• Retirement income: Estimate which accounts may support spending in early retirement.

Engineers and DIY investors who want the math checked

Engineers and DIY investors usually do not need a lecture on compound interest. They want someone to test the spreadsheet: Is the retirement date plausible, does the 401(k) rollover to an IRA create a better account setup, and is a large company-stock position taking more risk than the model admits?

A hypothetical $800K portfolio with funds costing 0.35% more than a lower-cost alternative gives up $2,800 a year ($800K × 0.35%). Held for 25 years, that is $70K before any investment growth. Cost is not the only decision, but ignoring it is a peculiar choice for a careful investor.

Ritholtz Wealth Management uses long-term research and diversification when reviewing a portfolio. Every investment can lose value, including the money you originally put in, so a second-opinion plan review should test downside spending pressure as well as projected returns.

• A useful shortcut: If one stock exceeds one-fifth of net worth, examine concentration before chasing a new idea.
• Account map: Put the 401(k), IRA, taxable account, and expected pension or Social Security on one page.
• Assumption check: Test spending, taxes, and cash reserves with lower return assumptions.

Ritholtz Wealth Management also works with other retirement planners

Ritholtz Wealth Management also speaks with households whose situation does not fit a neat professional label. You may be deciding when work can stop, weighing Social Security claiming dates, or wondering if your investments still fit the spending they must support.

The first conversation is a chance to describe the decision in front of you and the paperwork that bears on it. The firm advises households remotely by video conference and telephone. The fee is discussed openly during that conversation and confirmed in writing before any work begins.

• Bring the decision: Name the choice you cannot settle from your own research.
• Bring the numbers: Share account balances, expected spending, and recent tax paperwork.
• Bring the objection: Say what makes you skeptical; that is usually where the review should begin.