RABCPA PC Blog

Most people think that is appropriate to contribute as much as you can to your company 401(k), no matter what. My opinion is that it is not always the best way to invest your money. You should consider several factors before investing in your company 401K, like, what are your investment choices, whether or not the employer matches your contribution, and will you need that money before you retire. The biggest problems I have with 401(k)s is that people contribute to them in their 20s and early 30s, however when they approach their mid-30s they decide to make an investment or buy a house and find that they have no savings. There only choice is to raid there 401(k). Unfortunately, the 401(k) has not performed that well and so now the end up taking the money out paying taxes and penalties which can be as much is 50%. This happens a lot more often than you think. My suggestion, carefully consider whether to invest in your 401(k), there are much better option sometimes, such as the Roth IRA.

Posted March 24, 2017 by Robert A Bonavito in Educational Videos

In our litigation practice we have many law firms contacting us to review, prepare reports and testify on poor performing investments. The key aspect to understanding whether your advisor did a good job, is understanding the difference between fiduciary standard and suitability standard. In fiduciary standard the financial advisor has a duty to act in your best interest not to steer you into overpriced investment products. Under suitability standard the financial advisor is under no obligation to find the best deal for you. This is probably why you rarely see an investment advisor invest someone into treasury bills or no load efficient mutual funds.  

Posted March 11, 2017 by Robert A Bonavito in Litigation Services

At any given point in time a company’s value may not only be based on cash flow, assets or other criteria. It may be based on the expectations for that company. If the company is well-positioned and investors expect the market share to geometrically expand the value of the company will expand in lockstep with these expectations.

Posted March 4, 2017 by Robert A Bonavito in Business Valuations