Q&A: Where to Stash Extra Savings?
“After all this savings, I have about $3,000 per month left to save somewhere. Where should I save it?”
“After all this savings, I have about $3,000 per month left to save somewhere. Where should I save it?”
Here is a simple list of the retirement account types and their differences.
On May 23, 2019, the House passed the Setting Every Community Up for Retirement Enhancement Act of 2019 with a vote of 417 Yeas and 3 Nays. It is on its way to the Senate.
Most divisors are looked up in tables based on your age. Others are calculated based on last year’s divisor. Some particularly unfortunate cases have distribution deadlines rather than divisors at all.
There are many opportunities to pay your children. If that payment can be counted as earned income, then the child is eligible to fund their Roth IRA.
On Tuesday, April 9, 2018, David John Marotta appeared on Radio 1070 WINA’s Schilling Show to discuss how to achieve success and significance in retirement by both adequately savings for retirement and finding fulfillment during that period of your life.
If your employer offers a 457 plan, consider taking advantage of the ability to shelter more money each year from taxes in a Roth account.
The required IRA distribution in the year the account owner dies is called a Year of Death RMD.
Punishing people for inflation is neither fair nor good economic policy.
My husband chopped his leg with a hatchet in 2018 when we didn’t have health insurance.
Even the most Roth-loving individuals may have hidden Traditional assets that they do not know they can convert to Roth. Here are just a few places to look.
The regulation is an attempt to protect participants who don’t understand the rules set up by the government.
This year was a good year for Roth loving folks like us.
How to go from where you are now to being one of our clients under our “Do-It-Yourself” service level.
Teresa Ghilarducci is just wrong here. There is no qualification that can make Ghilarducci more right.
We find the practices of much of the financial services industry repulsive.
If you run a retirement plan at your company, you are responsible for performing periodic reviews to ensure that the plan is the best it can be for participants.
Tax Year 2023 Account Type Requirements Contribution Limit More Reading Traditional or Roth IRA Contribution (subject to phaseouts, limited by wages) Age 49 and under $6,500 Should I Fund a Roth or a Traditional Account? Do Large Roth Conversions Require … Read More
Although this 1040 looks smaller, it is not an upgrade for anyone except for the IRS.
Failure to perform such periodic reviews is a litigatable fiduciary breach.
You should not trust a point in time fiduciary for even a single heart beat.
Although a net worth statement is not valuable by itself, it is very valuable in the larger context of your comprehensive financial plan.
Sadly, the IRS is very clear about this; contributions must be cash.
Here is the list of broker-dealers who said the CFP should not expect those with the CFP® mark to not mislead consumer.
Under the Tax Cuts and Jobs Act, you are still allowed to make nondeductible contributions and still allowed to convert IRA assets to Roth IRA.
Compliance is never simple. Thousands of hours have been spent because the SEC refused to clarify what they expect.
Being able to lower total fees while investing part of the portfolio in slightly higher cost country specific exchange traded funds and being able to use exchange traded funds with strategic factors and add a monthly dynamic tilt is a significant accomplishment.
On January 18, 2018, the IRS updated their Frequently Asked Questions page to come into line with the new Tax Cuts and Jobs Act.
Here are seven techniques for small business owners to build real wealth.
Can you aggregate RMDs? Yes, for some account types. Should you aggregate your RMDs? Not unless you have a really good reason to.
Work-Life Balance Achievement Compensation Culture & Community
With this proposed expansion, 529 accounts may become the most cost-efficient way to fund all education expenses.
Every business owner or director of a non-profit should realize that if they don’t take their fiduciary responsibility seriously they are legally liable for their neglect and inaction.
If you budget well according to your values, a one-pocket theory of money enriches your life, prioritizing your financial dreams above your impulses.
Putting all of your retirement eggs in one basket is easy to carry, but risky. Fund your employer’s plan with no more than is necessary to get the match and then fund your Roth IRA and build your taxable savings.
Financial planning is simply doing what it takes to give you the means to do what you want. The poorer you are the more you need financial planning. You don’t have any margin for mistakes.
Most of the assets you use to fund your retirement will come from compounded growth.
Families that consider generational financial planning techniques can reduce the burden of taxes on the family as a whole.
Unfortunately the age restriction makes the charitably-inclined young, who are more likely to be in the 0% capital gains bracket, unable to make QCDs.
I have learned there are so many more wise plans than just “top of the bracket” conversions.
Find out today how much you should be saving and investing this month! If you think a $1 million dollar portfolio is overkill, you haven’t really run the numbers.
Exact asset location depends on the percentage of a portfolio held in each of the three types of accounts as well as the percentage of the portfolio which is to be allocated to each selected sector. But the boost in after-tax returns is well worth the effort.
Inherited RMD rules demonstrates the power and importance of beneficiary designations and why it is so important to set them.
You can’t touch the earnings on your contributions until you’ve had an account open for 5 years and you’re either over age 59 ½ or you meet special exceptions.
Dividends and interest received from U.S debt obligations can be deducted on many state tax returns.
If you are a mixed-decade couple, take advantage of the Joint divisor by making your spouse your primary and sole beneficiary for your IRA and use the Joint Life and Last Survivor Expectancy Table to find your RMD.
Even though you are required to start taking RMDs you can still take advantage of significant tax planning strategies.
The rules for post-70 ½ IRA contributions depend upon whether the account is a traditional IRA, Roth IRA or SEP IRA.
If you want to be really minimalist about your budgeting, here’s what we suggest: the 65-25-10 rule.
What if you do not need all the money from your RMD and you are also charitably inclined?