#Roth 401(k) plans

[retirenowis]

A Strategic Approach to College Savings Using Life Insurance for Long-Term Financial Security

Saving for college is a significant financial commitment, and families are constantly seeking strategies to ease this burden. One often overlooked option is saving for college with life insurance. This strategy offers flexibility and financial stability since it not only creates a safety net but also lets cash worth increase with time. Understanding the benefits of a life insurance college fund strategy can help families create a versatile and effective college savings plan.

What is Saving for College with Life Insurance?

Using a permanent life insurance policy—such as whole life or universal life insurance—saving for college with life insurance means building cash worth over time. Permanent life insurance policies generate cash value that is accessible to the policyholder for the duration of their lifetime, whereas term life insurance only offers coverage for a predetermined time. This growing cash value can be borrowed against or withdrawn to help cover the costs of college tuition, books, or other educational expenses.

Why Consider a Life Insurance College Fund Strategy?

A life insurance college fund strategy offers several unique advantages over traditional savings plans. Unlike 529 plans or other college savings accounts, the cash value in a life insurance policy can be used for any purpose, not just education. This flexibility ensures that if your child decides not to attend college, the money can still be utilized for other significant financial goals. Furthermore, the cash value grows tax-deferred, making this strategy a valuable tool for building long-term wealth.

How Does Life Insurance Help with College Savings?

The life insurance college fund strategy is particularly appealing because of the potential for tax-advantaged growth. As premiums are paid into the policy, a portion goes toward building cash value. Over time, this cash value grows, and when it’s time to pay for college, the policyholder can borrow against or withdraw from it. Since loans from life insurance policies are not taxed, it’s a tax-efficient way to access funds for higher education.

Flexibility and Security in College Planning

Unlike traditional college savings vehicles, saving for college with life insurance provides more flexibility. In cases where a child may receive scholarships or choose an alternative career path, the funds in a 529 plan can face tax penalties if used for non-educational purposes. Life insurance, on the other hand, does not have this limitation. The cash value remains available for a wide range of uses, offering financial security beyond education.

Start Early for Maximum Benefits

Starting alife insurance college fund strategy early is crucial for maximizing the benefits. The earlier a policy is purchased, the more time the cash value has to accumulate. By the time college expenses arise, there will be a substantial amount available to cover educational costs. Additionally, starting early ensures lower premiums, making it a more affordable long-term solution for families planning for the future.

Conclusion

Saving for college with life insurance is a flexible and tax-efficient strategy that provides both financial security and peace of mind. With a life insurance college fund strategy, families can build wealth, ensure protection, and fund educational expenses without facing the restrictions of traditional savings plans. Visit retirenowis.com for professional advice to investigate how this strategy might be customized to meet your financial objectives.

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[dashofletters]

Trying to choose Pretax vs. Roth 401(k)? Why it's trickier than you think, experts say

Prostock-Studio | Istock | Getty Images If you have a 401(k), one of the big questions is whether to make pretax or Roth contributions — and the answer may be complicated, experts say. While pretax 401(k) contributions reduce your adjusted gross income, you’ll owe levies on growth upon withdrawal. By comparison, Roth 401(k) deposits won’t provide an upfront tax break, but the money can grow…

[bitchesgetriches]

{ MASTERPOST } Everything You Need to Know about Retirement and How to Retire

How to start saving for retirement

Dafuq Is a Retirement Plan and Why Do You Need One?

Procrastinating on Opening a Retirement Account? Here’s 3 Ways That’ll Fuck You Over.

Season 4, Episode 5: “401(k)s Aren’t Offered in My Industry. How Do I Save for Retirement if My Employer Won’t Help?”

How To Save for Retirement When You Make Less Than $30,000 a Year

Workplace Benefits and Other Cool Side Effects of Employment 

Your School or Workplace Benefits Might Include Cool Free Stuff

Do NOT Make This Disastrous Beginner Mistake With Your Retirement Funds

The Financial Order of Operations: 10 Great Money Choices for Every Stage of Life

Advanced retirement moves

How to Painlessly Run the Gauntlet of a 401k Rollover

The Resignation Checklist: 25 Sneaky Ways To Bleed Your Employer Dry Before Quitting

Ask the Bitches: “Can I Quit With Unvested Funds? Or Am I Walking Away From Too Much Money?”

You Need to Talk to Your Parents About Their Retirement Plan

Season 4, Episode 8: “I’m Queer, and Want To Find an Affordable Place To Retire. How Do I Balance Safety With Cost of Living?” 

How Dafuq Do Couples Share Their Money? 

Ask the Bitches: “Do Women Need Different Financial Advice Than Men?”

From HYSAs to CDs, Here’s How to Level Up Your Financial Savings

Season 3, Episode 7: “I’m Finished With the Basic Shit. What Are the Advanced Financial Steps That Only Rich People Know?” 

Speaking of advanced money moves, make sure you’re not funneling money to The Man through unnecessary account fees. Roll over your old retirement accounts FO’ FREE with our partner Capitalize:

Roll over your retirement fund with Capitalize

Investing for the long term

When Money in the Bank Is a Bad Thing: Understanding Inflation and Depreciation

Investing Deathmatch: Investing in the Stock Market vs. Just… Not 

Investing Deathmatch: Traditional IRA vs. Roth IRA

Investing Deathmatch: Stocks vs. Bonds 

Wait… Did I Just Lose All My Money Investing in the Stock Market? 

Financial Independence, Retire Early (FIRE)

The FIRE Movement, Explained 

Your Girl Is Officially Retiring at 35 Years Old

The Real Story of How I Paid off My Mortgage Early in 4 Years 

My First 6 Months of Early Retirement Sucked Shit: What They Don’t Tell You about FIRE

Bitchtastic Book Review: Tanja Hester on Early Retirement, Privilege, and Her Book, Work Optional

Earning Her First $100K: An Interview with Tori Dunlap 

We’ll periodically update this list with new links as we continue writing about retirement. And by “periodically,” we mean “when we remember to do it.” Maybe remind us, ok? It takes a village.

Contribute to our staff’s retirement!

Holy Justin Baldoni that’s a lot of lengthy, well-researched, thoughtful articles on the subject of retirement. It sure took a lot of time and effort to finely craft all them words over the last five years!

