The answer depends first on your financial objectives and then on other factors that will influence those objectives. Trusts are frequently used to minimize estate taxes, get professional management of assets, and control funds while providing for minor children. If these features correspond with your overall financial strategy, a trust can be an efficient way […]
If you are 50 or older, or you will reach age 50 by the end of the year, you may be able to make contributions to your IRA or employer sponsored retirement plan above the normal contribution limit. Catch-up contributions are designed to help you make up any retirement savings shortfall by bumping up the […]
This month’s topic was inspired by a recent “ah-ha” moment I had while reviewing my phone service plan and that of my parents. What started as a simple check on their plan led me to dig into their other monthly expenses, like cable and wireless bills. As I uncovered several overlooked costs, I realized just […]
If you own a small business and you haven’t set up a retirement savings plan, what are you waiting for? A retirement plan can help you and your employees save on taxes while saving for the future. Tax advantages A retirement plan can have significant tax advantages: Employers with 100 or fewer employees are eligible […]
You can, but it isn’t your best option. Your 401(k) plan should be dedicated primarily to your retirement. There are two primary drawbacks to using your 401(k) for college funding. First, if you withdraw funds from your 401(k) before you are 59½, you will owe a 10% premature distribution penalty on the withdrawal. This penalty […]
Another day, another breach. National Public Data, a data broker that sells personal information, was hacked last year but only released details of the event at the end of August. The breach exposed sensitive details like full names, Social Security numbers, mailing addresses, email addresses, and phone numbers. What’s truly alarming is the scale: […]
Did you know that, if you are at least 70½ years old, you can make tax-free charitable donations directly from your IRA? By making what’s called a qualified charitable distribution (QCD), you can benefit your favorite charity while excluding up to $105,000 in 2024 from gross income. These gifts, also known as “charitable IRA rollovers,” […]
Does your idea of an ideal retirement include globetrotting, visiting family, moving to a warmer climate, or something else entirely? As you envision the goals for your golden years, it’s important to make sure you have the financial wherewithal to pursue them. Otherwise, your expectations and reality might not align. In the world of finances, […]
Your retirement lifestyle will depend not only on your assets and investment choices, but also on how quickly you draw down your retirement portfolio. The annual percentage that you take out of your portfolio, whether from returns or the principal itself, is known as your withdrawal rate. Figuring out an appropriate initial withdrawal rate is […]
Why an HSA Should Be on Your Radar for 2025 As we enter the 2025 benefits enrollment period, it’s time to start thinking about your healthcare options for the new year. While many people focus on health insurance plans, there’s one powerful tool that often gets overlooked: the Health Savings Account (HSA). But don’t let […]
