Recent updates under SECURE Act 2.0 have made Roth IRAs more appealing than ever, offering investors new avenues to build their retirement savings. Here’s why Roth IRAs might be the right choice for you: Tax Benefits Roth IRAs allow contributions with after-tax dollars, meaning withdrawals – including earnings – are tax-free after age 59½, provided the account has been open for at least five years. This means tax-free inheritance for those who are beneficiaries on...
“Planning for retirement is about more than just creating a basic financial plan—it’s about planning with purpose.” - Debra Taylor, CPA/PFS, JD, CDFA, “4 Pivotal Questions to Help Clients Retire With Purpose,” Horsesmouth Beyond the spreadsheets and investment portfolios lies a realm of essential considerations for your retirement journey. It's not just about securing your financial future; it's about enriching your life as you transition into retirement. Taken from the above quoted article, below is...
“Summertime jobs offer children opportunities to earn a bit of money and to gain valuable experience. Why not consider hiring your own children to work with you?” - Debra Taylor, CPA/PFS, JD, CDFA, “5 Good Reasons to Hire Your Children This Summer,” Horsesmouth As schools break for the summer, your children might be looking for ways to earn money and add to their resume with their ample free time. Have you considered the potential benefits...
Social Security provides retirees with a basic income. It was never intended to fully cover the cost of living in retirement, but it acts as a supplement to your resources and provides additional peace of mind. Social Security includes disability, dependent benefits, and survivor benefits for minor or disabled children. Our focus here will be on retirement benefits. As you are probably aware, retirement benefits may start at age 62. The table below highlights the...
Let’s jump right in with an overview – the Setting Every Community Up for Retirement Enhancement Act of 2019, popularly known as the SECURE Act, was signed into law in late 2019 and is now referred to as SECURE Act 1.0. SECURE Act 1.0 included provisions that raised the requirement for mandatory distributions from retirement accounts and increased access to retirement accounts. But it didn’t take long for Congress to enhance the landmark bill that...
Are you looking for a tax-smart way to support your favorite charity? Donating directly from your Individual Retirement Account (IRA) could be the answer! Here's a step-by-step guide to help you navigate the process with ease: 1. Know the Basics: An IRA is a retirement account that allows individuals to save for their golden years with tax advantages. Once you reach a certain age (usually 72), the IRS requires you to take Required Minimum Distributions...
Much has been written about saving for retirement, and we adhere to the principle that financial security is a key component to a successful retirement. Many of you are on that road right now, while others are accessing the savings accumulated over a lifetime. Knowing how much money you can withdraw each month from savings is important. Ask anyone who has retired. They will tell you that. But if you dig a little bit deeper...
We made it through another tax season, but that doesn’t mean our work is done! In fact, now is the perfect time to reflect not only on the past year but also to look ahead, as the actions you take now can significantly impact your future tax situations. With that in mind, we’d like to share some key strategies and best practices to help you stay prepared and organized and potentially reduce your tax liability...
Now that winter is behind us, it’s the perfect time to give your finances a “spring clean.” Here are a few simple ways to get started: Review and refresh your budget - Take a close look at your current budget. Have there been any changes in your income or expenses since your last review? Adjust your budget to reflect these changes and identify areas where you can save more. Declutter your expenses - Examine your...
If you’re like so many of our clients, saving for your children’s or grandchildren’s education is a top priority. You may also be wondering the best way to begin. To help, we thought we’d share some insights on 529 accounts and why they’re a great option. A 529 account is a special kind of investment account that you can use to pay for a wide range of education expenses. Your savings in the plan will...
It's now a secret that the typical American works long hours. But despite this long work week, Americans are terrible at taking vacation.
The figures out last year show that the average amount of student loan debt a student graduates with is $18,625. Most graduates are carrying multiple student loans from multiple sources, and the cost and complexity of managing them can become overwhelming, especially if they are unable to secure steady employment with sufficient cash flow to make the payments. One option that has always been available to indebted graduates is a college student loan consolidation which...
