Choosing between a Roth IRA or Traditional IRA

Roth IRA or Traditional IRA

The past two weeks we looked at why a Roth Account is the best and why a Tax-Deferred Account is the best. While the last two articles hit on both 401(k) and IRAs, this week we are focusing on choosing between a Roth IRA or a Traditional IRA. The decision matrix behind these two choices . . . 

When to contribute to tax deferred accounts

Traditional IRA

Last week we discussed when to contribute to a Roth account. This week we will look at the counter part… tax deferred accounts. These are known as Traditional IRA, 401(k), 403(b), SIMPLE IRA, and SEP to name a few popular versions. As you can see, there are many more tax-deferred account options than Roth options. . . . 

Why you should contribute to a Roth account

Roth IRA Contribution

When it comes to saving the question of “where should I save my money” is a popular and important question. Typically the showdown of best account is between the Roth and Pre-Tax (traditional) accounts. While each account has its merits and if you still aren’t sure after reading this plus don’t want to seek professional . . . 

How to Maximize your Charitable Giving

Charitable giving strategy

Donating to charity is a fulfilling experience. The way you donate may allow you to keep more of what you’ve earned, so you can help out your favorite charity or charities even more. Normally donations are done through cash, check, or credit card. Outside of the norm are two main strategies that have additional tax . . . 

IRA and 401k Hardship Withdrawal Rules

401k hardship withdrawal

The most important account in your financial plan is your emergency fund. Yet, your emergency fund isn’t always enough to protect you in an unexpected time of need. In those situations you may need to resort to alternative sources. One common source to access is an IRA or 401(k). Especially for you because of your mastered . . . 

Trump’s Tax Proposal and Your Financial Plan

Tax reform impact on personal finances

  As a business owner or investor what happens to the tax law matters to you. On April 26, 2017 Trump released his tax plan, or maybe I should call it a tax memorandum. The most recent list released provided less details than the copy provided in September during the presidential race. In other words, . . . 

4 Steps to Reach your Retirement Savings Goal

retirement planning savings strategies

I received a lot of push-back after publishing the article on Sound Financial Planning | How much do I need to save?. Saving 15% consistently is considered an impossible task by many. In fact, there are some feelings that by saving that that much for retirement you would be sacrificing lifestyle now for something you . . . 

Is my tax avoidance strategy a wealth avoidance strategy?

social security and s corporation wage

Building wealth requires a keen focus on tax management. However, finding a way to avoid tax today doesn’t always translate into greater wealth tomorrow. One of the most popular tax avoidance strategies is for a small business owner to go from being taxed as a sole proprietor (Schedule C) to being taxed as an S . . . 

Sound Financial Planning | How much do I need to save?

how much do i need to save for retirement

Previously, we reviewed how to calculate your safe withdrawal rate for retirement planning. On the flip side of the equation is understanding how much you need to save to provide you with that safe amount to withdraw so that you can live the life you desire. When it comes to the rule of thumb for . . . 

5 Basic Steps to Protect Your Family

family protection planning

If somebody asked you to list the 3 most important things in your life you’re likely to include your family. Many of you would jump off the proverbial bridge for your family! However, if somebody asked you if you have done any estate planning what would you say? You probably think: Estate planning is only . . .