In this video, I’ll explain the key differences between a Traditional 401(k) and Roth 401(k)—two popular retirement savings options offered by employers. Understanding how these accounts differ can help you make smarter financial decisions and optimize your retirement savings strategy. Both plans offer tax advantages, but knowing which one suits your situation depends on when you want to benefit from those tax savings—now or later.
If you’re planning a Backdoor Roth IRA conversion, understanding the pro-rata rule is crucial to avoid unexpected tax bills. This often-overlooked rule can significantly impact your retirement strategy, especially if you have pre-tax funds in any of your IRAs.
In this video, I explain the complexities of the pro-rata rule and how it can affect Backdoor Roth conversions. I’ll start with the basics of IRA contributions, breaking down how pre-tax and after-tax contributions differ. Understanding this distinction is key to helping your conversion go smoothly and minimizing additional taxes.
If there’s one thing that serves as a constant throughout our lives, it’s change. Leaving home, beginning a career, getting married, building a family, navigating career transitions, divorce, and loss of loved ones are just a few examples of events that mark periods of great adjustment. These life transitions impact us emotionally, but also financially, and it’s smart to have a trusted financial advisor by your side to help you navigate the practical financial aspects of these different phases of life. If you think the New Year will bring a time of change and evolution in your life, it might be the perfect time to begin working with a professional you trust. In this article, we’ll discuss life transition planning for five specific, common scenarios and share how a financial advisor can offer guidance.
How Does a Small Business Owner Prepare for Life Beyond Work?
Succession planning and exit planning are two terms that many people use interchangeably. This is understandable, since both phrases are associated with business owners planning for retirement. However, the two concepts have slight differences, and the crux of those differences is what those planning strategies target. Succession planning centers on the continued financial health of a business after its owner or chief officer retires or dies. Alternatively, exit planning focuses on the wealth of a business owner who’s retiring and wants to transfer ownership or close a business down.
With all the complexities, finances, and emotions connected with retiring from a small business, it’s important for small business owners to understand how succession and exit planning differ. While some elements of the two concepts may be similar, the endgames are not. In this article, we take a closer look.
If you’re wondering what types of insurance you need to protect yourself, your family, and your assets, read on to learn the types of insurance everyone should consider.
When it Comes to Your Hard-Earned Money, It’s Crucial to Find the Right Advisor for You
Hiring a financial advisor can be the best way to develop a strong financial plan and achieve your long-term financial and life goals. Too often, however, people hesitate to seek out the assistance of a professional when it comes to helping them manage their finances – even if they’re struggling. In fact, research on the subject shows that even though 71% of adults need improvement with their financial planning, only 29% take the step of hiring a financial advisor. Some are too nervous to put their money in someone else’s hands or simply don’t feel that an advisor would be beneficial, yet research suggests those who work with a financial advisor have significantly more money for retirement than those who don’t.
So, how do you take this critical step and choose the advisor who is right for you? With something as important as your hard-earned money, you’ve got to find someone you can fully trust. As you consider hiring a financial advisor, keep these common mistakes in mind to avoid them as you begin your process.
You Worked Hard to Get Here and Now it’s Time to Enjoy the Fruits of Your Labor
We spend most of our working lives striving toward the ultimate goal of enjoying a happy retirement. But what exactly does that look like? And how do you achieve it? The answers to those questions depend a lot on YOU. Every retiree is going to have their own definition of what a fulfilling retirement looks like. For some, a happy retirement might look like getting to spend more time on hobbies, while for others it might look like finally getting to travel to all those destinations they’ve dreamed about. It might even be simply about spending more time with your kids and grandkids. Whatever a happy retirement looks like to you, you’ll have to be intentional to achieve it.
Below are 10 habits that can help you find happiness and fulfillment throughout your retirement.
The Right Advisor Can Help You Boost Your Small Business Profit While Preparing for Retirement
As a small business owner, have you wondered whether you need a financial advisor? Most often, the answer is yes.
While there are certain parts of running a business that you can teach yourself as you go along, managing your business finances with little or no background may not be one of them. In fact, poor money management is one of the most common reasons businesses fail. If you’d like help with things like building a budget, developing a smart tax strategy, and fine-tuning your cash flow, it may be time to hire a financial advisor. Read on to learn about the benefits and how to choose the best advisor for you.
Considerations for Your 401(K) as You Approach Retirement Age
Contributing to your 401(k) is a habit you’ll want to start as soon as you enter the workforce. Likely, it will become a yearly or monthly contribution you don’t actively think about for the most part. However, as retirement approaches, it becomes even more imperative for you to understand your 401(k) and the best ways to access it. Here are six things to know about your 401(k) as you approach age 50.
Learn How These Changes Will Impact Your Financial Security
Each year, the Social Security Administration announces important numbers that impact both workers and retirees. In October, new wage base and benefit information for 2021 was released and it means a significantly larger tax bill for nearly 12 million high-earning workers. Why? Let’s dig into the numbers for both taxes and benefits below.