In case I’m not laying it on thick enough: running Bitches Get Riches is a labor of love, but it’s still labor. If our work helped you with your retirement goals, consider contributing to our Patreon to say thanks! You’ll get access to Patreon exclusives, giveaways, and monthly content polls! Join our Patreon or comment below to let us know if you would be interested in a BGR Discord server where you can chat with other Patrons and perhaps even the Bitches themselves! Our other Patrons are neat and we think you should hang out together.

Join the Bitches on Patreon

[financeattips]

Millennials Money Tips for Personal Finance

It is very difficult for millennials to manage their own finances today as the world of competition requiring one to workout harder has changed in a matter of months. From student loan debt to increasing living costs, this generation has faced financial struggles that are all its own. Nevertheless, there are strategies out there that can work for the millennial in search of sustainable financial security or even just a better bottom line. Below are a few of the basic personal finance tips for millennials.

1. Set Clear Financial Goals

The first step in any financial plan is establishing specific and attainable goals. Whether it's to buy a home, pay off your student loans, or save for retirement — knowing what you're working towards will keep you more engaged and inspired. Divide your goals into short-term (one to two years), medium-term (three to five years) and long-(five or more). This approach helps you to prioritize and use your resources accordingly.

2. Create and Stick to a Budget

The Facet of Financial Management: Budgeting Track your income and expenses: The very first step is to track how much you are earning, after that what things consume your bills? Budgeting tools; you may use an app to categorize what you spend on and where they can be reduced. If possible, adhere to the 50/30/20 rule — apportion half of your funds towards needs and twenty percent for saving or repaying debt.

3. Build an Emergency Fund                                                                         

It is only a rainy day fund to act as an emergency safety net in case life decides not to follow your plan. The hopefully three to six months of absolute must-have sequestered in a separate, liquid account. It can help you with the cost of surprising expenses–whether they be medical bills or it lets you maintain your financial schedule, rather than having a huge hole in it due to car repairs.

4. Manage Debt Wisely

For many millennials, student loan debt can be a large financial weight. Start your payoff journey with high-interest debt — credit card balances are a solid place to begin. Refinance or consolidate student loans at a lower interest rate. Establish and Maintain a HISTORY of consistent on-time payments to improve your credit score, reducing overall debt.

5. Invest for the Future

If you want to create wealth then investment is the most important thing for it. If your employer offers a matching 401(k) plan, that is what you should start with. Demand more investment options like IRAs, Stocks and Mutual Funds. Simply Diversify A toasted way to diversification! The point is that, your money should earning with compounding.

6. Enhance Financial Literacy

One can be really good at making informed decision which is backed by financial literacy. Use online sources, books and courses to learn more about personal finance. Understanding concepts such as interest rates, inflation and investment options can help you make more informed financial decisions.

7. Plan for Retirement

Architecting retirement: It is never too early to plan for retirement. Save a minimum of 15% of your income toward retirement. Make use of Roth IRAs and traditional IRA tax-advantaged accounts. You may want to talk with a financial advisor who can help you put together your own retirement plan based on what you hope for in retirement and how much risk you are willing to take.

8. Protect Your Assets

But while it may not be the sexiest asset class around, insurance is integral to any complete financial plan. Make sure of health, auto and and home insurance coverage. Good idea: If you have dependents, consider life insurance. Disability insurance provides you income in the event of an illness or injury.

9. Check Your Credit Score

Great credit can unlock lower-interest rates and financial possibilities. Review your credit report on a regular basis for inaccuracies and work towards building up the score. By paying your bills on time, keeping credit card balances low and only opening new accounts when you need them (and therefore improved scores so long as other key factors don't weigh in ).

10. Seek Professional Advice

If you are unsure of where to begin or need help, then speak with a financial advisor. They can give you advice and even consult with you to build a financial plan as well. Also look for a good pedigree — Certified Financial Planner (CFP) or Chartered Financial Analyst (CFA).

With these personal finance tips, a millennial can move forward in the financial journey feeling more secure for their future. Earning money is only part of the process… its mastering discipline, consistency and continuous learning that leads to long-term financial success.

[miyamatsui]

401(K) INVESTMENT PLAN

Today, I will share with the guys my structured approach to building and managing retirement savings through a 401(k) investment plan. By following this plan, you can achieve financial security in retirement and have a portfolio that balances growth potential with risk management.

Objective: The objective of this 401(k) investment plan is to ensure a well-balanced and diversified portfolio that aligns with long-term financial goals, risk tolerance, and retirement needs. This plan is designed to maximize returns while minimizing risks, taking into account the tax advantages of a 401(k) account.

Assessing Risk Tolerance and Time Horizon

Risk Tolerance: Determine the appropriate level of risk based on personal financial goals, age, and comfort with market volatility. Generally, a higher risk tolerance allows for a greater allocation to equities, while a lower risk tolerance favors bonds and fixed-income investments. Time Horizon: The number of years until retirement is a key factor in deciding the investment strategy. A longer time horizon permits a more aggressive investment approach, while a shorter time horizon necessitates a more conservative allocation.

Diversification Strategy

Equity Investments: Allocate a percentage of the 401(k) to stocks, focusing on a mix of domestic and international equities. Consider including large-cap, mid-cap, and small-cap funds to ensure broad market exposure. Fixed-Income Investments: Invest in bonds and other fixed-income securities to provide stability and income. Consider a mix of government, corporate, and high-yield bonds to diversify risk. Alternative Investments: Depending on the options available within the 401(k) plan, consider allocating a portion of the portfolio to alternative investments such as real estate or commodities to further diversify and hedge against inflation.

Contribution Strategy

Maximize Contributions: Aim to contribute the maximum allowable amount each year to take full advantage of tax deferral benefits. Additionally, contribute enough to qualify for any employer matching contributions, as this represents an immediate return on investment. Regular Contributions: Set up automatic contributions to ensure consistent investment over time. This dollar-cost averaging approach can reduce the impact of market volatility.

Rebalancing and Monitoring

Periodic Rebalancing: Regularly review the portfolio to ensure it remains aligned with the target asset allocation. Rebalance the portfolio at least annually or whenever significant market movements cause a substantial deviation from the original allocation. Monitoring Performance: Continuously monitor the performance of individual investments and the overall portfolio. Make adjustments as needed based on changes in market conditions, personal financial situation, or retirement goals.

