Why hire a financial advisor who will take around 1% percent of your assets per year when you can get a certificate of deposit (CD) at over 5% with no fee? That alone amounts to a 6% return on your money. One can get a brokerage CD for two years at 5.5%, and with no fee, the return is 6.5%. I will take that any day instead of worrying about what the market is doing and can sleep at night. That’s especially true as a retired person who is not dollar-cost averaging anymore. Prove me wrong. -Chris While, at ...

Core Points - The individual is considering switching financial advisors from a family member to a new advisor due to personal discomfort with the current arrangement [1][2] - The new advisor is a friend's son, who is younger and at the beginning of his career, which adds a layer of complexity to the decision [2][3] - The individual is concerned about the emotional impact on the brother-in-law, who has provided services without charging fees [1][4] Summary by Sections - **Decision to Switch Advisors** - The individual has found a new advisor they feel more comfortable with and wishes to transfer their accounts [2] - The brother-in-law, despite being a financial planner, may not be the best fit for the individual's needs moving forward [1][5] - **Emotional Considerations** - There is apprehension about how to communicate the decision to the brother-in-law, with worries about hurt feelings [2][3] - The advice suggests that the brother-in-law will either accept the decision gracefully or make a final attempt to retain the individual as a client [5] - **Communication Strategy** - It is recommended to express gratitude to the brother-in-law for his past assistance while stating the desire to explore new advisory options [6] - The individual is encouraged to focus on their own needs rather than critiquing the brother-in-law's performance [7]

Core Points - The article discusses the tax implications of selling a primary residence, highlighting exclusions available for capital gains based on filing status [1][4] - It emphasizes the importance of individual circumstances and tax-management strategies in determining actual tax liabilities [2][5] Capital Gains Tax Basics - Any profit from selling an investment, including a primary residence, is subject to capital gains tax, with long-term gains taxed at rates of 0%, 15%, or 20% based on income [3] - Special rules apply for primary residences, allowing exclusions of $250,000 for single filers and $500,000 for married couples filing jointly [4] Scenarios of Capital Gains Tax - **Scenario One**: Married couple filing jointly with a $480,000 gain can exclude the entire amount under the $500,000 exclusion, resulting in no tax owed [5] - **Scenario Two**: A single filer with a $480,000 gain can exclude $250,000, leading to a taxable gain of $230,000 and a tax bill of $34,500 at a 15% rate [6] - **Scenario Three**: If the homeowner has not lived in the residence for two of the last five years, they cannot exclude any gain and would owe $96,000 at a 20% rate on a $480,000 gain [7]

Core Insights - Selling a longtime home and downsizing in retirement is a common practice, with potential capital gains tax implications depending on the profit from the sale [1][2] Capital Gains Tax Overview - Capital gains tax applies to profits from the sale of investments, including real estate, stocks, and bonds [3] - Long-term capital gains rates are generally lower than ordinary income tax rates, with rates of 0%, 15%, or 20% based on income [4] Home Sale Exclusions - Homeowners can exclude some or all of the gain from taxation if they lived in the home for at least two of the last five years [5] - A married couple filing jointly can exclude up to $500,000 in capital gains from a home sale, while individuals can exclude up to $250,000 [7][8] Tax Implications for Home Sales - For a home sale netting $640,000, a married couple could owe $21,000 in federal taxes after exclusions, while an individual could owe $58,500 [8]