Roth IRA

In 2021, adults under 50 may contribute up to $6,000 to a Roth IRA. Adults 50 and older may contribute up to $7,000. These limits apply to your total contributions to all IRAs, not just Roth IRAs. But you can choose how to split this up. You might put $3,000 in a traditional IRA and $3,000 in a Roth IRA. Or you could put all $6,000 in a Roth IRA and none in a traditional … [Read more...] about 10 Roth IRA Mistakes That Could Cost You Thousands

The problem, though, is that these thresholds have been in place for decades. In 1983, the decision was made to tax up to 50% of benefits at the aforementioned levels. In 1993, that rule was amended to tax up to 85% of benefits, also at those same levels.Meanwhile, the cost of living has risen substantially since then -- yet the income thresholds for Social Security taxes … [Read more...] about The Stealth Way Social Security Has Been Robbing Seniors of Their Benefits for Years | Personal Finance

Social Security is a critical income source for millions of seniors, and while you'll often hear that it's not advisable to live on those benefits alone, the reality is that many seniors do. But some people do a good job of saving for retirement and securing other income streams. As such, their benefits represent just a portion of their total senior income. That's really a more … [Read more...] about The Stealth Way Social Security Has Been Robbing Seniors of Their Benefits for Years

Of course, there's risk involved in buying stocks in an IRA, but the good news is that if you have a savings window spanning multiple decades, you're likely to come out ahead in the long run, even if there are years during which your investments lose money or underperform. Furthermore, if you're really not comfortable hand-picking stocks, you can always revert to stock-focused … [Read more...] about 3 Ways to Make the Most of Your IRA | Personal-finance

Here we have another cautionary tale. My friend, Micah Shilanski, from the great state of Alaska, shared with me a story that I’ve titled, “You’ll be a rich woman.”Bill Harris, RMAMicah’s StoryLike me, Micah is a CERTIFIED FINANCIAL PLANNER™ practitioner. Micah is also an expert on the Federal Benefits System that government employees use. As you would imagine, the Federal … [Read more...] about Why Professional Advice is Vital