Consideration of Tax Implications

Pre-Tax vs. Roth Contributions: Evaluate the benefits of making pre-tax contributions versus Roth (after-tax) contributions based on current and expected future tax rates. Required Minimum Distributions (RMDs): Plan for RMDs starting at age 73 (or the required age based on current regulations) to minimize tax impact and ensure compliance with IRS rules.

Retirement Income Planning

Withdrawal Strategy: Develop a strategy for withdrawing funds during retirement that minimizes tax liability and ensures the longevity of the retirement portfolio. Annuity Consideration: Consider purchasing an annuity with a portion of the 401(k) balance to provide a guaranteed income stream during retirement

[mattdixongreenvillesc]

The Pros and Cons of Different Types of Retirement Plans

The Pros and Cons of Different Types of Retirement Plans https://mattdixongreenvillesc.co/the-pros-and-cons-of-different-types-of-retirement-plans/ Retirement planning is essential with financial planning, and choosing the right retirement plan can significantly impact your future financial security. Several types of retirement plans are available, each with its own advantages and disadvantages. Let’s explore the pros and cons of different retirement plans to help you choose the right one. Traditional IRA This is an retirement account that allows you to make tax-deductible contributions, and the earnings grow tax-deferred until you withdraw them in retirement. One of the advantages of a traditional IRA is that it can reduce your taxable income. However, withdrawals are taxed at your current income tax rate, which can be a disadvantage if your tax rate is higher in retirement. Roth IRA This is similar to a traditional IRA, but the contributions are made with after-tax dollars. The earnings grow tax-free, and withdrawals are tax-free in retirement. One of the advantages of a Roth IRA is that you won’t pay taxes on your withdrawals in retirement, which can be a significant benefit if your tax rate is higher. However, you won’t receive a tax deduction for your contributions. 401(k) Plan A 401(k) plan is offered by many employers. Contributions are made with pre-tax dollars, and the earnings grow tax-deferred until you withdraw them. One of the advantages of a 401(k) plan is that many employers offer matching contributions, which can help you save more for retirement. There are limits on how much you can add each year, and withdrawals are taxed at your current income tax rate. Roth 401(k) Plan A Roth 401(k) plan is similar to a traditional 401(k) plan, but the contributions are made with after-tax dollars. The earnings grow tax-free, and withdrawals are tax-free in retirement. One of the advantages of a Roth 401(k) plan is that you won’t pay taxes on your withdrawals in retirement, which can be a significant benefit if your tax rate is higher in retirement. However, not all employers offer a Roth 401(k) plan. Pension Plan A pension plan is a retirement plan offered by some employers. With a pension plan, your employer contributes to the plan, and you’re guaranteed a specific income in retirement. One of the advantages of a pension plan is there is no worry about managing your investments or market fluctuations. However, not all employers offer pension plans, and you may have limited control over your retirement income. Several types of retirement plans are available, each with its own advantages and disadvantages. Traditional and Roth IRAs offer tax advantages, while 401(k) and pension plans provide employer contributions and guaranteed income. It’s essential to consider your current and future tax situation, your retirement income needs, and your employer’s retirement plan options when choosing the right retirement plan for you. The post The Pros and Cons of Different Types of Retirement Plans first appeared on Matt Dixon | Professional Overview, Philanthropy. via Matt Dixon | Professional Overview, Philanthropy https://mattdixongreenvillesc.co

[my-cpe]

👉Hey, Posted a New Blog on SECURE 2.0 AND ITS FUTURE IMPACT hope the Tumblr community like the same.

➡️SECURE 2.0 is a new provision signed by President Joseph R. Biden on December 29, 2022, to improve Americans' financial security. The legislation builds on the SECURE Act 2019 and includes recommendations from the BPC's Commission on Retirement Security and Personal Savings.

➡️Key highlights of SECURE Act 2.0 include raising the starting age for required minimum distributions (RMDs) to 73 in 2023 and 75 in 2033, increasing catch-up contributions for individuals aged 60-63, allowing employer-matching for Roth accounts, expanding the types of charities eligible for qualified charitable distributions, and increasing the popularity of qualified longevity annuity contracts.

➡️Additionally, the legislation requires employers to automatically enroll eligible employees in new 401(k) and 403(b) plans with a minimum contribution rate of 3% in 2025 and allows for automatic plan portability for employees who change jobs 2.0 & its future impacts do check our full blog at: https://my-cpe.com/blogs/secure-2-0-and-its-future-impact

[arithmonym]

i’d also like to add that Target Date Funds (TDFs) exist, and you don’t have to know much about investing to use them.

TDFs are a kind of mutual fund that automatically rebalances your portfolio to be more conservative (i.e., hold more bonds & money market accounts than stocks, which are more volatile) as you get closer to retirement age. that way, you can take more risks and have more growth when you’re younger, but you don’t have to worry as much about a stock market downturn when you’re ready to withdraw money. if you want a hands-off approach, just select a TDF that’s closest to your desired retirement age (e.g., i was born in 2002. assuming i want to retire at 65, the TDF for 2065 is closest), invest what you can each month, and let the money compound. there are lots of other approaches to long-term investing—many people like to invest in ETFs that track the stock market like VTI or VOO and hold it—but this is one simple approach.

also: TDFs are offered in many company-sponsored 401(k) plans, but if you don’t work for a company that offers a 401(k), you can still open a Roth IRA and contribute to a retirement account!

as compared to a regular brokerage account (where you also have to pay capital gains tax on withdrawals), the money you invest in a Roth IRA is earned income & tax-advantaged, meaning you fund it with post-tax dollars & your contributions to the account grow tax-free. when you take out the money at retirement, you don’t have to pay income taxes on your distribution. (this is especially great for early-career workers who expect to be in a higher tax bracket when they retire since it minimizes their taxes over the long-term, even though you don’t get the tax deduction in the current year.)

this retirement calculator by nerdwallet is super user-friendly, and lets you play around with different scenarios to estimate what you’ll have for retirement vs what you’ll need:

this retirement calculator by bankrate is very similar, and also lets you toggle whether you’d like to include social security benefits in your retirement planning:

Kids, we know how interest works, right? A while back I made a post about how credit card interest can screw you, but we know how interest can be good for you too, right?

