Understanding Your Tolerance for Market Risk
March of 2020 was a good reminder that market risk can’t be taken lightly. Have you ever had your tolerance for market risk measured? If you haven’t, now may be a good time. Take a look at our recent article that explains why https://bit.ly/31fQkau.
8 Financial Goals For Your 40th Birthday
8 Financial Goals For Your 40th Birthday
For investors in their 30s, life can feel busy, hectic, and a bit disorganized at times. How do you focus your time and energy on the things that matter most?
In your 30s, life often feels hectic with a mix of responsibilities like paying down debt, starting a family, and saving for retirement. To make things easier, focus on these key financial goals before turning 40. First, ensure you’re investing with purpose. This means defining your retirement goals, understanding how much you need to save, and creating a strategy to reach those goals. It’s a great time to consider working with a financial advisor to help make your vision a reality.
Another key goal is to ensure your career and salary are advancing. Your 30s are when your hard work should start paying off in terms of salary growth. …
The Value of a Fee-Only, Fiduciary Advisor
The Value of a Fee-Only, Fiduciary Advisor
What makes financial advice “good enough”? Well, that depends on if your advisor is working under the fiduciary or the best interest standard. The good news is that as the client, you have the power to decide which standard is the right fit for you.
When meeting with a financial advisor, it’s important to understand their motivations and how they prioritize your best interests. Financial advisors are held to different standards of care: the best interest standard and the fiduciary standard. Under the best interest standard, advisors must recommend investments that are in your best interest but can still disclose conflicts like commissions or bonuses they receive. This can sometimes lead to recommendations that benefit the advisor more than the client.
In contrast, fiduciary advisors are legally required to put your best interest first in all aspects of their …
Financial Goals for Your 30th Birthday
Financial Goals for Your 30th Birthday
The years between 20 and 30 can be some of the most exciting – and challenging – times in life. But what really matters when it comes to the financial lives of young investors? To help simplify things a bit, we created a resource that details 8 financial goals for investors to accomplish before their 30th birthday. If you’re under 30, how are you doing on the list? If you are over 30, how are the young investors in your life doing?
The years between 20 and 30 are often filled with excitement, but also present a number of challenges, especially when it comes to personal finances. As you transition from high school to a young adult, it’s crucial to focus on financial goals that set you up for success by the time you turn 30. Here are eight key …
The SECURE Act: 3 Key Takeaways
The SECURE Act: 3 Key Takeaways
By many estimates, the SECURE Act was the largest retirement reform bill since 2006. But at 18,000 words long, most investors haven’t had time to sit down and read it yet.
Passed in 2020, the act introduced several key changes to retirement planning. One significant change is that retirees must now begin taking Required Minimum Distributions (RMDs) at age 72, rather than 70½, providing an additional 18 months for funds to grow before taxable distributions begin. Another major change is the elimination of the “Stretch IRA” for many beneficiaries, meaning that most beneficiaries must now withdraw the full balance of an inherited IRA within 10 years, which could lead to higher tax liabilities.
Additionally, it allows individuals over the age of 70 to make tax-deductible contributions to retirement accounts, which is beneficial for retirees who continue to work and want to …
Estate Strategies – Critical Elements of an Estate Plan
Estate Strategies – Critical Elements of an Estate Plan
Taking steps to protect your estate is an important financial decision. Proper strategies can maximize opportunities and reduce stress for your loved ones. Yet, around 50% of people over 50 don’t have a will, even though almost 60% of Americans plan to leave an inheritance. By creating an estate plan, you can put your financial house in order and save money. Documenting your wishes ensures that your family won’t face a costly and lengthy probate process, and it helps make sure your legacy is honored.
A will is essential for outlining how your assets will be distributed, naming an executor, and designating guardians for minor children. However, wills can be contested in court, which is why additional documents like a letter of intent can be helpful to clarify your intentions. A power of attorney …
The Financial Considerations of Gifting
The holidays are just around the corner and 2019 is coming to a close. If financial gifting around the holidays is on your to-do list, we invite you to grab a copy of a recent article we published. http://bit.ly/2oSvajh
Getting Strategic with Social Security
Getting Strategic with Social Security
While social security should be just a portion of your overall retirement strategy, it’s an important part to get right.
Social Security is a crucial component of your retirement plan, and understanding how it works is essential. Signed into law by President Roosevelt in 1935, the system provides retirement income funded by taxes from current workers. The amount you pay into Social Security during your lifetime determines your benefit, with the Social Security Administration (SSA) using your 35 highest-earning years to calculate your monthly payments. The more you contribute, the higher your benefit will be.
You can start receiving Social Security as early as age 62, but your monthly benefit will be reduced by about 0.5% for each month you claim early. Conversely, if you wait until your “full retirement age” (which varies based on your birth year) or beyond, you can earn …
Thriving in the Gig Economy
Thriving in the Gig Economy
Approximately 57 million Americans participate in the gig economy. While the gig economy has been around forever, the number of freelancers has increased exponentially. The need for these freelancers and side hustlers to save for retirement is greater than ever.
The gig economy, which includes independent contractors and freelancers, continues to grow rapidly. With over 57 million Americans participating in this type of work, it’s clear that the shift toward gig work is here to stay. While this model offers flexibility and good income, it also presents challenges in managing finances, particularly when it comes to retirement savings, taxes, and insurance. Fortunately, freelancers can take several proactive steps to improve their financial future.
First, gig workers should secure health insurance and consider opening a Health Savings Account (HSA). The HSA offers a tax-friendly way to save for medical expenses, and after age 65, …
59 ½. Why is this age so important?
59 ½. Why is this age so important?
If you’re 59½ and believe you’re not financially equipped for retirement, there’s still hope. The IRS grants those at that age special allowances to help bolster their retirement savings.
As you approach your 60th birthday, significant milestones in your retirement and healthcare journey are on the horizon. At 59½, you can begin withdrawing from retirement accounts without incurring early withdrawal penalties, and you’re also eligible to contribute more to your IRA. In 30 months, you can claim Social Security benefits, and in 66 months, you’ll be eligible for Medicare. The decisions you make now regarding retirement savings, healthcare, and financial planning will shape your upcoming golden years.
For many nearing retirement, financial concerns are common, with many Americans falling short of having enough saved. However, at 59½, the IRS allows catch-up contributions to retirement plans, helping to …
