Having a sound tax strategy is critical to long-term wealth building. Whether you’re an employee, business owner, or invest in real estate there are tax wise decisions you must make every day. After making a smart tax decision your next step is to decide what to do with your winnings. To understand a tax strategy, I . . .
Last week we discussed how to complete a back-door Roth IRA contribution. For many, this strategy is a slow and boring way to do it. Fortunately, there is another option, which can lead to larger Roth contributions when you earn too much. The ability to use this strategy is relatively new. In September 2014, the IRS released Notice 2014-54 to grant . . .
A Roth IRA grows tax-free and provides tax-free distributions. These features make a Roth IRA a powerful tax shelter. Because of these unique benefits, the desire to get money into a Roth IRA is high. However, income thresholds limit access to Roth IRAs. Therefore, certain earners are unable to gain direct access to a Roth IRA. If . . .
The American ideal. Owning a home, a nice pension, and social security. You were set for life. After the 2008 housing crisis the desirability of home ownership changed. Many people lost everything because they bought too much house. Pensions are going extinct. Social security has changes on the horizon. The American ideal isn’t the same . . .
Early retirement sounds like a myth. Maybe you believe in it a little bit, but think it is limited to those born with a silver spoon or winning the lottery. An inheritance or winning the lottery is a definite possibility but not one you can plan on experiencing. Two things you need to understand about . . .
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 . . .
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. . . .
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 . . .
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 . . .
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 . . .