I suspect we don't know about this because on one of the posts I made about it someone said something about how it is evil that money can make money, but you know that's not just for the ultrawealthy, right? That is legitimately something that you can and should take advantage of in some kind of retirement/savings/investment account.

Let us say that you are twenty years old, have no money to put into a savings account, but have a job that pays you well enough that you've got twenty dollars to spare from each paycheck.

Let us say that you put that into a normal savings account; normal savings accounts have an average interest rate of .56 APY. Let us say you are going to be working until you are sixty, and that you will add forty dollars to that account every month (twenty bucks from each paycheck) for a total of $480 per year.

At the end of 40 years you would have about $21.5k.

That's a pretty good chunk of change! twenty thousand dollars is a lifechanging amount of money. But look at the total interest. In forty years you would have accrued only $2300 in interest.

Now, instead, let us imagine that you are a member of a credit union that offers you a free, high-yield savings account with a decent APY. Everything else being the same, but putting that money in an account with a 4% return does this:

Your total contributions that you put in stay the same, but the amount of money you have at the end of forty years more than doubles.

Let's say you have a thousand dollars to put in the account at the beginning and run it again.

Low interest account: you add $1000 at the start and have an extra $1200 at the end.

High interest account: you add $1000 at the start and have an extra $4000 at the end.

There are many, many very stable opportunities for savings that will grow your money. Fifty thousand dollars isn't a retirement plan, but it's a hell of a lot better than what you would have if you just stuck cash in a savings account or if you didn't save any money at all.

I know how hard it can be to save. I know it feels impossible to put money aside, but even if you start with no money and can tuck away five dollars a week you can get a LOT out of that five dollars a week.

This certainly isn't "you can't buy a house because you get coffee at the cafe," but it something that can HELP.

Now, let's suppose you're not twenty. Let's suppose you're in my boat, and you're (almost) forty and you're going to be saving for twenty years. You still don't have a lot of cash, but you know it has less time to grow interest, so you double your contribution and you put in forty dollars for each paycheck for a total of $960 a year.

That is extremely very much not the same thing as putting in forty bucks a month for twenty years. Instead of your interest being nearly one and a half times the amount of your contributions, it is around half.

If you are a young person (honestly even if you are not a young person) and it is in any way possible for you to start putting money into any kind of an investment account, you should do so as soon as humanly possible. The earlier you do it, the more interest you will have and the more money you will end up with when you are nearing retirement age.

This is how individual retirement plans work. This is what a 401K does, but sometimes it does that with matching contributions from your employer (so your employer matches whatever you put into the account up to a certain percentage of your pay). 401K accounts also often have higher APYs than high yield savings accounts, though they have more limitations on how and when the money can be pulled out.

If you are broke as fuck and never learned anything about investing or interest from your family because your family was broke as fuck too, now is the time to learn. r/PersonalFinance is a reasonable resource (and if you ever happen to have a windfall that's the first place I would point you for figuring out how to make the most of it) for learning about this stuff.

Thinking about money sucks! Being afraid you'll never be able to retire sucks! Having to figure out how to save sucks! But there are tools out there that even very fucking broke people can use to make that suck less.

[hamiltonfinancialplanning]

Unlocking Financial Success with Wealth Management in Houston, TX

Managing your wealth effectively is essential to securing your financial future and achieving your long-term goals. Whether you’re planning for retirement, building investments, or preserving assets for future generations, professional wealth management is key. At Hamilton Financial Planning, we specialize in wealth management in Houston, TX, offering tailored strategies to help you make the most of your financial resources.

If you're looking for expert guidance and comprehensive services to manage your wealth, here's why partnering with a wealth management firm in Houston, TX, can make all the difference.

What Is Wealth Management?

Wealth management is more than just managing investments. It’s a holistic approach to overseeing your finances, including retirement planning, tax strategies, estate planning, and risk management. A wealth manager works with you to develop personalized solutions based on your unique financial needs and objectives.

At Hamilton Financial Planning, we provide comprehensive wealth management services that ensure every aspect of your financial future is covered. Here's what our wealth management services encompass:

Key Services Offered in Wealth Management

Wealth management is all-encompassing, and a skilled financial advisor can guide you through each area to ensure your assets are maximized. Some of the core services included in wealth management in Houston, TX, are:

1. Investment Management

Investing wisely is critical for building long-term wealth. A wealth manager will assess your current investments and develop a strategy that aligns with your financial goals. Whether you're looking for aggressive growth or more conservative strategies, Hamilton Financial Planning tailors investments to your risk tolerance, timeline, and objectives.

2. Retirement Planning

Planning for retirement involves more than just saving. With the help of a wealth manager, you can create a strategy that maximizes your savings and minimizes taxes. Your advisor will assist with selecting the right retirement accounts (such as 401(k)s, IRAs, and Roth IRAs) and help you ensure that you have enough saved to maintain your lifestyle in retirement.

3. Tax Strategies

Effective wealth management goes hand-in-hand with strategic tax planning. A wealth manager will help you minimize tax liabilities through investment strategies, deductions, and tax-efficient withdrawal plans during retirement. Our team at Hamilton Financial Planning understands the tax laws in Houston, TX, and can develop strategies to reduce your overall tax burden.

4. Estate Planning

Estate planning is often overlooked but is a crucial part of wealth management. Your wealth manager will assist you with wills, trusts, and other estate planning tools to ensure your assets are passed on according to your wishes. This is especially important for high-net-worth individuals looking to protect their wealth for future generations.

5. Risk Management

Wealth management isn’t just about accumulating wealth; it’s also about protecting it. A wealth manager will help you identify potential risks, such as market fluctuations, healthcare expenses, and long-term care needs. By developing risk mitigation strategies and diversifying your portfolio, you can safeguard your wealth and ensure a stable financial future.

Why Choose Hamilton Financial Planning for Wealth Management in Houston, TX?

When it comes to managing your wealth, you need a partner you can trust. At Hamilton Financial Planning, we provide personalized services tailored to your specific financial situation. Here's why you should choose us for wealth management in Houston, TX:

Comprehensive Financial Planning: We offer a wide range of services designed to address every aspect of your financial life, from investments to estate planning.

