Roth IRA

Occupation: Content ManagerIndustry: TechAge: 35Location: Boise, IDMy Salary: $75,000 + $8,000 bonusMy Wife's Salary: $77,000Net Worth: $794,000 combined ($320,000 in home equity, $145,000 and $21,000 in wife's TSP and Roth IRA, $95,000 and $30,000 in my 401(k) and Roth IRA, $24,000 cash ($12,000 each) in HYSA emergency funds, $98,000 (her) and $30,000 (me) in taxable brokerage … [Read more...] about Content Manager in Boise, ID — Money Diary

Getty Images I believe it’s important for people to think about how their retirement planning is affected by taxes — both now and by potential increases in the future.The Tax Cuts and Jobs Act, signed into law in December 2017, made changes to income and estate taxes. The cuts are set to expire at the end of 2025. So now may be a prudent time to look at your overall retirement … [Read more...] about Good Planning Can Reduce the Chances of Taxes Hurting Your Retirement Funds

This year, legacy planning will be more important than ever because of changes to inheritance rules and tax laws that went into effect last year and other changes that could be coming.The good news is that many people are not likely to see their income taxes raised for the foreseeable future. But the bad news is that many more people are likely to see higher taxes on their … [Read more...] about How Much of Your Estate Will Be Lost to Taxes?

If you’ve socked away money for retirement using an IRA, you may decide later that you want to use the funds to pay for your child's education. Converting an IRA to a 529 plan could make sense if you want to save more and take advantage of state tax incentives. But in some cases, you'll be penalized for moving the funds. Before you make the conversion, here's what to know. … [Read more...] about Should I convert my IRA into a 529 plan?

Stylish attractive woman sits against the backdrop of the cityscape and skyscrapers. Holds his ... [+] hands in the lotus position. Freedom concept. getty Have you ever thought about retiring early…extremely early? We’ve been seeing an increasing amount of interest in the concept of FIRE, which stands for financial independence, retire early. The FIRE movement is largely … [Read more...] about What You Should Know About Achieving Financial Independence And Early Retirement

By Joe Elsasser, CFP®Over the past few months, the Biden administration has already made some significant changes and more could be on the horizon. Some of these plans could have a big impact on retirees, but there are both challenges and opportunities if you know where to look. Converting funds from a traditional retirement account into a Roth IRA could become even more … [Read more...] about Roth Conversions Could Become Even More Beneficial for Retirees

Estate planning is one of the most critical services financial advisors can provide clients and their families. Yet, too many of us only do the bare minimum in this area, like working with an estate attorney, making sure titling is current and continuously updating the plan based on life events. Part of getting beyond those prerequisite steps is pursuing … [Read more...] about The Secret To Great Estate Planning? Smart Asset Location

By the time someone gets to the end of their career, they are generally really good at saving for retirement. In the finance world, we call this the accumulation phase. But as people retire, they leave the accumulation phase and enter the distribution phase—the phase where they start using the money that they have saved. And this is where it often gets tricky. The distribution … [Read more...] about Don’t Make These TSP Withdrawal Mistakes

Welcome to Money Diaries where we are tackling the ever-present taboo that is money. We’re asking real people how they spend their hard-earned money during a seven-day period — and we’re tracking every last dollar.Today: a content manager who has a joint income of $160,000 per year and spends some of her money this week on brie.Occupation: Content ManagerIndustry: TechAge: … [Read more...] about A Week In Boise, ID, On A $160,000 Joint Income

If you work for a company that offers a retirement plan, such as a 401(k) or 403(b), you probably have the option of making "traditional" or "Roth" contributions to your account. While having more investment options is a good thing, it might leave you feeling overwhelmed or confused about the benefits of each. Today, I'll review critical points about the differences between a … [Read more...] about The differences between a traditional & Roth IRA