Roth IRA

Dear Liz: I am 65, self-employed and have a SEP IRA as well as a Roth IRA. I’ve had a few low-income years, and I find myself in a very low tax bracket, most likely lower than when I begin to take distributions and collect Social Security in a few years. What are the steps for a “backdoor Roth” conversion? As a self-employed person, do I even qualify?Answer: A backdoor Roth is … [Read more...] about Liz Weston: Basic Roth conversions can make sense, but aren’t a slam dunk

Dear Liz: You often recommend in your column to seek the advice of a fee-only financial planner. Where would I find such a financial planner? Our understanding is that a person has to have at least $1 million of savings to invest before a “fee-only” financial planner will consult with you. Can you be more specific?Answer: Once upon a time, it was difficult to find fee-only … [Read more...] about How the pandemic made working with a financial planner easier

Dear Liz: You often recommend in your column to seek the advice of a fee-only financial planner. Where would I find such a financial planner? Our understanding is that a person has to have at least $1 million of savings to invest before a “fee-only” financial planner will consult with you. Can you be more specific?Answer: Once upon a time, it was difficult to find fee-only … [Read more...] about How the pandemic made working with a financial planner easier

According to the IRS, in 2018 more than 34 million taxpayers in their 20s were eligible to contribute to an individual retirement account, known as an IRA. Fewer than 5% did so. Of course, some may be doing some retirement saving through work. But even if you’re a 20-something with a workplace 401(k), an IRA – specifically a Roth IRA – is the smartest retirement move to make. … [Read more...] about Carla Fried: For 20-somethings, how to choose the right retirement account

The $2 trillion in new spending just enacted by congressional Democrats is a COVID-19 relief bill in name only. It’s plenty of money all right, but so little of it goes to fighting the pandemic it brings to mind an observation attributed to Benjamin Franklin concerning an ox that had been mistaken for a bull. “He’s thankful for the honor,” the great man supposedly said, “but … [Read more...] about Peter Roff: Beware the Pension Bailout Hidden Inside COVID-19 Relief Bill | Opinions

Dear Liz: I recently sold my home and want to put away funds for my daughters. I want to place $130,000 each in an account that will earn 7% to 10% interest for 30 years or so, providing them with a comfortable retirement fund. I’m thinking of having them start with a low-cost index mutual fund. What are the drawbacks to placing all of the funds in one mutual fund account?What … [Read more...] about Liz Weston: Take these steps to reduce volatility in retirement fund investments

3 Social Security Hacks You've Never Heard Before | Personal-finance | lexch.com We recognize you are attempting to access this website from a country belonging to the European Economic Area (EEA) including the EU which enforces the General Data Protection Regulation (GDPR) and therefore access cannot be granted at this time. … [Read more...] about 3 Social Security Hacks You’ve Never Heard Before | Personal-finance

Social Security is one of the most important income sources for many retirees. Unfortunately, it's a confusing program with lots of complex rules. That makes it difficult for seniors to optimize their income. The good news is, there are techniques you can employ to get the most money possible from Social Security. If you're interested in increasing your retirement income, check … [Read more...] about 3 Social Security Hacks You’ve Never Heard Before

President Joe Biden unveiled his $2.3 billion American Jobs Plan on March 31. It will be mainly directed toward infrastructure repairs and improvements if a similar spending package is passed by Congress. The plan includes $174 billion to spur the adoption of electric vehicles, which would benefit Tesla Inc. TSLA, -0.93%, General Motors Co. GM, … [Read more...] about Weekend reads: These investments can help you profit from Biden’s $2.3 trillion spending plan

College students are usually in a time of transition between being children and adults. They may be living away from home but still financially dependent on their parents. Or they may start earning their own income while they're in school. Their taxes are in transition, too – some students can be claimed on their parents' return, but others may want to file their own tax … [Read more...] about Tax Filing Tips for College Students