Experienced Advisors: Our team of wealth managers has the expertise to guide you through complex financial decisions and ensure you’re on the right path.

Tailored Solutions: We understand that every client is unique. That’s why we take a personalized approach to creating financial strategies that align with your goals.

Ongoing Support: Wealth management is an ongoing process. We continue to monitor and adjust your plan as your life circumstances change, ensuring your financial goals are always met.

How Wealth Management Helps You Achieve Financial Goals

The right wealth management strategy can help you achieve your personal and financial goals, including:

Achieving Financial Independence: Wealth management can help you accumulate and grow your assets, providing financial freedom and security in the long term.

Preparing for Retirement: By developing an effective retirement plan, you can ensure that you have the funds necessary to retire comfortably and on your terms.

Leaving a Legacy: Wealth management can help you preserve your wealth for future generations, enabling you to leave a lasting impact.

Take Control of Your Financial Future with Wealth Management

If you’re ready to take control of your finances and secure your future, Hamilton Financial Planning is here to help. Our team of experts offers wealth management in Houston, TX, tailored to meet your specific needs and goals.

[finlotax]

Your Guide to Essential Tax Strategies for 2025

As we draw to the end of 2024 and await the dawn of 2025, staying ahead of the curve with effective tax planning strategies becomes crucial. Proactive planning gains greater significance due to potential major changes in tax laws on the horizon, particularly with the likely expiration of several provisions of the Tax Cuts and Jobs Act (TCJA) in 2025. While President-elect Donald Trump and the Republican party have committed to extending many provisions of the TCJA, uncertainty remains about the kind of tax changes the new regime will usher in. We discuss a few essential tax planning strategies you could consider adopting to protect your finances in 2025.

1. Impact of TCJA Expiration

The TCJA significantly altered the tax code, but many of its provisions are set to expire by the end of 2025. Provisions that could revert to the old rules include the following:

·   Individual tax rates that were reduced under the TCJA are likely to revert to the higher old rates unless extended.

·   Standard deductions that were almost doubled under the TCJA will revert subject to adjustments for inflation

·   Mortgage interest deduction on home equity loans was suspended and limited under the TCJA. This could revert to the old limits post 2025.

·   The State And Local Tax (SALT) deductions which were capped at $10,000 under the TCJA could revert to the higher old deduction amounts on property, local, and state taxes. There are also suggestions that the SALT deductions could be eliminated. You could consider delaying any additional SALT payments to 2025 once there is more clarity on the provisions.

Consequently, once the TCJA expires it would be best to prepare for potential increases in tax rates and adjustments to deductions.

2. Increased standard deduction rates for 2025

The standard deduction you can claim in 2025 will be higher than in 2024 which means a larger part of your income will stay exempted from tax. However, this increase in standard deduction will make it harder to itemize your deductions in 2025. Essentially, the probability of getting tax benefits from mortgage interest paid and contributions to charity will decrease. You also need to consider that the standard deduction could fall significantly in 2026. You could offset this fall by deferring any philanthropic donations you are planning for 2025 to 2026 to get higher tax savings in 2026.

3. Maximize Tax-Advantaged Accounts

Take full advantage of 401(k) retirement contributions and contributions to health savings accounts, as you can claim a deduction on such contributions. Plan in advance to spread out your contributions all through the year. You can also benefit from the super catch-up contribution limit introduced by the IRS for older employees. Roth IRA qualifications are likely to change for married couples and singles. Assessing contributions to these retirement accounts can reduce your taxable income and provide long-term benefits.

3. Keep in mind the inflation adjustments

With the IRS releasing the inflation adjustments for 2025, it’s time to consider how these could impact your tax brackets and deductions. Assess whether you will continue to fall under the same tax bracket in 2025 or if adjustments to your income are required by adopting tax-reduction strategies. Stay informed about these changes and tweak your financial plans accordingly to minimize your tax liability.

4. Review Investment Strategies

Evaluate your investment portfolio for potential tax consequences. Consider the tax implications of short-term and long-term investments, and strategize to optimize your returns while minimizing taxes. Long-term capital gains are taxed at a lower rate that you could exploit by holding your investments for over a year before selling them for a profit. Moreover, since tax treatment can differ for various types of investment accounts, strategically positioning your investments can help reduce taxes.

Given the various permutations and combinations involved in tax planning, the process can get challenging and overwhelming. Hence, it is best to work with a tax professional who can offer personalized advice and help you strategize and develop a comprehensive plan tailored to your financial situation. This will ensure you are better prepared to tackle the evolving tax landscape of 2025 and beyond.

FinloTax: Tax expertise you can count on in CA

We are FinloTax, your go-to firm for premier tax consultancy services in California. We offer a range of competitively priced solutions, including CFO services, bookkeeping, tax preparation, tax planning, payroll management, and compliance support. Rely on our taxation expertise to strategize and plan effectively for the uncertainty of the TCJA and other tax laws in 2025. For further information, contact us at 408-822-9406.

[fixpacknl10]

Retirement Planning San Diego

Retirement planning San Diego is an essential aspect of financial security, especially in a city like San Diego, where the cost of living is high and the dream of a comfortable retirement is a common goal for many. Whether you’re starting your career or nearing retirement age, it’s important to have a solid plan in place to ensure you live comfortably without financial stress. San Diego offers a unique environment for retirement planning, blending its vibrant economy, beautiful surroundings, and diverse lifestyle options. Here’s a guide to help you navigate the key components of retirement planning in San Diego.

1. Understand Your Retirement Goals

The first step in retirement planning is setting clear and achievable goals. Consider factors like when you want to retire, the lifestyle you envision, and how much you need to live comfortably. San Diego offers a wide range of options, from coastal living to more suburban lifestyles, and your plan should reflect where you want to be. Factor in travel, hobbies, healthcare, and any other activities that will define your retirement.

2. Evaluate Your Current Financial Situation

Start by taking a close look at your finances. What are your current income, expenses, debts, and savings? San Diego’s high cost of living can make saving for retirement challenging, especially if you’re living in one of its more expensive neighborhoods like La Jolla or Del Mar. That’s why it’s crucial to track your spending and create a budget that prioritizes long-term savings, such as contributions to retirement accounts like 401(k)s, IRAs, or other investment vehicles.

3. Maximize Retirement Savings Plans

In San Diego, as elsewhere, contributing to retirement accounts is one of the best ways to secure a comfortable future. Consider maxing out your 401(k) if your employer offers a match — this is essentially free money. In addition, an IRA (Traditional or Roth) can help you build savings with tax advantages. San Diego residents often face higher-than-average costs for housing and living expenses, so it’s important to start saving early to account for these factors.

4. Plan for Healthcare Costs

Healthcare is a significant concern for retirees, and in San Diego, healthcare options are plentiful but expensive. Make sure to factor in health insurance premiums, Medicare, and any supplemental plans. The cost of healthcare is expected to rise, and being proactive in your planning will give you peace of mind as you approach retirement. Look into options like Health Savings Accounts (HSAs) to help with tax-free savings for medical expenses.

5. Invest Wisely for the Future

In addition to retirement accounts, it’s important to have a diverse investment portfolio that will grow over time. San Diego has a thriving real estate market, so some people choose to invest in rental properties as part of their retirement strategy. Others might prefer stocks, bonds, or mutual funds. The key is to balance risk and return based on your retirement timeline and goals.

6. Consider the Cost of Living in San Diego

Living in San Diego has its perks, but it can also come with a high price tag. The average home price in San Diego is well above the national average, and rent prices are similarly steep. When planning for retirement, factor in these living costs and make sure you have enough to cover both daily living expenses and future needs.

Conclusion

Retirement planning in San Diego requires careful consideration of your finances, goals, and the local economy. The city offers a variety of opportunities for those looking to retire in comfort, but you must plan ahead to ensure you have the resources to support your ideal lifestyle. By saving early, investing wisely, and considering the high cost of living, you can create a successful retirement plan that allows you to enjoy your golden years in this beautiful Southern California city.

CA LIC #0C71264, #0G81294 Investment advice offered through Copia Wealth Management Advisors, Inc. Copia Wealth Management Advisors, Inc. is a registered investment advisor.

[hauntedqueenking]

[ad_1] Financial advisor and columnist Michele Cagan SmartAsset and Yahoo Finance LLC may earn commission or revenue through links in the content below. I am 48 years old. I made $310,000 last year and I currently have $546,000 in my retirement plan at work. My husband is on disability and doesn’t work and does not have a 401(k) plan. I wanted to open a Roth IRA but I read that I make too much money. What options do I have to save more money for retirement? I’m debt-free except for my mortgage, which I’m trying to get rid of in the next two years before my daughter goes to college. What would you advise?  – Nilda Navigating retirement account rules can be confusing and frustrating, making it seem harder to save as much as you want to. You already have a solid foundation to build on, and more options than you might realize to beef up your savings. Even though you have a workplace plan, you can still contribute to a traditional IRA, though your contribution would be non-deductible. You can also create and contribute to a spousal IRA for your husband. And while you make too much money to directly contribute to a Roth IRA, you may be able to contribute through a backdoor Roth IRA. As for your mortgage, if your interest rate is lower than 4%, it might be worth not making extra payments and either saving or investing that money instead. High-yield savings accounts, for example, currently yield around 5%. One-year certificates of deposit (CDs) are even paying up to 5.5%, or more. Remember, just because savings or investments aren’t in an official tax-advantaged retirement account doesn’t mean you can’t use them to fund your retirement. Consider speaking with a financial advisor for more help saving and planning for retirement. A woman reviews her IRA and workplace retirement plan balances. Anyone can contribute to both a workplace plan and a traditional IRA, but your contribution may not be deductible, depending on your income. You can contribute up to $6,500 ($7,500 if you’re 50 or older) to an IRA for 2023. If neither you nor your spouse are covered by a workplace retirement plan, your contributions will be deductible. However, if you or your spouse has a workplace retirement plan like a 401(k), that contribution may be only partly deductible or completely non-deductible. Even if you can’t take a current tax deduction for your contribution, you’ll still get tax-deferred growth in the account. The growth and earnings will be taxed when you take withdrawals in retirement. Another plus: Having money in the IRA gives you the option of converting it to a Roth IRA. (And if you need help planning out your Roth conversion, talk it over with a financial advisor.) Story Continues The deductibility you might have depends on your household income and filing status: If you are single or the head of your household and have a workplace plan in 2023, IRA contributions are: If you are married, file jointly and have a workplace plan in 2023, IRA contributions are: If you are married, file jointly and have a spouse with a workplace plan in 2023 (but you do not), IRA contributions are: In general, you have to earn income in order to contribute to an IRA. The exception is if you have a spouse who works and earns enough to cover two IRA contributions. You can open a spousal IRA for the nonworking spouse. A spousal IRA gives your family a chance to double down on retirement savings. Despite its name, a spousal IRA is no different than a regular IRA in how it’s set up or its tax benefits. It’s not a joint account, either. Only the nonworking spouse owns this IRA. To qualify for a spousal IRA, you have to use “married filing jointly” as your income tax filing status, though. The same contribution limits for Roth IRAs and deductibility limits for traditional IRAs apply the same way they would for any retirement account. Traditional spousal IRAs are also eligible for Roth conversions. (And if you have more questions about spousal IRAs, consider matching with a financial advisor.) A couple sets up a spousal IRA on a laptop. Roth IRAs come with a few beneficial twists that make them desirable for many taxpayers. For one thing, as long as you follow the rules, all withdrawals – including growth and earnings – are completely tax-free. For another, you don’t have to take required minimum distributions (RMDs), so your money has more time to grow. Unfortunately, Roth IRA contributions are subject to income limits, locking many people out of them. For 2023, single filers earning $153,000 or more and married filing jointly filers earning $228,000 or more can’t contribute to Roth IRAs. That’s where the backdoor Roth comes into play. This conversion process allows higher earners the opportunity to move money sitting in their traditional IRAs into Roth IRAs. (And if you need help setting up a backdoor Roth, talk it over with a financial advisor.) The process is pretty simple. If you don’t already have a Roth account set up, you’ll create one. You tell your IRA administrator that you want to convert all or a part of your traditional IRA to a Roth IRA. You fill out some paperwork, and the administrator handles the rest. Some other caveats to keep in mind: There’s a special pro rata tax rule requiring that you have to consider all of your traditional IRAs as a whole, both pre-tax and after-tax contributions, to determine how much tax you’ll owe on the conversion. You can’t pick and choose which IRA money you want to convert. That said, the tax-free withdrawals in retirement may be well worth all the potential complications. You can increase your retirement savings by contributing to an IRA and a spousal IRA even if you have a workplace plan. You can also create tax-free retirement income streams by converting some of your retirement funds to Roth IRAs. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now. Consider a few advisors before settling on one. It’s important to make sure you find someone you trust to manage your money. As you consider your options, these are the questions you should ask an advisor to ensure you make the right choice. Keep an emergency fund on hand in case you run into unexpected expenses. An emergency fund should be liquid -- in an account that isn't at risk of significant fluctuation like the stock market. The tradeoff is that the value of liquid cash can be eroded by inflation. But a high-interest account allows you to earn compound interest. Compare savings accounts from these banks. Are you a financial advisor looking to grow your business? SmartAsset AMP helps advisors connect with leads and offers marketing automation solutions so you can spend more time making conversions. Learn more about SmartAsset AMP. Photo credit: ©iStock.com/Moyo Studio, ©iStock.com/LaylaBird Michele Cagan, CPA, is a SmartAsset financial planning columnist and answers reader questions on personal finance and tax topics. Got a question you’d like answered? Email AskAnAdvisor@smartasset.com and your question may be answered in a future column. Please note that Michele is not a participant in the SmartAsset AMP platform, nor is she an employee of SmartAsset, and she has been compensated for this article. The post Ask an Advisor: I Made $310,000 Last Year and Have $546,000 in Retirement Savings, But My Spouse Doesn’t Work. How Can I Save More? appeared first on SmartReads by SmartAsset. [ad_2] Source link

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{ MASTERPOST } Everything You Need to Know about Investing for Beginners

Fundamentals of investing:

What’s the REAL Rate of Return on the Stock Market?

Do NOT Make This Disastrous Beginner Mistake With Your Retirement Funds

The Dark Magic of Financial Horcruxes: How and Why to Diversify Your Assets

Dafuq Is Interest? And How Does It Work for the Forces of Darkness?

Booms, Busts, Bubbles, and Beanie Babies: How Economic Cycles Work

When Money in the Bank Is a Bad Thing: Understanding Inflation and Depreciation

Investing Deathmatch series:

Investing Deathmatch: Managed Funds vs. Index Funds 

Investing Deathmatch: Traditional IRA vs. Roth IRA 

Investing Deathmatch: Investing in the Stock Market vs. Just… Not 

Investing Deathmatch: Stocks vs. Bonds 

Investing Deathmatch: Timing the Market vs. Time IN the Market

Investing Deathmatch: Paying off Debt vs. Investing in the Stock Market 

Investing Deathmatch: What Happens in a Bull Market vs. a Bear Market 

Now that we’ve covered the basics, are you ready to invest but don’t know where to begin? We recommend starting small with micro-investing through our partner Acorns. They’ll round up your purchases to the nearest dollar and invest the change in a nicely diversified portfolio of stocks, bonds, and ETFs. Easy as eating pancakes:

Start saving small with Acorns

Alternative investments:

Small Business Investing: A Kinder, Gentler Alternative to the Stock Market 

Bullshit Reasons Not to Buy a House: Refuted

Investing in Cryptocurrency is Bad and Stupid

So I Got Chickens, Part 1: Return on Investment

Twelve Reasons Senior Pets Are an Awesome Investment 

How To Save for Retirement When You Make Less Than $30,000 a Year

Understanding the stock market:

Ask the Bitches Pandemic Lightning Round: “Did Congress Really Give $1.5 Trillion to Wall Street?”

Season 3, Episode 2: “I Inherited Money. Should I Pay Off Debt, Invest It, or Blow It All on a Car?” 

Money Is Fake and GameStop Is King: What Happened When Reddit and a Meme Stock Tanked Hedge Funds

Season 3, Episode 7: “I’m Finished With the Basic Shit. What Are the Advanced Financial Steps That Only Rich People Know?”

Wait… Did I Just Lose All My Money Investing in the Stock Market?

Season 4, Episode 1: “Index Funds Include Unethical Companies. Can I Still Invest in Them, or Does That Make Me a Monster?” 

Retirement plans:

Dafuq Is a Retirement Plan and Why Do You Need One?

Procrastinating on Opening a Retirement Account? Here’s 3 Ways That’ll Fuck You Over

How to Painlessly Run the Gauntlet of a 401k Rollover

Ask the Bitches: “Can I Quit With Unvested Funds? Or Am I Walking Away From Too Much Money?”

Workplace Benefits and Other Cool Side Effects of Employment

You Need to Talk to Your Parents About Their Retirement Plan

Season 4, Episode 5: “401(k)s Aren’t Offered in My Industry. How Do I Save for Retirement if My Employer Won’t Help?” 

Got a retirement plan already? How about three or four? Have you been leaving a trail of abandoned 401(k)s behind you at every employer you quit? Did we just become best friends? Because that was literally my story until recently. Our partner Capitalize will help you quickly and painlessly get through a 401(k) rollover:

Roll over your retirement fund with Capitalize

Recessions:

Season 1, Episode 12: “Should I Believe the Fear-Mongering about Another Recession?”

There’s a Storm a’Comin’: What We Know About the Next Recession

Ask the Bitches: How Do I Prepare for a Recession?

A Brief History of the 2008 Crash and Recession: We Were All So Fucked

Ask the Bitches Pandemic Lightning Round: “Is This the Right Time To Start Investing?”

[ezraworld1]

[ad_1] Financial advisor and columnist Michele Cagan SmartAsset and Yahoo Finance LLC may earn commission or revenue through links in the content below. I am 48 years old. I made $310,000 last year and I currently have $546,000 in my retirement plan at work. My husband is on disability and doesn’t work and does not have a 401(k) plan. I wanted to open a Roth IRA but I read that I make too much money. What options do I have to save more money for retirement? I’m debt-free except for my mortgage, which I’m trying to get rid of in the next two years before my daughter goes to college. What would you advise?  – Nilda Navigating retirement account rules can be confusing and frustrating, making it seem harder to save as much as you want to. You already have a solid foundation to build on, and more options than you might realize to beef up your savings. Even though you have a workplace plan, you can still contribute to a traditional IRA, though your contribution would be non-deductible. You can also create and contribute to a spousal IRA for your husband. And while you make too much money to directly contribute to a Roth IRA, you may be able to contribute through a backdoor Roth IRA. As for your mortgage, if your interest rate is lower than 4%, it might be worth not making extra payments and either saving or investing that money instead. High-yield savings accounts, for example, currently yield around 5%. One-year certificates of deposit (CDs) are even paying up to 5.5%, or more. Remember, just because savings or investments aren’t in an official tax-advantaged retirement account doesn’t mean you can’t use them to fund your retirement. Consider speaking with a financial advisor for more help saving and planning for retirement. A woman reviews her IRA and workplace retirement plan balances. Anyone can contribute to both a workplace plan and a traditional IRA, but your contribution may not be deductible, depending on your income. You can contribute up to $6,500 ($7,500 if you’re 50 or older) to an IRA for 2023. If neither you nor your spouse are covered by a workplace retirement plan, your contributions will be deductible. However, if you or your spouse has a workplace retirement plan like a 401(k), that contribution may be only partly deductible or completely non-deductible. Even if you can’t take a current tax deduction for your contribution, you’ll still get tax-deferred growth in the account. The growth and earnings will be taxed when you take withdrawals in retirement. Another plus: Having money in the IRA gives you the option of converting it to a Roth IRA. (And if you need help planning out your Roth conversion, talk it over with a financial advisor.) Story Continues The deductibility you might have depends on your household income and filing status: If you are single or the head of your household and have a workplace plan in 2023, IRA contributions are: If you are married, file jointly and have a workplace plan in 2023, IRA contributions are: If you are married, file jointly and have a spouse with a workplace plan in 2023 (but you do not), IRA contributions are: In general, you have to earn income in order to contribute to an IRA. The exception is if you have a spouse who works and earns enough to cover two IRA contributions. You can open a spousal IRA for the nonworking spouse. A spousal IRA gives your family a chance to double down on retirement savings. Despite its name, a spousal IRA is no different than a regular IRA in how it’s set up or its tax benefits. It’s not a joint account, either. Only the nonworking spouse owns this IRA. To qualify for a spousal IRA, you have to use “married filing jointly” as your income tax filing status, though. The same contribution limits for Roth IRAs and deductibility limits for traditional IRAs apply the same way they would for any retirement account. Traditional spousal IRAs are also eligible for Roth conversions. (And if you have more questions about spousal IRAs, consider matching with a financial advisor.) A couple sets up a spousal IRA on a laptop. Roth IRAs come with a few beneficial twists that make them desirable for many taxpayers. For one thing, as long as you follow the rules, all withdrawals – including growth and earnings – are completely tax-free. For another, you don’t have to take required minimum distributions (RMDs), so your money has more time to grow. Unfortunately, Roth IRA contributions are subject to income limits, locking many people out of them. For 2023, single filers earning $153,000 or more and married filing jointly filers earning $228,000 or more can’t contribute to Roth IRAs. That’s where the backdoor Roth comes into play. This conversion process allows higher earners the opportunity to move money sitting in their traditional IRAs into Roth IRAs. (And if you need help setting up a backdoor Roth, talk it over with a financial advisor.) The process is pretty simple. If you don’t already have a Roth account set up, you’ll create one. You tell your IRA administrator that you want to convert all or a part of your traditional IRA to a Roth IRA. You fill out some paperwork, and the administrator handles the rest. Some other caveats to keep in mind: There’s a special pro rata tax rule requiring that you have to consider all of your traditional IRAs as a whole, both pre-tax and after-tax contributions, to determine how much tax you’ll owe on the conversion. You can’t pick and choose which IRA money you want to convert. That said, the tax-free withdrawals in retirement may be well worth all the potential complications. You can increase your retirement savings by contributing to an IRA and a spousal IRA even if you have a workplace plan. You can also create tax-free retirement income streams by converting some of your retirement funds to Roth IRAs. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now. Consider a few advisors before settling on one. It’s important to make sure you find someone you trust to manage your money. As you consider your options, these are the questions you should ask an advisor to ensure you make the right choice. Keep an emergency fund on hand in case you run into unexpected expenses. An emergency fund should be liquid -- in an account that isn't at risk of significant fluctuation like the stock market. The tradeoff is that the value of liquid cash can be eroded by inflation. But a high-interest account allows you to earn compound interest. Compare savings accounts from these banks. Are you a financial advisor looking to grow your business? SmartAsset AMP helps advisors connect with leads and offers marketing automation solutions so you can spend more time making conversions. Learn more about SmartAsset AMP. Photo credit: ©iStock.com/Moyo Studio, ©iStock.com/LaylaBird Michele Cagan, CPA, is a SmartAsset financial planning columnist and answers reader questions on personal finance and tax topics. Got a question you’d like answered? Email AskAnAdvisor@smartasset.com and your question may be answered in a future column. Please note that Michele is not a participant in the SmartAsset AMP platform, nor is she an employee of SmartAsset, and she has been compensated for this article. The post Ask an Advisor: I Made $310,000 Last Year and Have $546,000 in Retirement Savings, But My Spouse Doesn’t Work. How Can I Save More? appeared first on SmartReads by SmartAsset. [ad_2] Source link

[third-new]

I'm 60 with a $1.2 million Roth IRA

SmartAsset and Yahoo Finance LLC may earn commission or revenue through links in the content below. Planning for a Roth IRA slightly different to most other retirement assets. This tax-advantaged account produces completely untaxed income, as long as it effectively boosts the value of your Social Security withdrawals and benefits. That changes your options compared to getting pre-tax 401(k) or…

[newtras]

I'm 60 with a $1.2 million Roth IRA

SmartAsset and Yahoo Finance LLC may earn commission or revenue through links in the content below. Planning for a Roth IRA slightly different to most other retirement assets. This tax-advantaged account produces completely untaxed income, as long as it effectively boosts the value of your Social Security withdrawals and benefits. That changes your options compared to getting pre-tax 401(k) or…